When the subject of Retirement Planning comes up, many people tell us they just don’t know where to start. At Einstein Advisors, we know the best place to start is with a meaningful conversation about your goals and your challenges. It’s important for your retirement advisor to get to know you – not just your finances. That conversation may happen over numerous visits, and will focus on the “What if” scenarios that you care about most.
Your What Ifs will vary, depending on your age and other factors, and what you envision for your retirement. Everyone is different and there are countless options available for developing a retirement plan. In order to build a plan that will work for your unique situation, and provide the outcomes you hope for, your advisor will need to understand
- What’s important to you in retirement?
- What are your current responsibilities?
- When do you hope to retire?
- How much life insurance do you currently have? What type of policy is it?
- What other financial assets do you have?
- What income do you anticipate between now and retirement? After retirement?
- And so much more.
One important aspect to consider in any retirement plan is the likelihood of requiring long-term care at some point. The US Department of Health and Human Services estimates that 70% of all Americans who live to age 65, will require some form of long-term care at some time in their lifetime. The average stay in a nursing home is just over 2½ years, at an average cost of about $7,000 per month. And many people don’t realize that Medicare doesn’t pay for long-term care. It’s absolutely imperative for most families that they include long-term care in their retirement plan.
Another important aspect to plan for is a guaranteed income for life. When the Social Security program was initiated in 1935, the average life expectancy was 61 years old. Today, that number is over 78 years. And 30% of us will live past our 90th birthday. The possibility of outliving your retirement funds is terrifying for many people, so a solid retirement plan should include strategies to avoid that scenario.
There are countless strategies for planning a secure retirement, and no single strategy is right for everyone. Contact an Einstein Advisor for a free consultation to begin the conversation about your goals for your financial future.