5 Ways to Avoid Outliving Your Retirement Savings

December 5th, 2017 by John Wilson

Saving for retirement can be a complicated process. It can be difficult to determine exactly how much you will need to be able to fund your retirement years. No one knows how many years they will live beyond retirement, nor how much the cost of living will be in the future. However, there are things you can do to help ensure you have funds for as long as you need them, including finding affordable senior living options.

Start Early

Most young people don’t think about saving up for retirement when they are teens or in their early 20s. Retirement can seem so far off and it feels like there’s plenty of time to save. However, if you want to make sure you have enough, especially if you may face moving into assisted living for seniors in Oklahoma, it’s important to start saving for this time period as soon as you start working. Any money put away can be rolled over as you switch jobs throughout your lifetime.

Create a Budget

While the cost of things will change over time, it’s important to understand what you will need to spend money on. Many of the costs you will face during retirement are fixed, such as insurance, housing and more, especially if you will be living in affordable assisted living in Oklahoma City. However, you will need to factor in the type of retirement lifestyle you want to live. Will you travel? What types of activities do you wish to participate in? These can all have an impact on your budget, letting you decide how much money you will need to save.

Your retirement plan should include assisted living for seniors.

Assisted living for seniors should be part of your retirement plan.

Focus on Saving Vs. Spending

It can be easy to buy what you want when you are young, but it’s also important to carefully consider how much you are spending, especially as you get closer to retirement. The older you get, the more money you should be setting aside for the expenses you will have after you have retired. This will help ensure you have the right amount of money to get you through your retirement years.

Know Your Risks

Most of the accounts people use to save for their retirement are stocks, bonds and similar risky investments. Each one has its own level of risk. As you go through your working years, you will need to make adjustments to the types of investments you make. In your early saving years, you can take greater risks, which may result in great gains or may cause some loss. However, as you get closer to cashing out your retirement funds, you will need to make more careful investments with less risk, even though the growth will be slower as a result.

Consult with a Professional

You don’t have to save for your retirement on your own. Financial advisors can inform you of your options and ask the right questions so you can make the best choices. The more informed you are, the more likely you will have the amount of money you need to get through your retirement years comfortably. These professionals can help you determine how much to invest and where to put your money so you can maximize your returns.

If you’re making plans for your retirement investments, contact us. We can help you determine how much you should save for affordable assisted living in Oklahoma City.

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