KOTOIMAGES \/ Shutterstock <\/p>\n
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below.<\/p>\n
Without a well-defined plan for spending in retirement, Americans could be facing unexpected and unnecessary stress.<\/p>\n
Allianz Life Insurance\u2019s study reveals that only 44 % of Americans have a retirement income plan.<\/p>\n<\/p>\n
Allianz\u2019s Vice President of Consumer Insights, Kelly LaVigne, commented \u201cif you don\u2019t know how you will draw from your retirement assets for income, then you aren\u2019t ready to retire.\u201d<\/p>\n
Having the right retirement strategy for how and when you\u2019ll spend your income is key to reducing the decisions you\u2019ll need to make once you reach retirement age.<\/p>\n
Unfortunately, without a plan, you risk joining the 31% of Americans who are overspending in retirement, according to a report from retirement magazine 401(k) Specialist.<\/p>\n
Thankfully, there are steps you can take to give yourself and your family peace of mind.<\/p>\n
Having a plan really does pay off.<\/p>\n
Research from T. Rowe Price found that individuals with a formal financial plan had two to four times more wealth when entering retirement compared to those without one.<\/p>\n
With the help of a qualified professional, like those found through FinancialAdvisor.net<\/a>, you can easily plan when, where, and how you want to retire.<\/p>\n FinancialAdvisor.net is a free online service that helps you find a financial advisor who can help you create a plan to reach your financial goals<\/a>. Just answer a few questions and their extensive online database will match you with a few vetted advisors based on your answers.<\/p>\n You can view advisor profiles, read past client reviews, and schedule an initial consultation for free<\/a> with no obligation to hire.<\/p>\n Even if you\u2019re confident in the amount you\u2019ve saved for your retirement, LaVigne insists \u201cit is critical to understand how those assets will be able to fund your life after you retire.\u201d That\u2019s why individuals with higher [net worths should also consider consulting a professional to make the most of their nest egg and the rest of their assets and portfolio.<\/p>\n Another big concern among the Americans surveyed is how to best take distributions from their retirement savings when they do retire, with 45% revealing they\u2019re unsure of the best method. This question is best answered with the help of a financial advisor, and it will largely depend on the type of accounts that you have.<\/p>\n With most IRA accounts, you will pay taxes on the funds you take out. So, the timing of these withdrawals really matters for the potential income tax you\u2019ll incur.<\/p>\n However, with a Roth IRA, you are contributing to your account with after-tax income, which means your withdrawals at retirement age won\u2019t be taxed.<\/p>\n This is why financial guru Suze Orman wrote that Americans should be putting \u201cevery single cent\u201d into a Roth account in her book, The Ultimate Retirement Guide For 50 Plus.<\/p>\n And if you have a gold IRA<\/a>, you\u2019ll want to plan for whether you\u2019d like your withdrawals to be as income, or as the physical asset.<\/p>\n One way to invest in a gold IRA is with the help of Thor Metals<\/a>.<\/p>\n Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account, which combines the tax advantages of an IRA with the protective benefits of investing in gold, making it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties.<\/p>\n To learn more, you can get a free information guide that includes details on how to get up to $20,000 in free metals<\/a> on qualifying purchases.<\/p>\n Read more: US car insurance costs have surged 50% from 2020 to 2024 \u2014 this simple 2-minute check could put hundreds back in your pocket<\/a><\/p>\n Finally, a plan is important because it provides your loved ones with security, too.<\/p>\n For workers, an emergency fund doesn\u2019t just safeguard against a job loss. It can also be the ticket to covering surprise expenses without going into debt. And being retired doesn\u2019t make you immune from surprises.<\/p>\n For instance, if you\u2019re concerned that Medicare might not cover all your health care expenses or that you want a little more financial security in retirement, there are other insurance options you can consider<\/p>\n If you\u2019re concerned that Medicare might not cover your expenses, there are other insurance options you can consider. Without proper planning, paying for long-term care could deplete your retirement fund. In many cases, the burden of paying for care often falls on family members \u2013 potentially straining their finances.<\/p>\n Long-term care insurance\u00a0offers coverage for the costs of in-home assistance, nursing homes or assisted living facilities.<\/p>\n While traditional health insurance covers certain medical needs in old age, such as prescriptions and doctor visits, long term care insurance covers health needs specific to the needs of seniors.<\/p>\n Another option that can help your family in the event of your death is term life insurance. This is a type of life insurance that offers coverage for a predetermined period, known as the “term,” that typically ranges from 10 to 30 years.<\/p>\n Term insurance is usually a less expensive and more flexible option. If the insured individual dies during this term, the policy pays a death benefit to the designated beneficiaries.<\/p>\n Young families and busy professionals looking for fast and affordable insurance can easily connect with Ethos and get term life insurance in 5 minutes<\/a>, with no medical exams or blood tests.<\/p>\n With Ethos Insurance, you get a policy with up to $2 million in coverage, starting at just $2\/day. Ethos\u2019 application process ensures you get flexible coverage options<\/a> quickly and transparently, allowing you to focus on what matters most.<\/p>\n Having a suitable retirement plan isn\u2019t only important for your financial goals, it\u2019s just as critical for your peace of mind.<\/p>\n Of those surveyed by Allianz Life, 48% worried about living too frugally and not enjoying retirement as much as they should. Without a clear set of steps for how you want to prepare for \u2014 and live \u2014 in retirement, you\u2019re subjecting yourself to unnecessary uncertainty. You may be spending more frugally than necessary, or you might not be frugal enough to make those savings last.<\/p>\n Once you have your plan, investing while you spend is another way to double down on savings for the future.<\/p>\n Acorns<\/a> automates investing and saving to simplify the process of setting aside extra funds.<\/p>\n When you make a purchase on your credit or debit card, they will automatically round up the price to the nearest dollar and place the excess cash into a smart investment portfolio. This way, even the most essential spending translates to money saved for the future.<\/p>\n You can also open an IRA account with Acorns Later<\/a>, and get potential tax benefits. With the Acorns Gold plan, you can get a 3% match on new IRA contributions, as well as customize your portfolio by choosing individual stocks. You can also opt for the Acorns Silver plan, which offers a 1% match on new IRA contributions.<\/p>\n When you sign up now, you\u2019ll get a $20 bonus investment<\/a>, too.<\/p>\n