If you’re approaching retirement, you’re likely facing a number of big decisions. Do you stay in your current home or downsize? How do you allocate your investments to minimize risk but also generate income? What are your plans to pay for medical expenses and long-term care?
Retirement is a major life transition, so it comes with a wide range of big decisions. One of the most important decisions you may make is when to file for Social Security. Many retirees want to file as soon as they’re eligible. That feeling is understandable. After all, you’ve been paying into the system for decades, and now you want to see your share of the benefits.
Fidelity recently released an estimate that might shock many retirees. According to researchers, the average 65-year-old couple will spend $260,000 in retirement on health care costs.1 That figure represents out-of-pocket spending above and beyond Medicare coverage. It includes things like copays, deductibles, premiums, and more.
Many workers assume that Medicare covers all health care costs in retirement, but that assumption is often incorrect. Medicare is a valuable resource for many retirees. It covers hospitalizations, doctor’s office visits, and possibly even prescriptions, depending on your plan selections.
If you have children, you likely have some of the same hopes and dreams as other parents. You want your children to be happy and safe. You’d like for them to have strong friendships and be confident in themselves. And you likely want them to get a great education so they can have a successful career and financial stability.
Unfortunately, the rising cost of college has made it difficult for many parents to afford the kind of education they want for their children. According to a recent study, the average annual costs for “moderate budget” public and private schools in the United States are currently $24,061 and $47,831, respectively.
Watching your parents age is never easy. While you may prefer to remember them as the healthy, strong and vibrant individuals they were for most of their life, you may end up watching in real time as their strength, stamina or even cognitive ability begins to fade.
Very often, it’s clear when an elderly parent is transitioning into the final years of their life. They may have a diagnosis from a doctor that says they only have a certain amount of time left. Or their physical or mental capabilities may be on a steady decline.
Carstens Financial Group focuses on providing comprehensive asset management, estate planning and life insurance solutions. Allow us to help you secure your financial future.