PROFESSIONALLY SPEAKING
Retirement Threats and Strategies by Navigator Planning Group Many Americans are not confident they will be able to enjoy a comfortable retirement and outlive their life savings. With increased life expectancies, factors such as unexpected health expenses, market losses, and increased lifestyle expenses combine to erode financial security. Here are some strategies that may help you avoid outliving your assets: 1. CLARIFY RETIREMENT NEEDS Do you know how much income you will need each month during retirement? How much do you already have saved for retirement? What are your other sources of guaranteed income during retirement? 2. CONSIDER DELAYING RETIREMENT An increasing number of Americans are postponing retirement. Many choose to extend their working lives for a number of reasons, including allowing their investments to recover value, increasing their retirement savings, taking advantage of health insurance coverage, or waiting Andrew R. Hermsen
for a spouse to retire. Some simply aren’t ready to give up a fulfilling career. 2. DELAY TAKING SOCIAL SECURITY One of the most important decisions facing a retiring worker is when to start taking Social Security benefits. While the right age to start taking benefits depends on a retiree’s individual circumstances, in general, delaying benefits is usually a better choice for most people. Work with a professional who understands your personal financial circumstances before making decisions about when to take Social Security. 3. FIGHT THE EFFECTS OF INFLATION Having a portfolio that is positioned to help fight inflation is critical. A welldiversified portfolio that includes an appropriate mix of stocks, bonds, and other investments according to your personal needs and goals may help you seek the growth you need in a way that lets you sleep better at night. 4. PLAN FOR HEALTHCARE COSTS According to a Fidelity report, a 65-year-
920.406.8500 old couple retiring in 2013 will need an estimated $220,000 in savings just to cover healthcare costs during their retirement. In order to understand and prepare for your healthcare expenses in retirement, consider earmarking a portion of your retirement savings specifically for healthcare expenses, know your health insurance options after retirement, and understand how Medicare fits into your health coverage. NEXT STEPS Take the uncertainty and stress out of retirement. There are a number of alternative approaches that a retirement specialist can explore with you now that may help ensure your money lasts as long as you do. Andrew R. Hermsen is a financial advisor with Navigator Planning Group. Andrew can be reached by phone 920.496.0123 or email andrew@navigatorpg.com. Securities and advisory services offered through SII Investments, Inc. Member FINRA/SIPC and a registered investment advisor. Navigator Planning Group and SII are separate companies.
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