There are some risks you may face that could threaten your financial stability, including risky investments, medical issues, or even death, all of which could put you or your spouse in a challenging situation. Below are a few financial tips that could improve your financial stability. By implementing even one of these tips, you may experience a more comfortable and enjoyable retirement.
Guarantee Your Income
You probably have some form of guaranteed lifetime income from Social Security. If you are fortunate, you may also have a pension benefit. However, many retirees may find the need to fill in the gaps with income from savings, which may not be guaranteed. You may run the risk of running out of money if you withdraw too much or if your investments decline in value.
Guaranteeing a portion of distributions from your retirement savings (“RMD”) is one way to minimize this risk. RMD accomplishes this by the use of annuities, which offer a variety of ways in which to generate guaranteed* lifetime income. Some also offer potential and downside risk protection. If you’re worried about the sustainability of your retirement income, this may be an option worth exploring.
Get An Estate Plan
Haven’t you worked hard during your lifetime to accumulate assets, grow a family, and build a legacy? You likely want that legacy passed onto your loved ones, and not erode during the final years of your life or after death. A solid estate plan can help you avoid that risk by minimizing probate costs, managing taxes, and distributing your assets to loved ones in the manner that you wish.
When it comes to estate planning, there are many options, as there is no estate planning formula that works for everyone. Consult with a professional to analyze your needs and goals. Many estate plans involve a will, beneficiary designations, and possibly even a living trust. Although many people assume that estate planning is only for challenges that could arise after you pass away, it is also important to consider tools to help you manage your assets and your health care treatment during your lifetime should you become incapacitated and unable to make your decisions. Power of attorney documents are a useful tool for managing incapacitation.
Long-Term Care Planning
As we age, the need for long-term medical care often becomes a reality for many people. Concerns about cost, location, care providers; in-home, assisted, skilled, or nursing care can become a daunting challenge. Some rely on savings, pensions, social security, reverse mortgages, or family members to support this expense.
Alleviate the stress associated with the need for care, and funding the cost, with proper planning. Investment portfolios that generate income and dividends, supplemented with pensions and Social Security may be enough to cover the cost. For those that can afford and qualify, long-term care insurance is an additional option. Reviewing life insurance policy riders or cash values may also be a source to assist with the cost of attention.
For those that served in the US Military, there is a hidden VA benefit called the Aid and Attendance with Housebound pension benefits. Created by Congress in 1952 and annually funded with billions of dollars to help offset costs of care for our Veterans and their spouses. This program may be the only lifeline available to protect those that protect us. As with any government-funded program, there are qualifications for eligibility to receive this benefit.
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