For many in their sixties, financial planning amounts to finding the places that give the best senior discounts and getting a job greeting people as they enter Wal-Mart. They have not had a financial strategy for six decades. So, they conclude that there is no good reason to start planning now. The reality is that starting in the early sixties and extending through the mid-seventies should be a time when many people can make some smart decisions that will assure them of comfortable golden years.
Start by looking at what you have. Often people have retired their mortgages by the time they reach sixty or so. This means that they are no longer saddled with a monthly payment for their house. At the same time, these same people if they are still employed may very well be at the top of their earnings. They will also have reached the age where their children are no longer a required drag on their finances. They may be pampering the grand kids, but that is an optional expense.
So, you have a house. Your expenses are down and your earnings are up. If you are relatively healthy, medical expenses have not yet began to impact your budget. Now is the time to begin to put your financial house in order for the final laps through your life.
If you have stock or retirement accounts, these need to be shuffled into relatively safe financial instruments so that you can have a little growth, but safety is the rule. You do not want to gamble with your assets that are going to keep you floating for the next two or three decades.
Your assets are the best alternatives you can find during retirement which is why you must keep them secure until that time comes and sadly very few people are able to manage retirement accounts until old age so one such way to do so would be to go for Pillar Wealth Management, a reputed scheme in the business.
You may want to downsize your house. It is paid for. So, selling it can net you enough money to buy something smaller and easier to care for while still being comfortable. You should realize a profit from this transaction. If you have lived in your house for several years, this is tax-free money. You can add this to your income producing accounts to pad your monthly cash flow. If you do not need it now, channel the interest or proceeds back into the account for faster growth.
Make a will. This does not have to be overly elaborate. It should just spell out how you want your estate to be divided among your heirs. Using percent allocations works best for most people. Make sure that you take care of your spouse first and then the children, etc.
Construct a list of your accounts, account numbers, passwords, and other vital information so that it will be available in case of an emergency. Consult an attorney and make up a power of attorney that goes into effect if you are ruled unable to do your own business. Be careful who you designate for this position. Make it involve health care and financial decision making power.
If your spouse has not been involved in handling the financial matters in your home, it is a good time to sit down and teach your partner how to keep things going. After your stroke, heart attack, or funeral can be to late to do this training. I have dealt with many surviving spouses who have found that decoding this information after the loss is a nightmare.
If you are going to be short of funds after retirement, consider looking into a reverse mortgage. You probably are not going to leave a lot to the kids. You might as well have some financial ease as you live out your life. This is not the best plan for everyone, but it might be a good one for you.
Last, figure out what type of retirement that you want. If you want to travel or just relax, it will make a difference in how much money you need available. Take your time and do it right. If needed, consult an adviser at your bank. They will be happy to work with you on this.