Preparing for life to last a century includes thinking about finances and logistics in order to enjoy good health and security for years to come. Here are a few of our tips and tricks for planning to live into the next century.
Financial Planning
Financial planning includes managing retirement savings, covering healthcare costs, creating multiple income streams, managing debt wisely, and dealing with inflation.
Increase Retirement Savings
- Save Now: To receive the benefit of compound interest requires time. Start saving for retirement as soon as possible, even if it’s a little bit. Maximize contributions to 401(k)s and IRAs.
- Increase Savings: Don’t get comfortable with your current savings rate. Instead, increase it whenever possible, especially when you receive raises or bonuses. Save at least 15-20% of your income.
Plan for Healthcare Costs
- Health Savings Account (HSA): If eligible, fund an HSA for tax-advantaged savings on medical expenses.
- Long-Term Care Insurance: Purchase insurance coverage that would be required to cover the cost of long-term care in a nursing home or assisted living facility if Medicare does not cover it.
Create Multiple Income Streams
- Passive Income: Buy rental properties, invest in stocks that pay dividends, and create some other sources of cash flow.
- Side Hustles: Develop skills or hobbies into side businesses to generate additional income.
Manage Debt Wisely
- Eliminate High-Interest Debt: Prioritize paying off high-interest debt, such as credit cards.
Plan for Inflation
- Inflation-Protected Investments: Consider having a portion of your cash in a Treasury Inflation-Protected Securities (TIPS) investment.
- Real Estate: Real estate may appreciate in value along with inflation.
Logistical Planning
Logical planning includes the categories of health and wellness, lifelong learning, work and career, and estate planning.
Health and Wellness
- Regular Checkups: Schedule regular health screenings and use preventive care to maintain good health.
- A Good Lifestyle: Eat well and exercise regularly, to live longer and be in better shape.
- Mental Health: Practice meditation, pursue a hobby, and enjoy the company of friends.
Lifelong Learning
- Skill Upgrading: Keep your skills up-to-date so you compete well in the job market. Online courses that offer certifications and webinars are useful to keep your skills sharpened.
- Education: Pursue educational opportunities throughout life to keep your mind active and engaged.
Work and Career
- Flexible Work Options: Explore flexible work arrangements or part-time opportunities as you age.
- Career Transformations: Allow for the idea of a career change or venture in mid- or late life if your interests change or the creative environment in your industry changes.
Estate Planning
- Make a Will and Trusts: These are two of the most important instruments you should set up as part of your estate planning, designed to make sure that your legacy lives on and is managed how you see fit. Make sure you review them regularly.
- Power of Attorney: Appoint someone you trust to serve as your healthcare and financial power of attorney.
- Beneficiaries: Ensure all beneficiary designations on accounts and policies are current.
Planning to live to age 100 demands that you design essential financial and logistical systems. By addressing both, you may look forward to a longer life while pursuing the goals of being rich, secure, and healthy.
Important Disclosures:
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Treasury Inflation-Protected Securities, or TIPS, are subject to market risk and significant interest rate risk as their longer duration makes them more sensitive to price declines associated with higher interest rates.
This article was prepared by WriterAccess.
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