You may think that you’ve planned out everything you need for your golden years, but sometimes unfortunate events may still befall you. If you encounter financial disasters that can affect your retirement, that doesn’t mean that you’re doomed. Simply make sure that you look out for possible pitfalls—and plan accordingly. Some potential monetary obstacles include:
- The state of your home. While many people plan to spend their golden years in the home that they’ve paid off, this isn’t always feasible. Maybe your home has incurred water damage or a storm tossed a tree onto your roof. Alternatively, maybe as you grow older, the stairs become harder to access and your home becomes far too overwhelming to maintain. All of these factors can cost money in repairs, medical bills, and maintenance services. Don’t let your home turn into a financial pitfall! Make sure that you inspect it regularly, have an emergency fund, and record your budget. If you believe that your home could prove costly in the long run, you can also start looking for more affordable options.
- Sudden debt. Whether you’re dealing with an unexpected lawsuit, credit card overspending, or a sudden turn of awful events, debt can prove overwhelming. It’s nearly impossible to plan for everything, but it’s better to have some sort of system in place in case the worst happens. Try to create a disaster fund, adding to it a bit each month. Then, you will have a source that you can rely on in the coming months without worrying about depleting your retirement costs. Even if your fund can’t cover everything, it will be a relief to not have to worry about a higher volume of debt. Finally, talk to a professional who is experienced in getting people out of debt to make sure you have someone knowledgeable in your corner.
- Death or divorce. If your spouse passes away or divorces you, it’s very unlikely that your retirement plan will remain intact. In fact, these are two of the biggest financial disasters that can affect your retirement—and some of the most heartbreaking to handle. Make sure that you have a plan in place, paperwork prepared, and as many possible arrangements made prior to such an event. This may sound nonsensical, as you usually cannot plan a death or divorce. However, you can plan how you’ll handle it. For instance, consider a pre-nuptial agreement. If you fear a bad reaction from your spouse, explain to him or her that you want to ensure that their assets will remain protected, though of course you hope that day never comes. Additionally, though it may sound morbid to plan your funeral and life insurance policy, it will give much relief to your loved ones in a horrible time. It will also help you take care of your spouse in the long run, as he or she won’t incur such large costs all at once.
- Helping out the kids. If you have children, you have dealt with the rising costs of raising them. You may have also aided their college funds, weddings, and car buying. If this is the case, then you know how taxing your financial assistance can be on your own budget. It’s hard not to try to help the people we love, but make sure that you’re not doing it at the expense of your own retirement.
- Healthcare. As we grow older, we become more susceptible to illness and injury. Not only should you try to create an emergency fund for your healthcare, but you should also actively ensure that you’re avoiding potential disasters. Stairs, cluttered hallways, or small colds can turn into huge problems. Try to stop them at the source by finding a place without stairs, keeping the floors clean, and monitoring your health. Not only will you feel better, but your savings will be stronger.
While there are a fair few of financial disasters that can affect your retirement, remaining aware of potential dangers will help you avoid—or lessen—a monetary tragedy. Don’t let a mistake keep you from losing your retirement. Good luck and happy saving!
If you’re interested in increasing your retirement savings while keeping them protected from market losses, call Ty J. Young Inc. at 877-912-191. You can also follow our Retirement You Earned Blog to learn more about building your future nest egg.