GET READY FOR 2015 NATIONAL SAVE FOR RETIREMENT WEEK!

IMPORTANT TIPS TO CONSIDER WHEN YOU ARE PREPARING FOR RETIREMENT

From October 19–25, take some time to look at your financial picture, think about your retirement strategy and zero in on your goals. Below are a few important tips to consider when planning for your future in retirement.

Retirement

ESTIMATE YOUR RETIREMENT EXPENSES

Depending on your retirement lifestyle choices, your monthly expenses (at least in the earlier years) may be about the same as they were before retirement. Then again, you may be able to cut back.

Estimate your expenses in retirement by considering factors such as:

  • When do you expect to retire: Will you retire early (which may require more retirement savings)? Or can you postpone the date (which will give you more time to prepare)?
  • Where you will live: Will your mortgage be paid off? Will you downsize your home? Will you move to a less expensive area?
  • What you want to do: Will you travel, volunteer, work part-time?
  • Your health: If you’re in good health, you may be able to hold down health care costs. Even so, health care expenses tend to rise as you get older.

UNDERSTAND YOUR RETIREMENT INCOME SOURCES

  • Social Security: For many, Social Security is the foundation of their retirement income. Your monthly benefit will be affected by when you choose to file for and claim your benefits. You can check your estimated benefit for different retirement ages online at ssa.gov.
  • Retirement accounts: This source includes 401(k) /403(b) Savings Plans, Pension Plans, and Traditional and Roth IRAs.
  • Other sources: This bucket includes personal savings accounts, brokerage accounts, real estate, inheritances, annuities, life insurance policies and earned income.

PLAN FOR RISING HEALTH CARE EXPENSES

Health care may be one of your largest expenses in retirement, and costs tend to go up as you get older. A 2014 survey3 found that only 17 percent of retirees are very confident in their ability to cover health care costs. Factor heath care expenses into your retirement planning and make staying healthy a priority.

Research all of your retirement health insurance options, including:

  • Medicare: Medicare Part A hospitalization costs nothing for most workers, but for full coverage of medical services, prescription drugs and costs not covered by Medicare Part A, you’ll need to buy supplemental insurance policies.
  • Long-term care insurance: Medicare does not cover long-term and nursing home costs and these expenses can be a huge burden on families. The younger you are when you purchase long-term care coverage, the lower your lifetime premiums may be.
  • Life insurance: If a spouse or family member depends on you for support, life insurance offers them a form of income protection should something happen to you.

WHEN RETIREMENT IS A FEW YEARS AWAY… CONSIDER THESE ADDITIONAL STEPS

  • Reduce debt: Entering retirement while still making interest payments on a mortgage, car loan or credit card can drain fixed retirement income sources. Try to be debt-free, or as debt-free as possible, by your retirement age.
  • Build an emergency fund: Unexpected expenses have a way of appearing, and they will do so in retirement. An emergency cash fund can help cover some of these expenses without you having to make additional withdrawals from retirement accounts.
  • Discuss plans with your spouse or partner and family members: Retirement lifestyle decisions affect your savings, income, expenses and insurance needs. Get your loved ones on the same page before finalizing your options.

Then again – Why wait until October 19th – think on these things today and contact us at 714-813-1703 to set up an appointment to talk about your Retirement or College Planning. dcoen@sageviewadvisory.com / davec@collegeplanningamerica.com

3 Source: 2014 Employee Benefit Research Institute Retirement Confidence Survey. Keep in mind that all investing involves market risk, including the possible loss of principal. Registered Representative with and securities offered through Cetera Advisor Networks LLC, member SIPC 1920 Main Street, Suite 800, Irvine, CA 92614 T: 949.955.1395 | SageView is not affiliated with Cetera Advisor NetworksSageview logo