Are you winding down the final years of your career? For many people, the final 10 years before retirement are filled with a blend of excitement and stress. On one hand, you’re likely excited to leave the working world and enter a new phase of your life. On the other hand, you may be worried about whether you are financially prepared for retirement.
One great way to prepare yourself for retirement is to maximize your retirement account contributions in these final years. Take advantage of catch-up contributions to maximize your savings and boost your retirement account balances. Catch-up contributions are allowable contributions above and beyond the standard limitations for those who are 50 and older.
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There are many benefits of being single during retirement. You have the freedom to live the retirement you want to live on your terms, you can travel and explore and find new hobbies. You also may not have the same level of living expenses married couples often have.
However, being single in retirement can also present some unique challenges. Married couples may have two income streams, multiple retirement savings plans and a variety of benefit options. They also have each other to rely upon for difficult emotional, financial and medical decisions. Do you have a health savings account, also known as an HSA? You’re not alone. According to a study from America’s Health Insurance Plans (AHIP), nearly 20 million Americans are enrolled in an HSA.1
An HSA can be a valuable tool to help you pay for deductibles, copays and other out-of-pocket health care costs. They can be especially helpful for those emergency costs that you don’t factor into your regular budget. Every business owner has to make an exit at some point. Some owners leave on their own terms, either through retirement or with the sale of the company. Others, though, exit before they’re ready via disability, health issues or even death. While it may not be pleasant to think about the latter category of exits, it’s important to consider what may happen to your business and your family if you pass away.
Estate planning can sometimes be a complicated process, but it can be even more complex if you are a business owner. You have to consider how to compensate your family for your years of investment and hard work. You also may have business partners to think about. And you probably want to create a smooth transition for your employees, customers and other interested parties. Wondering whether you need life insurance? According to a recent study from LIMRA, it’s very possible that you don’t have enough protection. The study found that 30 percent of American households have no insurance and that 48 percent of households have a coverage gap of approximately $200,000 each. In fact, households with life insurance have, on average, only enough to replace three years’ worth of income.1
Unexpected death is one of the most significant risks you and your family face. The loss of your income could create serious financial hardship for your spouse, children and other loved ones. Life insurance can be an effective tool to manage the risk. According to Gallup’s 2017 survey on Americans’ financial worries, 54 percent of those surveyed said they were concerned about not having enough money for retirement. That number is down from the 64 percent who were concerned about retirement in 2016. However, it’s still a large enough figure to make retirement America’s No. 1 financial concern.1
Much of the stress surrounding retirement comes from the unknown. There are many variables and factors in retirement that are impossible to predict. You can’t know how long you will live or how long your retirement might last. You can’t know in advance what kind of health issues you may face. And it’s impossible to predict how economic factors could impact your retirement. |