LOOK­ING DOWN THE ROAD

Three ques­tions women need to an­swer about re­tire­ment

RSWLiving - - Departments - BY MAR­SHA MCDON­ALD

Ques­tion No. 1

Do I have enough money to last my life­time? Num­bers show that half of women 65 and older are sin­gle. And be­cause women on av­er­age live longer than men, run­ning out of money is a higher risk. There are fi­nan­cial strate­gies that pro­vide a guar­an­teed fixed in­come, of­ten com­bined with growth strate­gies in the mar­ket to offset volatil­ity in a port­fo­lio.

Hav­ing an in­come plan is crit­i­cal. How much will you need to meet cur­rent or pro­jected ex­penses? If there’s a short­fall, how can you re­duce ex­penses or make up the dif­fer­ence? You may need to sig­nif­i­cantly down­scale your life­style or con­tinue to work longer.

Ques­tion No. 2

How will I pay for home health or long-term care if I need it? Some 60 per­cent of us 65+ will need some care; ei­ther at home or a fa­cil­ity at a cost of $3,000 to $9,000 or more per month. The sim­ple math is that women need this care more of­ten.

In­di­vid­ual long-term care poli­cies pro­vide a spe­cific ben­e­fit per day for a spec­i­fied num­ber of years and can be used for home health, as­sisted liv­ing or skilled nurs­ing care. Life in­sur­ance poli­cies also of­fer rid­ers to cover care. The ad­van­tage of the com­bined prod­ucts is that if you don’t use it for care, you can have the death ben­e­fit to pass to your heirs tax-free. Any of the LTC or life poli­cies do re­quire you to pass a med­i­cal exam and there are some re­stric­tions. How­ever, an­nu­ity pro­grams of­fer rid­ers to pro­vide ad­di­tional in­come for chronic care re­gard­less of health.

Ques­tion No. 3

What will I leave my chil­dren? While some clients tell me their chil­dren are do­ing very well fi­nan­cially and are not con­cerned with leav­ing them any­thing, most want to be­queath some­thing to help their fam­i­lies. For some­one who has no health is­sues, per­ma­nent or univer­sal life poli­cies are a good op­tion. How­ever, if you are not in­sur­able due to health con­di­tions, there are fixed-in­come prod­ucts that have min­i­mum guar­an­tees but can grow the death ben­e­fit sub­stan­tially as the mar­ket grows.

Both life and fixed-in­come prod­ucts of­fer a va­ri­ety of great op­tions to make sure your fam­ily is cov­ered. But don’t for­get it’s also very im­por­tant to make sure you have an up­dated Florida will so that your wealth will be dis­trib­uted the way you in­tended.

If you have ques­tions about your re­tire­ment or other fi­nan­cial is­sues, please email them to me at mar­sha@sav­ingth­ein­vestor.com.

All writ­ten con­tent is for in­for­ma­tion pur­poses only. It is not in­tended to pro­vide tax or le­gal ad­vice or pro­vide the ba­sis for any fi­nan­cial de­ci­sions. All in­for­ma­tion and ideas should be dis­cussed in de­tail with your in­di­vid­ual ad­vi­sor or qual­i­fied pro­fes­sional be­fore mak­ing any fi­nan­cial de­ci­sions.

Mar­sha McDon­ald is a rep­re­sen­ta­tive with Ad­van­tage Re­tire­ment Group in Fort My­ers and Naples.

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