Work & Retirement

Many people don't consider longevity when they set savings goals. Folks are living a lot longer and that makes retirement planning more challenging than ever. A healthy, upper-middle-class couple who are 65 today have a 43 percent chance that one or both partners will live to see 95. Savings need to be adjusted accordingly.. ...

I find that many retirees would prefer to have the money earlier, at say age 66, because they feel they won’t be as active or travel as much later on, at age 82 or 83. Therefore, to them personally, the money means more to them now than in 15 to 20 years. ...

The truth is, the things you can control—your day-to-day saving, investing, and planning decisions—are what’s most critical to your retirement success. ...

If you’ve turned 65 or are getting close to it, you’re likely swamped with information about Medicare plan options such as prescription drug plans, supplemental health insurance policies and Medicare Advantage plans.

Some folks may enjoy the challenge of figuring out the process of choosing health insurance coverage. After all, it’s important to choose the right coverage for your needs. However, if you’re not one of them, consider an appointment with a licensed sales agent who can help you navigate through the various options and help you get the right coverage for your health care needs.

 

Finding a Fit

Brokers (or agents) are licensed by the state and undergo annual required training and testing by the plans they sell.

There’s no cost for the service offered by a licensed sales agent because the agent is paid a commission by the private insurance carrier based on your enrollment in the plan.

 Consider meeting with an agent before you turn 65 so you can anticipate costs and coverage. Caregivers or family members who are helping make these decisions can participate in the meeting, too.

 

A licensed sales agent assures that your enrollment application gets properly completed, follows up with the carrier to ensure timely processing, and provides notification of your enrollment status.

The agent also will research prescription drug plans (PDP) because each has a list of covered drugs. An agent can help determine if your drugs are covered,  the co-pays associated with a plan and which plans to offer the best benefits for your situation.

In addition, the sales agent also verifies that your doctors, hospitals and other medical providers are in-network. This is an important step before selecting a plan because many Medicare plans have a network of doctors that they use.

An agent follows up annually to discuss changes to your medical needs, to discuss any upcoming changes to your current policy, and to provide updates on the health insurance industry.

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Cool Jobs

For people like Ray Brown, work looks a lot like play. Here are a few honest-to-goodness jobs compiled by Wil Fulton from thrillist.com.

Ice Cream Taster — The ultimate “cool job,” these folks mix the magic concoctions of ice cream, candy and other goodies into frozen fantasies. Not great for the waistline, but good for morale.

Netflix Tagger — Have you binged on more episodes of “Fuller House” than you want to admit? Think about becoming a Netflix Tagger, and get paid to watch TV. These part-time employees watch shows and movies through Netflix streaming, then associate content with various tags, helping the service recommend shows to viewers based on what they have previously watched.

Private Island Caretaker — For those planning a retirement that includes sun and surf, consider being a private island caretaker. Those who do this love the tropical paradise life, but note that while there are obvious benefits, it helps to be handy — and in good shape — as property owners expect all to be in shipshape when they arrive for their holiday.

Fortune Cookie Writer — Like to give advice? Do you excel at choosing lucky numbers? Donald Lau, who has been crafting fortunes for Wonton Foods, manufacturer of fortune cookies (among other Chinese cuisine) is stepping down after 30 years because he says he has run out of ideas. So if you have some creative writing ability, this could be the way the cookie crumbles.

Google Trike/Street View Team — Like to cycle? Want to travel? Maybe joining the Google Street View Trike Team is up your alley. This job involves pulling a Google Maps camera behind a three-wheeler through cities all over the world. There are also positions for folks who feel hoofing it is more their speed.

Panda Nanny — If you have experience babysitting the grandchildren, you may have what it takes to become a Panda Nanny.

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Is retirement still part of the American Dream?

Thankfully, the answer is yes for most of us. But it will require some planning on your part.

A study by the Economic Policy Institute showed that half the people on the cusp of retirement (ages 56 to 61) had a retirement account balance of less than $91,000. At a typical draw-down rate of about 4 percent per year, that equals around $303 a month in retirement income. That probably won’t get you where you want to go.

Slow, Steady Growth

To plan for a comfortable, successful retirement, follow a couple of ground rules. The first is that financial literacy is a lifelong pursuit. Do it right, and financial planning will be downright boring. Plain-vanilla strategies such as regular contributions, slow-and-steady growth and diversification are often most effective over the long term. It’s also important to get advice from trusted, neutral sources.

The second is to understand your future medical expenses. People often assume that Medicare covers everything, but it doesn’t. After the age of 65, the average couple will spend about $260,000 out of pocket on health care — including insurance and nursing home care. The problem is most households don’t have $260,000. That means that many households face the risk of impoverishment or ending up on Medicaid.

Retirement is changing, and planning for it is changing as well. This is no longer your grandparents’ retirement. Life expectancy is changing, and many people go back to work shortly after retiring. They realize that they retired from something, but not to something. Clients should think about what comes next for them.

If you’re wondering about what a comfortable retirement looks like for you, the right financial consultant can help. Specialized software takes into account inflation, taxes and other variables out of your control, and helps optimize retirement planning.

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Each year when “life happens,” we’re reminded of the importance of life insurance.

You may recall the story of former NFL quarterback and now radio and TV sports broadcaster Boomer Esiason and the effects of having no life insurance.

Boomer was 7 when his mother died of cancer. She had no life insurance. His father was left to raise him and his two sisters alone.

Boomer related, “We lived paycheck to paycheck, but my dad did an incredible job taking care of our family. He taught me the true meaning of what it means to be a responsible dad.”

It was his father’s sacrifice that motivated Boomer to protect his family with life insurance. Boomer explained to an interviewer, “Life insurance is about protecting the future and the people you love, which is especially the case when you are caring for someone with special needs.”

Boomer’s oldest son, Gunnar, was diagnosed with cystic fibrosis at age 2.

DO YOU HAVE WHAT YOU NEED?

Life insurance can do some pretty amazing things for loved ones. It can buy time to grieve when clients utilize Final Expense Life Insurance, which takes care of funeral, burial and other end-of-life expenses. Life insurance also reduces stress on surviving family members and may provide financial security.

If you own an old policy, it may be time to review it for expiration dates, named beneficiaries and death benefits. Any policy written before 2006 needs reviewed. Those in the retirement planning business see policies every day that are underfunded, which means the policy is not going to be considered valid.

Do you remember the beneficiaries in all of your policies? With an out- dated policy, a beneficiary you want now might not be who is listed. That can cause strain for family members left behind.

After you review your life insurance policies, encourage your children and loved ones to get life insurance.

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