Financial Experts: Always Buy These 6 Things Right Before You Retire
If you’re getting close to retirement, you probably have excitement and nerves going through your body. You’re about to embark on a whole new chapter of your life.
However, before you finally plan your last day at work, there are several things you need to take care of. You must ensure your retirement budget is set and your health insurance is all squared away. There will also be several purchases you want to make, so you don’t need to worry about them later on.
Here are six things you should purchase before retiring.
Learn More: 10 Things Boomers Should Always Buy in Retirement
Check Out: 4 Genius Things All Wealthy People Do With Their Money
Long-Term Care Insurance
While you might have your health insurance for retirement all set, you should also start planning for the future with long-term care insurance.
LongTermCare.gov reported that up to 70% of older adults will need long-term care at some point in their life. Long-term care insurance will help you cover the medical costs that your health insurance won’t cover. This includes some or all of the costs for assisted living facilities, in-home care and more.
Long-term care insurance can be expensive, so you’ll want to weigh the pros and cons of whether you need it. According to the American Association for Long-Term Care Insurance, the average cost for a couple, age 55, with $165,000 worth of lifetime benefits, would be $2,080 per month.
“Long-term care insurance is vital, as healthcare costs can skyrocket in old age,” said John Crist, founder of Prestizia Insurance. “The average annual cost for a private room in a nursing home is around $100,000, and Medicare doesn’t cover long-term custodial care. I’ve seen clients who secured long-term care insurance policies save their estates hundreds of thousands of dollars, ensuring they get the care they need without burdening their families. Look for policies that offer inflation protection to keep up with rising healthcare costs.”
Find Out: Here’s the Average Amount Retiree Households Spend in a Year
Revocable Living Trust
As you prepare to retire, this is the perfect time to ensure your estate is planned out. Setting up a revocable living trust can help you decide where your assets go after you die. This is going to help your family avoid a drawn-out probate process. The trust will also give a person power of attorney to make decisions on your behalf.
“A revocable living trust is an invaluable tool for managing your assets and ensuring a smooth transition for your heirs,” said David Brillant, founder of Brillant Law. “Unlike a will, a living trust helps avoid the lengthy and expensive probate process, which can take years and cost a significant portion of the estate’s value. One client, for instance, saw their estate divide seamlessly among heirs without the typical probate-related delays and costs.
“Additionally, a properly funded trust can include provisions for managing assets if you become incapacitated, providing peace of mind that your financial affairs will be handled according to your wishes.”
New Car
For many people, the car-buying process can be stressful. Finding the perfect car and working with car dealers isn’t always enjoyable. However, having a reliable car as you get ready for retirement is important.
When you’re looking for a car, pay attention to its features, and make sure it’ll accommodate your needs. You should also find something that gets good gas mileage and is known to require little maintenance.
“If you plan on traveling or exploring new hobbies during retirement, having a reliable and comfortable mode of transportation is crucial,” said Evan Tunis, president of Florida Healthcare Insurance. “Consider upgrading to a newer car with better gas mileage or purchasing an RV for extended road trips. Additionally, purchasing a vehicle before retiring allows you to pay it off while still earning a steady income, reducing your monthly expenses in retirement.”
Home Generator
Depending on where you live, spring and summer storms might occur frequently. It’s important to ensure you’re prepared if they cause you to lose power in your home.
“I recommended that a client invest in [a home generator] before retiring, and it’s been a game-changer during power outages for him,” said Rhett Stubbendeck, founder of Leverage Planning. “It keeps the lights on, prevents food spoilage and ensures home security systems stay active. Especially if you live in areas with extreme weather, a generator is a great investment.”
Home Improvements
If you own your home, you may want to consider taking care of any large home improvement projects now, so you don’t need to worry about them and their future expenses.
This could include replacing your aging air conditioner and furnace units or a water heater at the end of its lifespan. These are expensive projects that are better to do now, while you’re still working, than when you’re on a fixed budget during retirement.
Gym Membership
Staying active as you age is important for maintaining your health. If you live in a warm-weather climate, you’ll be able to get outside year-round. However, if you experience harsh winters in the northern part of the country, you may want to purchase a gym membership.
If you don’t anticipate using a gym membership, consider instead purchasing some small equipment to help you work out at home, like weights, resistance bands and a yoga mat.
However, make sure you also consider the opportunities for socializing and group classes that a gym membership offers before you decide it isn’t worth it.
More From GOBankingRates
This article originally appeared on GOBankingRates.com: Financial Experts: Always Buy These 6 Things Right Before You Retire
