There’s no fool-proof guide for life that’s going to ensure a comfortable transition from high school to college, from college to the working world and from the working world into retirement. There’s also no safety net that’s going to provide you with a back-up plan in case you hit a rough patch during any of those aforementioned periods. Some may point to temporary unemployment benefits if you’re laid off from a job or Social Security payments during your golden years. However, these sources of income pale into comparison to the financial security you’d have if you hadn’t lost your job or were able to save enough to retirement. The point were getting at is this: You need to be making the right decisions every day if you expect to reach a stress-free retirement. To get there, Tom Batterman of Financial Fiduciaries LLC says heeding the to-do tips below will really pay off later down the line.
Supplement the Savings: You’ve built a considerable nest egg through saving extra income for decades. That’s great news, says Tom Batterman of Financial Fiduciaries LLC. The other step you should have taken during your working years was to establish an investment account. According to TheBalance.com, it’s important to invest an amount off money that you won’t need in the near future. That’s because some investment routes are part of a long-term plan where returns won’t be realized if you make small withdraws all along the way. “If you need the money to buy a car in a year or two, you will create a different investment plan than if you are putting money into a 401(k) plan on a monthly basis for the future,” TheBalance.com article says.
Government’s Assistance: Social Security benefits are a given; you’ve been paying into the system for decades now and it’s time to reap the rewards. However, Tom Batterman of Financial Fiduciaries LLC cautions against cashing in too soon. That’s because the regularly-scheduled payments you receive will vary depending on how close to retirement age you started collecting. Similarly, experts will encourage soon-to-be-retirees to look at the Medicare system. With health care coverage no longer being provided by your employer, it’s time to understand this program that offers enrollment once you turn 65.
Second Opinions: Saving money isn’t enough. According to TheBalance.com, having a financial advisor on your side is a great way to learn about the unknowns of retirement. By bringing aboard Tom Batterman of Financial Fiduciaries LLC, for example, you’ll have an advisor who is legally and ethically-bound to provide clients with impartial advice. Brokers might try and steer you toward investments with iffy returns but a fiduciary is held to a higher standard and will work with your money as if it were their own.