It’s a big accomplishment in life, to finally be able to retire and starting living your life the way you have always dreamed of. Retirement is a big step in life that takes a lot of financial planning. Before you decide when you are going to retire, consider these six crucial retirement questions to see if you really are ready for retirement.
What kind of lifestyle do I want in retirement?
What do you see yourself doing with your retirement? Do you want to travel the world? What kind of things do you want to accomplish in your retirement? Before retiring you may want to discuss your future with a financial planner. They will be able to help you develop a retirement plan that fits your budget and your dreams for your retirement.
Will I have money rolling in some way in retirement?
Are you going to be collecting Social Security? Will you be receiving a pension or monthly check from your 401(k)? It is important to figure out where your money will be coming from each month once you retire.
What debts do I have?
Consider the debts you have before you retire. Is your house paid off? Do you want to use money you have saved to pay off your mortgage? Can you refinance to get a lower interest rate if you cannot pay off your mortgage? What other debts, like credit cards, do you have to pay? If you are unsure what to do with your mortgage or are not sure how you will handle your credit cards once you retire, a Reverse Mortgage could be the answer. A Reverse Mortgage uses the equity that you have built up in your home to pay for your current mortgage. Any proceeds after your mortgage is paid you will receive in tax-free* cash that you can use any way you wish. The Reverse Mortgage process is smooth and easy, and it can help with planning for your retirement.
How will I pay for health care?
In 2007 the average American 65 or older spent over $9,000 on health expenses. Medicare only picked up about half of the total because many services are not fully covered by Medicare. Seniors can face higher bills if they develop a chronic disease such as cancer. Gaps in health care coverage can be devastating to seniors if they are not prepared for a medical emergency.
Does your investment portfolio make sense now that you are retiring?
If you are looking to use your portfolio to help you through retirement, it is as strong as you want it? If you plan on relying on your portfolio to help you through your golden years it is very important to keep a watchful eye on it. You may consider switching to more conservative stock or bond options. You want to make sure that if you do decide to be conservative with your investments that it still makes sense for your goals.
Do you want to leave anything to your loved ones?
If you want to leave anything to your loved ones after you pass, you need to consider it in your budget. If you are planning to leave something to grandchildren for something like college it might be in your budget or it might not be. It’s best to evaluate your options to see if that is possible.
Planning for retirement can be tricky, but if you take the time to ask questions and find the answers you can ensure your golden years are exactly what you want them to be.
One Reverse Mortgage is the nation’s largest reverse mortgage only company. Our bankers are licensed professionals that help clients nationwide. If you have any questions or concerns call today (800) 442-6828 or contact us by email at email@example.com.
Kristen Curzytek is a writer for the One Reverse Mortgage blog. One Reverse Mortgage is the largest reverse-only mortgage lender in America.
*Please consult with your financial advisor.