Retirement can mean a lot of things. It can mean more relaxation. It can mean more time with family. It can mean time for traveling. What it should never mean is running out of money.
Unfortunately, many in the U.S. are not as prepared for retirement as they may think.
Below are three things you should try to avoid as you begin to consider retirement.
Save For Health Care
It may not be wise to think that once you turn 65 years old that Medicare is going to cover all of your health needs. You will still likely have to consider Medicare premiums, coverage for prescriptions drugs and other important health-related things that may not be covered by insurance. Dental and vision premiums, as well as hearing aids, are examples. So, when you are implementing a savings plan try to incorporate health care costs.
Social Security Benefits Might Not Give You All You Need
With people living longer and more of them ending up on Social Security, the funds are getting stretched. That has resulted in the program not always being completely adequate to fund an entire retirement for an individual. If the program continues on its current trajectory, major changes to it will need to take place in order for it not to be depleted over the coming decades.
This runs along the same lines as the two items mentioned above. Budgeting is a key piece of planning for retirement. Consider utilizing an IRA or 401(k), but at the same time try to check in regularly to make sure that your contributions to such accounts have you on a path toward a comfortable retirement.
A Home Equity Conversion Mortgage (HECM)* loan can alleviate some of the worries. A HECM loan allows homeowners to borrow against the value of their house. Repaying the mortgage (interest or principal) isn’t required until the person passes away or the home is sold. Repayment may need to happen quicker if the borrower does not use the home as their primary residence anymore, or does not to pay insurance, taxes or pay for repairs.
Find more information about HECM loans, click here: https://curtismangus.com/types-of-loans/
*(1) at the conclusion of a reverse mortgage, the borrower must repay the loan and may have to sell the home or repay the loan from other proceeds; (2) charges will be assessed with the loan, including an origination fee, closing costs, mortgage insurance premiums and servicing fees; (3) the loan balance grows over time and interest is charged on the outstanding balance; (4) the borrower remains responsible for property taxes, hazard insurance and home maintenance, and failure to pay these amounts may result in the loss of the home; and (5) interest on a reverse mortgage is not tax-deductible until the borrower makes partial or full re-payment.