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Checklist for Retirement
Retirement Planning

Checklist for Retirement

by Jeff Dailey
written by Jeff Dailey

Are you looking to retire within the next two to three years? If so, it is imperative that you are prepared to make the leap. Retirement can be a fun and exciting time in your life, but only if you are fully prepared for it. We have made a checklist to make sure you are prepared for this new season of life. Checklist for Retirement
 
Before retiring from your job, make sure that you and your spouse are properly covered by health insurance. Not taking this step can be costly and it can have a negative impact on your retirement savings. Checklist for Retirement
Most senior citizens are able to qualify for Medicare. Do you? If so, complete your paperwork and signup right away. You do not want to create any lapses in coverage. If you do not qualify for Medicare yet, be sure to examine other avenues of coverage. Can you purchase affordable health insurance or can you extend your current health insurance plan with COBRA?
Before retiring from your job, make sure that both you and your spouse are covered with the right amount of life insurance. Do you have a private life insurance policy? If not, now is the time to get one. Some employers terminate an employee’s life insurance policy if it was provided and paid for by the company. As your age increases, life insurance is a must, so make sure that you are covered.
If you have been contributing to your company’s 401(k) plan and an IRA, you need to decide when to start withdrawing this money, as well as how you want to do so. Do you want to receive one large, lump sum payment? If you are unsure, it may be best to first consult with a financial advisor. In fact, when doing so, be sure to ask about all rules and restrictions. If you withdrawal your money from your Individual Retirement Account (IRA) before the written guidelines, you may be charged a penalty. Checklist for Retirement
Over the past few years, you likely developed a clear vision of what your years in retirement would look like. Where do you want to live? What type of property do you want to live in? What activities do you want to enjoy? Do you want to start your own small business? Your retirement savings are likely based on your retirement wants and needs. Now is the time to make any last minute changes, as you still have a couple of years to save additional money.
Do you foresee yourself making a large purchase in the near future? These purchases can include a new home or a car. If so, now is the time to make them, especially if you will depend on financing from a professional lender. Some lenders will give loans to those in retirement, but some are also cautious of doing so, due to fixed income living. That is why you are encouraged to make all large purchases before you enter into retirement.
The above mentioned points are just a few of the many that you will want to examine and take action when needed. As a reminder, if you plan to retire in two or three years, you still have time to save for retirement. Contribute any amount that you can to your 401(k) or Individual Retirement Account (IRA). When it comes to retiring, there is no such thing as having too much money.

Checklist for Retirement

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Young Seniors Should Focus on Growing Assets and Investments
Money Tips

Young Seniors Should Focus on Growing Assets and Investments

by Carol Marak
written by Carol Marak

The growing divide between what seniors earn and how much they pay for health care is a rational motive for younger individuals to set aside funds each month in case of emergencies. However, for the graying baby boomers near retirement, saving for a rainy day may be too late, since 30 to 40 percent of them earn less than $30,000 a year. The earned income is hardly enough to cover daily living expenses like housing and health care, much less leave some to reserve and invest. Young Seniors Should Focus on Growing Assets and Investments
In some cases, home budgets and rent can consume close to 50% or more of a person’s income. In 2016, the poverty threshold for a single individual living in California stands $11,880. According to UCLA’s Elder Index, a measure of the cost for housing, food, transportation, and health care, for a 65-year-old tenant, the base price for needs is $24,024 and growing.
Since health and long-term care expenditures far outweigh any other outlay, the burdens can rob a senior of solvency. Two studies, one titled the Long-Term Care Over an Uncertain Future and the other, America Talks: Protecting Our Families’ Financial Futures found that Americans would rather ignore the notion that continuing care one day will be necessary. Both studies confirmed that at least 70 percent will require continuing care, while less than 37 percent admit they’ll use it. The misconception sets up a minefield for crisis. Young Seniors Should Focus on Growing Assets and Investments
Together, the reports conclude that it’s in the last years of life, that one will need a hefty savings and income to pay for all the outlays that acute care will demand since Medicare does not cover it. Older adults will require continuing help with activities of daily life such as personal care assistance for bathing, dressing or eating. In some cases, a well-planned person can count on a LTC insurance policy, but only few have purchased it. The trick is to buy it early to keep it within budget. Young Seniors Should Focus on Growing Assets and Investments
From collating the 2014 U.S. Census data, the Seniorcare.com city and state guides show the earned income of senior households in the 50 states. The stats reveal overwhelming concern and incongruities showing that seniors have minimal resources to pay for future care. If the base price of living for one person is over $24,000 in California, what happens when they need help after an adverse health incident or episode? How will they pay for the extra help?

