We all know that healthcare costs are outrageous, no matter what your age it. However, the average couple can expect to spend close to $300,000 on out-of-pocket medical expenses, such as such as deductibles and Medicare premiums, during retirement. Sadly that is not factoring long-term care costs into the equation. When coupled with that, medical expenses can be a major budget buster, and you can see why planning for health care expenses is essential or better yet critical to maintaining an income for life.
As we continue strategizing ways to ensure you have income for life, the next plan of action, may or may not apply to you—manage your pension fund payments. With these types of old style retirement accounts becoming akin to the rotary phone, if you do actually partake in one, consider yourself lucky. The choices you make concerning how you take your money could considerably affect the income you receive from it.
The majority of us purchase life insurance policies to provide financial security for those we love after we are gone. However, buying a permanent life insurance plan could offer another valuable source of income for life heading into retirement.
If you hope to maximize the benefits from all your hard-earned retirement savings, you need to protect as much as you can from Uncle Sam. Fortunately, there are plenty of legal ways to do just that. It will take laying some groundwork and understanding exactly what the government looks for in order to reduce taxes on retirement accounts.
At this point, we are at the halfway mark of our Income for Life series. The seventh strategy to help guarantee your money’s longevity is an annuity. When it comes to discussing annuities understanding what they are and how they work is critical. Annuities are complex vehicles for investing, so be sure you understand what you’re doing before you do it. Now having said that, let’s dive into what are annuities and how they can enhance your retirement income.
Last time we discussed delaying your Social Security Benefits to help you as you work toward maintaining an income for life and one of the ways to do that is to earn extra income until you reach age 70. While you may still be ready to hang up your hat on your career well before then, that doesn’t mean you can’t prolong taking those benefits by taking on a side job.