Are the Golden Years Made of Gold or Brass?

We spend most of our lives saving money and finding the best venues to invest. Unfortunately when we start taking money out, we need to carefully monitor how the assets are being used. One key to making our money last is avoiding a catastrophic invasion of principal, meaning healthcare issues.

One of the main reasons for a potentially accelerated decline of assets is the payments for a nursing home or in-home care. Retirees who don’t have insurance or the luxury of a cushy savings find themselves dependent on family members. These situations are embarrassing or stressful because nobody wants to be a physical, mental or financial burden to their children and extended families.

So what can an aging person do to protect the assets they currently have? Most people have heard of Long-Term Care Insurance but haven’t spent the time finding out how/why it can be instrumental.

We all know that one day we will pass away. The difference is the when and how long will it take. If in-home care or a nursing home costs approximately $5,000 per month how long will your assets last before reaching a zero balance? There’s your answer. You can only be sick for that many months/years. But the one fact we do know is that a study done by the U.S. Department of Health and Human Services state that people who reach the age of 65 will have a 40% chance of entering a nursing home.

Take out some time to review what is important to you and how Long-Term Insurance fits within the rest of your life. It can ultimately preserve your investments for you, your spouse, charitable gifting, or leaving a legacy to your family.

Talk about spending…
When you retire, or since you have, will you decrease your spending by 30%? Did you adjust your lifestyle because of the fixed income? No, I didn’t think so. This is the time you want to enjoy life: fix up the home, go on a trip or buy some needed items for the grandchildren.

If you want to enjoy life without worry take the time to plan. Get a good understanding of your monthly expenses such as rent/mortgage, utilities, taxes, prescriptions and doctor visits. Is there anything left? The point is to be careful about drawing out of your assets. Most people tend to overestimate the amount they can withdraw from their retirement funds. It’s critical to determine a strategic liquidation order and a sustainable withdraw rate so that your assets have a higher probability of lasting as long as you do.

Managing Your Investments
Having control of our money is a great responsibility. However, it’s important to be cautious of our actions. We want our money to work hard especially our retirement nest egg.

Monitoring the market is a critical aspect to investing however, reacting to the news of the market by moving the money around frequently may not prove to be beneficial. Investing in different assets such as growth and income mutual funds, bonds, real estate, commodities or precious metals could reduce your risk and potentially enhance your returns.

Take some time to decide your risk level, timeframe, and the goal of your investments.

It’s Time Consuming
Weather you are retired or not, take time to think about these topics. Long Term Care Insurance, tracking your expenses and managing your investments are important issues that need to be addressed. It can either cost you or save you money in the near future.