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Build Your Retirement Savings With These Smart Money Goals
Especially after age 50, many of us start to look forward to and plan for our retirements. But with Social Security and Medicare becoming increasingly unreliable, it's important to create a retirement plan that isn't entirely dependent on these programs. Today,
Assured Senior Living shares some tips and resources to help you create a more secure future for yourself and your loved ones.
Protect Yourself With the Right Insurance
Having disability insurance can provide you with financial protection if you become unable to work due to an illness or injury. Additionally, long-term care insurance can help cover the costs of medical services such as nursing homes or home health aides if needed. Having the right coverage will give you peace of mind.
Consider Downsizing Your Home
Selling your current home and moving into something smaller and more affordable can be a great way to save money.
Downsizing can help reduce expenses such as taxes, utilities, and maintenance costs, allowing you to save more money each month. Not only that, it could help you prevent accidental injury and help you avoid costly hospital stays. Take a look at rental options in your area. Renting is generally less costly than owning a home, but you’ll want to evaluate the price of rentals near you.
Build a Health Savings Account
An HSA allows you to save pre-tax dollars into an account specifically designated for medical expenses not covered by health insurance plans such as copays, deductibles, and prescription drugs. Blue Cross Blue Shield explains that this type of account helps ensure that there are funds available should you need them in the future. Additionally, HSA contributions are typically tax deductible.
Make Smart Investments
Investing wisely is one of the most important steps when planning for retirement. Investing in stocks, bonds, mutual funds, and other investments can help build your savings over time while also providing income during retirement years. It's important to research different investment options and speak with a financial advisor before making any decisions.
Build an Emergency Fund
Having an emergency fund set aside in case something unexpected happens is essential when planning for retirement, since it ensures that there will be funds available should any unforeseen circumstances arise down the line. Making good investments will help you create a solid emergency fund, but you might also consider taking on a part-time job or working a temporary gig. Set a goal not to touch the fund unless you absolutely need it.
Find a Great Job
AARP points out that finding a part-time job or side gig with flexible hours can be beneficial when
preparing for retirement, since it provides additional income without having to commit full-time hours. When looking for new opportunities, make sure your resume is up-to-date with a free online template that allows you to customize a professional-looking format with your own designs and color scheme. Check out a few job sites to get a feel for your options.
Go Into Business for Yourself
If finding a part-time job doesn't appeal to you, consider setting your own hours and working for yourself by starting a business! The process is much easier than it used to be. All you need is a business plan outlining what services/products your company will offer, a marketing strategy, and to choose a business structure. Many entrepreneurs opt for a limited liability company because of the legal protections and tax benefits. If you aren’t sure how to get started, you can start your own LLC in Colorado with ZenBusiness, a formation service that’s already familiar with local regulations and can get you up and running in no time.
Wait On Social Security
Delaying Social Security benefits until age 70 can increase future benefits by 8% each year after the full retirement age (66). This could mean an additional $20-$30k per year depending on how long you wait before claiming benefits, so make sure to consider this option carefully. With a well-thought-out plan, you can create a savings account that will allow you to delay your benefits so you can maximize the amount.
Building a plan for retirement without relying heavily on government programs can be challenging – especially with costs rising across the U.S. However, by taking steps like selling your home and downsizing, finding a part-time job, or starting your own LLC, you can ensure that you and your loved ones have financial security. Do thorough research before starting any new venture, and talk to a financial advisor if necessary.
Assured Senior Living is here to provide seniors with the respect and care they deserve. Call (303) 814-2688.
