Risk­ing your Re­tire­ment

Con­sider will and long-term care op­tions avail­able

The Covington News - - MEDICAL UPDATE -

What are things that can kill your re­tire­ment?

There are sev­eral things that could change your re­tire­ment de­pend­ing on the plan­ning that you have done or un­for­tu­nately, the lack thereof.

With peo­ple re­tir­ing in record num­bers, many have made poor choices or failed to plan for many “ what ifs” in re­tire­ment. There are sev­eral things that should be thought out be­fore re­tir­ing or in the early stages of re­tire­ment. It is not just al­ways where I will make the most money or largest re­turns on my ac­count.

In fact, 71 per­cent of peo­ple do not have a cur­rent last will and tes­ta­ment and a larger amount of peo­ple do not have liv­ing wills or pow­ers of at­tor­ney. Ge­or­gia is not a dif­fi­cult or ex­pen­sive state in which to pro­bate an es­tate, but only if ev­ery­thing is cur­rent and prop­erly signed.

If there is no will, it could po­ten­tially cost thou­sands of dol­lars and a large amount of time, de­pend­ing on the es­tate. Most sim­ple wills only cost a cou­ple of hun­dred dol­lars and should in­clude a last will and tes­ta­ment, power of at­tor­ney, liv­ing will and durable power of at­tor­ney for health­care. Proper le­gal doc­u­ments are just one part of your re­tire­ment plan.

What hap­pens if be­cause of sick­ness or ac­ci­dent you need home care, nurs­ing care or as­sisted liv­ing care? How will you pay the bill? Th­ese ques­tions have made some look into long term care in­sur­ance and search for other op­tions. Long term care in­sur­ance is a great op­tion for some de­pend­ing on health his­tory and your bud­get.

Your ad­vi­sor should look at many dif­fer­ent cir­cum­stances and de­sign a pro­gram to fit your needs. If you have been turned down for cov­er­age in the past, I also en­cour­age you to work with some­one that bro­kers with many com­pa­nies be­cause of the dif­fer­ent re­quire­ments each com­pany has.

If long term care in­sur­ance is not an op­tion for you, there could be other op­por­tu­ni­ties avail­able. Vet­er­ans and spouses of vet­er­ans have ben­e­fits that can be uti­lized or trust plan­ning might also suit your needs. Pre- plan­ning for funeral needs can also save your es­tate money and ease your loved ones at the time of loss.

One of the fi­nal, yet crit­i­cally im­por­tant things to think about while pre­par­ing or re­view­ing your re­tire­ment is your in­vest­ments. Be­sides health care, in­vest­ment losses can cause the most dra­matic down­turn dur­ing your re­tire­ment. Peo­ple who lost money dur­ing the mar­ket drop in Septem­ber 2001 have just re­cently been made whole.

If you were tak­ing with­drawals while also tak­ing mar­ket losses, this will start a down­ward spi­ral in your ac­count and make it very dif­fi­cult to keep your ac­count to the level to en­sure that you will never out­live your in­come.

One of the rules of in­vest­ing is “ Pigs get fat and hogs get slaugh­tered.” You will never win. Stock bro­kers will try to con­vince you to stay in and ride out the mar­ket more or tell you that you haven’t lost money un­til you sell the eq­uity. Un­for­tu­nately, that ad­vice will not sus­tain you through the years of a fixed in­come.

This leads me to the last point and the first thing you will need to do, find some­one that will serve your needs. Be care­ful of bro­kers that are only out to charge huge com­mis­sions and fees to work with your in­vest­ments.

Also stop and ask your­self when is the last time your bro­ker or in­vest­ment ad­vi­sor asked you about your will or long term care op­tions? When did they look at tax re­turns or have they done a to­tal com­pre­hen­sive re­view and pro­vide an­swers for all the curves that you face in re­tire­ment? If you are say­ing never, it might be time to work with a new ad­vi­sor.

And be­fore say­ing good bye, take your re­tire­ment state­ment out and see if there is a vari­able an­nu­ity as part of your ac­count, if there is fire your ad­viser now.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.