As per U.S Census bureau report, more than a quarter million people turn on 65 every month in our nation. So, it's quite normal, if not you, then maybe one of your close relatives is standing in the retirement queue.
Yes, time flies. You'll surprise how soon you have reached the retirement age.
So, don't delay your retirement planning. Start today; otherwise, tomorrow will never come. Proper planning helps to ensure your financial stability even when you're not working.
Things you should consider in retirement planning
2 main things to consider for living better in retirement are:
- Having retirement plans
- Choosing a perfect place to settle after retirement
You will have to think about the life you want to lead after your retirement. If you have debts, then pay them off as early as possible.
Thus, you’ll be able to lead a stress-free retired life.
Retirement plans you must be aware of
You should give more preference to retirement plans. Because staying financially free is important in your retirement. To make it happen, you need to invest money into different retirement policies such as:
1. 401(k)
401(k) is a voluntary investment account that your employer offers you. You need to contribute a percentage of your income (pre-tax) in your 401(k) account. The percentage of the amount you deposit in this account is known as the contribution percentage.
You don't have to pay federal or state income taxes on your savings until you withdraw the money.
2. IRA
You can also start your own Individual Retirement Account or IRA to save for retirement years. You need to deposit a part of your income annually into this account. Remember, contribution towards your IRA can also lower your taxable income.
3. Defined Benefit Plan
The defined benefit plan can guarantee you on a specific monthly amount that you’ll receive after your retirement.
4. Defined Contribution Plan
Defined Contribution Plan provides you with an individual account. You can make decisions for incorporating different types of investment in your retirement portfolio.
Know the best retirement destination for living
But, before deciding on the exact place of your retirement, you will have to consider some of the factors like:
- Whether or not it is a place that offers you options to take up employment if needed.
- Does the place offer you options to indulge in free activities?
- Make sure the place has good hospitals, clinics, and medical shops.
- Whether or not the transportation system is affordable and smooth.
Some of the best affordable retirement locations in U.S.
Best retirement locations are Ohio, Arizona, Oregon, Texas, Florida, Columbia, South Carolina, Kansas City, Hawaii, Colorado, Missouri, Michigan, Massachusetts, Columbus, etc.
For example:
1. Florida
You can consider Florida as a retirement destination for several reasons such as:
- An ultimate tax favorable state to stay. You'll no longer require to pay state income tax, estate tax, or inheritance tax. Thus, Florida is a good choice for fixed income retirees.
- Your overall living cost will be lower in Florida. Avoid Miami; you might find the living cost is relatively high.
- A perfect place to enjoy the beaches. You'll get several options of entertainment.
- You'll get numerous options of health care availability.
2. Arizona
Arizona has been popular retirement destination for many years because:
- It is one of the most tax-friendly states and doesn't tax on Social Security check.
- Perfect for entertainment like a ton of golf courses, several parks, many outdoor activities.
- Affordable living cost, good quality local foods, and affordable housing cost.
You can browse online to find out why these states are so lucrative for retirees.
You can even settle outside U.S. after your retirement.
For example:
1. Santa Fe, Panama
If you stay in Panama, you'll get:
- Budget-friendly good quality food
- Utility bills will be within your affordability
- You’ll be surrounded by natural beauty and friendly Panamanian neighbors
2. Campeche, Mexico
If you want to spend in Mexico at your golden age, you'll find:
- Cheap and comfortable rentals
- Modest living cost, availability of modern facilities
- Beautiful weather and friendly people
Final thoughts
Have you already invested money for your retirement days? If yes, then don't forget to share your insights with me.
You can also visit an experienced financial advisor for suggestions.
It is also advisable that before choosing any of the investment types for your retirement, you'll have to determine very carefully on the place where you want to lead the rest of your life with your partner without worrying much of other things.
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