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One step that needs to be considered if your financial health prior to retirment. Before retirement, if you are struggling with debt then bankruptcy shoudl be considered so that you can start retirement with a fresh financial start. Retirement funds are protected in bankruptcy and retirees should use their retirement they worked so long to obtain to enjoy their life not stress about finances
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I've been retired since mid '95 and have maintained my economic status and actually gained somewhat. The biggest items you have to deal with are 1) governmental spending at every level and the taxes these result in and, 2) the inaccuracy of the CPI and any income adjustments made using that number. For the former, if you attend township, city council, school board, etc. meetings, be prepared to hear the expression, "If you can't afford to live here, you should move". Do your best to ignore the fools. For the price increases, the only solution is to recognize that they will likely be closer to twice the quoted values. Plan for it!
Basically, keep your investments conservative, do not rely too much on financial advisors; you are the one responsible and many times they are no better than the proverbial dart board, and watch your expenditures. Is that new car, trailer, camera, etc. really wise? Do you need that vacation home?
PROTECT YOUR ASSETS FROM THE COST OF A LONG TERM CARE ILLNESS. Investigate your alternatives to shift the risk from self insuring everything to limiting the risk. Possibilities include long term care insurance, hybrid life insurance with long term care riders, hybrid annuity with long term care multiplier. Medicare and Medicare supplements limit long term care coverage to a maximum of 100 days. These plans are underwritten based on health. So find out what alternatives you may still have available.
Without a protection plan, someone could need long term care, has to pay the costs out of pocket and then recovers only to find that they are now short of funds to live on for the individual and/or spouse. Remember, health changes that can leave folks uninsurable (temporarily or permanently) can happen anytime. For some, such a health change occurs at the same time long term care begins - like with Christopher Reeves spinal injury. Others have a health change which will result in the need for long term care a decade or more later - like Michael J. Fox with Parkinson's disease. As part of retirement planning, be sure to include protection the retirement nest egg from a long term care event.
Jerome Krasnow, MBA
Insurance agent , specializing in long term care insurance products
I would add...
PAY OFF YOUR HOUSE BEFORE YOU RETIRE!!
My taxes and insurance per month are less than a 1 bedroom apartment and you have to live somewhere
PAY OFF ANY OTHER DEBT AND THEN DON'T GET ANYMORE!
Maybe a car payment but that should be it.
FRONT LOAD YOUR HOUSE MAINTAINENCE!
If you know you need new windows, roof, furnace, etc. Get them done while you still have good cash flow.
LEARN ABOUT THE SERVICES AND DISCOUNTS THAT ARE AVAILABLE TO SENIORS IN YOUR AREA
Most cities have a senior center of some sort and can help with what is available to retired people
MAKE SURE YOU HAVE A PLAN TO FILL YOUR TIME.
Part time work, grandchildren, volunteerism, social clubs, hobbies, sports, etc to fill your time with meaningful activity that is free or inexpensive to help maintain yourself physically and emotionally
Honestly, folks...if you had to read this article to know these "7 things," then you are doomed from the get-go...what a waste of internet space...90% of the people in this country don't even have anywhere close to what they need for retirement resources...stop worrying about Obama...the baby boomers will be living into their late 80's and going broke doing it (because they didn't save anywhere near enough) - well after Obama is gone...
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