Retirement Guys: 5 tips to help protect your retirement assetsWritten by Nolan Baker Mark Clair | | firstname.lastname@example.org
A couple weeks ago we wrote an article for the Toledo Free Press call 5 Tips To Help You Prepare for Retirement (Check it out at www.retirementguysnetwork.com). Since The Retirement Guys focus on a 3-part process called The Retirement Game Plan (Manage Your Money, Preserve Your Assets, Efficiently Plan Your Estate), we thought we would make the “5Tips” theme a 3 part series. In a couple weeks we will follow this up with the third installment, 5 Tips To Help You Plan Your Estate.
So now you are approaching retirement or perhaps the time is here and you are now retired. If we think we have a handle on how our money is situated and we have considered the 5 Tips To Help You Prepare for Retirement (here is the list for your review if you didn’t get a chance to read the previous article):
- Treat retirement as a goal, not as an entitlement. If you have this attitude you will likely be much better off preparing for this shift in life and accumulating the financial resources necessary to make it a happy and relaxing time of life.
- Know where your income is going to come from. Will you receive a pension? Social Security? Will you have to live off your savings?
- Have a Social Security Analysis done. There is software available to calculate how much you will receive depending on what age you start to take it
- Create a budget. What will your costs of living be? What kind of lifestyle do you want to live? Do you plan on traveling? Understand what health care costs can be in retirement. Many folks think Medicare is free. It is not. It could possibly cost in today’s dollars $3,000-$6,000 per year per person for health care.
- Create a “Retirement Game Plan.” Use a checklist of items to better help you manage your money, protect your assets and efficiently plan your estate.
Now the big question that we ask after we get part 1 of the game plan done, is, What Could Blow This Up??? When we ask folks during the planning process what is their biggest concern, the most common answer is “outliving my money.” This usually means the fear of “having my life savings wiped out by a nursing home.” As most folks know, this can be very expensive. How then may this leave your spouse to have enough to live out the rest of their life? If you are not married, it may do serious damage to an inheritance you may have been able to leave to your kids.
Not only is protecting your savings an issue, but what about your income? Many married couples do not think about how they would be affected if their spouse died prematurely and unexpectedly. How much income would be lost? It is usually at the very least, the lower of the two Social Security checks. This could add up to a considerable chunk of change. If you think about it, most expenses are fixed and your overall cost to live may not decrease that much if your spouse is no longer around.
Here are 5 Tips To Help Preserve Your Retirement Assets:
- Make sure you have plenty of life insurance to protect your spouse from an unexpected premature death. Life insurance proceeds are income tax free, probate free cash payments that can be added to the savings to help replace lost income.
- Explore long term care insurance options to create a pool of money to use to pay for care if needed. This can substantially reduce the damage the high costs of care might do to your life savings (you may be able to get some LTC protection without buying traditional long term care insurance).
- Look for conservative opportunities to grow money you are not currently using. This can help create more to use later should it be needed to pay for health care.
- Protect yourself from catastrophic health care costs by understanding Medicare and how health care works during retirement. Make sure you are not exposed to huge deductibles and co-pays.
- Create a Retirement Game Plan to make sure all parts of the plan are cohesive and know how each part may overlap and affect the others. (You can get a copy of The Retirement Game Plan Summary and Retirement Game Plan checklist by going to www.retirementguysnetwork.com and requesting them).
For more information about The Retirement Guys, tune in every Saturday at 1 PM on 1370 WSPD or visit www.retirementguysradio.com. Securities and Investment Advisory Services are offered through NEXT Financial Group Inc., Member FINRA / SIPC. NEXT Financial Group, Inc. does not provide tax or legal advice. The Retirement Guys are not an affiliate of NEXT Financial Group. The office is at 1700 Woodlands Drive, Suite 100, Maumee, OH 43537. 419-842-0550