You’ve worked hard your entire life to provide for your family. Along the way, you’ve probably accumulated assets and built a sizable estate. When you die, you probably want to pass that legacy on to your loved ones.
Many retirees share that goal. Unfortunately, there is one significant obstacle that could stand in the way. It’s long-term care. According to the U.S. Department of Health and Human Services, the average 65-year-old today has a 70 percent chance of needing long-term care at some point in the future.1
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As a retiree, one of your most important decisions will be when to file for Social Security benefits. Why is it so important? Because it’s permanent. Once you file, you can’t undo it, and you can’t change your benefits in the future.
That’s an important point, because your payments can change significantly depending on when you file. For instance, you can file as early as age 62. However, if you file before your full retirement age (FRA), your payment could be permanently reduced as much as 30 percent. Most people reach their FRA between their 66th and 67th birthdays.1 If you’re like many retirees, a big component of your financial plan is the idea that you will spend less in retirement than you did while you were working. That’s true in some cases. You may save money on gas with no commute to work. You may dine out less, and you may need less insurance. There’s a wide range of avenues to save money after you stop working.
You’ve spent most of your adult life serving your country, building a career, saving money, accumulating assets and establishing a legacy. Now it’s time to decide how you will pass that legacy on to your children, grandchildren, other loved ones or maybe even your favorite charities.
Are you nearing age 70½? If so, you have an important retirement milestone approaching. Age 70½ is when you have to start taking required minimum distributions (RMDs) from your traditional IRA. For many retirees, this isn’t an issue. They’re already taking income from their IRA, and possibly even meeting their RMD requirement.
However, some retirees have other income sources, such as a military or company pension, business income or maybe even income from other investment accounts. If you already have plenty of retirement income, you may not be thrilled by the idea of taking mandatory distributions. For many Americans, retirement is a time to relax, enjoy life and even pursue new hobbies and interests. While it may not be pleasant to think about, retirement is often also a time of declining health. As you age, it’s natural you may face new, serious health challenges.
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