Earned Income vs. Health Care Costs in California, New York, and Texas

I was curious to know what senior citizens are up against in regards to earnings and potential health care bills. Reviewing the average and median income, and comparing it to the long-term care costs, I found no matter what state one lives, the average earnings of an individual has nowhere near enough to cover the costs of assisted living or home care.
In California, the median household income for seniors 65 and over is $43,181; New York is $37,228; and Texas is $36,915. In every state, health care costs rank high, and it makes me wonder how do the people handle it when in need?
But that’s the median earnings. Look at the average income of seniors living in these states. In California, 37% of the segment earn less than $30,000 per year; in New York, it’s 42% who make that amount; and for the Texans 65 and over, it’s 42% making less than $30k.

Continuing Care Costs

The low incomes are astonishing but comparing it to potential outlays will overwhelm. When paying for home care, California, commands top dollar. Home care, for 44 hours, runs $4,385, and residential care (assisted living) is $3,750 a month.
New York is equally expensive. You’ll pay $4,004 for the same amount of hours. And if you move to an assisted living community, expect to pay $4,100 each month.
Texas isn’t much less; it runs close to the same for home care, about $3,527, but assisted living runs a bit lower, $3,545 each month. Young Seniors Should Focus on Growing Assets and Investments
Doing the math illustrates that a significant number of people struggle to pay for continuing care, maybe that’s why 89 percent of seniors want to age in place. It’s the only option that makes sense, but if they have a mortgage or pay rent, then it doesn’t compute. In-home care will add stress to the already stretched budget.
Like I mentioned earlier, the data across the other states are similar and not much more affordable. So, if you haven’t prepared for future care, time is running out. And if you’re still young, don’t make the same mistake. Start today.
The underlying basis is, if you want to choose a quality long-term care option, you must have a plan to pay for it. Many seniors find that Social Security and other earned income is not enough.
So what can you do? First off, talk with a financial advisor, they can lay out all your possibilities to pay for future assistance.

Young Seniors Should Focus on Growing Assets and Investments

 

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Retirement Planning

Even the Highest Earners Don’t Have Enough

by Kimberly Johnson
written by Kimberly Johnson

A Shocking Thesis

According to the Schwartz Center for Economic Policy Analysis (SCEPA), the majority of American families nearing retirement have inadequate levels of savings. When we examine the data, there is a substantial amount of truth to this thesis. Even the Highest Earners Don’t Have Enough

The Data

Every three years, the Board of Governors of the Federal Reserve System release a massive amount of information about United States (USA) family finances. This triennial bulletin is called the Survey of Consumer Finances. (SCF) Here is some background on the authors of the survey: the Federal Reserve Governors consist of seven officials (five appointed by the President of the United States) that oversee twelve banking regions in the United States.
In the 2013 release of the SCF, the mean value of retirement accounts for families in the USA was$201,300. It is worth noting that the mean has continued to increase in every survey dating back to 1989. With that said, when focusing on age ranges, those families nearing retirement (age 50-64) have accumulated on average $285,200 in their savings accounts. The average income for these families is listed at $103,291. (SCF 2013) The data collected includes all retirement plan accounts held by United States taxpayers, such as 401(k), 403(b), and IRAs.

Setting Retirement Savings Targets

There are many opinions regarding the appropriate amount to save for one’s retirement. These figures vary widely, with Fidelity Investments suggesting a savings of eight times a retiree’s annual earnings by the time they reach retirement. In their research, Fidelity estimates that this amount, combined with Social Security should replace 85% of pre-retirement earnings.
In a more conservative outcome, consulting firm Aon Hewitt analyzed the retirement resources and needs for 2.2 million employees of 78 large companies in the United States. Their findings suggest that a retiree must save eleven times their annual earnings to make it through retirement. This amount of savings combined with Social Security should replace 85% of pre-retirement earnings. A suggested savings amount between the two targets would be a great start.

One Step Further – Are We On Track?

