PLANNING TODAY

Financial Planning in Retirement

As you enter retirement, it is important to maintain good control over your financial resources.  Your savings will need to last for the rest of your life, and we all know that we are living longer and longer.  Here are some tips for sound money management.

  1. Obtain Professional Help    Financial planning is too important to take a "do-it-yourself" approach.  Seniors need two key advisors on their planning team:  1) an attorney and 2) a financial planner.  Your attorney should be skilled in both elderlaw and estate planning.  Look for a financial planner with the CFP designation, which stands for "Certified Financial Planner."
  2. Know Your Income Needs  A good financial plan will analyze your income needs and project your living expenses for the rest of your life.  This calculation is easily done with computer software.  With this calculation, you will know how much you can safely withdraw from your savings each year.
  3. Manage Your Investments    A financial plan will analyze your investments and make sure they are appropriate for your age and risk tolerance.  Without a good plan, your investments may be too risky and place your future security in jeopardy.  Your investments may also be too conservative, which can also reduce your retirement income.
  4. Have the Right Insurance    A good plan evaluates your insurance coverage to make sure you have appropriate protection. This includes Medigap insurance, long term care and life insurance.  The costs of long term care in a nursing home can deplete your savings.  An important goal of the planning process is to make sure the surviving spouse will have adequate resources for the rest of his or her life.
  5. Planning for Incapacity   About 40% or more of all people older than age 85 will develop some symptoms of Alzheimer's disease.  Make sure you have planned for this possibility.  You can do this with legal documents that are called advance directives.  You may also need a durable power of attorney and, in some case, a living trust.  Your elderlaw attorney can help you with this.
  6. Estate Planning  Make sure your wishes will be carried out when you pass away.   This means having an up-to-date last will and testament, and making sure your beneficiary designations on all of your retirement accounts, life insurance policies and annuities reflect your current intentions.  Your attorney can help you make sure your assets will go to the family members and charities you choose.
  7. Record Keeping    Keep your legal and financial papers organized and readily available.  Your investment, insurance and banking statements should be filed in a 3-ring binder, so you can easily look up your account values.  Keep your legal documents and insurance policies in a safe deposit box, and make sure a trusted family member has access to it.  Provide copies of your living will and health care surrogate designation to your doctor.  Most importantly, make sure your closest family members know how to find your documents. This simple provision will save your loved ones a great deal of difficulty in handling your affairs for you, if needed.

This is just an overview of some of the many issues that are reviewed in the financial planning process.  Please rely on qualified, professional advisors to guide you through the process.  The cost of not planning is almost always much higher than the cost of planning.

We hope you have found this issue of Planning Today useful and interesting. If you have any questions, please contact your professional advisor, or give us a call. Thank you for your continued support.

Steve Brownstein, Director of Development
Menorah Manor Foundation
255 59th Street North
St. Petersburg, FL 33710
Telephone: 727-302-3705
Fax: 727-345-3957
Email: foundation@menorahmanor.org

 

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