Retirement is an important time in life that takes a lot of planning. There are many smart money moves you should be making as you get closer to retirement. Below are several helpful money moves you can do to help improve your retirement.
Hire a Financial Planner
If you have never met with a financial planner or advisor, plan on meeting with one soon. Many seniors are on fixed incomes that do not allow much financial room for them. The sooner you meet with a financial planner, the sooner you can start develop a plan for retirement so you can avoid living on a restricted budget. A financial planner will be able to help you understand your financial goals and help you to obtain them.
Don’t ignore rising health costs
A smart money move is planning for health care costs. According to estimates by Fidelity, the average nursing home costs are around $78,000 a year. Long-term-care insurance can be a good safety net to have, but it can get expensive. On average, long-term-care insurance can be as much as $3,000 a year for a couple in their fifties. The bottom line is, do not ignore the raising costs of healthcare. Medicare can cover some costs, but it will not cover all of your health costs.
Don’t limit your options to saving yourself money. Moving either to a different part of the state or even out of state can save you money. Depending on where you live in the country, moving to a different part could save you thousands of dollars a year. Moving is a smart choice if you are now an empty nester with a large home you do not need anymore. Moving from a state like New York to a warmer state like Mississippi could save you thousands in taxes alone. If moving to another state is not something you want to do, moving to another county in your own state could save you tons.
A reverse mortgage is a great money move for those close to retiring. A reverse mortgage allows you to access the equity you have built up in your home, eliminate your current mortgage (if there is one) and receive the rest of the equity in tax-free* cash. You can choose to take your tax-free* cash in a lump sum, in payments, a line of credit or a combination of those. A Reverse Mortgage can give you financial freedom to start living retirement the way you have always wanted.
Apply for Social Security
The earliest you can collect Social Security is age 62. However, you may wait until you are 65 and then your payments will be higher. But if you are in need of money, they do not wait to collect.
Don’t postpone estate planning
It’s not a fun topic to discuss, but you really shouldn’t postpone estate planning. It is important to get your legal documents in order and ensure you last wishes are taken care of.
It’s important to plan for your retirement and not throw caution to the wind. People are living longer, which means you need to stretch your budget to last.
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 firstname.lastname@example.org.
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.