Retirement Strategy
You may be wondering what to do if you want to retire. As time rolls on, the shadow of your later years starts to creep up on you, and for some this feeling may even come as early as their thirties. If it does hit you and hit you hard, you will start to plan straight away and figure out what is required for you to survive as your later years draw nearer.
The first thing you have to do is figure out your income needs for your retirement years and then begin to crunch the numbers to work out what you are going to have to do to get to that figure. Fifty-six percent of the population in the United States who are not yet retired feel that a guarantee of money every month to cover living expenses is essential. It is rather strange then to find out that while they feel this is very important, only 13% of Americans have bought an annuity. An annuity is a financial instrument that can provide guaranteed monthly income throughout retirement. If you want to make sure you have enough rather than just try and survive on Social Security, an annuity may help.
The average Social Security benefit currently being paid out to a retired worker is about $1,372 each month which equates to $16,464 per annum. If that is not enough, then you should be thinking about supplements to your income or annuities.
Another thing to think about is health. [3] Day-to-day living expenses aside, healthcare in your later years will become a priority at some point. Research shows that you are expected to need more than $270,000 to cover healthcare costs in retirement.
Starting to budget for any and all costs you may be faced with in your golden years, is the only way to stay ahead of the curve. Make sure you have it all squared away, and then check in on any investments you may have. This is the right start to getting ready for retirement
IMPORTANT DISCLOSURES
Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.
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David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC