Does retiring feel like a long way off into your future? No matter what your age, now is the time to begin to prepare for retiring and plan for a rock solid financial future. If you’re in your 40s, consider sitting down now and putting some plans for your future on paper. This will help you easily prepare for your lifestyle once you stop working several years down the road. Here are just a few things to consider.
What’s Going On With Your Mortgage?
Do you currently own your home? Maybe you’re a new homeowner in your 40s or you bought your first home back in your 20s. Either way, your home is one of your biggest investments. The main goal is to pay off your existing mortgage and build equity throughout the years. The reason why a home is one of your biggest investments is due to the turnaround of equity in a sale. If you hit a financial rough patch, or just need fast cash in your hands, the equity in your home can give that to you.
One way is through a reverse mortgage. Many older homeowners turn to a reverse mortgage to help pay off debt and relieve a financial burden in their lives. It’s also helpful to utilize online tools like this reversemorgages.com calculator to help you calculate your loan qualification amount online. Keep in mind that if your home has a substantial amount of equity, a reverse mortgage gives you the chance to get a hold of cash rather quickly. With the ever changing economy, this may be an option for you when you retire, should other investments fail to fulfill your money goals.
Set Up a Savings Account
Now is the time to set up the right savings account that will prepare you for retirement. Examples include:
- *High-yield savings account
- *Interest bearing savings account
- *Money market account
- *CDs or Certificate of Deposits
If you already have a savings or financial account started, you are making a positive adjustment to launching your retirement. But how do you know if you’re getting the best interest rate or return on your investment? Sit down and compare your rates with other competitors on the market. Talk with your financial institution about the best program in your current income bracket.
Get the Right Insurance
Insurance is something to consider right now. It offers a layer of protection as you look ahead to the future. It offers security as it protects your most valuable assets including:
- *Personal and business property
Should anything be stolen or vandalized, having a good home insurance program in place will protect what you’ve worked so hard for. In the catastrophic event that something should happen to you or a loved one, having a life insurance policy in place that will fulfill all outstanding debt will give you and your family peace of mind during a difficult time. Making sure that your home is insured properly and adequately is important—especially when you’re retired. Many homeowners are under-insured. Set up an appointment with your insurance agent to get the maximum coverage for your home and property. This will be helpful in the event you need to turn in a claim, especially long after your into your retirement.
Schedule an Appointment With a Financial Advisor
If you have multiple assets, homes, and bonds, it can be hard to organize everything. Sit down with a trusted financial advisor who will put your entire financial portfolio into perspective. First, he will go over key financial matters including:
- *Any liabilities you have now or may accumulate in the future.
- *Your overall current and projected net worth.
- *All assets and projected future inheritances.
- *Expected retirement funds
- *Working and liquid capital
From there, your advisor will create a customized portfolio with easy-to-read graphs and illustrations about what your projected income will be in the future at your time of retirement. From there, he will advise you on how much more money to save to reach your projected financial goals. He will also show you ways to save money and protect the assets that you currently have. He may also show you what investments to make as well as methods to use to generate more income so that you can live comfortably when you retire. Your advisor may also recommend frequent monitoring of your finical accounts to reevaluate your goals as they change before, during and well after retirement.
There are several ways to prepare for your future, even while you’re in your 40s. It’s never too late or too early to think about your upcoming retirement and protecting what you’ve worked so hard for.