When you talk retirement, chances are you keep the conversation as simple as possible, with one question resonating more than any other.
How much do I need to retire?
That figure is something a financial planner or retirement specialist, accountant or perhaps even the entity that is overseeing your 401K can tell you, but along the way of making sure you have enough to live day to day, week to week and month to month and sprinkling in anything else you want to do when you call it quits, such as traveling, new home purchase, etc., you also might not want to overlook certain expenses that are easily forgotten.
Most assume that when they retire they’ll no longer have much in the way of obligation, but a lot of that depends on your children, their financial status, your living arrangements and just how much debt you have, just to name a few indicators.
Recent studies have shown that about 30 percent of parents on the cusp of retirement still support their kids in some form or fashion.
You also can’t discount where you plan on living as you may believe your house is paid off, but after a refinance or consolidation, that throws your 30 year mortgage back to square one in some cases, when you take cash out for home repair or debt consolidation along the way.
Even if your house is paid off and you plan on selling it and moving into a townhouse or rental property when you move away, that also has to be considered. You can’t jump into a $1,000 per month rental without making sure you have the income to support it for the next 10 to 20 years.
Also in the mix when you’re thinking about retiring should be your need for healthcare and just how your premiums after working or your deductible, Medicare or other health related expenses would figure into your near or even distant future. Far too often, health care is forgotten about the moment you step away from work, since you’re of the impression Medicare or some other retirement based insurance is going to supplement you enough, but what about expenses that are out of pocket and won’t be covered.
The average cost of that is more than $4,000 per year. Do you have enough to keep pace?
Retirement centers on planning as that joyful day approaches when you no longer have to work. But nothing is more frightening and frustrating that having to go back to work because you run out of money along the way. That can easily be avoided if you make sure nothing slips through the cracks and turns your retirement plans down a crooked path that sees you back to work in what should be the best years of your life.