Retirement Advice For 2014

shutterstock_113824207Some people may be expecting something bright and different for 2014. But it may also be bleak and dreary for some. People who may be retiring this year can be in either of such. But before they finally decide to retire, here is some useful advice to consider.

Test whether your retirement finances will hold in worst-case scenarios.

One of the concerns among current retirees is that they are not that sure if their retirement fund will be enough to keep them afloat in their golden years. One reason may be attributed to the bleak economy during the previous years, which has put a dent on their retirement income. Before you try to put yourself into the same situation, try to stress test your potential sources of income during your retirement. Try to look into your investments whether they can survive a worst-case scenario that you can think off and still leave you floating. Try to ensure that you can absorb such losses and still come out surviving. If not, then you may need to re-think how you can protect your investments or at least reduce the risks to keep them working for you through your retirement years.

Make investing simpler for you.

Since you tend to become more relaxed in your retirement, you should try to make things simpler. This includes how you set up your investments. Do not try to make it too complicated that you need to handle more than you can bargain for. Try to consolidate what you can and try to manage them without having to deal with the headaches of handling multiple accounts.

Do not be too quick on claiming Social Security.

Since you are retiring, you may think that you need to sign up for getting your Social Security retirement benefits. If you can rely on your other sources of funds for retirement, it may be a bit wise to delay Social Security. It is not essential that you take on your Social Security the same year you retire. Delaying it for several years can help increase the benefits that you get from it.

Sign up for Medicare once you are eligible.

You have seven months after your 65th birthday to sign up for Medicare. You will be relying on it for your medical needs once you get off the group health coverage offered by your company. Do not try to delay signing up once you are eligible or you face penalties or increased premiums. Tyr to inquire about what Medicare plans your sign up for cover. Make sure to take Medigap policies to cover for those that Medicare does not.

Consider a gradual transition into retirement.

Just because you are of retirement age necessarily means that you immediately become retired. If you are concerned about future retirement finances, you can consider taking part-time jobs way into your retirement. It can help provide some added income into your retirement fund. It can also help ease your transition into retirement and help take care of the sudden lack of activity you may experience with your retirement life.

 

Posted by Ardent Editor on Jan 9 2014 in Financial Planning Tags: , , ,

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