Retirement is one of those things that virtually every working person looks forward to. What they don’t look forward to, and may not even know about, is how complicated retirement finances can be. It’s not as straightforward as saving, investing, and withdrawing from accounts. So what can you do to make retirement finances less complicated?
Work With a Financial Advisor
From working out the details of tax laws to making sound savings and investment decisions, there are a lot of financial details to weigh and consider. It can be a lot for most people to handle on their own. Financial advisors make it their job to understand the ins and outs of complicated financial topics and can help you sort them out and make a plan. Make sure you know what to look for in your financial advisor. Preparing for your retirement is one thing you definitely want to be working on with a reputable professional.
Plan Ahead
Just like the rest of your adult life, there are a lot of expenses you’ll need to pay for in retirement. You’ll still need to pay for food, some housing-related expenses, transportation, and health care. People qualify for Medicare when they turn 65, but having government-provided health insurance doesn’t necessarily make things simpler. There are many Medicare plans to choose from, and this can get complicated for retirees. Planning ahead is critical if you want to make the best decisions for your situation. It’s also vital if you are to understand how much money you need to have to fund your retirement.
Consolidate Your Finances
If you’ve accrued multiple checking and savings accounts over the years, consider consolidating them to make finances simpler. This is especially helpful if you have accounts at multiple financial institutions. Consider whether or not the different credit cards you have are worth keeping open. If not, pay them off and close the accounts. You’ll find finances are simpler with fewer accounts and balances to keep track of. Similarly, you can simplify your investments by finding and eliminating redundancies in your investment portfolios. It is possible to consolidate your funds and simplify your investments while maintaining a diverse portfolio. Consider reallocating them to stock and bond index funds with a broad representation. As an added bonus, doing so can help you save on portfolio management fees and reduce the amount of attention you need to give it.
Retirement finances can be complicated, but there are things you can do to make them less so. Work with a financial advisor, plan ahead, and consider consolidating your accounts. This can make it easier to be prepared for retirement as well as the financial complications you could encounter along the way.
Have questions about planning for retirement? Check out our ebooks!
Retirement finances can be complicated, but there are things you can do to make them less so. Work with a financial advisor, plan ahead, and consider consolidating your accounts. This can make it easier to be prepared for retirement as well as the financial complications you could encounter along the way.
Have questions about planning for retirement? Check out our ebooks!
RSS Feed
