You might have the best-performing Lockheed martin 401k plan, but that is not enough. As you age, you need to bear in mind that getting older comes with its fair share of challenges. And you should plan for any eventuality. It’s always better to be prepared. Here are a few things you should think about when planning for your finances:
1. Who you will leave in control if you lose control of your mental faculties
Dementia is now a serious issue affecting the human population currently. And it’s expected to get worse. By 2050, the number of people globally who will be dealing with dementia is expected to stand at 152 million. This health condition is severe. Having your memory deteriorate and being unable to do your regular tasks is not a good position to be in.
If you are at a high risk of getting dementia, or if you are worried about losing your memory, you need to prepare yourself. You must ensure that you have planned financially for that situation. It can be quite costly to have round-the-clock care. And that last thing you want is to burden your family. For that reason, you need to determine whether your retirement funds are adequate or what you can do to increase them.
If you feel you have saved and invested enough, then you need to think hard about who you can trust to manage your finances when you are unable to do so. It should be someone you can give the power-of-attorney to who will not betray you or your loved ones or mismanage the funds you have invested.
2. How much you will need to take care of age-related medical issues
Medicare might not be available when you need it in your old age. Research shows that a third of Americans have some medical debt. And that is among working Americans, many of whom have jobs and some medical insurance. So, if those who have financial cushioning can still incur medical debts, how bad do you think the situation will be upon retirement?
For this reason, you need to adjust your retirement financial goals. Old age tends to come with many health complications. So it will be best of you can assume you will not have Medicare or any other kind of help in paying off your medical debts. Get a professional to advise you on what you should expect in the way of possible medical expenses at different stages of your retirement.
3. Who you will leave your money to
If you have saved a lot of money and grown it into an even more significant amount through smart investing, then you need to think about who you will leave it to. How much do you want to leave as an inheritance? How many beneficiaries do you have? Do you intend to share out what is left equally or in varying proportions?
How much you have in your retirement will determine if you can even leave an inheritance in the first place. You could have enough for your retirement and not a penny more. So it’s always a good idea to get financial advice to help you grow your investment and determine who your beneficiaries are if you intend to leave an inheritance. You can also decide to leave it all to charity. But to do that successfully, you need financial advice because your loved ones could contest your will.
Saving and investing are just a few aspects of retirement planning. It doesn’t matter whether you have a Lockheed martin 401k plan whose performance beats everyone else’s. If you do not plan well, you might still end up short concerning finances. Find an excellent financial advisor early enough so that you can rectify the financial mistakes you have made while you still can.