Retirement can be a wonderful, relaxing time for you. You can finally take a step back from the daily grind. And you have fewer responsibilities and more time for yourself. However, it can also bring financial, psychological, and physical health problems.
It’s essential to prepare in advance. After all, you deserve a fun, comfortable retirement. So, don’t wait till you’re a senior to get your finances in order.
Start to think of whether you want to live somewhere cheaper to save money. Or, save now so you can have your dream home when you’re retired. Invest in things with high-return real estate like commercial land or recreational land. Build a retirement fund, and consider life settlements and viatical settlements. Remember, you don’t have to do it on your own. Hire a broker or a financial planner to help you navigate your options. Here’s a list to help you plan for a comfortable retirement.
Prepare for future expenses.
If you think you’re going to spend less when you’re retired, you’re mistaken. As your income goes down, your expenditure goes up. It’s unfortunate, but it doesn’t mean you have to suffer. Budgeting and saving for the future is the best option. However, consider the other financial options at your disposal.
If you have a life insurance policy, a viatical settlement provider can help you out. A life settlement and viatical settlement are popular terms; you’ve probably seen them advertised everywhere. However, not everyone knows how they can help. So, what is a viatical settlement? If you have a terminal illness, a viatical settlement contract can help. Viatical settlement providers give you a cash value for your life insurance policy. Most types of viatical settlements also have a death benefit. It will help your family after your death.
For those with a higher life expectancy, a life settlement may be a better option. It’s a good idea if you can’t afford your premium payment, or need the cash value. You get a cash payment without losing your life insurance policy’s cash surrender value. However, it will be less than the death benefit. While you won’t lose out on your life insurance policy’s cash surrender value, it will be less than the death benefit. Talk to your insurance company and a viatical settlement provider before you make this decision.
Don’t stop here. Think about investing in stocks and shares. Also, consider whether you can sell any real estate and if you have any assets you don’t need. A financial advisor or financial planner will help get your finances sorted out so you can retire comfortably.
Cut down on major expenses.
Do you need a vintage car? Is this the right time to buy a new home? The years leading up to retirement are some of the most important. It’s important to curtail your spending and increase your savings. Not everyone goes through the Hollywood version of a mid-life crisis. However, you could make some bad financial decisions towards the end of your working life.
It’s essential to be aware that this can happen so that you make a conscious effort to avoid it. Don’t make any quick buying decisions. Consider all the options before you purchase something. Remember, the more you save now, the easier your life will be after you retire.
Consider your living options.
If you don’t want to retire to a seniors-only community, it’s never too early to start planning. Invest in a real estate property. Or, invest in undeveloped land that you can build on after you retire. If you’re fortunate enough, you could buy land by the acre over several years. It will leave you with a large enough building site when you retire.
If you’re married to city life, put some money away for your dream home. Depending on the property type, things like tax and maintenance can be a burden. So, consider trying to pay it all off while you still have an income. However, this can be too expensive for most. Investing in undeveloped land is a much more affordable option.
Those who love the outdoors have several options. Buy a ranch or build a cabin on mountain land close to a national forest. You can find several real estate firms that have log homes or mountain land for sale. It’s a good investment for a secure, relaxing retirement.
Consider the unexpected.
Make sure you have proper insurance—health, auto, and home. Remember, just because you no longer have a job doesn’t mean that you don’t have to pay taxes. Consider alternative energy sources that can be cheaper. Keep your personal information secure, so you aren’t at risk of senior scams. You could still owe taxes on your investments, or your property. Even a retirement portfolio could be subject to fees.
Read the yearly report for your investments, so you know whether they’re still beneficial for you. Before you sign up for a new insurance policy, get a third party opinion on things like your premium payment and benefits. Ask a realty firm to help you buy residential land. Ask a financial planner to help you plan your retirement portfolio. Before you sign any written agreement, check how it will affect your future finances. Remember, the more you plan now, the less you will have to worry about after you retire.
Claire Peters is a contributor to the Los Angeles Post-Examiner and Baltimore Post-Examiner.