Things to Consider When Planning for the Future

15 September 2016
 Categories: , Blog

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Have you considered all of your options when it comes to your retirement plan? Everyone knows the importance of financial planning for the future. You will need to have enough predictable income for all of your basic living expenses while considering the increase in taxes and inflation by the time you are ready to retire. You also need to think about predictable issues that can have an effect on your planning, such as the death of a spouse or hospital expenses you may incur. If you have not yet thought about these issues, you should consider the following things.

Generate Additional Predictable Income Sources

One major part of your retirement income planning is generating additional predictable income. Do not rely solely on the stock market, as it can be highly risky depending on your investment strategy. You need your money to work for you, so it is crucial that you diversify your income. It is fine to utilize the stock market for some of your money, but you need to invest in other methods that will insure you have cash when it is time for retirement. Some predictable income streams include government pensions, individual retirement accounts, and fixed indexed annuities.

Spouse Death and Social Security

Sadly, the death of a spouse is one thing that will happen eventually, so you need to plan for this on either side of the coin. Keep in mind that in the event of the death of your spouse, only one of the Social-Security payments will continue. This will also largely depend on your ages and whether you both have already elected to receive your Social-Security benefits. This will determine how much you will receive. This can result in a major loss in income for either of you if you were receiving a fairly large Social-Security payment, especially if the death of spouse was not anticipated. This is why it is crucial that you have a plan in place to make up for that lost income.

Having a solid plan in place for retirement is imperative for your future. You can never know how long you will live once you decide to leave the workforce, so you should plan as if you were going to live well into your 80s or 90s. This will help ensure that you not only have enough money for yourself but also for your spouse should you pass away earlier than either of you expected.