Insurance and Your Financial Retirement
Insurance and Your Financial Retirement when planning your financial retirement there are many things you should consider before taking the plunge and not all of them are overtly financial, though in some large way they are all very financial considerations, particularly if you do not take the time now to consider their importance later. Insurance is an important consideration when it comes to retirement. (“Retirement – Clay Marketing Group”) Depending on your age at retirement you may or may not qualify for Medicaid, which could leave you in a bit of a pickle when it comes to covering the prohibitive cost of insuring your health.
If you have a spouse that will continue working for a year or two you may want to consider the cost of being added to their insurance coverage. Chances are it will be less expensive than striking out on your own for health insurance coverage, which tends to increase in cost with age and according to health.
Dental insurance is another huge consideration among those approaching retirement age. The cost of actual dental insurance can be quite cost prohibitive but there are other options in the form of discount programs. There are quite a few programs that exist and all you really need to do is a quick Internet search to find more than a few good prospects. (“March 21, 2022 – Page 5”)
“You will want to make sure that the plan you are considering has providers in your area before signing up.” (“Why Plan for Retirement? – LaterLifeNow™”) Some of these plans offer discounts on other services such as vision, prescription drugs, and even medical care. “The costs typically vary according to the offerings of the plans in question.” (“Insurance & Your Financial Retirement – Clay Marketing Group”)
Medications are another important consideration when retiring, particularly if you are planning to retire early or prior to the traditional retirement age of sixty-five when Medicaid kicks in. Some of the plans mentioned above offer discounts on prescription drugs and there are other things you can do such as asking your doctor about generic options or less expensive methods for medication that might exist. Some drug companies are offering free medications to people who meet their qualifications.
Long-term care insurance is a new concept and something that many of us do not wish to consider but is something that really should be considered when you are young enough to get reasonable rates. If you are in your 50’s and early 60’s you should be able to get this insurance for around $100 a month. (“Insurance and your Financial Retirement | Reverse Mortgage United”) Whether you want to acknowledge that this could be a need for you or not, the odds are that it will be a very real need in time. Unless you plan to leave a significant amount of debt in your wake it is an innovative idea to make sure you invest in long-term care insurance. (“Insurance and your Financial Retirement | Reverse Mortgage United”)
Home and auto insurance typically go through a reduction in cost as you age. This is good news on many levels as it leaves you the option of picking up additional insurance coverage or at the very least filling in the gaps that some of your other insurance costs are leaving in your carefully planned budget. (“Insurance & Your Financial Retirement – Clay Marketing Group”)
You should keep in mind however that once you reach a certain age they will begin to rise again. Save the pennies you save on the premiums during the good years to cover the costs during the lean years. Insurance is one of those costs that simply must be covered. It helps greatly if you plan for these costs when creating your retirement budget. (“Insurance & Your Financial Retirement – Clay Marketing Group”)
Investing In Bonds
When it comes to planning your financial retirement many people focus on the different types of accounts that you can use in which to defer payments or avoid taxes for a little while but very few people discuss in depth the specific things in which you can invest those funds that you have so carefully squirreled away for the important day that is to come in the dark dank future that seems as though it will never arrive. (“March 21, 2022 – Page 3 – LaterLifeNow”)
Bonds are not your typical high risk-high yield investment, but they are likely to earn a return for you. If you are not in a crisis for retirement funds this is a slow and steady way to build a decent retirement for yourself over time. If you are in the final hour this is an investment strategy that might be more than slightly too timid for your specific needs. There are other investment strategies that will be discussed elsewhere. (“SparkFire SP31”)
There are three diverse types of bonds: corporate, municipal, and government.
“Corporations trying to raise funds for ventures such as building new facilities or launching new product lines typically issue corporate bonds.” (“March 21, 2022 – Page 3 – LaterLifeNow”) The interest on these bonds is taxable. As a result, these bonds tend to pay higher and are better retirement investment options than government or municipal bonds. (“READY FOR RETIREMENT”)
I have said before and will continue to say that there are no sure things when it comes to investing. While many bonds tend to be safer than some of the other investments, on the surface there are significant risks involved when investing in bonds that it would be negligent to overlook. Where you find the risks of market difficulties when investing in stocks, mutual funds, and options, the risk is that yours may lose value. (“March 21, 2022 – Page 3 – LaterLifeNow”) When it comes to bonds the risks include the following: default, changes in the interest rate, and inflation. “The risks for some are far weightier than the benefits of a slow and ‘steady’ investment.” (“READY FOR RETIREMENT”)
You should carefully consider whether bond investing is an innovative idea of your retirement needs along with your nerves. We were not all born with nerves of steel, for this reason it is a promising idea to carefully decide whether you are comfortable with the risks that bonds introduce into your investment picture. (“Investing in Bonds – Financial Planner”)
“I always recommend that you take the time to discuss your plans and goals with a financial planner before taking the plunge and making any major financial decisions whether they concern your retirement or your child’s college fund.” (“March 21, 2022 – Page 3 – LaterLifeNow”)
These all affect your future and the security you can provide your family when the time comes. A good financial advisor can help you weigh the pros and cons of investing in bonds and help you decide whether the potential payout on these bonds is worth the risks that participate in the process. (“READY FOR RETIREMENT”) This is not the case for everyone. I tend to be a more cautious investor than most and will think long and hard before investing in things that I do not consider a carefully crafted and calculated risk.
Only you can decide whether you are comfortable with the idea of investing in bonds when it comes to your financial retirement hopes and dreams. I hope you will discuss this with our advisor and carefully consider the ramifications of this decision. (“March 21, 2022 – Page 3 – LaterLifeNow”)
Best Wishes, Coyalita
See Tomorrow: “Long Term Care Options”
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