It’s no secret that the current economy isn’t doing so great. In fact, it seems like every day there’s a new report about how things are only going to get worse. For retirees, this can be especially worrying – what happens if we can’t rely on Social Security anymore? In this blog post, we’ll discuss some guidelines to help you protect your retirement savings and secure a great retirement.
Plan For Healthcare Costs
One of the biggest costs in retirement is healthcare, according to a study by Fidelity, a 65-year-old couple can expect to spend an average of $245,000 on healthcare in retirement. And that number is only going to go up as we live longer and health care costs continue to rise.
There are a few ways to plan for healthcare costs in retirement. To begin, you can sign up for a Medicare Advantage Plan. These plans offer comprehensive coverage and often come with additional benefits like dental and vision care.
You can also purchase a Medigap policy, which is supplemental insurance that can help cover some of the out-of-pocket costs not covered by Medicare. Finally, you can enroll in a health care sharing plan, which is a type of religious-based insurance that allows members to share the cost of medical expenses.
No matter what option you choose, it’s important to have a plan for how you’ll cover healthcare costs in retirement. Otherwise, you could find yourself facing some serious financial difficulties down the road.
Consider Investing In Different Kinds Of IRAs
When it comes to investing for retirement, there are several alternatives available. One option that you might want to consider is investing in different kinds of IRAs. Traditional IRAs and Roth IRAs are two of the most popular options, but there are also SEP IRAs and Precious Metal IRAs. Each option has its own set of benefits and drawbacks, so it’s important to do your research before deciding which one is right for you.
Investing in an IRA can be a great way to save for retirement, but it’s not something that you have to do on your own. There are actually companies out there that specialize in managing IRAs. These companies can help you choose the right investment options and make sure that your money is working hard for you.
If you’re thinking about investing in an IRA, doing some research on these companies is a good place to start. You can read reviews and compare different services to find the one that’s right for you. Look up things like reviews of gold ira companies, reviews of Wealthfront, reviews of Betterment, and so on. Whatever you end up going with, make sure you are informed about all advantages and disadvantages that could come your way.
Diversify Your Investments
When it comes to diversifying your investments, there are a few key things you need to keep in mind. First, you need to make sure that you’re diversified across different asset classes. This means investing in stocks, bonds, and cash equivalents like money market funds.
Second, you need to make sure that you’re diversified across different sectors. This means investing in a mix of companies that operate in different industries. For example, you might invest in healthcare, technology, and consumer goods companies.
Third, you need to make sure that you’re diversified geographically. This means investing in a mix of companies from different countries. For example, you might invest in companies based in the United States, Europe, and Asia.
Fourth, you need to make sure that you’re diversified across different time horizons. This means investing in both short-term and long-term goals. For example, you might invest in a mix of stocks and bonds.
Have Some Cash On Hand
One important guideline to follow when deciding how to protect your retirement savings is to have some cash on hand. This way, if the stock market crashes or you experience another type of financial setback, you’ll have the money you need to cover expenses without having to dip into your retirement account.
How much cash you should keep on hand will depend on your individual circumstances, but a good rule of thumb is to have enough to cover three to six months of living expenses. If you have other sources of income, such as a part-time job or rental property, you may be able to get by with less cash on hand.
Be Disciplined About Your Withdrawals
When it comes to protecting your retirement savings, one of the most important things you can do is be disciplined about your withdrawals. Just as you were disciplined about saving for retirement in the first place, you need to be disciplined about how you spend your money once you’re retired.
One key question to ask yourself is: how much can I afford to withdraw from my savings each month? This will help you ensure that your money lasts as long as you need it to.
There are a lot of different things to think about when it comes to protecting your retirement savings. But if you follow some simple guidelines, you can be sure that your money will be there when you need it.