Citing research from the SCEPA, we realize that the majority of American families have in fact, not saved enough for retirement. Let us focus on the specific age group, ages 50-64. In any way you read the data, the bottom 50% of income earners, the middle 40%, and the top 10% have seemingly not saved enough to maintain the 85% of pre-retirement earnings discussed earlier.
 
Even the Highest Earners Don’t Have Enough

Even The Highest Earners Can Be Affected

With an average income listed at $460,852, even families in the top 10% of earners aged 50-64 may not have saved enough. The mean balance for the top 10% registers at $639,825. Perhaps they have invested in other assets, such as real estate, or non-retirement savings accounts. However, it is clear that if a family earns $250,000 annually, they need at least $2 million saved for retirement. Even with high levels of income, there seems to be a wide deficit to cover, which cannot be replaced by Social Security benefits alone.
 
Even the Highest Earners Don’t Have EnoughSource: Pew Research Center

The Boomerang Generation

If this retirement savings data was not enough to get your attention, the Pew Research Center has determined that for the first time in the modern era, living in a parent’s home is the most common living arrangement for adults age 18-34. The bottom line: it doesn’t hurt to save more, just in case your adult children are part of the 32.1%.

Landon Yoshida , CRPC®, Wealth Manager
www.Apriem.com

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Cutting Expenses for Retirement
Money Tips

Cutting Expenses for Retirement

by Jeff Dailey
written by Jeff Dailey

According to CNN Money, you can expect your monthly expenses in retirement to fall by 30%. Cutting Expenses for Retirement
The rule of thumb is you’ll only need abo­­ut 70% of your pre-retirement income to live comfortably. A 30% decrease in your expenses is natural, but you can still go further. Cutting your expenses by 50% after retirement is within the realm of possibility. Some of it will happen naturally and some of it may require action on your part. Read on to get some ideas flowing! Cutting Expenses for Retirement
Payoff has Some Simple But Proactive Ways to Decrease Expenses
Take your natural decrease in expenses even further with the tips below!

  • Consider reducing insurance coverage. Life insurance is mainly for those who depend on your income. At this point in your life, your children are probably grown and your spouse has his or her own money flowing in. Consider getting rid of or cutting back on your life insurance. If you’ve been able to save during your career, this may be enough of a legacy for your loved ones.
  • Be sure to take required minimum distributions on your 401(k). Each year, anyone over 70 ½ is required to make minimum withdrawals from their retirement accounts. If you don’t take out the right amount, then you will be penalized heavily. It’s a 50% penalty PLUS income tax on the amount you should have taken. If you’re unsure of how much you should be taking out, look here to help with the calculations.
  • Take caution to reduce fees from ATMs and banks. Limit your transactions, particularly on investments, and be sure you’re following the rules on using your bank account. These small fees can add up!
  • Prioritize spending the money that will be taxed first. Many types of retirement accounts will get automatically taxed. So save your 401(k)’s until after you’ve spent those. You don’t get taxed on your 401(k) until you take the money out, so keep it in there (but take minimum distributions!) until you have exhausted all of your other already-taxed money.
  • Don’t be late for Medicare. Premiums increase the longer you wait to sign up. In fact, for each year you wait to enroll, the cost increases by 10%.
  • Senior discounts! You’ve earned them, so feel free to ask for all the discounts you can get. Some companies publicize discounts, but many don’t, so it’s always a good idea to ask whenever you go to purchase anything from food to hotel stays.
  • Travel! Retirement is a great time to travel! You can now go anywhere at any time of year. Use that flexibility to take advantage of the cheapest time of year to travel and on the cheapest day. Here’s a good resource on how to find cheap flights. The reduced stress from avoiding peak travel times may also help to lower your medical bills!

