How to Identify Retirement Goals

Did you know you can sell all or a portion of a life insurance policy, even term insurance?

(3 Minute Read)

Financial health is all about security. We want to be sure that our present and future goals are safe and attainable. While we serve in the workforce, our planning can sometimes be focused on short-term needs, such as paying mortgages, covering healthcare costs, and putting food on the table. While those factors never go away, paying for them during our retirement years becomes far more complex. Without a consistent paycheck being deposited, the focus shifts to the stability of our savings. Whether you’re getting started early or are a late bloomer when it comes to retirement planning, there are some important goals to identify that can help ensure long and happy golden years.

Figure Out What Your Retirement Goals Are

A good first step of retirement planning is simply realizing what you want to accomplish and do during your golden years. Start by simply documenting or jotting down life experiences you’d like to have. Maybe it’s a hope for more travel, or perhaps to finally buy that boat you’ve always had your eye on. Whatever it is, the next step is to list out what obstacles or opportunities you may have in these areas. For instance, if travel is difficult due to health restraints, it may be a goal to get healthier or to save up for more all-inclusive travel packages that require less strain on you.

Determine Retirement Time Frame

Before establishing any major goals or allocating money, you first need to confirm how long you can remain working before retiring. Younger individuals—that is folks with 30 or more years until retirement—generally are advised to have more money in riskier investments, such as stocks. While these may be more volatile than reliable choices like bonds, a longer period of time allows for more opportunity for overall growth.

But for those with less time until they stop working, such as someone a year or two away, the name of the game is preserving your capital. Those secure and trusted investment options like bonds can provide stability for day-to-day living and short-term needs. Bonds are often called a “safe haven” for investors due to their steady growth and immunity to forces of inflation. In short, your timetable for retirement should play a big role in determining what goals you’re setting.

Calculate Realistic Retirement Spending Needs

Though many seniors hold the belief that annual spending will equate to only 70-80% of what they spent during working years, the truth is that the number is much higher. In fact, it’s become standard for advisors to suggest keeping that rate closer to 100% of what you spent on a yearly basis. Recent stats published by the Bureau of Labor found that “older households” that are run by someone 65 years or older spent around $46,000 every year, which breaks down to roughly $3,800 per month.

Your retirement goals should definitely meet this target amount. In fact, a good goal is to go above this amount, as there may be unpredictable costs for seniors. Expenses like housing or food may remain static, but sudden needs for spending may pop up in categories like healthcare. 45% of Americans said they would struggle to pay an unexpected $500 medical bill. This is especially true for those without the consistent income of a paycheck. Not only should you be calculating the many costs that go into retirement, but it’s also a good idea to reevaluate this budget every year.

Consider Your Insurance Policies

Many Americans have multiple insurance policies, but not everyone needs superfluous coverage. Retirement planning works best when you’re making the right choices for you. No two retirement plans are exactly alike, but there are still some common options for boosting your savings. Did you know you can sell all or a portion of a life insurance policy, even term insurance? Contact Life Settlement Advisors today to learn more.

Did you know you can sell all or a portion of a life insurance policy, even term insurance? Selling an unwanted life insurance policy is no different than selling your car, home or any other valuable asset that will create immediate cash. Contact us today to learn more.

Leo LaGrotte
Life Settlement Advisors

Get in touch with Life Settlement Advisors today to take the first step toward converting your policy into cash.
Life Settlement Advisors
Leo LaGrotte
At Life Settlement Advisors, we strive to be a voice of confidence and assurance for our clients. Our goal is to educate you about the life settlement process so you can make an educated decision about whether it is right for you.

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