Planning for retirement is a big undertaking. You are working hard now so you can enjoy a comfortable, easy lifestyle in the future. But, even if you are proactive about budgeting and saving, there are certain expenses that you might be overlooking.
Does your retirement plan cover all essential costs for the future? Not only do you need to think through essential living expenses, such as housing and food, you also need to consider additional costs that might cut into your budget. Also, remember to plan for the fun side of retirement, such as travel!
Two additional costs that you should not overlook include the cost of healthcare and the potential of increased taxes:
Cost of Healthcare in Retirement
Even though Medicare is available for retirees, it is a mistake to assume that you will not have any out-of-pocket expenses. There are several gaps in coverage that need to be paid for through a supplemental plan.
In many cases, retirees find that they cover more out-of-pocket expenses than they originally anticipated. For example, Medicare Part B pays for about 80% of your preventative and routine care, but there is not coverage for hearing, vision, and dental.
One solution is to pay for a Medicare Advantage plan – supplemental insurance that covers the gaps in Medicare. This private insurance has added monthly premiums you will need to pay, but it may be a good investment because of the additional healthcare coverage you will receive.
Tax Burden in Retirement
Even though you no longer receive a paycheck in retirement, you still need to account for taxes. For example, during retirement income tax may need to be paid for withdrawals from retirement accounts if the money was put into the account pre-tax. Additionally, there may be taxes for investment activity.
Other possible tax expenses may include property tax, inheritance tax, and more. With tax rates changing all the time, it is better to be over-prepared so future taxes do not cut into your retirement budget. A financial planner can prepare your retirement plan accounts for these potential expenses.
Personalized Retirement Planning from a Team You Can Trust
At Bulman Wealth Group, we are here to help you design the ideal retirement plan for your lifestyle and personal situation. Our goal is to help you build retirement savings that will cover everything you need in the golden years of life. We invite you to schedule a consultation with one of our retirement planning professionals for more information.
Disclosure: All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or indication of future results. Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual adviser prior to implementation. Advisory services are offered by Chris Bulman Inc. dba Bulman Wealth Group an SEC Investment Advisor notice filed in California, Pennsylvania, Texas, and Nevada. Investment Advisory Services also offered through Retirement Wealth Advisors, LLC. a Registered Investment Advisor. Bulman Wealth Group and Retirement Wealth Advisors, LLC. are separate entities, independently owned. Insurance products and services offered through Chris Bulman Inc dba BWG Insurance Agency and Ameritas Life Insurance Corp. CA Insurance License #0D57586. Being registered as an investment adviser does not imply a certain level of skill or training. Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency. The information contained herein should in no way be construed or interpreted as a solicitation to sell or offer to sell advisory services to any residents of any State other than the States of California, Pennsylvania, Texas, Nevada, or where otherwise legally permitted. Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph. Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.
All content is for information purposes only. It is not intended to provide any tax or legal advice or provide the basis for any financial decisions. Nor is it intended to be a projection of current or future performance or an indication of future results.
Opinions expressed herein are solely those of Chris Bulman Inc. dba Bulman Wealth Group and our editorial staff. The information contained in this material has been derived from sources believed to be reliable but is not guaranteed as to accuracy and completeness and does not purport to be a complete analysis of the materials discussed. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Investment advisory services are offered through Chris Bulman Inc dba Bulman Wealth Group, an SEC Registered Investment Advisor. Insurance products and services are offered through Chris Bulman, Inc. dba BWG Insurance Agency and Ameritas Life Insurance Corp., CA State Insurance License # 0M46922. Being registered as an investment advisor does not imply a certain level of skill or training.
Bulman Wealth Group, BWG Insurance Agency and Ameritas Life Insurance Corp. are not affiliated with or endorsed by the Social Security Administration or any other government agency.
Any statements or opinions expressed should in no way be construed or interpreted as a solicitation to sell, or offer to sell, advisory services to any residents of any State other than the States where otherwise legally permitted.
Images and photographs are included for the sole purpose of visually enhancing the website. None of them are photographs of current or former Clients. They should not be construed as an endorsement or testimonial from any of the persons in the photograph.
Purchases are subject to suitability. This requires a review of an investor’s objective, risk tolerance, and time horizons. Investing always involves risk and possible loss of capital.
