{"id":16539,"date":"2024-02-02T10:15:38","date_gmt":"2024-02-02T16:15:38","guid":{"rendered":"https:\/\/johnsonwim.com\/?p=16539"},"modified":"2024-02-02T10:15:38","modified_gmt":"2024-02-02T16:15:38","slug":"retirement-readiness-signs-youre-ready-to-embrace-the-transition","status":"publish","type":"post","link":"https:\/\/johnsonwim.com\/retirement-readiness-signs-youre-ready-to-embrace-the-transition","title":{"rendered":"Retirement Readiness: Signs You’re Ready to Embrace the Transition"},"content":{"rendered":"
Everyone dreams of exiting the workforce, but how can you be sure you’re truly ready to retire?<\/b><\/p>\n
Retirement<\/span><\/a> is more than just a dream\u2014it’s a phase of life many long for but few are truly prepared for. It’s a time when you say goodbye to the daily grind and embrace the freedom to pursue your passions, travel the world, or simply enjoy the tranquility of a slower pace of life. But how do you know when you’re truly ready to leap into retirement bliss?\u00a0<\/span><\/p>\n Here are some signs that indicate you’re primed and prepared for transitioning to this exciting new chapter.\u00a0<\/span><\/p>\n Achieving readiness for retirement hinges significantly on attaining financial stability. Imagine successfully paying off your <\/span>mortgage<\/span><\/a>, eradicating credit card debt<\/a>, and settling any lingering loans. The commitment to a debt-free existence helps relieve financial stress and unlocks additional funds, helping you to savor and embrace your retirement years fully.<\/span><\/p>\n Coupled with years of dedicated <\/span>saving and strategic investing<\/span><\/a>, you likely have cultivated a substantial nest egg with the goal of sustaining your desired lifestyle throughout retirement. Working with a financial advisor is another stepping stone that can help you assess your numbers and comprehensively understand your varied <\/span>retirement income sources. <\/span><\/a>Whether it be pensions, investments, or accounts such as <\/span>401(k)<\/span><\/a>s or <\/span>IRAs, an experienced advisor can help identify holes in your current plan and introduce additional suggestions and strategies you may not even be aware of.<\/span><\/p>\n As you venture on to the next chapter of your life, planning for the future is essential. <\/span>More than 1 out of 4 Americans<\/span><\/a> say inflation has caused them to see a greater need for estate planning, yet 2 out of 3 Americans do not have any type of estate planning document. Life insurance is also an important part of an estate plan and the retirement planning process.<\/span><\/p>\n Having a proper estate plan and life insurance coverage helps ensure that your assets are distributed as you choose and that your loved ones will not experience financial hardship following your death. An <\/span>effective estate strategy<\/span><\/a> can spell out your monetary wishes and help ensure that they\u2019re carried out \u2013 even if you cannot communicate. It can even designate someone to manage your financial affairs if you cannot.<\/span><\/p>\n We’ve all heard the old adage “Don’t put all your eggs in one basket”, and that couldn’t be more true than when it comes to investing your money. When it comes to creating sources of income for retirement, you can help <\/span>mitigate risk<\/span><\/a> by spreading your savings and <\/span>investments<\/span><\/a> across multiple streams for future income.<\/span><\/p>\n Suppose you\u2019re trying to build momentum early in your retirement savings journey. In that case, it might be smart to invest in securities with the potential for higher returns (like stocks), but are also riskier. If you\u2019re closer to retirement, investing in safer but slower-growing accounts like certificates of deposit, treasury bills, or money markets might be smart. If you have three years or less to invest, you can consider yourself a short-term investor. A four- to seven-year timeline is considered intermediate. Long-term investors may enjoy less risk due to the fact they have more time for their portfolios to make up for potential losses.<\/span><\/p>\n If you are truly ready for retirement, you will have your future healthcare needs accounted for.<\/p>\n Healthcare costs<\/span><\/a> can rise exponentially in retirement. <\/span>According to the Centers for Medicare and Medicaid Services,<\/span><\/a> it is predicted to increase by an average of 5.1% per year, reaching $6.8 trillion by 2030.<\/span><\/p>\n Many people receive health insurance through their employers, but this benefit typically ends once the individual no longer works there. It\u2019s important to weigh all your healthcare options and invest in reliable plans, such as <\/span>Medicare<\/span><\/a>.\u00a0<\/span><\/p>\n Utilizing a <\/span>health savings account (HSA)<\/span><\/a> can help you save for upcoming medical costs. An HSA allows you to allocate income before taxes to cover eligible medical expenses like deductibles and copayments. Using untaxed funds from an HSA can frequently reduce your total healthcare expenses. To be eligible for an HSA, you must have a high-deductible health plan. You can also establish an HSA through a bank or credit union.<\/span><\/p>\n Another very important expense to factor in is long-term care, or LTC. As life expectancies increase, so does the likelihood of requiring long-term care services due to age-related illnesses, chronic conditions, or unforeseen health events. In fact,\u00a070% of adults<\/a>\u00a0aged 65 years and older will require\u00a0long-term care<\/a>\u00a0at some point in their life, this could range from assistance with daily activities to specialized medical services.\u00a0One-third<\/a>\u00a0of people may never need long-term care, but 20% will need it for longer than 5 years.<\/p>\n Nationally, these monthly median costs according to the Genworth Cost of Care Survey 2022 are:<\/p>\nFinancial Confidence<\/b><\/h3>\n
You Have an Estate Plan & Life Insurance Plan<\/b><\/h3>\n
You have a Diverse Portfolio<\/b><\/h3>\n
You Can Afford Healthcare<\/b><\/h3>\n