3585 Maple Street
Retirement will bring new challenges that you have never faced before, unless of course you have already retired and are perplexed with all the new problems and pitfalls you seem to be stumbling into. Here is a partial list of challenges retirees face:
Running out of money; Will your nest egg last long enough and provide the level of income you need to live your lifestyle for as long as you need it? Is your income dependent upon the stock market? What happens when the markets are down significantly? Do you want your income tied to a rollercoaster?
Healthcare: Instead of one health insurance provider you may have as many as 4 providers. Will they sync up properly? HR will not be there to help you choose which plans to purchase, and the plans change every year. What if the prescription drug plan stops covering your expensive medication? How often must you review the plans? What if you need to change? How do you change? What is the out of pocket cost? Can that change?
Where will you live? What is the cost of living in your area? Will you plan to age in place, or seek safer surroundings? Join a country club or rent for a while? Is retirement the same as now without going to work or does it look drastically different? Will you travel? How often? Are you going on cruises, or buying an RV?
Social Security and pensions; When do you claim? What strategies will you employ? Do you know you can get more money than they offer? What will the surviving spouse receive upon the breadwinner's death?
Taxes: Most retirees pay more taxes than they ever did while they were working. This is no accident as the IRS has retirees squarely in their sights. Who has more money, a 20-year old just starting out in life, or a retiree with a big juicy retirement account? Who has less deductions to reduce taxes? Who receives less tax credits? And who is most likely to leave a big juicy retirement account to a 20 or 30-something when they pass away?? We all know that 20 or 30 year old will take the lump sum inheritance, thereby paying the largest tax. The IRS is a lot of things, but they are not stupid. We can show you to how to keep more of what you have earned and pass on what you don't use to your loved ones.
Long Term Care: Most retirees do not own any long term care insurance. 2 out of 3 retirees will need care in their lifetimes, yet only 1 in 20 have made sufficient preparation. That means the surviving spouse will need to care for the ill spouse, or one of your children will, which will screw up their livelihood setting them back for several years on their own long range plans. Is it fair to pass the burden of healthcare to our children and grandchildren, when there is a simple, affordable fix to the problem?
At Retirement Income Specialists, we can help you address each of these problems and pitfalls and find a number of potential solutions to fit your budget. Call us at 805-644-3495 to learn more about the pitfalls and problems of retirement and how you can avoid them.