The subject of how much money a person needs for retirement is a tricky one. Each person’s needs are slightly different, which can make for difficulty in deciding what a good amount is. There are also some things that you may not think about which may come up later on and cause trouble.
One of the most difficult things to think about or discuss is health care. No one likes to talk about it because as we grow older, many things can happen with our health. We may be affected by a major illness, for example, or arrive at a point where we need long term residential care. Medicare can be expensive and difficult to understand, and long term care facilities vary greatly as far as cost and quality of life. An even less popular topic for discussion among retiring couples is how each spouse will get the money that they need to live off of should the other spouse pass away first. Neither of these topics are easy to discuss but it is extremely important that you take the time to do so.
Someone once said that there are only two things that are for certain – death and taxes. Did you know that the “income” that you receive from Social Security is taxable? It is difficult to get used to that, especially if you are accustomed to receiving paychecks which have already had all taxes withheld from them. The same goes for money that you withdraw from your tax – deferred retirement accounts, and the tax rates on those withdrawals can be substantial.
Retirement is supposed to be a joyful time, but unexpected financial surprises can put a damper on the festivities. Enlisting the assistance of a reputable retirement planner can help you to make the smartest moves with your money so that you can enjoy more of the things that your retirement dreams are made of.
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