Of course, it takes more than just discipline, such as making monthly contributions every month into the company 401(k), or setting aside savings to accomplish future goals: college, vacations and emergency funds. What’s needed is a step-by-step ‘blueprint’ highlighting the important considerations as we advance through the years.

Your employer’s 401(k).

For some time now, employers have shifted their retirement offerings away from the traditional pension (defined benefit) plan to a defined contribution option, the 401(k). Such plans are usually sponsored by an employer who relies on a plan administrator, such as a Vanguard or Fidelity, to offer employees a select number of mutual funds.

Today, in keeping with defined contribution programs, the offering of ‘target-date’ mutual funds is becoming an appealing option for investors, as noted on the Investopedia website. Commonly referred to as ‘hybrid’ funds, this class of mutual funds…

“…automatically resets the asset mix of stocks, bonds and cash equivalents in its portfolio according to a selected time frame that is appropriate for a particular investor.”

With a 401(k) plan employees are always in control of their funds, and in some cases the employer will even match contributions on a percentage basis. Aside from the obvious tax benefit to employees that derive from reducing taxable income, companies receive a major tax break as well.

When it comes to matching funds, an example might be a 3% match by the employer: if you’re making $50,000 a year, the ‘match’ would total $1,500, which is money from the employer’s pocket direct into your 401(k).

Investing through the ‘ages.’

Young investors should start money away for retirement in their 20’s, so by the time they’re in their 50’s, their portfolio has more opportunity for growth.

In later years, it’s highly recommend to purchase a long-term care (LTC) insurance policy; this, to protect the assets in place from the costs of in-home care, or even the expense of a nursing home. In some instances, a blend of insurance along with the LTC policy is a smart choice.

Ideally, too, your retirement funds should receive a boost once you’ve whittled down, or eliminated, any outstanding debts. This could be car payments, credit cards and, of course, mortgage payments.

How do you plan to live in your ‘60s and beyond?

Remember that the backbone of your retirement funding will, for the most part, come from your Social Security benefits. Or, in other cases from federal or corporate pensions.

Obviously, the best mileage from your income streams at this point will depend on when you decide to start receiving your Social Security, and/or pension benefits; the former benefits increase by 8% a year until you begin drawing on it—-better than an annuity or CD’s, for sure!

A key resource during these years is an experienced financial advisor to help guide you in your investment decisions, and who can also help you with a withdrawal strategy to optimize your retirement savings

Most of all, and since the ’80’s are now referred to as the “new ’60s,” it is paramount that our health is given as much attention as our financial situation.

How will you ‘spend’ your retirement?

Today’s shift among retirees is not so much on how they “should spend their hard-earned money in retirement, but how they should spend their time.”

As such, the author of “The One Minute Manager,” Ken Blanchard, re-packages the traditional notion of retiring: “Refire! Don’t Retire,” and concentrate on the inner aspects of one’s psyche, such as developing new boundaries that test the “intellectual, physical and spiritual” vein during those later years.

Learn more about the importance of developing an estate plan, one that will help maximize your tax savings while protecting your financial assets. Contact us to start the conversation today.

The post Retirement plans should provide a ‘blueprint’ for investing throughout the Golden Years. appeared first on The Elder Care Firm.

Of course, it takes more than just discipline, such as making monthly contributions every month into the company 401(k), or setting aside savings to accomplish future goals: college, vacations and emergency funds. What’s needed is a step-by-step ‘blueprint’ highlighting the important considerations as we advance through the years.

Your employer’s 401(k).

For some time now, employers have shifted their retirement offerings away from the traditional pension (defined benefit) plan to a defined contribution option, the 401(k). Such plans are usually sponsored by an employer who relies on a plan administrator, such as a Vanguard or Fidelity, to offer employees a select number of mutual funds.

Today, in keeping with defined contribution programs, the offering of ‘target-date’ mutual funds is becoming an appealing option for investors, as noted on the Investopedia website. Commonly referred to as ‘hybrid’ funds, this class of mutual funds…

“…automatically resets the asset mix of stocks, bonds and cash equivalents in its portfolio according to a selected time frame that is appropriate for a particular investor.”

With a 401(k) plan employees are always in control of their funds, and in some cases the employer will even match contributions on a percentage basis. Aside from the obvious tax benefit to employees that derive from reducing taxable income, companies receive a major tax break as well.

When it comes to matching funds, an example might be a 3% match by the employer: if you’re making $50,000 a year, the ‘match’ would total $1,500, which is money from the employer’s pocket direct into your 401(k).

Investing through the ‘ages.’

Young investors should start money away for retirement in their 20’s, so by the time they’re in their 50’s, their portfolio has more opportunity for growth.

In later years, it’s highly recommend to purchase a long-term care (LTC) insurance policy; this, to protect the assets in place from the costs of in-home care, or even the expense of a nursing home. In some instances, a blend of insurance along with the LTC policy is a smart choice.

