How to Plan for a Successful Retirement as a Nurse
Retirement used to be a very basic setup where the social security benefits and very often a fixed pension would be adequate to cover cash flow during the golden retirement years.
Today, unfortunately, the company pension plans have disappeared and social security is by itself not enough for most individuals.
This makes planning for retirement extremely important and makes having a precise plan in place crucial.
Retirement has to be well prepared
Deferring setting up retirement strategies and not putting a full financial plan in place until a few years before retirement or waiting until retirement is right around the corner can lead to hasty last minute decisions and can make the transition into retirement less attractive.
Beginning the planning as early as possible will allow for adequate understanding of what cash flow will be needed in retirement and making sure all planning options have been completely explored.
Pre-retirement areas to evaluate
There are many issues and considerations to make in the years before retirement.
Here are some areas that should be addressed.
Investment risk tolerance
Make sure you understand how your assets are invested and what the timeframe of those investments are.
Understand how your assets are invested and make sure they are diversified adequately.
Asset allocation become extremely important and having strategies around each portfolio is a must.
Where is my income coming from?
Understand from where your income will be derived once you enter retirement.
Once you enter retirement the pay check will stop you will have to find a way to recreate that lost paycheck.
This is where an analysis of assets, social security benefits, annuities and all other assets has to occur and starting the plan as early as possible can be very important.
What are my social security options
Make sure you get a good understanding of the difference between when you start taking income from social security.
Work with someone who can analyze and help incorporate the social security benefits into your overall financial plan
What about insurance plans?
You may have health insurance, life insurance , disability insurance and maybe long term care insurance through your employer.
Make sure to get information about what will happen to all those plans once you leave your employer.
Will you be able to keep the plans and what will be the cost?
Don’t postpone setting up a plan, prepare as early as possible and gather information from all sources such as obtaining your social security statements, gather statements from your HR about your possible benefits through work and what options you have to make and most importantly have a plan that you can follow.
Written by CreativeNurse Team
2016-18328 Exp. 2/18