The View From The Pinnacle
Are you prepared for these possible unexpected expenses in retirement? Find out what you need to include in your plan to be prepared.
Click the timestamps below to fast forward to certain points of the episode.
Thing’s You’ll Learn Along Today’s Journey
What kind of expenses are commonly overlooked in retirement? On today’s episode of the podcast, we’ll talk through typical expenses in retirement that you may face. Believe it or not, many of these can get forgotten about, so be sure to include them in your retirement planning instead of simply guessing what your expenses might be.
Let’s start with medical expenses. If you retire early, you’ll be responsible for your healthcare and buying medical insurance. Once you turn 65, Medicare starts. But you’ll still have out-of-pocket expenses. Eyecare and dental work is not covered under Medicare, so you’ll want to be sure to factor those costs in.
A lot of people like to use their retirement to travel. Especially after COVID, a lot of us are itching to travel. Not only will you want to see and do things you’ve never had the chance to before, but you may also want to spend more time with family. Maintaining a level of liquidity with your money can allow you the flexibility to take these trips. Frequent visits to see family can be fun or necessary, like in an emergency. Depending on your family needs, you may be helping care for your parents or children while in retirement. You’ll likely want to be able to have the money to help out however you can.
Finally, taxes are to be expected. What we don’t know is just how much they will be. You want a plan for taxes in the future. We don’t know when they will go up, but it’s likely to happen. Are you working with an advisor to adjust accordingly?
Listen to the entire episode or use the timestamps below to skip to a particular tax strategy.
1:05 – What retirement expenses get overlooked?
1:34 – What medical expenses are typical?
4:01 – Travel is typical in retirement. But what’s unexpected?
7:54 – Family care can be costly.
9:36 – Taxes should be planned for.
Looking Back From The Mountaintop
Maintain some level of liquidity so you can do some of those things that are spur of the moment and you can cover costs.
Resources From Today’s Podcast
Sean P. Lee – Contact