Discover the keys to pursuing a fulfilling and secure retirement. Staying socially connected, saving consistently, maintaining a healthy lifestyle, planning for future care, and preparing for retirement on your own terms. Learn how proper money management and aging in place may contribute to a happy and worry-free retirement.
While you never know your needs as you age, the first step is thinking about your financial situation and health today to plan for your later years. With a one in four chance of making it to our 90th birthday, being independent and thriving as we age is worth pursuing. Here are some things you may want to consider as you plan for your later years.
Stay socially connected to others
Did you know that the National Institute on Aging has found that older adults who lead an active lifestyle and stay socially engaged are less likely to develop certain diseases? By participating in hobbies and joining social activities, you can lower your risk of health problems like dementia, heart disease, stroke, and even some types of cancer. Staying socially active could help you live longer, too.
Save for retirement and other goals
When planning for retirement, consistent saving is essential, but how do you know when you have saved enough? Here’s the deal: a general benchmark to aim for is having 25 times more than what you plan to draw from your savings annually.
Picture it like this: you want your savings to be your money-making machine in retirement. If you’re planning to draw, let’s say, $3,000 a month or $36,000 a year before taxes, then your goal is to have around $900,000 ($36,000 times 25) stashed away in your IRA and other investment accounts.
Don’t sweat it if these numbers seem overwhelming. That’s where an experienced wealth advisor comes in handy in retirement planning. They can help you explore different possibilities you might have yet to consider and let you know whether you’re on track in pursuit of your retirement dreams.
Maintain a healthy lifestyle
Good health starts early, long before retirement: good nutrition, regular exercise, and ditching harmful habits like smoking and excessive drinking. It’s like investing in your health portfolio; the dividends are worth it. Eating well doesn’t have to mean choking down kale salads every day (unless you’re into that, of course!). It’s all about finding that balance and nourishing your body with nutritious, yummy goodness.
Regular physical activity keeps your body in tip-top shape. Whether you’re into huffing and puffing during cardio sessions, pumping some iron with strength training, or finding your inner Zen with flexibility exercises, there’s something for you. Be sure to monitor your health with regular checkups and other preventative care. Staying healthy could equal cost savings in the future.
Plan for future care
With the cost of care increasing year over year, considering how the cost of care may impact you financially is essential. As you age, you may need help with the following:
- Personal care
- Household chores
- Meals
- Healthcare
- Getting around/transportation
The financial implications of long-term care are worth considering. Long-term care insurance can help cover some of these services, especially if you have too many assets to qualify for Medicaid but not enough savings to pay for care on your own comfortably. Understanding the costs associated with long-term care and the coverage provided by insurance policies is essential in making informed decisions about your future care needs.
Long-term care planning is about more than just buying insurance. It involves mapping out your course and considering factors like your home and community, health, and finances to ensure you can live independently for as long as possible. It’s essential to stay informed about long-term care options, services, and resources to make the best decisions about your future care.
Being ready to retire on your terms
Being prepared for retirement means a few things. First, it’s about feeling fulfilled or done in your career and accomplishing your goals. It’s like reaching the top of the mountain and shouting, “I did it!” Second, it’s about eagerly looking forward to the next chapter in your life. Retirement is like a blank canvas waiting for the artist to fill it with adventures and joy. What’s on your retirement bucket list? Travel, spending time with loved ones, or exploring new hobbies?
Lastly, it is being financially prepared. It is like having a game plan to support your dream retirement. It’s about setting goals and creating a solid financial plan. You can lean on the experience of a wealth advisor, someone who can help you navigate the ins and outs of retirement planning, crunch the numbers, and provide guidance along the way.
Money management
Managing your money and following a budget can help you feel financially secure today and may reduce the risk of running out of money in retirement. It’s important to follow your unique financial plan, revise it as you age, and start spending down your retirement assets. Managing your money may also include a strategy to offset inflation risk as you age.
Aging in place
On a broader definition, aging in place means living independently in a home that is right for your needs. Aging in place can mean downsizing to a smaller house, living in an assisted or LTC facility, living near or with family members, or having professional care at home. Developing a plan and sharing it with your family is crucial so they know what you prefer when the time comes.
If you’re still working and nearing retirement, planning the subsequent decades of your life is crucial. It starts with a healthy mindset, body, and financial wellness.
Our mission is to identify goals and nurture behaviors so that we can confidently discover and pursue dreams together. If you’re looking for financial guidance, schedule a call today.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any long-term care insurance. To determine which insurance may be appropriate for you, consult your financial professional prior to purchasing.
All information is believed to be from reliable sources; however, LPL Financial and Enduring Wealth Advisors® makes no representation as to its completeness or accuracy.
Securities are offered through LPL Financial, Member FINRA/SIPC. Investment advice is offered through Enduring Wealth Advisors, LLC, a registered investment advisor. Enduring Wealth Advisors, LLC and Enduring Wealth Advisors, INC are separate entities from LPL Financial.
This article was prepared by Fresh Finance.
Edited by Mark R Tracy, MBA, CFP® from Enduring Wealth Advisors® in collaboration with Copy.ai and Grammarly
Source:
1. What Is Long-Term Care? | National Institute on Aging, NIH, https://www.nia.nih.gov/health/long-term-care/what-long-term-care
2. Long-Term Care: What to Know About Insurance and Costs – AARP, AARP, https://www.aarp.org/caregiving/basics/info-2022/long-term-care-worries.html
3. Long-Term Care: Advice & Resources from AARP, AARP, https://www.aarp.org/caregiving/long-term-care
4. 26 Frequently Asked Questions About Long-term Care, Senior Navigator, https://seniornavigator.org/article/12732/26-frequently-asked-questions-about-long-term-care
5. What’s Your Retirement Number? No, Not Savings — Life Expectancy, by Carla Fried, https://www.rate.com/research/news/retirement-expectancy
6. Participating in Activities You Enjoy As You Age, NIH, https://www.nia.nih.gov/health/healthy-aging/participating-activities-you-enjoy-you-age#:~:text=Research%20has%20shown%20that%20older,Have%20a%20longer%20lifespan.
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