Retirement Planning
Financial Tips for Older Adults Planning for Retirement
Thomas Jefferson was one of the most significant people in American History. He was an originator of the Declaration of Independence, instrumental in the revolutionary war and an influential President …yet he died in debt.
Surprising, isn’t it? How could someone so intelligent have ended up in debt? The answer: easily. In fact, many Americans today reach their retirement without enough funds to live comfortably.
Thomas Jefferson is one of many Great Americans we celebrate. Just as we celebrate and learn about the achievements of Great Americans, we should also learn from their mistakes.
The lesson doesn’t have to be difficult. There is one major difference between you and President Jefferson. You have access to more resources. You can take measures to ensure you don’t end up with the same fate.
Although many Americans are not financially ready to enter into retirement, you very easily could be. All it takes is a solid retirement plan.
When planning your retirement, you need to be knowledgeable about all of your options. In an effort to begin your education, this article will explore three primary retirement planning products: Annuities, Individual Retirement Accounts (IRAs) and Long-Term Care Insurance. Each has distinct benefits, and the correct combination of all three can ensure you a very satisfying retirement.
First, let’s discuss annuities. These are flexible insurance contracts designed to provide income and help you achieve long-term savings goals. During the “accumulation period” (i.e. prior to withdrawing funds), the earnings in the contract are sheltered from income taxes. Later, at the time of your choosing, you can begin to take monthly income. This income can be guaranteed for a period of time or for your lifetime. Again, the choice is yours.
In addition, some annuity products offer guaranteed living benefits which allow your money to grow so that you have more at the time of your retirement. At Goldish Financial, we offer all types of annuities: Variable, Equity Indexed, Fixed and Immediate.
When planning retirement, it is also important to look into IRAs. These have some similarities to annuities and carry certain tax advantages that might be an attractive addition to your retirement plan. Most types of investments may be utilized under the IRA “umbrella” (i.e. stocks, bonds, mutual funds, etc.). Like annuities, there are many different types of IRAs. These types are Roth, Simple, Traditional and Rollover IRAs.
In addition to having a source of monthly income during your retirement, it is important that you are protected against unforeseen health issues while enjoying your golden years. One major way to ensure you are taken care is by purchasing Long Term Care Insurance. A single Long Term Care policy can protect you against unseen costs associated with degenerative conditions, prolonged illness, cognitive disorders or general frailties associated with old age.
It is important to note that nowadays, the majority of payments under such policies provide for care in the home. Much of that care is provided as “custodial” or “unskilled” care. The second most common payments are made to assisted living facilities. These benefits allow older people to maintain their dignity as they age, as they allow them the opportunity to remain within the comfort and familiarity of the home environment they are accustomed to, or, if necessary, the relative privacy of assisted living.
Thus, having Long Term Care Insurance ensures that the money you have set aside for retirement is not depleted by the unpredictable costs of aging. Rather, you transfer the risk of such unknown expenses to the insurance company. In many respects, having a good long-term policy in force may represent the most important planning tool for your retirement.
As always, some retirement planning products will work better for your situation than others. In order to determine which products will work best for you and your plan you’ve got to do the research. We’ve given you a brief overview, now it’s your turn to take some action!
Take the time to read up on these topics online or at your local library. Then get in touch with a financial advising company like Goldish Financial (www.goldishfinancial.com). The best way you can prepare yourself is to understand what is out there and then let a trained professional work with you to create a comprehensive and effective retirement plan.
So what are you waiting for? Get educated and get a plan! Don’t end up like Thomas Jefferson. Research and contact a professional today so you can put retirement debt in the history books!