Ideally, too, your retirement funds should receive a boost once you’ve whittled down, or eliminated, any outstanding debts. This could be car payments, credit cards and, of course, mortgage payments.

How do you plan to live in your ‘60s and beyond?

Remember that the backbone of your retirement funding will, for the most part, come from your Social Security benefits. Or, in other cases from federal or corporate pensions.

Obviously, the best mileage from your income streams at this point will depend on when you decide to start receiving your Social Security, and/or pension benefits; the former benefits increase by 8% a year until you begin drawing on it—-better than an annuity or CD’s, for sure!

A key resource during these years is an experienced financial advisor to help guide you in your investment decisions, and who can also help you with a withdrawal strategy to optimize your retirement savings

Most of all, and since the ’80’s are now referred to as the “new ’60s,” it is paramount that our health is given as much attention as our financial situation.

How will you ‘spend’ your retirement?

Today’s shift among retirees is not so much on how they “should spend their hard-earned money in retirement, but how they should spend their time.”

As such, the author of “The One Minute Manager,” Ken Blanchard, re-packages the traditional notion of retiring: “Refire! Don’t Retire,” and concentrate on the inner aspects of one’s psyche, such as developing new boundaries that test the “intellectual, physical and spiritual” vein during those later years.

Learn more about the importance of developing an estate plan, one that will help maximize your tax savings while protecting your financial assets. Contact us to start the conversation today.

The post Retirement plans should provide a ‘blueprint’ for investing throughout the Golden Years. appeared first on The Elder Care Firm.

To start, a care plan must be signed off on by a doctor, and the home health agency you’ve selected must be Medicare-credited. In addition, the doctor must certify that you or your loved one is “homebound.”

If you work for a large corporation, chances are the health care part of your retirement package looks a heck-of-a-lot better than a lot of workers employed by a small to-medium size business. Those fortunate enough to have a health package may enjoy a range of bennies, from low medical premiums and extras like dental, hearing aids as well as coverage for eyewear.

To get an idea of just how those employer insurance programs or retiree insurance benefits have withstood the test of uncertain economic times, about 66 percent of retirees were receiving those nice health-care packages back in 1988, compared to only 25% today.

Medical costs will continue its upward trend in retirement.

It’s a depressing fact, but a gloomy forecast looms over the retiree’s Social Security income. In fact, such costs are sure to devour the “majority of retirees Social Security income.”

Are you 66 and planning to retire this year? You might be well served to either work longer or take a part-time job to help pay for health care costs. Surprisingly, notes a new report in the Wall Street Journal, those anticipated medical costs might very well eat up about 67% of a retiree’s benefit in those Golden Years.

If you’re ten years younger and looking to retire ten-years-from-now, count on your medical costs to take away about 90% of your Social Security income in your lifetime.

A simple reason…

Retirees on Social Security grapple with the ever-rising costs of Medicare premiums and skyrocketing medical costs, keeping them on a treadmill of never reaching parity with these costs. But it’s not surprising, given the fact that Social Security’s annual increases are averaging a meager 2%—that’s the current rate of inflation.

But according to Healthview founder, Ron Mastrogiovanni, medical costs are seeing increases from 5% to 7% annually. Unfortunately, those increases did not factor in that Elephant in the Room: long-term care.

Medicare will cover some home health services.

Family caregivers are not only providing for loved ones in time of need, but, ironically, their ‘service’ helps subsidize the Medicare system to the tune of $375 billion annually, according to an Indiana University report,

If you are over 50 years of age and care for a loved one, you are among the 10 million who do. Amazingly, this number has “tripled over the past 15 years,” as noted by a study that included the National Alliance for Caregiving.

“What can Medicare do for my loved one who needs home care?”

But the Medicare program does pick up the following home care costs, including, but not limited to…

— Intermittent skilled nursing care

— Physical therapy, including speech-language pathology services.

— Continued occupational services

Medicare does not pay for…

— 24-hour care at home

— Meals delivered to the home

— On-site homemaker services

— Personal care

What you need for determination…

For starters, a care plan must be signed off on by a doctor, and the home health agency you’ve selected must be Medicare-credited. In addition, the doctor must certify that you or your loved one is “homebound.”

Home health services include other choices.

Depending on where you live, other services can provide for this care, such as medical social services, part-time/intermittent home health aide services. What’s more, the cost of in-home medical supplies and durable medical equipment (walker, wheelchair) and injectable osteoporosis drugs.

Proper estate planning with an experienced elder care attorney, like Christopher J. Berry, can help you better understand the importance of setting aside funds for a long-term care policy; establishing a trust to provide continuity of your assets; creating a power-of-attorney for use if you are incapable of making your own financial and health decisions.

Contact us to learn more.

The post Medicare does pick up some home care costs; best bet is a long-term care policy. appeared first on Estate Planning Lawyers | Elder Law Attorneys | Brighton | Novi | Livonia Elder Law Attorneys.