People currently involved in retirement/estate planning often have a hard time separating fact from fiction. While understanding your future financial needs is a large part of making sure you have enough saved, it’s also crucial that you have a clear view of what it takes to successfully prepare for your retirement. The following are a few of the pervasive myths surrounding retirement planning and how you can avoid falling into these traps.

3 Myths Regarding Retirement/Estate Planning Explained

1: You Can Begin Planning Late

Retirement planning should begin as early as possible. Some financial specialists even recommend starting the process as much as 25 years before you reach retirement, which will allow you enough time to set clear objectives regarding the future. Those who wait until just before retirement to begin planning often do themselves a real disservice, especially when faced with an unexpected financial obstacle, such as medical expenses.

2: Medicare Will Cover Health Costs

Depending on your health care costs, Medicare may not be sufficient for your medical needs after retirement. For most people, Medicare covers roughly less than half of total medical costs, and purchasing supplemental insurance coverage is a reality for many retirees. Additionally, consider the cost of long-term care, which can be exceedingly expensive.

3: You’ll Need Less Money After Retirement

Under ideal circumstances, you may be able to survive on less money after retirement than what you need now. However, this is not usually the case. Consider that you’ll have more leisure time, which means you’ll be free to pursue things like travels and hobbies. Your health care costs are also likely to increase as you age, and these expenses can build up quickly if you suffer from a chronic health condition.

If you’re in need of financial services in Pagosa Springs, CO, and aren’t sure where to turn, let Wilson, Rea, Beckel & Associates CPAs LLC be your guide. Along with their prowess at retirement/estate planning, these accounting professionals also help with tax prep, insurance assessments, and QuickBooks™ training. If you have questions about your upcoming retirement, call (970) 731-1040 today to speak with a skilled and knowledgeable representative. You can also visit the website for more information on the complete listing of services.