Whether you’re already retired or you’re thinking about the future, you’ve probably taken another look at your saving and spending plans over the last few months.
Are there any changes you could make that would set you up for greater success?
Understanding and planning for your insurance needs is one smart move that can help you stay on track. Let’s take a look at this and a few other possibilities to keep in mind.
1. Take advantage of recent changes. If you’re 72 or older, consider skipping required minimum distributions from your retirement account this year. This move is penalty-free in 2020 due to the coronavirus relief bill.
How this helps: Your account may be more robust in the future if you don’t sell depressed stocks now.
2. Estimate your future health care costs. A couple who retires together in their 60s can easily expect to spend thousands of dollars on their health care over two-plus decades of retirement.
How this helps: Projecting your costs and understanding that Medicare won’t pay for everything can help you plan for copays and supplemental health insurance premiums. Individual retirement accounts and health savings accounts can be one way to help cover these costs.
3. Plan your Social Security strategy. You can claim as early as 62, but waiting until full retirement age (66 to 67, depending on your birth year) or even age 70 will mean larger checks for life.
How this helps: Knowledge is power when it comes to figuring out your potential monthly benefit. Now you can work on making other decisions, including how much you might still need to save.
Staying focused on the big picture can help you make smart decisions when the present feels chaotic. Let us know how we can help.