- Posted June 9, 2022
How to Fill in the Gaps of Your Retirement Plan
Retirement is a time that every working adult looks forward to. In fact, from the moment that we all enter the workforce, many of us begin to dream of the day when we no longer need to work for our living and can enjoy the ultimate freedom that retirement has to offer. But just making it to retirement age isn’t enough, you also need to save up the money you need to live through your retirement according to our certified financial planner. Here are a few ways that you can fill the gaps of your retirement plan so that you have the financial comfort and stability for retirement.
Our certified financial planners say the first thing that you have to do to fill the gaps of your retirement plan is to make your own retirement investments. You simply cannot save your way to wealth in retirement. With the help of an IRA and a 401(k), you can put aside money into investment accounts that are tax advantaged for you to grow your money over your working life into retirement. Social Security payouts are not set to keep up with inflation and the needs of seniors, so if you aren’t investing for retirement, you are behind the curve.
Cover Your Insurance Needs
Another crucial step to take to fill in the gaps of your retirement plan is to cover your insurance bases. As you age and enter retirement and beyond, your insurance needs are going to be higher to offset the rising costs of medical care. You should also make sure to have long-term care insurance. Long-term care insurance covers hospice care to increase your comfort in your final days. This is critical as long-term or in-home nursing care for your end-of-life can be wildly expensive. Don’t leave your family with the bills, have long-term coverage.
Build Other Streams of Income
The final thing that you can do to fill in the gaps of your retirement plan is to build other streams of income. It can be owning businesses, dividend paying stocks, investment real estate, or other assets; the more streams of income you have during retirement, the more secure your finances will be. To the best of your ability, never close a source of passive income during your retirement, it is better to have the continued income states our certified financial planner.
The standard retirement plan is typically not enough for a comfortable retirement. If you want to live the life you deserve during retirement, you need to plan. Follow these three steps to fill in the gaps of your retirement plan for a comfortable retirement.
Check out this article on estate planning tools that make life easier!
Contact Tenpath Financial Group for certified financial planning services.