![]() ![]() Those ads are sponsored by companies who make money off of debt! It will delay your retirement dream, no matter what all those commercials say. Why? Because debt is retirement quicksand. Hopefully, you’ve done the Baby Steps and said goodbye to your mortgage, student loans and other debt. The biggest thing you shouldn’t have in retirement is debt. Hobbies-This could go up, especially if you choose to golf seven days a week or start car collecting! Even more moderate hobbies can be costly, so budget accordingly.Property taxes-Most go up but seldom go down.Recreation-If you plan to travel, this expense will definitely increase.Utilities-If you plan on sticking close to home, you’ll probably use more electricity, water, heat, cooling, etc.How you budget for these will depend on what you want to do when you have more time and more money than ever before. Health care costs may be the biggest expense you can expect to increase in retirement, but they’re not the only increase to think about. That’s why it’s important to meet with a financial guru regularly. You’ll need to keep an eye on that number as you get closer to retirement. Unless something drastic happens, health care costs will continue to rise. 2 Here’s how that could break down for you if you think you’ll have more medical costs in your retirement years: HealthView Services estimates that with these additional health-related expenses, the total amount a couple can expect to pay could reach about $662,000. Keep in mind, though, this amount doesn’t include dental care, vision, co-pays and other out-of-pocket costs. 1 That’s because as you age, you’re more likely to have health problems. A recent estimate from Fidelity suggests a retired couple can expect to spend $245,000 on health care over 20 years (from age 65–85). You can expect one particular expense to increase as you get older. However, what those expenses are and how much you allocate for them will probably change, especially if your retirement living is vastly different than how you live now. We're glad you asked! Just like your budget now, you will have monthly expenses and nonrecurring expenses that come yearly or quarterly. The logical follow-up question is: How do I decide what to put in that monthly budget? ![]() It’s the amount of money you’ll need each month to live out your retirement dream. Retirement is not an age it’s a financial number. ![]()
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