Life is a vast collection of risks – the only way to really experience it is as an adventure. And, with all the crazy things that might happen, you want to be certain you are protected for the bumps and bruises (or worse) that come with the journey. Whatever the future may bring, insurance it there to provide financial coverage for your assets so you aren’t out in the cold in the event of catastrophic loss. Plus, if you are in search of ways to diversify your investment portfolio, there are options available to include in your retirement planning.
Different Types Of Retirement Insurance:
Though every policy has different conditions you will have to meet, it’s important to acquire some form of insurance benefits. Here are a few major types to consider purchasing:
- Health Insurance Medicare will be available to you in retirement, yet there are gaps in coverage compared to the policy you’re accustomed to through your employer. Learn more about the options you have to make sure you have adequate protection in your golden years.
- Life Insurance You probably already have a plan in place to be certain your family is taken care of when you’re gone, but are you aware of the supplemental income your life insurance might generate? Are you considering changes to your policy? Educate yourself about some of the ins and outs of this confusing sector of the market.
- Home Insurance Retirement income is built around the assets you have and your house is among the safest investments you can make. In the event of a disaster, losing it would be devastating personally and financially. Find out about the choices you have in protecting your property.
- Travel Insurance If you’re planning on jetting around the world or just driving all over the country during, you want to be prepared for whatever might come your way. Plenty can happen to dampen your joy when you are away from home, whether it’s a health scare or a natural disaster, so learn how to cover all the bases before you leave.
More Types of Insurance
Retirement Insurance Benefits
The transition from being trapped at work to having freedom to roam comes with a host of changes to be accustomed to. For many, moving from a steady paycheck to the fixed income of Retirement Insurance Benefits from the Social Security Administration is a foreign concept. After years of having relative abundance financially, the idea of receiving a decreased (and unchangeable) amount from the government each month can be daunting. Chances are good you will have engaged in some sort of retirement planning to ensure it isn’t your only stream of wealth, but there are still many retirees counting on these payouts to cover the lion’s share of their expenses. With that in mind, the first question to come to mind is “How can you make do on a percentage of what you earned before?” Though everyone’s situation is different, here are a few tips to consider in the lead up to your last day at work:
Do Some Research
Take some time to look into all the particulars associated with Social Security. When will your application be due? How early can you claim benefits? Is it possible for you to wait until you absolutely have to receive it? Sure, you have a lot to think about already – you will still be working, after all – but it’s better to avoid being blindsided by a process you were unaware existed. Plus, looking into the details will give you the opportunity to put a plan in place that affords you the most financial security throughout your golden years without cutting into your long-delayed dreams.
Practice, Practice, Practice
Thanks to the research you have done, you will have a better idea of how much you can expect to receive when your application to the Social Security Administration is approved and checks begin to arrive. If possible, spend at least the last six months (and preferably a year) of your employment living off that amount. This will give you the opportunity to do more than just put the extra funds away in your savings account or other retirement accounts – you will gain an understanding of what is necessary and make cuts to your expenditures, like having all the movie channels on your TV, well in advance.
Make a Budget – and Stick To It
After coming to terms with the procedures necessary to receive all you are entitled to and spending several months living as though you are already receiving Social Security, you are in a good position to create a solid set of expenses based on your new income. As you do so, be willing to consider all your options. For many couples, retirement means the need for an extra car almost disappears. For others, the large home with bedrooms for all the kids is no longer necessary, and the added cost of utilities for so much extra space is no longer worth the trouble. Though it might mean some tough decisions and difficult conversations – say, with children opposed to the idea of you selling the house – your financial security is far more important in the long run than some hurt feelings that will mend in time.
Retirement Income Plan
It’s only natural, after decades on the job, for you to feel a bit of trepidation as the day arises when your retirement income plan kicks in. For years, you have been able to count on a steady paycheck and the possibility of an incremental raise from time to time. Once you leave the workforce, you will be able to count on a monthly check from the Social Security Administration and payouts from the various accounts set up as part of your retirement planning – stocks and mutual funds that are subject to the whims of the market. If you’ve learned anything from the current state of the economy, it’s that your portfolio can take a hit one day and have you flying high the next. How do you create some stability when the financial sector is as volatile as a nitroglycerin plant during an earthquake? Here are a few tips to keep you moving in the right direction, when the Dow Jones is a roller coaster:
Live Within Your Means
Making a budget is a basic practice for many households in all strata of society. Sticking to one, however, proves to be too challenging – they either expect to live like princes or attempt to be paupers and fall short either way. Sit down with your spouse and make a realistic target for your spending, leaving aside extra money for savings accounts and additional investments, as well as activities both of you can enjoy. Ideally, you will have begun this practice well before you retire – spending your last year at work spending as though you are already retired is a good idea – but even creating a plan in the first month or two after you leave the office behind is acceptable.
Diversify Your Portfolio
It’s likely you’ve heard this advice from your financial planner and investment magazines over and over, but it goes far beyond the types of stocks or mutual funds you own. Sure, you should have a variety of low- and high-risk accounts to provide a measure of security against a market in flux, but you might find other areas are being neglected. You probably have a home that acts as one of your major assets, but do you own other properties that can be rented or sold? Have you sought ways to solidify your percentage of precious metals in the overall picture? Take an honest look at your situation and see how things could be reshuffled to maximize your return.
Seek Out Earning Opportunities
Without a doubt, you have earned a break from the daily grind associated with a 9-to-5 job. Does that mean you ought to give up on employment altogether? Absolutely not – and that doesn’t mean you should be greeting customers at your local retail chain. Chances are good your experience can be put to good use in a variety of ways. If you were in advertising, for example, you could begin consulting with small businesses part-time to help them grow. This will allow you the fulfillment of continuing to contribute to society without having the pressure of someone breathing down your neck. Who knows? The freedom might unleash some creative talents you forgot you had!