For most of us, the goal of retirement is to start doing some of the things we never had time to do while working full time. This could include a hobby, travelling, purchasing a vacation home, or fulfilling a lifelong dream. However, all these dreams require time and resources. Spending in the early stages of retirement typically go up as retirees are still healthy enough to do everything on their bucket lists.
Which is why it’s important for retirees to understand that they may be living from their retirement investments for three or more decades. That means that you’ll need to have enough money to cover routine expenses plus health care and most likely, long-term health care services. Make sure your financial planning takes these factors into account.
Once you know how much money you’ll need for your costs of living and health care, plus inflation, then what’s left behind is your retirement “fun” money.
Knowing how to work within the constraints of a budget becomes more important during retirement. You can’t just ‘go back to work’ for a few decades if you find yourself running short, although some folks do end up having to pick up a part-time gig on the side.
What if leaving a legacy is more important to you than buying a second home? Just like the plan for retirement fun, you’ll need to do some financial planning to make this goal possible. Remember that your legacy will include whatever is left at the time of your death, as well as what you may give while you are living.
Giving your children or grandchildren their inheritance while you are alive, is a way to enjoy the gift twice — once when you give and a second time when you see what they do with your gift. You might want to help the family reach their own financial milestone, like covering the cost of a college degree, helping with a deposit on a home or helping to pay off a mortgage.
Charitable giving may also be part of your legacy. If there is a charity, foundation, or alma mater that aligns with your values, you may choose to set aside a portion of your estate for a donation.
Regardless of whether you are planning on spending everything, giving away your assets to family members, or to a preferred charity, an estate plan is necessary. Here at Tacoma Elder Care we can advise you on creating an estate plan that fits your unique circumstances and budget, so schedule your FREE consultation today. Or join us for one of our FREE workshops, you can register HERE.