A financial crisis can be extremely stressful, but especially during your retirement years when you are no longer working full-time. Examples of unexpected financial issues can include a job loss within the household, relocation, natural disaster, healthcare expenses, divorce, death of a family member, and so on. While it can sometimes be impossible to foresee these things, there are ways to prepare for them financially.
If you’re in debt, attempt to eliminate as much as possible before retirement
Pay off as much debt as you can so that you don’t have to worry about it during your retirement. This will free up some of your money and will help you be more financially prepared if an emergency should ever arise.
Ensure you have enough money saved to pay for unanticipated events
It’s important to think beyond how much money you will need for necessities (bills, food, etc.) and what you’d like to have for leisure, such as travel. Your retirement budget needs to factor in extra money that is easily accessible “just in case.” If your company offers retirement plans, such as 401 (k) plans, in addition to matching contributions, be sure to invest as much as you can. If your job doesn’t offer these types of plans, you may want to contribute to your own plan, such as an Individual Retirement Account (IRA).
Maintain a sensible amount of stocks in your retirement portfolio
If you are approaching your retirement, keep track of the total amount you have invested in equities (stocks), including exchange-traded funds or mutual funds. If you have too much invested in stocks, you may have no choice but to sell when market conditions are poor. And if there isn’t enough invested in stocks, you risk running out of money during your retirement. Ideally, you should try to find a reasonable balance between the two extremes.
Has a life emergency resulted in the immediate need for cash now? Whether you’re experiencing a financial crisis during retirement or any other time in your life, Peachtree Financial Solutions is here to help. We have various financial solutions available to those receiving long-term structured settlement and annuity payments. With an annuity payment purchase transaction, we can buy some or all of your future annuity payments and offer you the lump sum settlement you need to take care of any financial troubles you may be dealing with. Letting more time pass before taking action will likely only make things more stressful, so don’t hesitate to contact Peachtree Financial Solutions today to learn more about how our annuity funding services can help you.
Nothing above is meant to provide financial or tax advice. You should meet with appropriate professionals for such services.