Retirement Planning Advice: if You Are in your 40's ...

Retirement Planning Advice: if You Are in your 40's ...

When you reach your forties, you should begin considering the lifestyle you'd like to have in your golden years. Are you planning to travel? Do you feel like you will keep working part-time to keep yourself busy? Start thinking about what you want your retirement to be and what kind of income you'll need to live comfortably. Keep in mind that retirees are living longer than ever before, so you may need more money than you think.

This is also the time to start planning for quality of life issues. After retirement, how much medical coverage will you be able to afford? Remember that any medical insurance you carry will be paid only by you, not your employer. Also, keep in mind that as we age, medical insurance premiums rise significantly. How will you pay for nursing home care if you need it? Will you be able to afford an at-home nurse? Medical concerns are potentially the most expensive aspects of retirement planning. Long-Term Care Insurance is an idea worth considering. These plans will help pay for nursing home care so you don't have to worry about losing your home or other assets in the event of an illness or serious injury. The premiums will be relatively inexpensive if you start a plan sooner rather than later. There are many different options offered in these plans, so consult an insurance professional for help finding the best plan for you.

Now that you have reached your forties, it is also time to start reallocating your retirement funds into investments that will give you more income than growth. However, you still want a significant growth component to your portfolio. Retirement is twenty years away and you do not want to lose two decades of growth potential. It is highly recommended that you consult a financial advisor to help you allocate your funds in a manner that is appropriate to your situation.

The important thing to realize is that once you reach this point in your life, you'll need to think more about your retirement than about wealth accumulation. Give yourself a chance to really think about what you want your retirement to be and plan from there.