| Retirement brings a whole new set of considerations | | | | answers to the questions I've listed below. I've |
| to our lives. It's our third - and last - phase of life. In | | | | grouped them under six basic retirement planning |
| this article I'll outline the sequential stages of our | | | | areas: . |
| retirement years and the issues you should address - | | | | 1) Know your company's retirement plan options: |
| ideally, early in the first stage. | | | | * What are your payout options for your defined |
| Though everyone is different, statistically we go | | | | benefit plan? |
| through three stages before we die. Here's a | | | | * How will you take your defined contribution plans? |
| synopsis of each stage: | | | | 2) Arrange your retirement income: |
| Stage 1 - The healthy independent stage: | | | | * Did you contact Social Security for your benefit |
| Typically, you'll begin retirement in good health. You're | | | | statement? |
| active, doing what you want. You may travel, | | | | * What's your Company Pension income? |
| develop hobbies, start some part-time business or | | | | * What withdrawal rate should you use to preserve |
| just enjoy yourself. It's wishful to think this stage will | | | | your income for 30 years? |
| last until the end. But, hopefully you'll maintain it into | | | | * How will you allocate your investments for |
| your mid 70s. | | | | retirement |
| Stage 2 - The slowing down and mostly independent | | | | * What specific investments will you choose |
| stage: | | | | 3) Arrange for your healthcare |
| Here, you may be still living independently but minor | | | | * When should you sign up for Medicare? |
| health problems begin. You're getting tired and want | | | | * What are your health insurance options? |
| to slow down and drop so much activity. The effects | | | | * What's the best plan for your situation? |
| of 'Old Age' are setting in. Genetics determine how | | | | 4) Prepare for the possibility of long-term care |
| long this stage lasts. | | | | * Have you considered purchasing LTC insurance? |
| Stage 3 - The dependent and infirmed stage: | | | | * Have you worked out the possibility of paying LTC |
| The full effects of 'old age' will eventually infirm most | | | | costs directly? |
| retirees. Three of four will require long term care in | | | | 5) Arrange for your wishes at incapacity and death |
| their homes and nursing homes. Costs for care can | | | | * Have you arranged for someone to take over |
| rise to as much as $90,000 per year for nursing | | | | when you are incapacitated? |
| home care. | | | | * How will someone know your wishes when you're |
| That's the scenario. Just how long each stage will be | | | | incapacitated or die |
| for you is anyone's guess. But our last phase | | | | 6) Arrange for gifting and legacy plans for your |
| presents us with several basic concerns. Those are: | | | | beneficiaries |
| - Managing income while you're living - through stage | | | | * Have you chosen and updated your beneficiaries on |
| 1 and 2; | | | | all insurance, qualified plans, will and trusts? |
| - Getting the long term care assistance for stage 3; | | | | * Have you considered the most tax-efficient way |
| - Arranging your affairs for when you're mentally | | | | to gift your money or leave it as a legacy? |
| disabled and arranging transfer of your assets to | | | | It's probably best to make a notebook covering |
| your loved ones | | | | these areas and begin finding answers to each |
| To take control of all this can seem overwhelming. | | | | question that suit your situation. Since you never |
| But doing so will make you feel comfortable and | | | | know when disability or death can occur, it's better |
| assure your wishes for your loved ones. | | | | to get everything arrange as soon as possible. That |
| So as you approach and begin your retirement -and | | | | way your wishes will be in effect. You can always |
| put yourself in control - search out constructive | | | | change things later. |