After one has struggled with financial issues, perhaps even having to seek advice from a bankruptcy attorney, he or she realizes the importance of preparing for retirement. Facing the fact that there will come a time that will not provide opportunities for work is difficult, but with it comes the start of preparation. There is never an age that is too young to start preparing.
The first thing that comes to mind is work, and the second would be saving. Work and saving are obviously the two most important things a person can do to prepare for retirement. It’s considered that for every year worked after the retirement age, about three years of coverage are gained. Also, by working additional years, one increases the age at which they can still collect Social Security.
The next thing to consider is investment. Diversification is important in this matter, and it would be wise to consult with a trusted, well-known financial advisor. In addition, one should take the initiative to learn about investing. Only then can he or she make wise decisions when deciding where to put all that saved money.
Another point to consider is the retirement location. If one wants to retire in Florida, he or she will have to figure out a way to save a substantially greater amount of money. When deciding where to retire, one should consider his or her own desires as well as the cost of living there. Consulting a bankruptcy attorney may also be beneficial for the middle to old aged person with a lot of debt and a small income. The question would be whether to forgo the debt by declaring bankruptcy or try to pay off the debt. There are many pros and cons to each decision that should be talked over with a trusted attorney.
Some other questions one may want to ask are listed below:
- How long is the person going to work?
- What average age do members of his or her family live to?
- What is the person’s health like?
- After retirement, will the individual still have health insurance?
- Is there another source of income?
Asking these questions can help one decide whether or not to retire at a certain age. For example, if members of a person’s family generally live to about 80 years, then that will help one decide on how much they need to save.
Finally, if one does have to contact a bankruptcy attorney, they should understand all of the pros and cons of declaring bankruptcy. An initial consultation with an attorney, in many cases, is totally free, so it can’t hurt. Sometimes it may help a person prepare for retirement by declaring bankruptcy, but one should have all the facts before making this kind of decision.