Preparing for Life Events

Planning Your Golden Years: A Retirement Guide

Consider Healthcare Costs & Create an Emergency Fund

For most Americans, getting older is synonymous with higher medical costs. Your first step is to invest in your good health. Research shows that regular exercise, a healthy diet, strong community ties, and activities to keep the mind active can cut down on health care costs. The sooner you begin to really take care of yourself, the better, and small changes can make a big difference.

Another safeguard is to build a medical emergency fund into your retirement plan. Talk to your employer before you retire to find out what health care benefits are available after retirement. Should your health insurance expire when you retire, you’ll need to invest time and energy to find alternatives before you begin Medicare. If you have health problems that may require expensive care, you may want to postpone retirement until you can make sure you’re covered by other insurance or Medicare. One uninsured accident or illness can literally wipe out a lifetime of savings.

Put Those Mortgage Payments Behind You

Planning to pay off your mortgage before you retire can save you many financial headaches down the road. You’ll feel a lot more comfortable without a large mortgage debt looming over your head. Most lenders allow you to prepay your mortgage by sending in extra money with your payment. You don’t have to follow an expensive schedule or pay for a bi-weekly payment plan. Just send in what you can, when you can, and make sure you designate that extra as additional "principal" payment.

If your home is paid off when you retire, you may want to take money out of your home. A reverse mortgage allows you to get money from a lender instead of paying money to one. You can continue to live in your home for as long as your health allows, while receiving a monthly check. This can be ideal for retirees who own a home but don’t have a lot of cash to cover expenses.

Think Creatively

Your retirement may not be exactly what you have envisioned, but given the number of years you’re likely to spend in retirement, or at least semi-retirement, you should have plenty of opportunity to experiment with different options. You may consider renting out a room in your home to another retiree or a college student, for example. If you’re a nurse or teach in a special area of expertise, you may be able to travel on cruises for free in exchange for your services.

Another example: if you’re cash challenged but don’t want a job, you may try bartering. Barter networks exchange everything from babysitting services to dry-cleaning to professional services to real estate! If you have a skill or product you can barter, consider joining a reputable barter association to help keep more cash in your pocket. (Visit www.irta.com).

If Debt Is Getting the Best of You - Seek Help

If getting control of your debt before you retire is becoming an overwhelming task, seek the assistance of a financial planner or credit counselor who can provide FREE advice about your particular situation.

Don’t wait. One of the biggest mistakes consumers make is raiding their retirement funds to pay bills when they would have been better off getting help from a professional credit counselor who can help them evaluate their options and make smart choices.

You can call Consolidated Credit’s Debt Hotline at 1-800-210-3481 and speak with a credit counselor to discuss ways to create a manageable plan for reducing debt.