Putting the Gold in Your Golden Years
Carolyn VanSyoc, Special to The Gazette
Monday, July 6, 2009
Carolyn VanSyoc
OCCUPATION: Recently retired from ESB Financial with 44 years of banking experience.
FAMILY: Husband of 44 years, Gary VanSyoc. Children: Jane McCoy and husband, Dan McCoy, and granddaughter Alee McCoy of Emporia; Julie Myers and husband, Wade Myers, granddaughters Jessica Myers and Jaclyn Myers and grandson Will Myers of Waukee, Iowa.
HOBBIES: Gardening, quilting, reading and collecting.
Since I just retired July 3 from being a vice president and loan officer at ESB Financial, I have been asked the question … what advice can you give to people who are thinking about retirement? Well, this is my advice for you.
Retirement takes a lot of advance planning and should begin years before the actual date. Social Security alone is not enough income to make retirement years pleasant and should be supplemented with retirement funds and personal savings. When buying a home, an individual must keep in mind what age they would like to retire so they can be debt free by the time they reach that age. The third consideration is health insurance and making sure one has good coverage up until the age of 65 when one is eligible for Medicare along with the purchase of supplemental insurance coverage. The fourth consideration is determining an actual retirement date and I would suggest doing so at least 18 months in advance.
Save for retirement
It helps to start saving as early as possible by contributing to 401(k)s and taking advantage of matching by your employer or establishing a pre-tax IRA in addition to personal savings. Saving is a discipline and a habit and should be taken out of each paycheck even if it is a small amount to begin with. I would suggest that you contact Fred Harder at The Investment Center or Steve Bell at the Trust Company here at ESB Financial to help you make a plan and estimate how much additional savings you will need to be able to retire and do the things you are passionate about, such as hobbies and travel. I think it is important to consult with a professional and also establish a retirement budget as you would a budget for household expenses.
Get out of debt
Planning to get out of debt by establishing a retirement budget starts up to 30 years before your actual retirement date. Because purchasing a home is one of the largest investments you will make during your lifetime, you can base the term of your home loan to match the date you would like to retire to have it paid for by at least your retirement date. The same can be done for purchase of vehicles and a plan to have all debt paid off at the time of retirement.
Health insurance
If you plan on retiring before the age of 65, you need a plan for health insurance. You can have COBRA coverage, which keeps you in your employer’s plan for 18 months at your expense and then you would have to find your own individual policy until age 65 when you will be eligible for Medicare. Staying healthy is the key to getting health insurance coverage by exercising, losing weight and quitting smoking.
Set a date, finalize
small details.
It is a good idea to give oneself plenty of time to adjust to the idea of retirement and make a plan as you would for any important event. I have made a list of all the fun things I want to do and am looking forward to starting them. Cleaning out an office that you have had for many years is another interesting aspect of retirement. It takes lots of time and many trips to the shred containers.
Now that my retirement date is here, because of planning, it has been a very pleasant experience and I am ready to move forward to another chapter of my life.