5. Deal with Dependency
Having a lot of dependency can largely affect how you prepare your retirement. With the increasing number of people from nuclear, extended and even the neighbors around your locality, if you don’t know how to say no you may not be able to save for your retirement.
According to the Pew Research Center, In every 8 Americans more than one of them between the ages of 40 to 60 has a child and a parent they are supporting so, they are being caught in a situation you can call being in between two hard rocks. A lot of things can be done to ensure that you don’t fall into this ugly situation that will make you to sacrifice your retirement just to support others.
Come to think of it: there is no loan for retirement, while you can get loan to pay for your child’s education. Pay a part of your child’s tuition and keep the rest for your retirement. Of course we would like to look after our kids and provides them the best in life, and everybody has their own opinion on where to stop. However it’s still necessary to be cautious of being over-generous. People pay an excessive amount of money on their children; some folks even remortgage their property to finance their child’s education abroad, hoping to provide them to attain higher prospects for the future. Then some parents even go as far as borrowing huge amount for their education after college, wedding costs etc; it all adds up. People will even find themselves exhausting their pension fund just to please the kids.
Avoid burdening yourself with your child’s life or he might consider you a burden in the near future.
Apply for a long term insurance policy for you and your aged parents: A good insurance policy can help you to pay for health care, a stay at the nursing home and this depends on the amount you are able to save.
Have a serious talk with your parents about their assets, savings, what they expect about their living situation in the future and the kind of medical care to prefer to get when they grow old. This may be difficult, but the more the available information you have at hand, the more it will be easy for you to decide later in life when you need to make such decisions.
The human generation is headed into stormy, unknown waters once it involves their future care desires. In past years, analysts noted the effect of senior care on the supposed adults who were responsible for caring for their aging parents similarly as their own kids. With the looming prospect of great future care desires, it’s very important for people and families to get serious concerning their personal money planning and to put a plan in place to get an extended term care event.
Related Posts :