If You’re Ready to Take The Bigger Steps To Savings:

  • You’ve probably considered selling your home. Big homes are a huge and potentially unnecessary expense. With the kids out of the house, you may not need so much space. Psychologically, it may be hard to let go, so this is a decision that should be carefully weighed. How much are the savings and simplified lifestyle worth to you?
  • To take things one-step further, consider moving far away! You are no longer tied down to a job. Consider a city, a state, or even a country with a low cost of living. Arizona and Florida treat early retirees particularly well.
  • Could you survive as a one-car household? If it sounds possible, this could save you thousands of dollars. You’ll need one less garage stall, be able to do away with insurance and registration for a second car, be making a great step towards the more simplified lifestyle you may desire.
  • Price comparison-shopping may have seemed like a luxury when time was short, but now it’s a luxury you may be able to afford. Instead of rushing to get a new clothes dryer on the weekend, you can wait and make sure you’re making the best deal possible. If you enjoy clipping coupons, now’s your chance to finally master that elusive $100 per month grocery goal you’ve had for years!
  • If you still have any, now is the time to focus on eliminating debt! Expenses have never been lower, and you’re freer to explore all of your options. Payoff.com is a great option for helping with credit card debt. With a dedicated advocate by your side, they will help you get to the retirement you’ve always dreamt of-free from debt!
  • Still have a landline? Use an outdated internet service? Consider learning about and adopting the latest technologies, while dispensing with the old ones. You may find that this not only saves you money but also helps you to connect with everyone around you!
  • Consider devoting more time to do-it-yourself projects. Instead of outsourcing work you once enjoyed, like gardening, you can now do it yourself. In theory, you’ll have 40+ hours freed up to devote to new projects. What will you accomplish? Maybe turn your hobby into a new business?

How Low Can You Go?
Remember when you were a teenager? Your expenses were probably pretty low. You can get them low again in retirement. There are so many ways to naturally and proactively save money in retirement. The best news is that it’s not just about savings. It’s about living the lifestyle you want.
Take your savings and new flexibility to make your dreams a reality. Have you ever wanted to live abroad? Go ahead! Have you ever wanted to learn carpentry skills? Go for it! You will have more time for it, and the resources to pursue it. What will you do with your extra cash?
Enjoy retirement! You now get to save (and spend) money on your own time, and on your own terms.
Brought to you by Payoff! Cutting Expenses for Retirement
DISCLAIMER – All examples are hypothetical and are for illustrative purposes. The above statements are provided as tools for your independent use and are not intended to provide investment advice. Payoff cannot and does not guarantee applicability or accuracy regarding your individual circumstances. You should consult with a financial professional about your personal situation.

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Building Confidence in Your Retirement
Retirement Planning

Building Confidence in Your Retirement

by Jeff Dailey
written by Jeff Dailey

In the next 10 years, the first wave of America’s 76 million “baby boomers” will be retiring, including nearly 9 million here in California, according to the National Center for Health Statistics. Since today’s retirees are generally healthier and more active than their parents, they are looking forward to living longer and spending more time playing with grandchildren, pursuing hobbies, or trying new careers. Building Confidence in Your Retirement
Building Confidence in Your RetirementTheir longevity and vibrant lifestyle also presents financial challenges, however, and many wonder how they will make savings last throughout retirement.
Investors enter retirement with more confidence if they have a thoughtful retirement strategy. Planning ahead helps those nearing retirement prepare for when company paychecks stop coming and the goal of accumulating assets gives way to generating income from those assets. Building Confidence in Your Retirement
Research by Fidelity Investments has shown, however, that the majority of those approaching retirement have not assembled key elements of a retirement plan. Two thirds have not developed a budget of living expenses, for example, while more than three-quarters haven’t created a plan for withdrawing savings. While planning for and managing income in retirement may not sound like fun, it is the most effective way to be confident in the future. Consider the following.

  • CALCULATE HOW LONG RETIREMENT WILL LAST– Since retirement doesn’t have a preset time limit, this step can be particularly challenging. Many people are surprised to learn they are likely to live in retirement just as long as they worked. A 65-yearold couple retiring today, for example, should plan to have enough money to last at least 20 or 30 years. When determining how long your money will need to last, consider that you may live longer than you think-possibly into your 90’s.
  • ESTIMATE RETIREMENT EXPENSES -While planners recommend having 60 percent to 80 percent of income in retirement, each situation is different. It is important to realistically estimate the expenses that are likely in your retirement, including those you consider essential to basic living as well as the discretionary things you want. For example, the average 65-year-old couple retiring today will need $190,000 to cover medical costs over the next 15 to 20 years (assuming no employer-provided health benefits). Medical expenses, combined with mortgage, travel and entertainment costs, may create shortfalls, putting retirees at risk to outlive their savings. Options to bridge the gap include working longer or investing assets to generate supplemental income.
  • PRESERVE AND GROW ASSETS – Fear of a down market can cause some retirees to be too cautious, so they sell virtually all of their stock holdings. While they should protect assets, retirees should recognize that they may also benefit from growth that can come from investing in the markets.

