Retirement plan essential #1: Owning your home free and clearEntering retirement with a home that’s paid off can be a huge relief. Not having to budget for mortgage payments will allow you to have more money to allocate to other needs and wants. And if you ever need the money, owning your own home means you can always downsize and pocket the extra cash, or even take advantage of a reverse mortgage.
Retirement plan essential #2: Having an emergency fund
An emergency fund is a necessity in just about every retirement plan. Having that extra money can help cover unexpected expenses such as medical bills, home and car repairs – expenses that you can’t always plan for or predict. Moreover, a savings account can prevent you from dipping into your retirement and investment accounts early or, even worse, incurring more debt when dealing with emergencies.
Retirement plan essential #3: Plan ahead for medical expenses
Healthcare can easily become one of your largest expenses in retirement, eating away at a significant part of your retirement savings. Thankfully, your Medicare benefits can help. However, you need to be proactive and sign up for your Medicare benefits three months before your 65th birthday. By doing so, you’ll not only have the coverage you need, but can avoid paying higher premiums in the future. If you’re retired and under the age of 65, then secure health insurance to help bridge the gap until you become eligible for Medicare. Paying for healthcare on your own can be costly, but not as expensive as an unexpected hospital stay for a serious illness or accident.
For more information on retirement planning, visit the Protective Learning Center.