Worried about retiring?

There are three major retirement potholes to avoid.

1) Do not underestimate the costs of healthcare. Many companies are dropping retired workers from their healthcare so look to buy long term care insurance early on.

2) Do not misjudge your life expectancy. With medical technology increasing daily, there is a good chance that you may live well past 90. Make sure to calculate the large possibility of a long, happy life into your retirement planning.

3) Do not presume you will work a long time. Many people believe they will have a long amount of time to plan for retirement and save money towards it, however, many unseen problems, such as disability, layoffs, or caring for a family member, may come into view that one might not have predicted.

The old way of retirement planning seems to be changing. The old method was referred to as the 3 leg stool. The three legs of retirement planning were defined benefit pension, social security benefits, and private savings. With pensions and social security benefits being reduced, we must start looking for other options for our retirement planning. Especially now that life expectancies are up and early retirements are more prevalent, we cannot be left to rely on these flimsy means of saving. Basically, more years being spent in retirement = more money needed to maintain the lifestyle we are accustom to living.

The new leg to our now four legged stool is IRAs. This leads to the question “what is an IRA?” IRA stands for Individual Retirement Account and there are two main types: a Traditional and a Roth IRA. There are many ways of deciding which kind of IRA is best for you. Creative Financial’s associates will help lead you through these options to create the retirement living you have looked forward to from the start of your career.