As the day you plan to put the work years behind you approaches, it’s wise to review the situation carefully. Even with a strategy in place, surprises can happen that can significantly halt progress, or skew the results. Motley Fool, income advisors par excellence, suggest at minimum three to keep in mind. For example, not every senior realizes that it is possible to be taxed on their social security monies, even when those can be described as meager. Having a health care net is critical, particularly as one ages. Although Medicare is a godsend for many, it does not provide many useful and necessary health advantages, such as dental and vision care. Even a well-maintained home can have rainy day expenses. Also appliances age too. So, an emergency fund, even in retirement, is wise.
Key Takeaways:
- Social security may not be much for most seniors, but sadly it is taxable. Federal taxes can occur with even modest checks.
- It’s also important to realize that 13 U.S. states also tax social security income. Fortunately, many take into account overall wealth and offer exemptions.
- Without a healthcare savings, insurance or other fallback plan, seniors can also struggle with those health needs not covered by Medicare, such as dental and vision.
“You may be aware that claiming Social Security before your full retirement age will cause your benefits to shrink.”
Read more: https://www.fool.com/retirement/2021/10/30/3-surprise-expenses-could-haunt-your-retirement/
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