3 Financial New Year’s Resolutions for Retirees

Are you among the 45 percent of Americans who regularly set New Year’s resolutions? If so, you’re probably aware that many resolutions don’t last. Less than 10 percent of those who make resolutions actually achieve their goal.1 It doesn’t have to be that way though. Whether your goal is to lose weight, drop a bad habit, or pursue a new hobby, you can achieve your goal with a little discipline and focus.

If you recently retired or if retirement is quickly approaching, you may want to set some financial resolutions for yourself in 2017. Sound financial management is always important, but it becomes even more critical after you retire and lose the benefit of a regular paycheck.

Below are a few resolutions that could improve your financial stability not just this year, but well into the future. If you can implement even one of these financial resolutions, you may experience a more comfortable and enjoyable retirement.

Fill in your risk protection gaps.

Sometimes the key to a successful retirement isn’t as much about having a significant amount of assets as it is about avoiding catastrophic risk. There are a number of risks you may face that could threaten your financial stability, including medical issues, home damage, or even death, which could put your spouse in a challenging situation.

Review your insurance protection to make sure your coverage is sufficient. Also, consider looking at long-term care insurance. The U.S. Department of Health and Human Services estimates that 70 percent of those over age 65 will need long-term care at some point.2 Insurance can help you cover the high costs and help you get the level of care you want.

Guarantee* your income.

You probably have some form of guaranteed* lifetime income from Social Security. You also may be fortunate enough to have a pension benefit. However, if you’re like many retirees, you have to fill in the gaps with income from your savings, which may not be guaranteed. If you withdraw too much income or if your investments decline in value, you risk running out of money before you pass away.

One way to minimize this risk is to guarantee a portion of your distributions from your retirement savings. You can do this through the use of annuities, which offer a variety of ways in which to generate guaranteed lifetime income. Some also offer growth potential and downside risk protection. If you’re worried about the sustainability of your retirement income, this may be an option worth exploring.

Get your estate in order.

You’ve worked hard your entire life to accumulate assets, grow a family, and build a legacy. You likely want that legacy passed onto your loved ones, and not eroded during the final years of your life or after your death. A solid estate plan can help you avoid that risk.

There’s no estate planning formula that works for everyone, so it’s important to consult with a professional to analyze your needs and goals. However, many estate plans involve a will, beneficiary designations, and possibly even a trust. You also may want to consider tools to help you manager your assets and your health care treatment should you become incapacitated and unable to make your own decisions.

Ready to make your financial resolutions reality? Let’s talk about it. Contact us today at Grand Canyon Planning Associates. We can help you analyze your needs and goals and develop a strategy. Let’s connect today.

1http://www.statisticbrain.com/new-years-resolution-statistics/
2http://longtermcare.gov/the-basics/who-needs-care/

*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.

This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.

16292 – 2016/12/19