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Money Matters for Seniors
Three Major Retirement Hazards to Avoid
Retirement can be beginning of new life but there are
dangers
By
Robert Valentine,
TheMoneyAlert.com
January 12, 2007 - Retirement planning is a tricky
process, and one that requires careful planning and patience. But even
if you have a retirement plan and a clear set of visions and goals, not
just financially, but for your lifestyle, its important that you be
aware of several common missteps that many, even those with a plan, fall
victim to.
1 - Underestimating the Costs of Healthcare
As healthcare costs continue to rise dramatically,
employers are also shifting more weight of the costs onto their
employees. Many companies are beginning to drop retired workers from
their health plans, and on top of that, millions of Americans have no
form of coverage at all.
So one of the most common mistakes made in
retirement, is a lack of preparation for the financial impact of your
health. One of the most overlooked and most expensive costs is long-term
healthcare. Long-term health costs can be devastating to a financial
plan, so buying long-term care insurance early on can help lower its
costs immensely.
2 - Misjudging How Long you or your Spouse Will
Live
A common assumption is that you should have enough
retirement assets to last you until your life expectancy is reached.
But today, the world is an ever-changing place. As
medical technology increases along with life expectancy, the odds are
good that at least you or your spouse will live past age 90. So its
vital that you are prepared to live longer.
3 - Presuming youll Work a Long Time
Your generation is famous for working long, hard
and abnormal hours to get ahead. And most baby boomers agree that
theyll be working long into retirement. But that can be one of the
biggest retirement mistakes you make.
As of now, the average age of retirement in
America, is 62. According to the Employee Benefit Research Institute
Retirement Confidence Survey of 2004, 40% of retirees had to leave the
workforce earlier than planned either because of layoffs, illness, or
disability. So even if you want to work as long as you can, it may not
always be possible and its vital that you plan and save for such a
scenario.
Retirement could be the beginning of many great
years. Working with a financial professional and having the proper plan
in place is a key part of retirement. You should also keep an eye on
healthcare costs and stay informed on issues that will effect your
retirement. You should always be focused on your plan and be aware of
some common pitfalls. That way, you can be prepared to make the best
years of your life as good as they can possibly be.
Robert Valentine is a well-known expert in
the matters concerning investors. His articles on financial planning
matters that concern investors have been published by several
publications throughout the United States. You may visit his website,
www.themoneyalert.com to view some of his most popular articles.
Note: This article was submitted by Robert
Valentine of Financial and Retirement Management. Robert (CA Insurance
Lic #0C23496) is a Registered Representative of and offers securities
through Securities America, Inc., a Registered Broker/Dealer, Member
NASD/SIPC. Advisory services offered through Financial and Retirement
Management, a Registered Investment Advisory firm. Robert lives in Huntington Beach, CA. Several of his articles on
financial planning matters that concern investors have been published.
Robert can be reached at (877) 732-2637.
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