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Plan for the 5 Biggest Threats to Your Retirement

Plan for the 5 Biggest Threats to Your Retirement

 (Dollar Photo Club)

By    |   Thursday, 02 March 2017 11:14 PM

There’s a retired couple out there, somewhere, that has an excellent income, a sizeable investment portfolio, nice home, healthy lifestyle everything is great … looks like “nothing but blues sky from now on.” But wait, what’s that!? It’s a bolt from the blue. The husband is diagnosed with Alzheimer’s disease. His body is healthy, but his mind is not.

There isn’t a plan for this and his condition lives on for years because other than his mental disease his body is doing fine. He needs 24-hour care. The costs can be in the millions. Health care costs can devastate the largest of estates. They didn’t see this coming.

Like the boxing trainer says “It’s the punch you don’t see that knocks you out.” That sneaky left hook.  

This is what is called “Blindsided with your eyes wide open.”

I was watching a horserace awhile back and I noticed all the horses had these things on the side of their eyes, what are they called? Blinders. They do this so the horse only sees what’s in front of them and they’re not distracted by what happens around them. Now this may work very well for horseracing, but is this really the technique to use for retirement?

I cannot predict the future, but I can predict, from 19 years of experience, that there are real threats and dangers out there. And you need to see them coming.

Retirees have to realize first that these threats are real and that they need to be proactive not reactive. Common threats in retirement are: illness (Long Term Care costs); taxes (your uncle Sam’s take); longevity (out-living your money); market volatility (stock market losses) and death (is the surviving spouse taken care of?).

This is not an unsolvable mystery. We already know we are going to get older. If you are a married couple, one of you will slow down or get sick first, usually, not always, it’s the male. One day the healthy spouse will also slow down. Someone will die first, sorry fellas, statistically it’s us again, then eventually the surviving spouse will pass on.

This is life and we need to plan for it. There are many dangers that lie in wait for us and we need to eliminate or diminish them.

Think of it this way. You are going to sail around the world. Threats are: Navigation, bad weather, running out of food and water, sails malfunctioning, gasoline shortage, illness/accidents, etc.

You need to take these threats seriously to survive the voyage.

Your retirement is the same. You need to have a plan for crossing the “golden pond” of retirement and the trip is longer than before because of “longevity” we are living longer.

Have a plan for the following threats:

Long Term Care: there are many options available today other than traditional Long Term Care insurance which has its draw backs. Premiums can rise, the coverage can change and if you die you lose all your money. Fortunately, there are plans out there that don’t require annual premiums. Your money is liquid and makes 4% and if you die there is an augmented tax-free benefit to your heirs. If you need long term care you are covered.

Taxes: Minimize your taxable income. Don’t blame your CPA if your taxes are high. They prepare your taxes based on what you give them to work with. You need to get with a seasoned fiduciary and go up stream to find out what is causing the taxable 1099s.

Longevity: Means you are living longer. The number 1 concern for retirees is out living their money. You need to make sure your pensions are paying joint if you’re married, and invest a portion of your assets into a self-funded private pension that is guaranteed to last throughout your lifetime.

Stock Market loss: Don’t over expose yourself to volatility. Minimize your exposure and have a portion of your money in something that will not go down with the market.

Death: Have your Estate Plan set up–your trust, your Durable Powers of Attorney and make sure your assets are positioned to take care of the surviving spouse.

If you have a plan in place to handle the potential threats in your retirement, you won’t be Blind-sided. You’ll be in a position where you can keep your eyes wide open and looking forward to the best retirement possible. After all, you deserve it!

Dan Carter, an Investment Advisor Representative for Safeguard Investment Advisory Group (www.safeguardinvestment.com), has 18 years experience in the insurance and estate planning industry. Carter also is the radio host for a financial radio program, “The Big Picture Radio Show,” on KVTA 1590, Ventura County’s Gold Coast “News Talk” station. Carter holds California Life-Only and Accident and Health licenses (#0C32681), and holds a Series 65 license, and is registered through the Financial Industry Regulatory Authority (FINRA).

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You need to have a plan for crossing the “golden pond” of retirement and the trip is longer than before because of “longevity” we are living longer.
retirement, threats, life, dangers
Thursday, 02 March 2017 11:14 PM
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