Having gone through the last recession where savings often had to be tapped prior to retirement — and with few years left to make up what has been lost — boomers are rightly concerned about outliving their retirement savings.
Financial advisors recommend these five things to help boomers prepare for retirement now:
1. Start planning. When planning for retirement, boomers need to take a long view; many will live 25 or more years in retirement. You need to figure out how much you need and then what you have to do to get there.
2. Decide on what retirement means to you. Everyone’s retirement is different; some of us will work either full time or part time, and some of us just want to lie on the beach. You need to envision your retirement lifestyle, including what you will do, where you will live, how much you will travel and plan accordingly.
3. Manage debt. Carrying high interest debt into retirement is a sure way to deplete your savings. Reduce as much debt as possible prior to retirement, including credit card debt, mortgage debt and any student loan debt you may be carrying.
4. Get help. The help of a financial advisor and an estate planning attorney can be invaluable in planning for retirement. Having the right team that can give you financial and estate planning strategies to help you fund your retirement can save you plenty in the long run.
5. Expect the unexpected. Having an emergency fund of at least six months’ living expenses can provide the cushion you may need for unexpected events that could severely impact your finances. You also need to have the proper estate planning documents in place – a will, durable power of attorney, health care directive, etc. – so you and your family are fully protected.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.