3 Tips That Will Help You Prepare for Retirement

Florida is famous for being the place to retire. Seniors from across the country flock to the Sunshine State. Snowbirds from the North come down to spend half of the year enjoying the sandy beaches before hopping on planes to go back home for the warmer months. And of course, lots of born and bred Floridians want to retire at home.

If you’re planning on spending your golden years in this state, here are three important tips that will help you retire:

1. Don’t Touch Your Retirement Savings

Ideally, you should never touch your 401(k) or IRA before you officially retire. These savings are meant to supplement your income during your retirement years, not to help you repair your car or handle some plumbing trouble — that’s what an emergency fund is for.

If you’re dealing with an emergency cost and you don’t have the funds to pay for it, you could always apply for online loans in Florida before you consider dipping into your hard-earned retirement savings.

An online line of credit loan could help you cover the costs quickly and then manage the repayments later. With this borrowing option, you can request a withdrawal from the line of credit and have it deposited into your bank account as soon as the next business day.

Why shouldn’t you touch your retirement savings? The main reason for this is that you will never reach your savings goals if you keep making withdrawals. The more that you pull from your savings pile, the more you will stunt the account’s growth. It’s better to think of these savings as untouchable until you’ve finally retired.

Another reason why you should keep your hands out of your retirement savings is that your early withdrawals can come with consequences. If you’re under the age of 59 ½, an early withdrawal from your 401(k) can come with a 10% penalty. Just know that every time you make an early withdrawal, you will have to pay this penalty.

In many states, a premature distribution (withdrawal) is also subject to income taxes. However, Florida has no state income tax — this includes retirement income from 401(k)s, IRAs and private/public pensions. So, if you already live in the state, you will at least be free of that consequence.

2. Think about Healthcare

Another essential that you have to prepare for is your healthcare during retirement. Having Medicare coverage will not be enough. There are many healthcare expenses that are not covered by the program:

• Dental coverage (including dentures)
• Basic vision
• Hearing aids
• Prescription drugs
• Routine foot care
• Long-term care

To fill in the gaps in your healthcare coverage, you can do a few things. You can open a health savings account (HSA) and start saving for your future medical needs. However, you can only open this tax-free savings account before enrolling in Medicare.

You could also fill in the gaps with other private insurance plans. For instance, you could get long-term care insurance so that you could get help covering the costs for an assisted living facility, nursing home and at-home care service in the future.

3. Research Where to Go

Finally, you should do your research to see where you should settle down for your golden years — even if you live in the state. Check out the best places to retire in the state and see which cities have the most reasonable real estate prices, greatest healthcare options and most gorgeous beaches. You’ll want to make the right pick so that you don’t have to pack up your things and move in the middle of your retirement.