Florida is one of the biggest hotbeds in the US for retirees and snowbirds alike. Sarasota, FL is a retiree's paradise. Warm weather year-round, excellent beaches, magnificent retirement communities, music, great food, and immaculate housing throughout the area. What's missing? You! For those who are on the brink of retirement, or starting to begin their retirement planning, Sarasota is a magnificent area to choose. So, where do you begin the planning process?
Related Blog: Why Sarasota is the Best Place for You to Retire
Paint your Financial Picture
If you don't know where you currently stand financially, it's difficult to plan ahead and plan accordingly. When reviewing your current financial status you'll want to look at
- Accumulated debt
- Mortgage payments
- Retirement savings plans
- Income needs during retirement
- Healthcare costs and medication costs
- Social security, Medicaid, Medicare, and retirement benefits
- Capital gains
- Tax gains
Basically, any income that's earned, and any expense you'll accumulate, should be ledgered. You need to know where to stand, what you'll need to retire, and where you want to be by the time you get there.
Do you have a Pension?
This monthly income is an additional source of funding that you can utilize once you retire. Not every company offers them. If you work for the government or a large employer, you might be able to receive a pension. If not, understand your 401(k) and other retirement savings plans your employer offers. It's extra income, and some of it is tax deferred until you retire. So, know what you're paying taxes on, so you can best determine where and how to utilize your savings accounts for retirement while you're still working.
What most people don't do is contribute automatically to their retirement savings. Yes, your employer is putting some in, but you can match, and in some instances, double what your employer puts in. If you can do so, this is something you should be budgeting for. It is extra income, that you aren't paying taxes on, while you're working (make sure to check the retirement plan and tax incentives with your employer). The more you contribute, alongside that of what your employer is putting in, the more you are going to be able to set aside for you to have available to you when you're enjoying your golden years.
Map the Area
Sarasota is gorgeous. But, those magnificent mansions, the luxury yachts, and beautiful cars all come with a high price tag. There are ways to save while living in paradise as a retiree. Consider one of the dozens of retirement communities in Sarasota, FL.
Look for homes or properties which are a little further from the beach, or the most luxurious places where retirees want to be. Know when to invest; in some cases, you can get a killer deal on a property that's in foreclosure or isn't selling in a particular area. Or, look for a fixer-upper that you can work on now (while you're still working), which will cost much less than that three-story mansion that's move-in ready.
Although it's a pricey community, there are ways in which you can find some more affordable living options.
Also, take advantage of government incentives in housing as a buyer, and retiree benefits if you are going to be moving into a particular area in Sarasota when the time comes for your retirement. It's expensive, but knowing where to look and planning ahead, will make a world of difference in what you can afford and enjoy when you do finally retire.
We're here to help! If you need to talk about retirement planning, have questions about how to start saving, or where to invest your nest egg to make the most out of your Sarasota retirement, contact us today!