In fact, long-term success may lie in a portfolio that includes an appropriate mix of stocks, bond and cash. The key is to find an asset mix that is age-appropriate and generates enough income to help offset withdrawal requirements and the effects of inflation over time.

  • SIMPLIFY TO STAY ON TRACK-Pre-retirees expect to manage an average of nine sources of income, including Social Security, multiple 401(k)’s, securities, and personal savings, according to Fidelity’s study. These assets are often held in multiple accounts at different institutions, making it difficult to develop and maintain a comprehensive investing strategy.

For example, mutual funds from different firms may hold similar investments, potentially increasing risk to a portfolio through greater exposure to volatile markets or sectors.
Anyone five to seven years from retirement may want to consider consolidating various retirement accounts in one place, or finding a tool that easily provides the entire financial picture in a single view.
Creating a thoughtful retirement strategy involves sharp focus and detailed calculations, and can force couples approaching retirement to face difficult considerations for the first time.
There are many resources available to help investors prepare a retirement strategy. Planning for the future is key, and helps build financial confidence so that you can enjoy the retirement you have worked so hard to achieve. Building Confidence in Your Retirement
www.lqchamber.com/pdf/gem_feb06.pdf

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Why Have An Estate Plan?
Estate Planning

Why Have An Estate Plan?

by Jeff Dailey
written by Jeff Dailey

A recent study showed that in today’s economy, more and more people see estate planning as “discretionary” – something that can be put off until times are better. Unfortunately, disaster doesn’t know the difference between a bullish or bearish stock market, an employed versus unemployed person, or a younger individual versus an older individual. Simply put, the benefits of having a current, up-to-date estate plan far outweigh what happens if you don’t.
Let’s start with addressing what an estate plan does. An estate plan helps to document your preferences and instructions with regard to your financial affairs and more in the event of your incapacitation or death. The basic legal documents found in a typical estate plan include a last will and testament, a living will, a healthcare power of attorney and a financial power of attorney. Some individuals prefer to use trusts as a complement to, or sometimes in lieu of a last will and testament.
There are four components to a good estate plan, including:

  • having proper legal documents for your situation
  • a well organized catalog of all your important personal information and instructions for your family to access after your death
  • a documented legacy – all the personal stories, accomplishments, and heritage information that you want passed to the next generation
  • advanced communication – sharing your preferences, viewpoints and wishes with your loved ones.

People create estate plans for a variety of reasons. Some people have a strong desire to avoid probate. Remember, probate is simply the legal process whereby a court appointed person identifies all of your assets and liabilities and their value, pays your final bills, and distributes what’s left of your assets to your heirs according to law. Your probate officer is typically a close family member or friend, but can sometimes be an attorney or other professional. In some states, it’s actually quite a simple process. In other states it can be a little more complex.
If you want to know what strategies will help you better manage probate, a qualified estate planning attorney can assist you. He or she will make sure your beneficiary designations on your financial accounts and insurance policies are completed properly and will encourage you to consider various types of trusts.
Some people create an estate plan to make sure that their assets will be transferred in a tax efficient manner. Others who may be worried about creditors or the privacy of their estate settlement might find value in having a trust. Again, you’ll want to seek qualified legal assistance in creating an advanced technique like a trust.
Most importantly, an estate plan helps to ensure that your wishes and instructions are carried out in the manner you specify, that family harmony is maintained, and that your loved ones’ burdens in settling your affairs are minimized. Without a plan, the distribution of your property is provided for according to the law in the state where you resided or owned that property. Each state has this so called “intestacy law” which applies to individuals who die without a valid last will and testament. This body of law differs from state to state, but generally establishes an order by which your loved ones (e.g., spouse, children, parents, siblings, etc.) receive your property. This order may differ greatly from your actual intentions, which makes creating an estate plan one of the most important things you can do.
Provided by Greenberg Traurig

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A Change of Seasons
Life Lessons

