Approaching retirement? If so, you may be thinking about how you’ll manage and avoid major financial risks. The biggest risk you may face is the need for long-term care. Long-term care is extended assistance with basic daily activities such as eating, bathing and mobility. It’s often provided either in an assisted living facility or in the home by family members or home health aides.
According to the U.S. Department of Health and Human Services, long-term care will be a reality for many seniors. The department found that today’s 65-year-olds have a 70 percent chance of needing long-term care at some point. The care is usually needed for a few years, but nearly 20 percent of those who need care require it for five years or more.1
Is retirement approaching? Worried that you won’t have enough money? You have company. According to a recent study from the Transamerica Center for Retirement Studies, baby boomers have a median retirement savings balance of only $147,000.1 While that number may represent a good start, it’s unlikely to be sufficient to fund a long retirement.
Baby boomers face a number of unprecedented retirement challenges. Many don’t have pensions, which means they have to shoulder the burden of funding their expenses in retirement. Retirees also have to contend with a longer life span, which means they need to cover more years of spending. Health care is also a substantial area of expense.
Did you leave your 401(k) behind at your old job? According to a study from the U.S. Government Accountability Office (GAO), you have company. The study found that more than 25 million Americans left their 401(k) balance in a former employer’s plan during the 10-year period from 2004 through 2013.1
When you leave a 401(k) balance in a former employer’s plan, it could create complications. For example, if the employer is sold or goes out of business, you may have trouble accessing the money. If you pass away, your beneficiaries could have trouble tracking down your old balance.
If you have a balance in an old 401(k) plan, now may be the right time to take action. Below are a few options. Consider your unique needs and goals. You also may want to consult with a financial professional to help you decide on the right strategy.
According to a recent study from InsuranceQuotes, 40 percent of Americans don’t have life insurance. Among those who didn’t have insurance, half said they feel like it’s not necessary.1 Even among those who have insurance, many don’t know if they have the correct amount.
Risk management is at the core of any financial plan. There may not be a bigger risk than the early death of a parent, loved one or financial provider. If you have young children or you support loved ones, your death could cause serious financial challenges for those who are most important to you. Life insurance helps you minimize that risk.
Do you take a comprehensive approach to planning your finances? If the answer is no, you’re not alone. According to a study from the Certified Financial Planner Board of Standards, only 19 percent of Americans could be classified as “comprehensive planners.” The remaining 81 percent either plan only for specific financial goals or don’t do any planning at all.1
A comprehensive financial plan is one that addresses your entire financial picture. It may include everything from retirement planning to investment management to risk management and much more. A comprehensive plan is often helpful because it can show you how financial decisions in one area of your life can impact goals in other areas of your financial life.
For example, you may have a plan for retirement. But do you know how your efforts to save for retirement impact other goals, such as saving for your child’s education or paying down high-interest debt? A comprehensive plan shows you the interaction between these goals so you can make more informed decisions.