Believe it or not, there are far too many individuals approaching or in their 60s that are absolutely not prepared for a life of retirement. They have worked their entire lives but the savings just aren’t there as they get closer to the magic date.
This is a scary proposition for anyone, but it doesn’t have to be a doomsday scenario. There are definitely ways that someone approaching retirement can effectively plan and begin to take the necessary steps towards life after work.
Have a Budget Laid Out
The first place to start is to know what you’ll need to live on when retirement comes. There are many individuals that have a substantial savings but a lack of planning leads to overspending. This means that there isn’t enough capital available for the life of the retirement.
When you know what you can afford, it gives you clearly definable goals on what your income needs to be. It also helps you to break down where that income needs to come from.
Budgeting can be achieved a number of ways, but if at all possible it should be done with a financial planner or with budgeting software. Double and triple-check all of the numbers so that you have clearly defined goals.
Continue to Invest
Even if you are in your 60s, investing for the future is advisable. This is because life expectancies have risen by nine years over the past five decades. That means far too many individuals are outliving their retirement savings.
This is why investing into your 60s is imperative. Take a portion of your retirement nest egg and invest them in high-quality stocks. Though the market is volatile, those high-quality stocks are one of the best historical wealth creators.
One of the most important decisions to make is opting for Medicare or Medicare Advantage. Knowing the benefits of each of these insurance options is essential for your post-retirement life. Even if you have been in the best of health throughout your life, it is impossible to know what lay ahead.
Take a look at the benefits and downsides of each before making your decision. Understanding which of these is the best route can be just as important as your investment strategy or deciding when to file for Social Security benefits. Get this squared away and you are taking a major step towards retirement.