When I decided to budget a little more carefully, I had no idea how difficult it would be. Fortunately, I was able to talk with a few financial advisors who were able to point me in the right direction. One of the best pieces of advice I received was about setting a realistic budget. I learned how to effectively manage my money, so that I didn't have to worry about paying my bills or letting my accounts overdraft. This blog is designed to help people like me who have previously struggled with money. Check out these articles for financial advice that might help you to set a realistic budget.
Retirement planning as a single person with no kids is a little bit different than that for a married couple or someone with children. Not only do you need to make sure your financial house is in order, you also need to take steps to make sure you have a plan for your life as you age. The following tips can help you create a prepared and well cared for retirement.
Tip #1: Create a Safety Net
Many married couple depend upon each other or their children to care for them as they age. As a single person, you may not have family to turn to as you get older. This is why it is a good idea to invest in a longterm care insurance plan as part of your retirement insurance portfolio. These plans can provide funds and medical staff so you can age in place in your home, or so you can enter a senior living center. It's also a good idea to get a disability insurance plan. These plans can provide you with an income if you get ill or disabled before you have retired or reached the age for Medicare coverage.
Tip #2: Make a Legal Plan
You will need to appoint someone to act and speak on your behalf in the event that you become incapacitated. While this is a good idea at any age, it becomes even more important as you approach retirement since this issue is more likely to arise as you get older. Create a legal health directive to handle medical decisions in the event that you cannot. You should also consider finding a trusted individual whom you can provide with power of attorney, in the event it is necessary for someone to handle financial manners. This should be a trusted family member or an attorney. You may also want to draw up a will so your estate wishes are known in the event of death.
Tip #3: Save for a Purpose
Retirement savings should be sufficient to cover basic living expenses along with the type of lifestyle you plan to have in retirement. Your savings are primarily for your benefit, since they are not for a spouse or children. It can be easy to ignore future benefits and instead spend your money now instead of saving it for later. By creating specific retirement goals, you will be more likely to save regularly and successfully for retirement. For example, a goal of visiting a new country every year, developing a garden hobby, or taking up a new sport will require funds. Plan to save for these as well as the mundane retirement expenses so that you can look forward to enjoying your savings.
For more help creating the perfect retirement plan, contact a local financial planner, such as Richard Brown Investments.
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