You plan for retirement with expectations in mind. You hope to enjoy a certain quality of life, with sufficient income resulting from smart financial choices. Ideally, your future unfolds as planned.
But what if the unexpected happens? Will you have the right insurance in place to deal with it?
Insurance matters more in retirement planning than you may think. It is seldom "top of mind" in retirement planning conversations, but the right coverage could help you maintain some financial equilibrium in the face of sudden money pressures.
Many affluent professionals and business owners put estate planning on hold. Only the courts and lawyers stand to benefit from their procrastination. While inaction is the biggest estate planning error, several other major mistakes can occur. The following blunders can lead to major problems.
Failing to revise an estate plan after a spouse or child dies. This is truly a devastating event, and the grief that follows may be so deep and prolonged that attention may not be paid to this. A death in the family commonly requires a change in the terms of how family assets will be distributed.
Should the Self-Employed Plan to Work Past 65?
Some solopreneurs think they will "work forever," but that perception may be flawed.
About 20% of Americans aged 65-74 are still working. A 2016 Pew Research Center study put the precise figure at 18.8%, and Pew estimates that it will reach 31.9% in 2022. That estimate seems reasonable: people are living longer, and the labor force participation rate for Americans aged 65-74 has been rising since the early 1990s. 1,2
It may be unreasonable, though, for a pre-retiree to blindly assume he or she will be working at that age.
We all would love to have a little extra cash on hand for emergencies. Saving up that cash can be a challenge - but with a little effort, that challenge can be met.
Imagine a 30-year-old couple with no real savings. Let's call them Kurt and Diana. Together, they earn about $8,000 a month, but their household finances are being squeezed by education debt, rent, and the high cost of living in an affluent metro area. They have about $300 in the bank between them, and they just learned they have a baby on the way.
When you marry or simply share a household with someone, your financial life changes - and your approach to managing your money may change as well. To succeed as a couple, you may also have to succeed financially. The good news is that is usually not so difficult.
At some point, you will have to ask yourselves some money questions - questions that pertain not only to your shared finances, but also to your individual finances. Waiting too long to ask (or answer) those questions might carry an emotional price.
Not all home insurance policies are alike. Coverage amounts obviously vary, and so do coverage areas. Taking ten minutes to scrutinize what your policy does (and does not) cover is a wise idea.
Homeowner policies routinely provide tornado, windstorm, & hailstorm coverage. If a tornado, windstorm, or hailstorm damages your home or yard, the insurer will commonly pay out in response to your claim, unless your residence has somehow failed to qualify for such coverage.1,2
How about hurricanes & floods?
Saving $1 Million for Retirement
How can you plan to do it? What kind of financial commitment will it take?
How many of us will retire with $1 million or more in savings? More of us ought to - in fact, more of us may need to, given inflation and the rising cost of health care.
Sadly, few pre-retirees have accumulated that much. A 2015 Government Accountability Office analysis found that the average American aged 55-64 had just $104,000 in retirement money. A 2016 GoBankingRates survey determined that only 13% of Americans had retirement savings of $300,000 or more.
Could Education Debt Shrink Your Social Security Income?
$1.1 billion has been garnished from retirement benefits to pay back old student loans.
Do you have a federal student loan that needs to be repaid? You may be surprised at what the government might do to collect that money someday, if it is not paid back soon enough.
If that debt lingers too long, you may find your Social Security income reduced. So far, the Department of the Treasury has carved $1.1 billion out of Social Security benefits to try and reduce outstanding student loan debt.
R E T I R E M E N T I N S I G H T
Presented by Mark McGahee
MONTHLY NEWS AND
INFORMATION FOR CURRENT AND FUTURE RETIREES JUNE
“One act of
real usefulness is worth all the abstract sentiment in the world.”
- Anne Radcliffe
Get the broom outIf
you start topping the ball either because you are a beginner or because you
have a negative “muscle memory” associated with taking deep divots, this
exercise can help.
A few years ago I wrote a pair of articles for theSUFFOLK
NEWS HERALDabout the importance of being prepared when your health
changes as you age. The articles
included facts and figures about the cost of Long-Term Care (LTC) in America
and the options available to address the reality of it. One of the options was to purchase an
insurance policy designed solely to pay for LTC expenses. The advantage of an LTC policy is it pays for
care whether received in the home, in a rehab facility, in an assisted living
facility, and in a nursing home.