Financial planning during retirement is critical. Since the sources of one’s retirement income are more than one, it is important to comprehend their restrictions. Common sources include Social Security benefits, company pensions, income from post retirement employment and personal savings.
Moreover, any planning that one does for the retirement years should not only provide sound financial cushioning but should also offer the retiree some peace of mind. There are companies such as Lundy Insurance that have launched the program 'Peace of Mind’, which is a complete package comprising of a sound health plan and a rock solid retirement program. The clients are put at ease with a full range of financial planning, retirement and executive deferred compensation plans. In partnership with RSG, Lundy Insurance offers a full compliment of resources to design, develop and administer strategic plans that would bring 'Peace of Mind' to its clients, even in the most challenging circumstances.
An individual undergoes a process of deliberation when deciding to purchase long-term care insurance (LTCI). There are many variables that need to be considered such as what kind of policy to buy, how much insurance to purchase and to look into the features that the policy is providing such as will it cover institutional care and home care, will it have a set benefit or inflation protection and will it have a level premium or graduated. Even after these questions are answered, policy pricing will be contingent on the age and health of the applicant, family health history, residence location and other underwriting criteria.
It is essential to have some insurance protection for long-term care. Even if one is 50 and in really good health, there is need to consider that 30 years from now the cost of long-term care will be about 240,000 dollars per year. However, some experts believe that medical care can be a large burden on families and spouses after retirement. One might have to shell out an exorbitant amount to get optimal protection, which is described as a policy with full inflation protection, lifetime care and top-dollar coverage. People in the higher financial strata may not feel the pinch; while for those with little, Medicaid tends to pick up the cost of care. For the intermediate population, an interesting option would be the Partnership Programs offered by some states to allow people with long-term care insurance to hang on to some of their assets and still go on Medicaid.
If inflation rises to unexpected levels, one’s income may become inadequate. At present, the Federal government adjusts the Social Security income for inflation each year in January. However, Congress could change these rules. The only way to a peaceful living is managing one’s income cautiously, which in turn will help to maintain one’s lifestyle during the retirement years. One of the answers to this lies in reducing the everyday expenses. Each item must be carefully analyzed and special attention needs to be paid towards major expenses such as food, utilities, transportation, clothing and health care. Inflation largely influences one’s purchasing power. When prices rise, one will either have to reduce spending or increase the retirement income. Also, if one is contemplating working after retirement, it may be wiser to select a business that requires a small capital investment so that the retirement assets are not jeopardized. While planning for retirement, it is important to ask oneself whether the future seems safe, secure and comfortable. It is vital to have at least a mental picture of one’s financial future. Only then can one start saving and move towards a financially comfortable, secure and peaceful retirement.
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