There are numerous jobs you may be able handle yourself without professional assistance. You might be able to complete repairs around the house or maintenance on your car. You may be able to plan a wedding, birthday party or other large event without relying on a party planner. And, you may even be able to plan your retirement income without the assistance of a professional.
However, DIY income planning, also known as do-it-yourself income planning, isn’t for everyone.
You only get one shot at planning your retirement. If you make a mistake, use bad assumptions or simply develop a poor plan, you may not be able to enjoy the kind of retirement you’ve always imagined.
Ask yourself the questions below. You may be surprised by your answers. If you don’t have clear responses for these questions, you may not be as prepared as you thought. You might benefit from working with a financial professional who can help bring clarity to your financial plan.
1. How much money do you need for retirement?
Every journey has a destination. In your journey to retirement, your savings goal is your destination. If you don’t know your savings goal for retirement, then it’s nearly impossible to develop any kind of effective savings plan.
Your retirement savings goal should be based on a number of factors, including your life expectancy, when you plan to retire, your expected investment return and your projected retirement expenses. Of course, these numbers may be difficult to project if you don’t have experience creating retirement savings plan.
Your financial professional has likely helped many people answer these exact same questions. He or she can help you identify all the factors that may play a role in your retirement and then use those variables to calculate a savings target. You can then use that target to create your savings plan and measure whether or not you are on-track.
2. What would happen to your family if something happened to you?
Your greatest asset may be your ability to generate income and support your family. You probably insure your home, car and numerous other assets, but have you developed a plan to support your family?
If you become disabled or if you pass away early, what support would your family have to continue their current standard of living? What changes might they need to make? Would they have to move into a smaller home? Would your spouse need to work more? Would they be able to meet their goals?
Life insurance and disability insurance can protect your family in the event you can no longer work. Protecting your most valuable asset, yourself, may be the foundation for your plan.
3. How will you pay for health care in retirement?
When you think about retirement, health care may be the last thing on your mind. After all, there’s nothing pleasant about going to the doctor or being hospitalized. It’s more fun to daydream about travel, spending time with family, and enjoying your favorite hobby.
According to a recent study from Fidelity, though, health care should be one of your primary retirement considerations. Researchers found that the average 65-year-old couple retiring today could expect to spend $245,000 out-of-pocket on health care expenses in retirement. That figure includes costs like premiums, deductibles, co-pays, and more. It does not include long-term care expenses, which could substantially increase your healthcare expenses in retirement.
If you don’t know how you will pay for healthcare in retirement, now may be the time to develop a plan. You may need to contribute more money to a healthcare savings account. You might need to look into insurance to help pay for long-term care expenses. If your retiring in the near future, you may want to examine supplemental healthcare plans.
Healthcare will likely be a significant expense for you in retirement. If you wait until retirement to take action, you may not have many good planning options available
Even if you’re the DIY type, you can still benefit from working with a professional. They can help you analyze your needs and goals and develop an action plan for you to implement. Contact Jewels Harris today to schedule a consultation.
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
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