Just When You Think You Have Learned Everything You Can From Your Parents, You Find That There Is Still More To Learn
Except that this time it is about the aging process and retirement, not about growing up or raising kids.
Regardless whether your parents’ retirement experience is one you want to emulate or one you know you want yours to look nothing like, there are lessons there.
Here Are Five Tips That Your Parents May Or May Not Have Made Work For Them
- Seek companies with a pension plan. Perhaps you are looking for a career change or simply a new place to work, consider those companies with traditional pension plans first. Pensions are tough to find these days but they do still exist and cannot be discounted as powerful retirement security.
- No pension? Let the squirreling process being. If your company does not offer a 401(k), you can still begin investing in an IRA or other defined contribution. Do it now. Time is your friend when you are on the good side of it.
- Expect to live long. One of the mistakes many people make is underestimating their longevity. When you are 80 or 90 years old and you run out of money, your options are few and it can be a frightening and untenable experience. With more medical solutions emerging every day, lifespans are growing and you must be prepared for a long life.
- Health care, you can’t live without it. The average cost of health care for retirees is at least $240,000 per person. Either you must save that in preparation or you must have a health care plan in place to cover your retirement medical costs.
- Save early. Save more. Don’t stop. If you can save at least 10 percent of your income each you, 15 percent even better, this is a good rule of thumb. If you are older, you may need to play catch up with some additional savings too.
If you’d like to learn more about getting your retirement plan rolling, we offer a Family Wealth Map that can show the path you are on and compare it to other paths that might be better suited to you. Call us now at (480) 418-8448.