Saturday, January 11, 2014

Six Ways to Prepare your Family Financially for Retirement

Every family does what it can to financially prepare for retirement. As you prepare to enjoy your golden years, there are things you and your family can do to make sure that the necessary financial resources are available. 

Move Your Retirement Account To Something More Stable

For years, you have allowed your retirement account at work to remain aggressive and build as much value as possible. As you hit the home stretch and are preparing to use that retirement account, you will want to move your investment options to more conservative choices to make sure that you do not lose value in your account. Now is not the time to make risky high return investments. Stick with safer more stable accounts.

Pay Off Your Home

By paying off your mortgage before you retire, you will eliminate that expensive monthly payment and you will open up the equity in your home. If you ever need to borrow money for any reason during your retirement, your home's equity makes an excellent borrowing option.

Buy Long Term Care Insurance

The long term care insurance Spokane residents use helps to supplement any other kind of health insurance that your family may have. It is difficult to predict what kinds of health insurance resources you will have when you retire, and you also never know what kinds of health care costs you will incur. Long term care insurance helps to preserve your retirement savings by providing the care you need later in life.

Look Into Health Care Options

Along with long term care insurance, you will also need a general health insurance policy to cover your healthcare costs after retirement. Always purchase the most complete health insurance coverage you can to help save money as your care needs get more expensive. For example, Medicare offers several supplement options that will help pay for the costs that basic Medicare insurance does not cover. Without these supplements, your out of pocket costs could have a significant negative effect on your finances especially if you require complex prescriptions or anything else not covered in the standard plan.

Pay Off Your Credit Cards

Most retirees live on a fixed incomes that can make it difficult to live if they rack up credit card bills. Pay off your credit cards before retirement and get rid of all of your cards but one. If you can't pay for it in cash when you retire, then you shouldn't have it. Living on a fixed income requires a well planned budget and you won't have room for extra credit card bills in that budget. 

Get Life Insurance

If you do not have life insurance, then get some before you retire. The last thing you want to do is saddle your family with a tremendous financial burden when you pass away. If you have a mortgage or children in college, this is a must.

Planning for retirement is exciting, but it is also a tremendous responsibility. Make sure that your accounts are in order before you retire so that you and your family can enjoy the plans you have made. The sooner you start saving and planning, the easier it will be once you actually retire.

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