Everyone wants a financially secure retirement, but how do you know you’ve covered all of your bases? You don’t want to run out of money before you run out of time and you certainly don’t want to become a burden on your family in what are supposed to be your golden years.
So, how do you know when your financial picture is complete? Here are seven key pieces to your retirement puzzle that everyone should consider:
- Retirement Income – The most obvious piece of your retirement plan is the income you will live on during retirement. Most experts say you’ll need at least 80% of your pre-retirement income to live at the same level after you retire. Sources of this income will include Social Security, retirement plans and personal investments (stocks, bonds, rental property income, etc.)
- Survivor Income –How will you provide income for a surviving spouse or dependent child? Life insurance and annuities are often used as income sources for loved ones.
- Final Expenses – Funerals and burial costs, as with all expenses, are subject to inflation and can be significant. None of us want our grieving loved ones to be stuck with a large bill for our final expenses.
- Healthcare – Healthcare is expensive and getting more so every year. Money to cover medical insurance as well as medications, hospitalization and routine doctor’s appointments is a very important factor to consider for a worry free retirement.
- Extended Care – When traditional healthcare is no longer able to provide the care that you need, extended care takes over. Caring for you during a time when you require either lengthy or permanent healthcare support can drain savings accounts that took a lifetime to accumulate. Providing for this expense is important to any financial plan.
- Advanced Healthcare Directive – Independence is important to all of us. Making sure our healthcare is handled according to our wishes is critical. These wishes need to be considered and formalized in a legal document to guarantee you are treated the way you want to be treated, even if you are not able to communicate your wishes at the time.
- Financial Power of Attorney – Who will speak for you when you can’t? Who will handle your finances when you are not able to handle them yourself? Everyone has a need for a trusted advocate to look after them and their financial affairs when needed.
Some of these issues are fairly straight forward and just require realistic estimates of costs so you can be confident your retirement plan can provide for them. Others require a more experienced person to help us through issues we have never had to consider. This is where a seasoned, knowledgeable and trusted financial planner can make all of the difference. Let their experience in this complicated and confusing landscape help you navigate any pitfalls and common traps.
Securities and advisory services offered through Infinity Financial Services. Member FINRA/SIPC
Infinity Financial, LGC Wealth Management, and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for tax, legal or accounting advice. You should consult your tax, legal and accounting advisors before engaging in any transaction.