Tips On Living Well Way Into Your Retirement

An ideal retirement life should be spent comfortably and worry-free. But as dire economic times are still here, it may not be possible as retirement funds can easily shrink out and be used up. It can be fairly easy for retirees to outlive their retirement funds in this case.

With more and more retirees living way into their 90’s, no retirement fund can be quite secure without proper preparation. Sound financial planning will allow retirees to stretch out and live well within their means on their retirement funds for a bit longer. Here are some important tips that might help.

A Need For Some Risk

It is the usual practice or those nearing retirement to transfer their investments into less risky options. Some would try to transfer a majority of their stock share portfolios into safer and more secure fixed-income bonds. Although this might work well for most retirees, it might also rob them of the potential added gains that their previous portfolio can make for them.

In order to stretch out a retirement fund for a longer period, it might be necessary for future retirees to keep a substantial part of their portfolio on investments that will earn higher returns for them. The can make it a 50-50 split between safer and risky investment options, depending on their own risk threshold.

Get An Adequate Health Care Plan

One of the costly concerns of retirement revolves around one’s health. Medical and other health-related expenses may mount up as one gets old. Not having an adequate health care plan for this can prove very costly for the retiree. Although Medicare is available for retirees, it might not be adequate in terms of medical costs and expenses. Retirees might consider getting supplemental insurance coverage to help cover for the other health related costs aside from Medicare.

Retirees may also consider getting long-term care insurance to help provide adequate protection way into their twilight years. It will ensure that there would be someone who will be taking care of them when they get to that point of their lives. Getting a long-term care insurance policy might be cheaper to get at 50 years old or even earlier. Getting one later than that may cost more in the long run and may eat up on one’s retirement funds.

Consider A Stable Insurance Company

While getting all the necessary insurance policies for retirement can help make life more comfortable for retirees later on, choosing the insurance company might also be just as important. While insurance policies may be offered by many insurance companies big and small, what one should also consider is the ability of that insurance company to pay for the policy when the time comes. Make sure that an insurance company with a good reputation of paying its insured clients is chosen. Consider the company’s financial health that it can still be in business 20 to 30 years from now, when the policy the retiree gets may be reaching term.

 

Posted by Ardent Editor on Jul 4 2011 in Retirement Life Tags: , , , , ,

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