"Many people are concerned about running out of money in retirement. There are steps you can take between now and retirement to ensure that you have enough money for what you have planned as well as the unexpected."
San Antonio, TX (PRWEB) September 24, 2012
Financial security in retirement takes preparation and a realistic consideration of your needs. Proper planning and savings can eliminate concerns for running out of money before you run out of time. The recent economy and market declines combined with a rise in life expectancy has those approaching retirement searching for ways to avoid a crisis situation.
According to Susan Blumhorst, managing partner of Senior Path Specialists, a San Antonio firm that provides direction for all issues related to retirement and care giving, "Many people are concerned about running out of money in retirement. There are steps you can take between now and retirement to ensure that you have enough money for what you have planned as well as the unexpected."
A historically low number, only fourteen percent, of Americans are very confident that they will have enough money to live comfortably in retirement according to the 2012 Retirement Confidence Survey issued by the Employee Benefit Research Institute.
Blumhorst offers five ways to adequately prepare for your retirement:
1. Reconsider Long Term Care Insurance
A comprehensive long term care insurance policy with high premiums may not be an affordable solution for most. Instead consider a long term care policy with lower premiums that fits your budget for partial if not full protection. Combine this type of long term care insurance with other strategies (veterans' benefits, social security, etc.) to cover all of your costs. Also, be sure it covers you for all types of care options, not just nursing home care.
2. Invest in an Annuity
Consider a fixed indexed annuity as one element of your portfolio. Annuities allow you to receive market like gains while protecting your money. They're tax deferred, have first day cash bonuses, no or low fees (most only have fees on riders) and a level of liquidity. If you become ill or die a beneficiary can receive the full policy with no surrender charges. If the owner thinks it is in their best interest, the policy can be turned into guaranteed income.
3. Think of Your Home as a Source of Retirement Income
Many people are real estate rich and cash poor. Retirees often need to budget for the daily expenses of home ownership in addition to healthcare costs. Consider selling your home or using your home's equity as a source of funds. Or evaluate a reverse mortgage where a lender pays you a monthly amount in exchange of equity in your home.
4. Understand Your Medicare Health Coverage
Adequately evaluate your Medicare plan to determine which is best for you. While the Advantage Plan may appear to be more affordable, a Supplemental Plan may offer more generous health coverage and cost you less in the long run.
5. Research Affordable Nursing Home Alternatives
Looking for an alternative to nursing homes or the burden of having to care for a loved one yourself? Residential care homes (also referred to as Care Homes or Adult Homes) offer residence and personal care to small groups of adults. The small, home setting for seniors includes meals, assistance with daily living and medical care (to varying degrees) and are comparable to assisted living facilities and skilled nursing facilities. The monthly cost is often half of nursing home fees.
For assistance planning all aspects of your retirement, call Susan Blumhorst at 210-745-5804 for a no-fee consultation or visit http://www.seniorpathspecialists.com for a free Funeral Planning eBook.
About Senior Path Specialists
Senior Path Specialists in San Antonio provides comprehensive retirement strategies to ensure our clients' lifestyle and financial security. We provide care and direction for all issues related to retirement and care giving. We are well versed in Medicare, Medicaid, veteran benefits, long term care, fixed indexed annuities, life and health insurance and funeral planning. Learn more at http://www.seniorpathspecialists.com or call 210-745-5804.