As you approach your 50s or 60s, planning for retirement might become a more urgent concern. Together with a California financial advisor, you can go through your assets and your projected expenses to figure out where you stand and what you have to do to maximize your situation. You can also figure out how you would pay for a care facility such as a nursing home or assisted living.
How Can I Best Plan for Retirement?
The best time to start planning and saving for retirement is now. While your money has more time to grow when you’re younger, it’s likely that you have more disposable income in your late 40s to early 60s because your salary might be higher, and it’s likely that your children have moved out. You can take advantage of this situation and contribute as much as possible to your retirement accounts, which might include a 401 (k) and a Roth IRA.
Making use of any tax-advantaged accounts is important because it allows you to save more money with less effort. Together with your Fresno financial advisor, you can go through your situation to figure out how much you need for a comfortable retirement. Some factors to take into account might include your expenses, both now and in the future, any passive income you have, the projected cost of living, liquid assets like a life settlement, and any potential windfalls.
How Will I Pay for Care Facilities?
In the US, there are three ways to pay for long-term care, unless you qualify for Medicaid. You can either use your own savings, buy a specific insurance policy, or get comprehensive insurance that includes care as well as other elements like annuity benefits. If you believe that you could easily pay for a private room in a care home, relying on your savings could be the best option because you’ll be able to avoid the monthly insurance cost.
However, a care home can cost $5,000 to $10,000 per month, so it’s unaffordable for most people in the long term. Ask your Fresno financial consultant about the insurance options in your local area. The earlier you take out a policy, the less you will pay every month. Therefore, people in their late 40s or early 50s are often advised to start paying for insurance straight away.
What to Look Out for in a California Financial Advisor
Always select an advisor who has wealth management experience in your area. Because not every state has the same rules and regulations, selecting someone local to California is best. Additionally, make sure your consultant is able to help you with a variety of topics, including optimizing your tax strategy, protecting your assets, planning your legacy, and managing risk.
Preparing for retirement is a complex endeavor because there are so many variables. For most people, speaking to a financial advisor is crucial. A professional can help you consider all aspects of your situation, including how you can improve your tax strategy, how you would pay for longer-term care, and whether your cost of living will change as you grow older.