Health is wealth. At no other time may this be truer than in retirement. Whereas many of your expenses decline once you retire (hopefully you don’t have to commute, the mortgage is paid off and the kids are financially independent), health care costs will generally rise as you age.
A comfortable retirement isn’t achieved on hope alone. It involves a series of important decisions, which put together can seem overwhelming. But it doesn’t have to be that way.
How do you pack for a race to the South Pole? Though you must prepare for harsh conditions, you can’t bring along every tool imaginable. You need to be nimble enough to make good time and traverse Antarctica’s cold, uneven terrain. Therefore, you must be meticulous in your planning, with thoughts on the challenges you may face and the ways you’ll adapt your plan to overcome them.
Not all financial goals are alike, so the way you save for each one should be different, too. Think about it. You don’t save for a vacation in an IRA and you don’t save for retirement in a low-interest savings account.
You know you want to retire at some point. What you may not know is if you’re doing all the right things to get there. Are you saving enough? Are you even saving in the appropriate retirement account?
There’s nothing wrong with wanting the best for your children and your grandchildren. Specifically, the best tools for them to succeed. Therefore, you might not bat an eye when a child or grandchild asks you for help to pay for college.
Retirement is about utilizing each dollar of your accumulated wealth to live comfortably on your terms and, hopefully, fulfill some of your biggest dreams. At least, this is how retirement is supposed to work. Unfortunately, people too often find their financial futures hindered by debt.
On January 3, 1993, the Buffalo Bills miraculously pulled off a 41-38 overtime upset over the Houston Oilers in an AFC playoff game that remains the largest come-from-behind victory in NFL history. To this day, it is commonly referred to as “The Comeback.” Such an unbelievable, overcoming-the-odds story can provide some much-needed inspiration to those nearing retirement age with little to no savings.