A few decades ago, turning 60 means you are close to the workforce finish line. At that time, individuals at this age are gearing up for retirement. However, times have changed for many. While there are still people who choose the traditional route and retire in their 60s, many still choose to remain active in the workforce for as long as possible. Some choose to stay to make up for the longer life spans. Others choose to continue working to earn and save more. Many work for more years because they want to keep their minds and bodies engaged.
Retirement in the United States is shifting, and priorities are changing, but one aspect remains just as important: financial planning. The ideal picture that many people have is that once you reach your 60s, you have got it all figured out. You have got your finances ready and your health and care expenses mapped out. Many often paint a picture of cruise ships and weekend golfing trips when they think of retirement. While that is still possible, individuals must take precautions to safeguard their future.
Reaching the sixth decade does not mean that you are done with planning. After all, you have got a few more decades to map out thanks to longevity. To help you in landing the best financial strategy, here are four tips you need to live by as you turn 60.
Look at Key Long Term Care Insurance Information Online
Many people often think that once they reach this age, long term care insurance is no longer an option. While it is ideal and cost-effective to apply when you are younger, you can still purchase a policy after reaching 60.
Many even deliberately wait for this age to look for a plan because they find this particular financial move to be better suited for their finances. Many often take the time to gather all key long term care insurance information before diving in. Additionally, it is around this age that they fully realize the impact of having good long term care coverage within reach.
Especially in the recent years, the cost of care in America has been rising to new heights. People are beginning to worry about funding their care, and the ones who wish to take a proactive step look into insurances. Because of its comprehensive nature, many decide that long term care insurance is the way to go. In fact, 94% of the beneficiaries surveyed from 11 major long term care insurance companies claim that their policies are sufficient in covering their care needs. Many are following their lead. To do this effectively, however, you must seek the help of a professional advisor.
Address Debt Efficiently
Car loans, student loans, credit card bills, and housing debt—there are many ways in which you can accrue debt, and we are all familiar with it. Now that you only have a few years left working (whether you choose the traditional age of retirement or wait a little longer), it is time to push back those sleeves and truly tackle any sort of debt you might have. At present, the baby boomer generation is carrying unprecedented amounts of debt, and leaving this unaddressed before retiring can have dire consequences.
One great way of tackling this quickly and cheaply is by following the avalanche method. Using this tactic, target ones with the highest interest first. And then once that is settled, move on the next highest.
Check your Numbers
Surprisingly, many individuals who reach this age have outdated notions when it comes to their assets. Although there is no sure way to determine how long you live, having an estimate will be a good help in planning your numbers. Life expectancy calculators, though not set in stone, can help you get the rough idea.
From there, you can determine how much it is going to cost you to live after retirement by referring to past spending habits. Keep in mind that by the age of 60, you should at least have eight times the amount of your final income saved. Lastly, never forget that you should have an emergency fund ready for a rainy day. Ideally, this should be six months worth of your present income.
Turn a Hobby into a Source of Income
Many of the baby boomer generation opted for the corporate route when they were establishing themselves. Of course, nothing was wrong with this choice. So many of these individuals excelled in the various fields that they chose. However, plenty of them had to sacrifice passions that they deemed less-lucrative.
Now that times are changing, and you are close to bidding adieu to the corporate world, you can chase these passions. So many older individuals are taking classes to revisit old hobbies and past passions. Retirement, in their eyes, is the time to look back at that the activities that took the backseat. So why not turn it into something that produces a stable income? After all, as the saying goes: If not now, then when?
Samantha Stein is an online content manager for ALTCP.org.Her works focus on key information on long term care insurance, finance, elder care, and retirement. In line with the organization’s goal, Samantha creates content that helps raise awareness on the importance of having a comprehensive long term care plan not just for the good of the individual but for the safety of the entire family.