Retirement means something different for everyone. Maybe your dream is to retire on the beach, travel the world or spend more time with family. Whatever your passion is, you’ll need a nest egg and ways to protect it. Your savings will allow for fun things like dinners out and vacations, but you’ll also need this money to fall back on for healthcare, property taxes and other essentials. 

Being proactive pays off when it comes to retirement planning in NJ! Here are three steps you can take to ensure you are financially ready to retire. 

1. Determine When to Collect Social Security 

Most people can start collecting Social Security once they turn 62, but this isn’t necessarily the best option. If you collect Social Security before your full retirement age, you’ll only get a portion of your benefits. If you can wait until your full retirement age (around 66 years), it’s probably best. This way, you’ll get 100% of your benefits. 
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Of course, we realize that not everyone can wait that long to claim their benefits, nor is that the right decision for everyone. There are many factors that play into this, so it’s helpful to sit down with a financial advisor in NJ who can help you determine what’s best. The Social Security Administration website also has a handy calculator you can use. 

2. Know What Health Coverage You Need 

It’s likely that your health insurance will change when you retire. Medical bills can add up quickly, so make sure that you have the right coverage at the right time. Missing important deadlines can leave you without insurance for an extended period of time. 

Most people are automatically enrolled in Medicare when they turn 65 and get Social Security benefits. But in addition to Medicare, you may also want to consider supplemental insurance in NJ. Medicare supplemental insurance is private insurance that will help pay some of your remaining healthcare costs like coinsurance, copayments and deductibles.
 
Other options worth looking into are being added onto your spouse’s policy, participating in your employer’s retiree plan or obtaining temporary coverage through COBRA. 

3. Decide Who’s Going to Manage Your Finances 

When you leave your job, you’ll have several options for your 401K plan. For instance, you can leave your money in the account or roll it into an individual retirement plan (IRA). You won’t be taxed for moving your money over to an IRA and you may be able to grow your savings because you have more control for diversifying your investments. 
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In addition to your retirement account, you should also think about the funds in your Health Savings Account (HSA). You can use some of these funds to pay for your healthcare needs. Because this can be confusing, it’s best to work with a financial advisor in New Jersey who can gain a holistic picture of your retirement accounts and how to maximize them.

Leonard Financial Solutions is here to help you navigate your retirement planning! Contact us today for an appointment and let’s get the ball rolling on a robust wealth management strategy that will allow you to retire with confidence!