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Planning for retirement isn’t easy. Simply put, envisioning the future and what it has in store for us is hard. It’s important to remember that life isn’t predictable—there may be a few challenges that arise down the road. Make sure you’re prepared to face these 5 retirement surprises.
1. Unpredictable Stock Market
The stock market has proven unpredictable in recent years. Many financial professionals aren’t expecting that volatility to go away any time soon.
Put yourself in the best position for a topsy-turvy market by ensuring that your investment portfolio is diverse. That means having money in stable options like money-market accounts, along with putting it to work in equities that earn dividends. Overall, you should avoid putting all your eggs in one basket, that way you’re protected if any of your investments tank.
2. Unexpected Relocation
Many people toss around the idea of relocating at one point or another during their retirement. Whether one of your children has a baby of their own on the way and you want to live closer to them, or you always wanted to live for a period abroad, there are many reasons to want to uproot after you’ve retired.
Before you put your home on the market, evaluate when the most ideal time for you to sell it will be. Consider how urgent it is that you need or want to move, the housing market in your area throughout the year, and develop a plan that is financially sound. The last thing you want to do is put yourself into a position where you are unnecessarily losing money.
3. Partner Needs Long-Term Care or Dies Suddenly
You can’t prepare for a spouse to suddenly pass away or require long-term care. You can, however, anticipate those possibilities.
Before you retire, you should take a good look at your estate planning documents. Review and update your wills, trusts, financial and health care powers of attorney to make sure that everything is set up to best protect yourself and your spouse, if something were to happen to either of you. It’s also necessary that you communicate what your after-death preferences are, in case they change over time. This includes funeral and burial arrangements, passed-down wealth, and more.
4. Loss of Home
Nature strikes when you least expect it to. This is why it’s vital that you are prepared to handle the sudden loss of your home during your retirement.
Revisit your homeowner’s insurance and update the policy if it needs to better protect you. Of course, it’s always better safe than sorry when it comes to coverage against any kind of natural disaster that might be inflicted on your home. That small increase to monthly premiums is nothing compared to the loss of a home. You might also consider making upgrades or attending to maintenance issues, like adding a new roof or sump pump.
5. New Business Opportunity
Just because you’ve ended your career at one place, doesn’t mean that your working days have to be over. You might be approached by a colleague or family member to become partners in a new business venture, or work on a temporary or part-time basis.
New opportunities can be exciting, but make sure your wants and needs are being met. You didn’t work hard to retire into an entirely new career, but to enjoy the fruits of the labor that brought you into your retirement. If you do decide to move forward with a new job or business venture, make sure that you’re not using all the funds you worked to accumulate to live the kind of retirement lifestyle you had planned for.
Of course, these big surprises can often result in a shift in your financial situation. If you find yourself struggling to support your lifestyle or any surprises that might occur during your retirement, you can always consider selling any unwanted or unneeded life insurance policies through a life settlement for a large sum of upfront cash. Life settlements can become a very advantageous financial maneuver that can protect you from unexpected costs, while also providing a real opportunity to expand your retirement nest egg.
For more information about life settlements, check out our website today!