Make Your Money Last: What Retirees Must Know in 2016

A financial plan is a road map and an essential guide to your cash flow needs. By having a financial plan, whether created yourself or with the help of a professional, you’ll have a visual of all of your income sources, expenditures, and the effects of inflation and taxes, all in a comprehensive document that should guide you through retirement. Scott Spiering, president and CEO of Anchor Bay Capital and author of The Frugal Investor, shares these critical things to be aware of in 2016 that can affect your financial plan for retirement:

Plan for your health care. 

Many people underestimate health care costs during retirement. For a couple who retires at age 65, twenty years of health care can exceed $275,000, Spiering says. Part of that is long-term care, which you should evaluate and plan for carefully. Look into insurance companies that offer policies with long-term care riders—called hybrid policies—that can be cost-effective. 

Prepare for changes in Social Security benefits. 

New laws that go into effect in May 2016 will change how claims are filed and suspended. If Social Security is part of your retirement strategy, review these new laws with your financial planner as soon as possible.

Review your living trust. 

If you’re near or in retirement, you will want to consider whom you will designate as a power of attorney and whether you have any advanced medical directives. This can be addressed by a revocable living trust, which is inexpensive and will cover medical expenses. If you already have a living trust and are a California resident, be aware that several state laws have changed in the past two years that may affect your estate planning. Be sure to contact your attorney to review your will or trust.

(0) comments

Welcome to the discussion.

Keep it Clean. Please avoid obscene, vulgar, lewd, racist or sexually-oriented language.
PLEASE TURN OFF YOUR CAPS LOCK.
Don't Threaten. Threats of harming another person will not be tolerated.
Be Truthful. Don't knowingly lie about anyone or anything.
Be Nice. No racism, sexism or any sort of -ism that is degrading to another person.
Be Proactive. Use the 'Report' link on each comment to let us know of abusive posts.
Share with Us. We'd love to hear eyewitness accounts, the history behind an article.