You may be ready for retirement, but are you prepared for the unexpected events that could occur during that time? Fluctuations in the market, the loss of a spouse and a possible decline in health are some of the challenges retirees face. Not being financially prepared for these situations can quickly derail your retirement plan. Read on for more about how these matters should factor into your retirement plan.
Increased Health Care Costs
While you’ve managed to live a pretty healthy lifestyle, it is likely you will need medical care during retirement. Health care and prescription costs are expected to rise in the coming years and Medicare and Medicaid do not cover everything. Overtime, paying for additional medical needs could add up and consume a majority of your retirement savings. Commit today to living a healthy lifestyle and speak to a financial advisor about a long-term care insurance policy. This type of plan will help cover medical expenses you may not have the financial resources for during retirement.
Changes in the Market
Changes in the stock market occur everyday. Currently, the general trend is an increase of nine percent a year. While this does not completely outpace inflation at ten percent a year, it does typically provide investors a decent vehicle for growing financial wealth. The trouble comes when there is a huge drop in the stock market which can affect the money you have invested. It can take several months for the market to recover any time it takes a big dip.
Death of Your Partner
You want to spend your retirement years with your spouse since, after all, this is what the two of you have dreamed of for many years. However, a sudden death can turn those dreams into nightmares, personally and financially. Your spouse may have been the breadwinner whose income alone supported all your spending needs. The loss of your partner can be both emotionally and financially stressful, but you can ease the financial stress by securing a life insurance policy. A life insurance policy will help pay for medical expenses as well.
Risk of Longevity
With modern medicine advancing at its current rate, there is a chance that you could outlive your retirement plan. While this would be a good problem to have, it is still a concern for a majority of retirees. An annuity is a plan you can use during your retirement since it helps provide a flow of income during your retirement.
Prepare now for what could happen during your retirement years. Having a strong financial plan will help you avoid dealing with difficult money problems in the future. Call today to speak with a professional financial advisor at Care Financial. We want to put you on the road to a stress-free retirement.
Care Financial is a privately owned and operated business providing families, individuals and businesses with comprehensive wealth management strategies. Contact us online at www.carefinancialonline.com or call us at 251-633-7122.