Retiring on Your Resolution List? Here Are Five Retirement Expenses You Must Know
Posted Dec 26 2012 9:00am
Maybe one of your 2013 resolutions is to retire. Rescue Alert of California contributes this guest blog to help you. Everyone wants to be prepared for retirement when the time comes.
Saving when you’re younger can help put you on the path to independence
once your working days have ended. Learning how to prepare for
retirement can be difficult, though. There are many retirement expenses
that pop up that many people may overlook, or may not even know about.
The 5 retirement expenses listed below are some of the most common ones
that people do not account for when they’re saving. This list is
courtesy of David Ning, a financial planner and owner of MoneyNing .
Even Retirees Have Bills
Account for Inflation - Inevitably, inflation will
affect some of your purchasing power, as things become more expensive.
It is important to remember, though, that not everything inflates at the
same rate. Keep an eye on how prices change so that you are not
worrying over inflation that won’t happen.
Some Expenses Are Temporary - Especially when
discussing things like mortgages, these are debts that will eventually
disappear. Make sure you have enough to cover these costs, but remember
that you won’t be paying them forever.
Taxes Still Exist – Even after retiring, taxes will
still be a part of your life. Things like Social Security, IRA &
401(k) withdrawals, and pensions are all taxable at different rates.
This is probably the most important expense to remember, as these taxes
can be some of the largest expenses you’ll incur.
Expect the Unexpected - Miscellaneous expenses
won’t go away just because you’ve paid off your house or your car. Being
able to cover maintenance or repair costs is extremely important,
especially after you retire. For seniors, also, comes the risk of
medical conditions and medication. Having some money stashed away for
emergencies can be a tremendous relief for you and your family.
Paying for That New Hobby - With more free time on
your hands, you may find yourself wanting to pick up a new hobby, or
activity to occupy that time. Depending on what it is, it may require
new equipment or tools that need to be accounted for in your savings.
Covering the costs of these new items will allow you to enjoy your new
lifestyle even more.
Retirement is a time for people to enjoy the things they love, and be
with the people they love. Preparing for retirement can lessen the
stress of this time, and can help you live comfortably in the way you
want. These 5 retirement expenses must be accounted for in order to
avoid any surprises later in life. To read the full article, please follow this link: Yahoo! Finance Rescue Alert
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