Ready To Retire? What You Need To Know and How To Make Your Financial Decisions

July 13, 2018

Retirement is one of the final milestones that a person reaches in his or her life, preceded by becoming an adult, turning 21, landing a first “big person” job, getting married, buying a house, having children and becoming a grandparent. Yet, unlike any of the other milestones (save for getting married and buying a house), retirement requires advance planning of both the mental and financial sort. If you’re ready to retire, there are a few financial considerations you must make first, each of with which an Encino accountant can help you.

Know How Much Money You Will Really Need

One of the biggest mistakes that retirees make is retiring before they’ve figured out how much they will really need to retire. While experts recommend having enough saved to account for 70 to 80 percent of your pre-retirement income, every individual’s needs are different. The best way to calculate how much you’ll actually need it to determine what you plan to do post retirement. Do you want to travel or stay home? Do you want to keep the family home or sell it? Is the home paid off? Do you plan on helping your parents as they become unable to take care of themselves? Your answer to each of these questions will determine just how much you will actually need to maintain a comfortable lifestyle post-retirement. Your Los Angeles company advisors can help you assess your savings accounts and determine how you should treat each.

Plan for Medical Expenses

Medical expenses are one of the biggest expenses that retirees have, yet most individuals do not plan for them. The best thing you can do for you, your spouse and even your children is to invest in a plan that covers standard medical treatment, comprehensive and specific medical treatment and long-term care. If you don’t plan for medical, you may discover that your entire savings goes to a single hospital stay.  

Retain the Help of a Financial Expert

If you’re ready to retire, talk to a Los Angeles accounting expert near you. An Encino accountant at Wallace & Associates can help you make sound financial decisions that will set you up for a comfortable and worry-free retirement. Email us today to schedule your tax consultation.