Are you approaching retirement? If so, you’re probably finalizing your plans and making sure you’re on solid financial ground. Retirement can be a major financial challenge, so it’s important to take any additional planning steps necessary while you’re still working.
However, you may want to focus your planning on more than just retirement. This is also a good time to review your estate plan. It’s possible that your life has changed since you initially established your estate planning documents. Maybe your plan doesn’t address every possible risk. Maybe you don’t have a plan at all.
According to a recent Bankrate Money Pulse survey, nearly 40 percent of all American adults don’t have life insurance. Among those who do have policies, almost half may have insufficient coverage.1
Are you one of the millions of Americans with insufficient life insurance protection? There’s a broad range of reasons why people carry less insurance than they need. However, the fact is that an insufficient coverage amount could lead to financial difficulties for your dependents and loved ones if you unexpectedly pass away.
What will your life be like in retirement? Will you golf, travel, or perhaps spend time with family? These are the things many people consider when they think about retirement. Of course, retirement is the time to do what you love most and spend your time the way you want.
Unfortunately, there could be some roadblocks in the way of you turning your dream retirement into reality. Retirement is a major financial goal, and there are a number of planning mistakes that could leave you unprepared to fund your desired lifestyle.
Maybe you already contribute to your employer’s 401(k) plan. If you’re ready to ramp up your retirement savings, however, you may also want to consider an individual retirement account, also known as an IRA. You can contribute as much as $5,500 in 2017 to either a traditional IRA or a Roth IRA. That limit increases to $6,500 if you’re age 50 or older.1
For many, though, the choice between a traditional IRA and a Roth isn’t an easy one. They both offer their own unique benefits. Which one is right for you? There’s no universal answer to that question. Your IRA choice should be based on your unique goals, needs and concerns.
Are you a business owner who’s thinking about retirement? It’s a big financial challenge for anyone, but it can be especially complicated for business owners. Your retirement doesn’t just impact you. It can also affect your customers, employees and others who rely on your company.
It also may be difficult to untangle yourself from the business’s operations. If you founded the company, you may be involved in every aspect of the business. Even if you weren’t the founder, as the owner you probably wear many different hats. Retirement isn’t as simple as just walking away.
Many workers follow a very defined, traditional path to retirement. You advance your career over time, and your income increases along the way. Throughout your career, you contribute to your 401(k), IRA and other retirement accounts. You try to keep your debt balances low, live within your means and accumulate enough assets to fund a long and enjoyable retirement.
However, sometimes the traditional path doesn’t lead to the desired destination. Emergencies happen. You could face unexpected costs for things like health care issues or home repairs. Market volatility could threaten your savings efforts. You could experience a career disruption that limits your ability to save.
Filing for Social Security benefits is a big milestone for many retirees. As you enter retirement, you’ll likely face a decision on when and how to file for benefits. It’s an important decision, as Social Security may play a large role in your retirement income plans.
Your decision on when and how to file is also important because it’s permanent. In most cases, your Social Security benefits cannot be altered or adjusted after you file and begin receiving benefits. Your payment may increase because of cost-of-living adjustments, but you can’t change your filing after the fact to increase your benefits.
Are you in the process of finalizing your financial plans for retirement? You may be exploring ways to generate income, minimize risk and pay for health care costs. As you likely know, a broad range of financial tools and products are available to help you achieve those goals.
An annuity is one potential tool to consider. Annuities are often used to generate income, minimize taxes, manage risk and more. There are several types of annuities, but most fall into one of two categories: immediate and deferred.
Are you planning on working past age 65? You’re not alone. Traditionally, age 65 has been considered to be retirement age. However, many workers are now saying that their target retirement age is well past 65. In fact, some plan to work to age 70 or beyond.
According to a recent study from CareerBuilder, 30 percent of workers age 60 and older say they won’t retire before age 70. An additional 20 percent plan to never retire. That means half of all workers over age 59 say they will work at least another 10 years.1
Are you facing a divorce late in life? According to new research, you’re not alone. The Pew Research Center recently found that divorce rates for people age 50 and older have doubled since 1990. Divorce rates among those over age 65 have tripled during that same period.1
There are a variety of reasons why couples are choosing to divorce as they approach retirement. Some couples may wait until their children are out of the house to separate. Longer life expectancies could play a role, too. Couples in their 50s and 60s could live another 30 to 40 years. Some couples may have diverging plans for how they want to spend those years.
John has devoted his working career to using his talents to serve others through financial services.