Change of Life Seasons

by Jeff Dailey
written by Jeff Dailey

Do you remember when you were raising that houseful of kids? It seemed that there was never a moment’s peace for you. Of course, as a parent you like being with your children. But when you got home from a long days work, sometimes a little peace and quiet was what you were hoping for rather than a chorus of needs, demands, complaints and requirements for litigation of their petty squabbles. But that’s what you got and you were dad so you took care of business for your family. Change of Life Seasons
Change of Life SeasonsOr if you had the kids around all day as the primary caregiver, as much as you loved them, they did get under your skin sometimes. It’s funny now that you are settled into your senior citizen world that when you think back on those hectic days, you almost miss them.
In our senior years, we have the opposite problem from getting too much of the kids. The challenge you have which is a universal problem seniors go through, is how to get more of the kids not less. There are plenty of enticements to make you want to see them more. They are grown up now so when you see them, it’s like visiting with a friend rather than mentoring a youth. They are the adults now so they might even pick up the tab at the restaurant from time to time. And of course, there is that one magical world that draws to you want to see your children all the time– grandchildren.
So how do you go about enticing those kids to invite you over? You don’t want it to be something they do out of guilt. You want winning not whining when it comes to finding ways to make them want to see you as much as you want to see them.
Whining is universally ineffective. Nonetheless, if you poll other seniors, the guilt and whining and guilt method of trying to get their kids attention seems to be the mode of the day. A better way to create that same desire in your kids to see you is to be to them who they want you to be – wise old granddad and sweet loving grandma.
If the way to a man’s heart is through his stomach, that principle certainly applies when it comes to your children and grandchildren. And your kids, no matter how great their married life is, have warm memories of your apple pie or that special smell of cinnamon roles that only mom can make. So bake for them often and let them know the kitchen is always open at grandma’s house and moochers are honored guests here.
Sometimes it gets overlooked in the hubbub of raising a family but your children will always need their mommy and daddy. If the door is open for them to call you or drop by for a glass of wine and some sage counsel, they will come through that door. Don’t be pushy and don’t be whiney about it. But if you gently check in with them and when you hear that special tone in your offspring’s voice that is quietly saying, “Daddy I need help”, you have a special coded phrase you can use to bring them to you.
For me, whenever my kids needed me but were too proud or too much a “teenager” to ask, I just said softly and lovingly, “What’s eating you, Sweetpea?” That phrase said it all. It said that the court of wise counsel was open for business and that this was an ear that would listen before it spoke and never judge you no matter what a mess you may have gotten yourself into.
Then there is that magic word we spoke of earlier – grandchildren. Those little bundles of energy love to see grandpa and grandma. So by keeping the door open to them, your kids will find ways to get their little ones over to see you. Whether its for the cookies or the counsel or the chance for the little ones to hear grandpa’s jokes or for your daughter in law to learn your secret for growing prize winning tomatoes, you have some bait to lure those kids to come see you. So use that bait to entice them to see you. And the more they find grandmas house is a place of fun and love, the more they will love to come over. Change of Life Seasons

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Retirement Mistakes To Avoid
Retirement Planning

Retirement Mistakes To Avoid

by Jeff Dailey
written by Jeff Dailey

Retirement Mistakes To Avoid

Retirement Mistakes To AvoidAre you ready to start planning and preparing for your retirement? If so, congratulations you are making a step in the right direction. The earlier you start planning for your retirement; the better off you will be when the time comes. Retirement Mistakes To Avoid
 
