Steps That Baby Boomers Need To Take Now For Retirement Planning

9:55 pm Retirement Planning

retirement sign e1367526898975 Steps That Baby Boomers Need To Take Now For Retirement Planning1. Prioritize your own needs. Boomer parents are finding it increasingly difficult to put themselves first, ahead of their children’s financial and educational needs. However, there are other financial resources available for college educations, but not for retirement. Interest rates are at historic lows, and your children can take advantage of these without counting on you to bankrupt your retirement.

2. Plan to retire now. Early retirement planning provides you with some wiggle room if your financial picture changes dramatically prior to your actual retirement.

3. Ramp up your savings rate. Most of us have not saved what we should have in our early working years. Now that you are older and the children are gone, you may have the opportunity to catch up. Those over the age of 50 are allowed to make catch-up contributions to IRAs and 401(k)s.

4. Review your investments. Review your portfolio to be sure your investments are allocated properly as you near retirement and that fees associated with those investments are reasonable.

5. Look into long-term care insurance. It has been estimated that we will spend $240,000 during our retirement years on healthcare and medical expenses. If you can’t afford these on your own, you will want to consider purchasing long-term care insurance.

6. Create a comprehensive estate plan. A comprehensive estate plan will help you and your heirs protect assets and save time and money in costly probate proceedings. As you age, you will also want the protection of a durable power of attorney and an advance health care directive to ensure your financial and healthcare wishes are followed. Only a comprehensive estate plan can provide you and your family with these protections.

Contact our Newport Beach law firm to learn more about planning your retirement.

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