5 Ways Retirees Should Protect Their Money During Retirement

Financial Planning
Retirement Planning
Video Podcast
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In this series, about the 5 Ways Retirees Should Protect Their Money During Retirement, I have decided to focus on one topic per post because each of the five points that comprise this series requires considerable detail, including some research and analysis to make this 5-part post as meaningful to you, my readers as possible.

Retirement is a celebrated event for obvious reasons. You have worked 30 to 40 years hopefully doing what you love and made a positive impact on society, within your church, community, and for the legacy and name of your family. However, despite these noteworthy accomplishments, if you are not careful your "golden years" might not be quite as golden as you have hoped.

There's almost nothing worse than finally arriving at your desired destination in life only to have the rug snatched from under you because of some mistakes that could have been avoided. That is what I am here to help you accomplish today…before you retire. Or, if you are already retired, then I urge you to consider the first of '5 ways retirees should protect their money during retirement.' Truth is, you really do have a lot to lose, so let's not risk it!

Here is a brief summary of the 5 ways retirees should protect their money during retirement. Be Sure to Check Back In A Few Days For a More In Depth Review of Parts 1 through 5.

Part 1 - Invest in a good cyber security system:

Cyber fraud is on the rise and retirees and the elderly are among the most vulnerable targets for cyber criminals. In many cases, being a victim of this type of crime can be avoided. Learn how to take measures to secure your personal data, such as sending secure emails with files that are encrypted when communicating with your financial advisor.

Part 2 - Protect Retirement Money With Better Asset Allocation

Financial literacy is a challenge for many. While many retirees are familiar with investment vehicles such as mutual funds, stocks and conceptually speaking bonds, there are fewer who are able to explain how their portfolio is invested, what type of "asset classes" their portfolio is comprised of and how the economy will impact their portfolios. In addition, I have found that a number of investors simply have the wrong notion in their minds about the pros and cons of investing in the stock market during a recession. An investment portfolio will fluctuate throughout the economic cycle (Peak, Recession, Trough Recovery Expansion and peak), therefore at Wealthcare Financial Group, Inc. we place a premium on educating our clients about how the economy works.

Part 3 - Buy Long Term Care Insurance (LTCi) Because If You Are Like Most People You Expect To Live Long:

Innovations in medical science and biotechnology means that people are living longer. In fact, according to the National Institute on Aging's "Global Health and Aging" report, "the dramatic increase in average life expectancy during the 20th century ranks as one of society's greatest achievements.

Although most babies born in 1900 did not live past age 50, life expectancy at birth now exceeds 83 years in Japan -the current leader- and is at least 81 years in several other countries." What does this mean for someone who is retired? While it spells good news, the bad news is that living longer comes with a price tag and an expensive one at that. That "price tag" is what we refer to as needing nursing care (i.e. Long Term Care), whether in-home care or a nursing home facility.

The average daily cost of Long Term Care in most states exceeds $200 per day, in today's dollars. Just image what the future inflation adjusted cost will be. LTCi is definitely a conversation that you want to have with your financial advisor. Unless you have enough money saved to self-insure, a person who is retired can watch the value of their estate diminish considerably if they are uninsured and forced to spend their retirement savings to provide for their own nursing care needs, or the needs of an uninsured elderly parent.

Part 4 - Don't Spend Your Retirement Money Frivolously:

I cannot say enough about "impulse buying", especially for those who may suffer from an impulsive spending disorder. If you truly love your retirement, then don't jeopardize your quality of life in retirement by wasteful spending. One example that comes to mind is casinos because according to www.casinowatch.org, there are 1,511 casinos in the United States that rakes in $71.1 billion in annual revenues.

Part 5 – Planting A Vegetable Garden Can Help Retirees Save Money

You can't enjoy your retirement that much if you are not in the best physical shape, right? According to the Centers for Disease Control and Prevention (CDC), moderate-intensity level activity for 2.5 hours each week can reduce the risk for obesity, high blood pressure, type 2 diabetes, osteoporosis, heart disease, stroke, depression, colon cancer and premature death.

The CDC considers gardening a moderate-intensity level activity, and can help you to achieve that 2.5 hour goal each week. So, perhaps now would be a good time for you to engage in an activity that requires you to kneel, squat, use your arms, shoulders, back and leg muscles more vigorously. Gardening is one of the best ways for retirees to gain exercise without having to spend money on a gym membership.

In addition to the benefit of just being able to enjoy the outdoors, the calm, some ambient noises and gain peace of mind as you feel the wind blowing, you can also save money by growing your own food. Furthermore, how comfortable are you with the idea of pesticides, certain chemicals and "genetically engineered foods" that have been genetically engineered in some laboratory? I'll pass! We want you to enjoy your retirement, therefore I hope you consider these suggestions.

Schedule an appointment with Wealthcare Financial Group, Inc. to discuss the following:

  • Financial and Retirement Planning
  • Portfolio Management and Investment Allocation (401K, IRA, Brokerage)
  • Estate Planning
  • Retirement Income Planning
  • Insurance and Annuities