Potential retirement expenses:
What you don’t expect, and do not plan for can cost you plenty
You may think retirement income planning is easy. It should be simple and straightforward. After all, on a small piece of paper, you can write down your monthly income from your federal pension, Social Security (if you’re entitled to it), and the potential earnings from your TSP. Next to it, you can then write down what you think you will spend each month in retirement. Hopefully the left-hand side is larger than the right-side. Still, how do you plan to cover various expenses you don’t have now and may not be part of your financial planning equation.
Listed below are some unexpected, and unplanned expenses many federal employee retirees have encountered. Further, these potential retirement expenses are always unwelcome, so they may be initially overlooked. Is it possible one or more will show up on your expense sheet during your 30-year retirement vacation? If so, what’s your plan? Is that plan even realistic? Or, do you expect to ‘figure it out’ when it hits you in the face. Always remember, hope is never a strategy.
1. Dental expenses.
2. Divorce proceedings
3. Hearing aids
4. Fraud or scams
5. Physical disability so someone is hired to help take care of you—LTC expenses
6. Chronic health conditions that are not completely covered by health insurance
7. Expensive medications that are not fully covered
8. Rising taxes
9. Boomerang kids who return home or need significant financial assistance
10. Elderly parents who need care
11. Substantial home or auto repairs
Some potential expenses may be partially or fully covered by your federal insurance coverage. Or perhaps Medicare or some other program will pay for these costs. However, there is no such thing as retirement insurance. College bound students have the option of obtaining student loans and scholarships. There is no such thing as a retirement loan. If you have not sufficiently prepared for your after-work years, few people and no financial institution will offer you any money to cover your lifestyle expenses.
Contact my office so we can schedule a thorough and candid conversation to review potential retirement expenses you may incur in the coming years. Check it or wreck it, it’s your retirement. There are no do-overs. 844-533-3372.