Here’s a sobering statistic: 72 percent of retirees say one of their biggest fears is becoming a burden on their families, according to a study by Edward Jones and the consulting firm Age Wave. If you’re nearing retirement, how can you boost your financial independence?
For starters, contribute as much as you can afford to your 401(k) or other employer-sponsored retirement plan. Since you may be in your peak earning years, you might be able to put in substantial sums.
And once you do retire, establish a reasonable withdrawal rate from your investments, and budget for expenses carefully, so you don’t risk outliving your money.
One more suggestion: Think about downsizing. If you are open to changing your living arrangements, you could save money and boost your liquidity.
Finally, think about the costs of long-term care, such as an extended nursing home stay. You might want to discuss strategies for meeting these costs with a financial professional.
These moves could help you maintain your financial freedom and reduce your potential dependence on your family. Give them some thought.
This article was written by Edward Jones for use by your local Edward Jones Financial Advisor. Member SIPC.