6 Steps to Building a Strong Safety Net for Retirement
Are you concerned about your financial stability in retirement? No matter your age, it’s never too late to prepare. You can find various options for different helpful insurance policies from JC Insurance Group. Furthermore, here’s how to bring in extra income from a part-time job or side business, save for healthcare expenses, and make smart investment choices so that you’re not solely dependent on Social Security and Medicare in your golden years.
Pick Up a Part-Time Job
Many seniors enjoy working part-time in retirement for social interaction and additional income. If you plan to apply for part-time jobs when you retire, you’ll want to update your resume first. You can create a resume with an online template at no cost. You’ll be able to browse a library of available templates, and when you find your preferred format, you can add your professional experience, a photo, and other touches, like graphics or colors.
Run a Side Business
If you don’t want to work for someone else during your retirement, you could always work for yourself. This is the perfect opportunity to start your own small business. Forming an LLC can maximize your financial benefits – you’ll get tax breaks and limited liability, which will keep your financial portfolio safe. To save time and money, simply file through an online formation service rather than handling the process on your own or hiring a lawyer. You’ll need to submit the documents and information required for registering your business in your state.
Make Smart Investments
When it comes to investing, it’s best to play it safe. Avoid putting your savings into risky, individual stocks and focus on investing in index funds instead. MyChesCo states that index funds allow you to invest effectively in all of the companies included in a particular index, which diversifies your portfolio and mitigates your financial risks.
Contribute to a Health Savings Account
Your healthcare costs could skyrocket in retirement. To cover your medical costs, it’s a good idea to start contributing to a Health Savings Account now. The Motley Fool states that HSA funds are triple-tax advantaged, and you can withdraw from this account before retirement with no penalty if you need the money to pay for medical expenses.
Purchase Long-Term Care Insurance
Perhaps you’ve looked at the costs of long-term care in your area, and you’re wondering if your retirement savings would be enough to pay such large monthly bills. This is where long-term care insurance comes in. This form of insurance can cover several years of long-term care in a nursing home. Talk to different insurance providers to find a policy that suits your needs and budget.
Decide Where to Live in Advance
In retirement, you’ll have lots of options for housing, depending on your budget. You may want to stay in your current home and invest in certain renovations to modify each room for your needs in your golden years. Alternatively, you might be interested in moving somewhere new, such as an active adult community, a continuing care retirement community, or a walkable neighborhood closer to your friends and family with lots of amenities.
It’s best to think about your senior housing preferences well in advance so that you can invest a larger percentage of your paycheck into retirement savings accounts if necessary. You want to ensure that you’re not stretched thin when it comes to housing costs in retirement.
If you’re worried about your retirement portfolio, you can improve your savings strategy starting today. From earning side income through a business or part-time job to buying long-term care insurance, these tips will help you get ready to leave the full-time workforce. Soon, you’ll feel confident in your retirement preparations!
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