Simple Living In Retirement Is Not Just An Aspiration But A Necessity
Trying to save for retirement while living paycheck to paycheck is an exercise in frustration. Unless you were born into wealth, chances are that you are living paycheck to paycheck; a household income of $100,000 is not enough to spare American families this predicament, especially if you are using income that could go to your empty nest to help your young adult children establish their own nests. If you are fortunate enough to have a 401(k) or other employer-provided retirement account, it is sobering to look at the balance and think about how quickly you would burn through that money with your current expenses. The good news is that your expenses are lower after you retire than they are while you are working, but the bad news is that you should not expect many splurges. You need a financial plan that will sustain you through decades of retirement, and a Bronx estate planning lawyer can help you build one.
The Party Is Over, but the Real Fun Is Just Beginning
When you retire, many of the unnecessary expenses that stress you out now will disappear or become lower. These are some money-sucking expenses that you will no longer be responsible for when you retire:
- Dues to keep your professional licenses active
- Gas to drive to work or tickets to travel to work by public transportation
- Parking at your workplace or the train station
- Clothes and shoes that are specifically for work
- Lunches and coffee at work
How much you spend on the overhead of being an employee varies from one person to another and one job to another. Even if you take a brown bag lunch (or better yet, a reusable lunch box) to work, shine your own shoes, and mend your own work clothes, you will find that it is even easier to be frugal in retirement. Your medical costs will also get lower when you reach the age of Medicare eligibility.
On the other hand, when you retire, it is much harder to save up for major purchases. You mostly know, by the time the guests even arrive for your retirement party, what you will and will not be able to afford in the future. If you have paid off your home mortgage and you have long-term care insurance or a hybrid life insurance policy, then you can be financially secure with only the income you get from Social Security and your pension or retirement accounts. Perhaps what no one tells you about retirement is that one of the best things about being retired is how little you think about money.
Schedule a Confidential Consultation With a Bronx Estate Planning Attorney
Estate planning is about more than just money, but having a financial plan in place is still important. An estate planning lawyer can help you take a realistic view of your current and future financial situation. Contact Cavallo & Cavallo in the Bronx, New York to set up a consultation.