Planning Your Retirement and Future Health Care is a Gift to You and Your Family
By: Jayne Di Vincenzo AIF ®, CEP ®, President
Lions Bridge Financial Advisors
I advise clients to understand and take charge of their finances right away because procrastination can crush the biggest of dreams.
Here are some universal tips to implement as you prepare for the Retirement Journey ahead:
Manage your money. Women have over a 90% chance of being single at some point through death or divorce- or never having married. So, it’s vital both women and men have a grasp on their family financial health. It’s important to understand investing basics (you don’t’ have to go back to school, a good advisor can also be a good educator on key concepts), income sources, recurring fixed expenses, health care costs, life insurance, and taxes.
Confidence comes with understanding and experience, so working with a spouse or advisor on your money, rather than being on the sidelines, is a good first step.
Boost your income. Look for opportunities to learn more to increase your value and find ways to earn more—which sometimes means leaving your comfort zone to apply for promotions, jobs that require travel, or leaving a company for a better opportunity. Women are historically bad negotiators—ask for higher pay with job offers and at annual reviews. Stop waiting for the money to follow- ask.
Consider turning idle assets into income. Can you rent out a room in your over-sized home? Can you sell or consign unneeded household items? Can you keep your car for another year or two and when you do buy something, buy used or refurbished vs. brand new?
Start saving for retirement – NOW. It’s easy in your employer's 401(k) plan. Save more than you think you can. The contribution ceiling for 2019 is $19,000 and $25,000 for workers over 50. For 2019 you can contribute up to $5,500 and a catch up of an additional $1,000 if you’re over 50.
The reason most retirees don’t have enough for retirement isn’t the cost of investments, it’s not saving enough!
Dream in Color: Envision Your Future Retirement—how will you spend your retirement days? Where? When? With whom? Savers who focus on a detailed vision of the future tend to save more according to a recent Kiplinger article (October 2018).
Save outside of IRAs & 401(k)s. Set up monthly transfers from checking (right after pay day is a good idea) into a mutual fund/investment account to build a bigger nest-egg for your goals.
Pay off debt. It's hard to get ahead financially if you're paying high interest rates to borrow (often for things you don’t need). Aggressively pay off high cost debt first.
There’s No Time Like the Present: Shop for Long-Term Care Insurance coverage while you’re younger and healthier. New products and choices can make it easier to afford at least some coverage to help offset the cost of care when your or your spouse’s health declines. Some surprising product innovations include plans that can cover two people, provide a cash back option and death benefit if the policy isn’t used.
There are several new products and benefit options available that can make affording a long-term care plan feasible for more families. (Lions Bridge Insurance and Benefits Solutions is our insurance brokerage firm, we are not affiliated with any single firm and can shop rates among multiple companies for competitive pricing.
Contact our insurance team if you would like to receive a no obligation quote at [email protected] or call 757-599-9111.
Retirement can be 25-30 years your life, so it’s vital to have a strategy for income, health events and your family.
Our mission is to help you prepare for the expected and be able to handle the unexpected and have confidence on the journey.
Contact Jayne Di Vincenzo or one of our advisor team and schedule a confidential consultation: [email protected] (757) 599-9111.
2110 William Styron Square S., Newport News VA 23606
483 McLaws Circle 3, Williamsburg, VA 23185
Securities and advisory services through LPL Financial, a Registered Investment Advisor firm. Member FINRA/SIPC.