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Make Saving More Money for Retirement Your #1 New Year’s Resolution

It’s that time of year when we all make New Year’s resolutions, such as eating better, working out more, and getting into better shape.

But what about your financial future? What kind of shape is your portfolio in? How much are you currently saving for your retirement? You may want to consider saving more money for retirement as your number-one resolution for 2017.

Since many New Year’s resolutions tend to be broken by January 2^nd, here are some simple suggestions to keep you on track and to avoid that happening to your retirement savings resolution.

1. Be sure you’re enrolled in your workplace’s 401(k) plan.
If your employer offers a 401(k) benefit plan, you should contribute as much as you can possibly afford in order to take advantage of all matching benefits. That’s as close to free money as you can get. You should also consider funding a Roth 401(k), if available, as tax-free sources of retirement income may become increasingly important.

2. Start saving early.
If you don’t have an employer who offers a benefit plan, open your own IRA or Roth IRA as soon as you can. Even small amounts put away earlier in life can have significant benefits. The earlier you start saving the better—not only to help grow your accounts, but also to help make saving for retirement a priority.

3. Create a realistic plan.
Too many people either don’t know or don’t take the time to research how much money they will need at retirement until it’s too late. Assess your needs realistically. Think about how you would like to spend your retirement years and then sketch out your expected costs for that lifestyle — and then double them. After you double them, you’re probably in the ballpark of your actual needs, because people rarely ever plan for the unexpected such as medical costs, nursing home fees, and long-term care expenses. For example, a 65-year-old, healthy couple can expect to spend $266,600* over the course of their retirement on Medicare premiums alone, according to HealthView Services.

4. Take a long-term view.
It’s important to remember to keep a diverse portfolio that balances your needs, as you grow older — you may want to consider a higher ratio of stocks and riskier investments in your youth, but then slowly shifting to more conservative investments as you near retirement. Buying hot stocks, trying to time the market, panicking after losses and dropping out of the market entirely, concentrating your investments with no diversification… these can all work against your retirement goals.

One example of a conservative retirement product is a fixed indexed annuity. An annuity serves as a complement to other retirement income sources, such as Social Security and pension plans. Fixed indexed annuities can offer principal protection with stable retirement income. The biggest advantages annuities offer is that they allow you to sock away a larger amount of cash and defer paying taxes.

The problem with New Year’s resolutions is that they’re so hard to keep. That’s especially true for resolutions associated with saving money and finances. But if you can find a way to keep this as your number-one resolution, you’ll not only improve your financial situation, you’ll be more optimistic about your retirement and your future.

Be sure to make retirement planning a priority for 2017 by contacting your financial advisor and setting up a meeting to discuss your options and the best financial tools for your portfolio.

^*HealthView Services’ 2015 Retirement Health Care Cost Data Report

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial advisor.

The post Make Saving More Money for Retirement Your #1 New Year’s Resolution appeared first on Smart Money Advisors.

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Retirement Planning for Procrastinators

You’ve probably heard that you’re never too young to start saving for retirement. However, many of us have procrastinated or have had other priorities and debt come up that prevented us from putting more money aside for our future. Or maybe you tried to save but got hit with unexpected setbacks like a job loss or medical emergency.

You’re not alone. In a recent survey by GOBankingRates,¹ 1 in 3 Americans has saved $0 for retirement. And 23% have less than $10,000 saved.

Unfortunately, you can’t make up for lost time. But don’t give up — you do have options.

Any money you can set aside can help you make retirement more comfortable. Here are some suggestions for what you need to do to get back on track:

1. Stick to a Routine

The first step is to start saving regularly. Consistent savings, even in just small amounts, is the best way to ensure a retirement fund is growing. If money is put into high-yield accounts or invested wisely, compound interest on small savings can help produce a sizable nest egg.

2. Prioritize Changes That Have Long-Term Benefits

Upping retirement savings contributions is also necessary to catch up. If permitted by their 401(k) plan, people age 50 and over can make catch-up contributions of $6,000 to a traditional 401(k), for example, in addition to the regular $18,000 annual 401(k) contribution limit, according to the IRS.² Other retirement vehicles such as fixed indexed annuities can be good long-term investments with the potential for growth and protection of principal. Income annuities are specifically designed to create ongoing income for you in retirement.

Those nearing retirement can also help prepare for retirement by reducing spending and paying down debt, which will trim monthly expenses and enable them to stretch their savings further once they retire.

3. Save Like You’ll Retire Tomorrow

People who view retirement as something that is just around the corner can help themselves stay on top of their retirement contributions so that they don’t fall behind. By keeping retirement at the top of your financial priority list, it can become less of a far-off dream and more of a soon-to-be reality.

If you’re already near retirement, you may also need to adjust your expectations—having to work harder to set aside more savings and maybe even working longer.

Even though retirement may seem far away and you think that there is still plenty of time to begin saving, be sure to make retirement planning a priority. Take the first step to a comfortable retirement by contacting your financial advisor and setting up a meeting to discuss your options and the best financial tools for your portfolio.

¹GOBankingRates Survey, March 2016

²IRS: Retirement Topics – 401(k) and Profit-Sharing Plan Contribution Limits

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial advisor.

The post Retirement Planning for Procrastinators appeared first on Smart Money Advisors.

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5 Things You Need to Know About Long-Term Care Insurance

Chances are you’ll live well into your 80s, your 90s, and possibly even longer. When you live a long life, the likelihood you’ll need long-term health care is greatly increased.

That’s why over 10 million Americans have purchased long-term care insurance.¹ Here are just a few things you should know:

1. You can decide where care is received. Long-term care insurance doesn’t just provide nursing home care. It can also provide home care for those who prefer to “age in place,” as well as adult day care, assisted living facilities and hospice centers.
2. The benefits can be flexible. Most long-term care insurance policies offer greater flexibility in the types of services available, such as covering the costs for installing grab bars or a wheelchair ramp, or purchasing a lift chair or hospital bed.
3. Family caregivers can be covered. Most policies provide caregiver training for family members. Other policies recognize family caregivers as informal caregivers, making their time and services reimbursable under the policy.
4. Couples can share coverage. Many long-term care insurance policies offer an optional benefit commonly known as “shared care,” which allows couples to share their coverage and maximize their benefits. It typically also includes a built-in protection to ensure a surviving spouse can still receive long-term care insurance benefits.
5. It’s not “just for older people.” While it’s a critical part of retirement planning and important protection for your later years, younger people also need long-term care as a result of accidents or illnesses. Plus, the younger you are when you apply for long-term care insurance, the better—making it more affordable.

Given that the cost of long-term care can quickly deplete your life’s savings, you should seriously consider adding long-term care insurance to your financial plan. Plus, there’s about a 70% chance you’ll need some type of long-term care after age 65.²

Be sure to learn more about long-term care insurance and why it’s a critical piece of retirement planning. Ask your financial advisor about these and other features and how it has helped their clients like it helped 250,000 families last year.³

¹Estimate from the American Association for Long Term Care Insurance (AALTCI)

²Genworth 2015 Cost of Care Survey

³Estimate from the American Association for Long Term Care Insurance (AALTCI)

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments or products may be appropriate for you, consult with your financial advisor.

The post 5 Things You Need to Know About Long-Term Care Insurance appeared first on Smart Money Advisors.

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