The decision to start planning and preparing for retirement is a wise decision. As previously stated, the earlier you start, the better. With that said, the earlier you start planning for retirement the more mistakes you are likely to make. These mistakes, a few of which are outlined below, can cause financial problems and more when you are ready to retire.
Not creating a budget for yourself and not tracking your spending are two mistakes that you will want to avoid making. This often leads to you spending more money than you have. You should be saving for retirement, especially at around the age of forty, not getting into debt. For that reason, never spend money that you don’t have and never spend all of your money. It is best, but a must when you reach the age of forty, to start paying for all of your purchases with cash, checks, or debit cards. Before doing so, however, make sure that you have enough money to spend and keeping on saving for retirement.
Another common mistake that people make, when creating a retirement plan, involves not taking health into consideration. Health and the impact it can have on your retirement can work two different ways. For starters, what if you get sick? Can you afford the cost of emergency surgery or long-term medical care? Even if you are healthy now, remember that your health can always take a turn for the worse. It is also important to note advancements in medical technology. Many men and women are living longer than they originally planned for. You don’t want to run out of retirement money just because you lived longer than expected.
In keeping with your health and wellbeing, it is important to examine your spouse and visa versa. There is a good chance that one of you will live longer than the other and possibly a significant amount of time longer. Make sure that you have enough money to retire on your own, in the event that your spouse passes away. It is also important to recheck all important documents. Make sure your will, mortgage, and all property deeds are in order and designed to protect the surviving spouse.
Relying too much on government assistance, like social security, is a mistake that many make. This is a mistake that can be damaging to you. Did you know that social security will only pay for portion of your retirement needs? On average, it only covers about 40% of your needs. What plan do you have for the other 60%? If you don’t have a plan, now is the time to develop one.
The biggest mistake that many individuals make is dipping into their retirement funds before they are ready to retire. This is a huge mistake that can have a negative impact on your retirement and your finances in the future. You should never take money from your retirement funds, unless it is a dire emergency. Use your retirement savings as a last resort. If you need cash quickly, consider approaching your local bank or speaking to friends or family members to acquire small loans.
Not knowing all of your saving options is another mistake that you will want to avoid making. Did you know that there are multiple ways that you can save money for retirement? There are, for example, a employer’s 401(k) program, as well as Individual Retirement Accounts (IRAs). There are also many others who use stock and bonds to save extra money for retirement. In fact, it is advised that you spread out your retirement savings to offer you protection. Do the proper amount of research online or schedule an appointment with a financial advisor before it is too late.

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Planning your Medicare Plan
Medicare Plans

Planning your Medicare Plan

by Jeff Dailey
written by Jeff Dailey

Commonly Overlooked Pieces of Your Medicare Retirement Plan
Medicare enrollment can be a confusing and overwhelming experience, especially for first-time enrollees. The variety of plans and the costs associated with each can make it difficult to compare and gain a complete understanding of your total annual costs. Even if you have a comprehensive retirement plan that takes into account your health, circumstances can change. There is no crystal ball to tell you how your retirement will unfold. Planning your Medicare Plan
While impossible to forecast your future health, there are several ways to prepare for the unexpected and protect your retirement plan, and your health. Planning your Medicare Plan
So, how do you best predict your medication expenses? Evaluating your current health and lifestyle is a good place to begin:

  • Do you have any chronic conditions, or pre-conditions?
  • Are you active? Do you maintain a healthy diet?
  • Do you take medications for non-chronic conditions or ailments that may be expected to continue?
  • Do you have a family history of chronic conditions?

Be honest when answering these questions, as they’ll set an important baseline. For example, if you have been diagnosed with prediabetes, it is possible diabetes could be in your future. Patients with diabetes spend an average of $13,700 annually on medical expenses.
Your planning should also take into account potential medication price increases, which can often rise much faster than the prices of other consumer goods. The average American will likely have at least one chronic condition and end up spending nearly a quarter of a million dollars through retirement on healthcare costs, so these predictions are vital in planning.
Think about ways to save. Consider plans that offer lower copayments for generics, and have generic equivalents or alternatives on their formulary – or list of covered medications – to the medications you take. Using generics, you can often save up to two/thirds on your prescriptions. Planning your Medicare Plan
Switching delivery methods, brands, or even pharmacies may also provide some cost savings, and many plans even have online tools that can help you compare these costs. Always take your medication as prescribed. Skipping doses can feel like it’s making a prescription last longer, but the long-term health effects and potential associated costs make skipping doses ineffective and possibly even dangerous.
Expect the unexpected. You can never accurately predict all of your healthcare costs. Have contingency plans in place for any unanticipated medical expenses. These can range from car accidents to surprise diagnoses, which may impact you directly, or indirectly through a loved one. Surprise costs aren’t so much a matter of “if” they happen, but rather “when” they happen, and you’ll thank yourself later if you build in a buffer.
You’ll never be sure of what tomorrow brings until it arrives, but with thorough planning and preparation, you can ensure that you’ll be ready to take on whatever comes your way. These commonly-overlooked issues are a great place to start, but only by fully evaluating every option available to you, in the context of your own individual health, will you be able to choose the best plan for you now, and in the future. For more information and helpful tips, sign up for a free newsletter about retirement planning and Medicare at http://www.roadmapformedicare.com/sign-up.
Planning your Medicare Plan

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