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Chapter 6: Cutting Expenses And Putting Money In Savings
If an individual is disciplined enough the ideal situation or mindset would be to cut as much as possible spending and expenses budgets to facilitate higher savings possibilities. This of course is by no means easy, and most of the time it fails to materializes in a disciplined fashion, that is consistent over a long period of time.
Having some tools in place to ensure such savings are done in an unwavering and committed fashion will be very beneficial to the individual in the future though it may not always seem so in the present.
Learning how to identify and cut unnecessary expenses may be difficult to do, but with consistent practice there is always a possibility in being able to cultivate the positive action into a beneficial habit.
When such expenses have been identified, and steps are taken to enforce the cutbacks, the said fund should then be directed into a saving plan that cannot be accessed by the individual easily.
This is due to the fact that there is always be some emergency or another that will require the funds to be tapped into thus eventually leaving the amount less than desirable.
Therefore finding a savings plan that is both fairly committing in style and also one that has all the benefits that would ensure the funds put away accumulate the desired projected interests and the likes, should be a top priority.
Identifying the monthly expenses and breaking it down in a very realistic and committed fashion, will help the individual identify some of the expenses that can be eliminated or down sized and yet still keep the individual is relative comfort and enjoyment, during the working phase of the adult life.
This is important so that the individual will not feel resentment of having to be constantly pressured to save for the future, while not being able to enjoy the present.
Chapter 7: Think About Your Future Health Care
Most people plan their retirements without actually taking into account the realism of the health care issues that might arise in the phase in life. Medical care is not only very costly but can also be quite a nightmarish affair. Therefore when planning for retirement there should be a very effective and functional medical plan included in the plans.
For most people the most common choice would be to take out an insurance heath plan that will ideally cover such needs during retirement.
However this is not always adequate as many poorly informed individual can attest to. Most people depend on the advice and directions given by agents who supposedly act in the best interest of the individual, but in most cases the fine print on the policies will dictate otherwise.
Therefore it is important to be as well informed as possible on the policy choices before making a commitment to any plan.
Starting with a suitable fidelity investment summary will help to give the individual some helpful guidelines towards calculating the estimates of the retirement costs and determine the percentages suitable to be included for health coverage.
Disability insurance is another option that is also very popular and should be carefully considered for its more obvious benefits. There is no disadvantage to looking into such possibilities even if its percentage of unfolding is rather limited.
Being ready for any health issues, that might arise just before or during retirement, is something that should be considered with a certain amount of urgency tagged to it. It is also wise to consider some form of long term care insurance. This will help to ensure the individual is able to have access to proper and consistent health care that is of a better quality.
These may include after care and 24hour assisted medical help, should any illnesses occur during the retirement stage.
Chapter 8: Understand Social Security
Simply put social security is an income to be enjoyed during retirement or any other phase in the adult life where normal working conditions cannot be expected due to illness or certain forms of disabilities. However, ideally social security income should not be the only income to be enjoyed by this section of society. Studies have shown that it is far from being adequate. It usually meant to function as an assisting source of income and it would be a folly to make it the only source of income for the retired individual.
The following are some of the benefits to be enjoyed as a social security benefactor:
A retirement income upon reaching the age of 62 though this may vary in different parts of the country. Such income can be received in the form of monthly payments to help the individual through retirement.
There is also the rather surprising and equally beneficial payment that can be received by the spouse of the social security subscriber even though the spouse has not actively contributed to such a fund.
There is also some form of medical support given to the individual seeking such assistance during the retirement phase of his or her life.
However it should be noted here, that this assistance may not be optimum care nor will it be available instantaneously, unless the individual is in a critical condition where immediate attention is imperative.
There is also the benefit of being able to receive full medical care from the system that is designed to cater to such retirement age needs. This is also usually extended to the spouse who may not have contributed in any way to the social security plan.
There are also allocations made to accommodate any disabled, minor or dependent children even after the death of the social security contributor.
The most popular goal most people have when it comes to the subject of retirement is that there should not be any more debts to pay off. Meaning all commitments such as homes, cars, insurances should all be paid for by the time retirement comes around. Become educated so that you will be able to meet your retirement goals.