By Aida Mounkes

If life was easy, we would all be independent wealthy, and nothing would worry us. That is not the case. Even the wealthy have major concerns, and stressors. When you spend so much time planning and saving for retirement you really don’t want a crisis to come up. A lot of people see Retirement as the finish line, and do not plan for Murphy’s Law to happen at all. The realty is that life does not stop once you retire. Let’s look at how to plan for those crisis moments even in retirement.

Retirement Income Goals

In planning for retirement, it is recommended to budget your retirement income goals. I know many to do a spreadsheet that shows monthly and annual costs of utilities, taxes, etc. If you still have mortgages and many do, you would budget for that as well. However, that is where a lot of stop. Why stop there? While employed you budget for savings to handle the expenses like new roofs, or tires on a car. You should do the same in retirement. Cars will still need tires, even in Retirement.

Cashflow

For many, the crisis in retirements are for things that you do not plan for. It is recommended to have at least 3 months of expenses in savings for the just in case. If you have 3 months in savings, it is liquid which means that you can still reach it, if and when you need to. For many in retirement, most of the money is in Retirement Savings Accounts like IRAs or 401ks, or CDs. While the waiting period to get your money is never longer than 2 weeks, it is more time than you would like in a crisis. For example, if your water heater is leaking and you need to replace it, you really don’t want to wait 2 weeks for hot water.

Many are living 20 to 30 years in retirement now, which means it is more likely for crisis to happen in retirement than not. The question is, will you be able to handle it. Using these tips will help with financially being able to handle the issues as they arise in retirement.

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