10 steps to take before retirement

Фото: Depositphotos

Many dream of retirement, imagine themselves lying on the beach with a cocktail in their hands. If you want to ensure a comfortable life after retirement, then you need to think about it now and start saving money.

Cheat Sheet has published a list of questions that you should think about in advance in order to save money for a comfortable old age:

1. Estimate future retirement expenses

To correctly distribute money, you need to understand where you spend money every month. So think about what expenses you will have after retirement, for example, a mortgage loan, utilities, transportation, products.

2. What income you will receive

After you have determined the main items of future expenses, you need to estimate the amount of your income. Do not forget to take into account social security, inflation and retirement savings. Sites like Bankrate and Vanguard help you evaluate the cost / income ratio.

As soon as you calculate your future expenses, you also need to know what your expected income will be. Remember to include social security, inflation, and estimated retirement savings. You can use the income worksheet or calculator to better understand what your retirement income will be. Download tools from sites like Bankrate and Vanguardto help you get started.

3. Calculate the cost of medical care

The average cost of after-service health care for an 65-year-old couple, according to Fidelitu, in 2016, the year was $ 260 000. This is 6% higher than a year earlier. Many when planning to forget to take into account the cost of medical care, and this is quite high spending.

4. Long-term care allowance

Think, perhaps, in expenses it is worth laying insurance for long-term care allowance. According to FidelityThe 65-year-old couple spends about $ 130 000 to pay for the care of all their years of life after retirement.

5. When can I use my retirement account?

At the age of 59,5, you can start shooting days with an IRA or 401 (k), without paying 10% penalty. Remember that you still have to pay income tax on the amount that you withdraw. However, if you have a Roth IRA or Roth 401 (k), you can withdraw money without tax.

6. Average retirement age

The average retirement age, according to LIMRA Secure Retirement Instituteis 63 of the year. But, according to a recent study by the US Social Security Administration, roughly the 1 of 4 of today's 20-year-olds may be disabled before they reach retirement age. When planning for old age, keep in mind that you can retire before retirement age.

7. Save money in case of emergency

When planning expenses, do not forget about emergency cases. Force majeure can not be planned, so create a financial pillow that can support you. The more you can save, the better.

8. Plan your vacation spending

After retirement you will have a lot of free time. Think now how you would like to spend your free time and how much you will need to spend. For example, you will want to play golf or go on a world tour. Start saving for future entertainment now.

9. Pay your taxes

The tax agent will not leave you alone even after you retire. For example, when cashing IRA or 401 (k) accounts, you will have to pay tax. Do not forget to reflect these expenses when planning expenses.

10. Life insurance costs

The theme of death is unpleasant, but inevitable. Many would like, after their death, close people are not left without care. Life insurance is a good way to help loved ones. In the event of your short death, your loved ones will receive insurance payments that will be able to support their lives over the next few years. Calculate the required contributions can help life insurance calculator from Life Happens.

Read also on ForumDaily:

How much cost the budget ex-presidents

How immigrant pensioners live in New York

What kind of pension will I receive in America

What benefits can you expect in the US

What you need to know about retirement in the US

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.