Adequate insurance coverage is the foundation of a sound financial plan. No matter how well your investments perform, an unforeseen emergency such as a fire, theft or natural disaster may leave you completely unprepared not only to meet the financial needs of your retirement, but your immediate needs as well.
Determining an appropriate mix of investments and matching those choices to your retirement goals is a keystone of successful retirement planning. If your eyes glaze over when someone starts talking about asset classes, diversification and allocation, you’re not alone. Here’s a quick guide:
What Is an Asset Class?
Sometimes as we get older, we require assistance to perform basic activities of daily living. This can result from normal aging or a progressive disease or condition. And while many seniors prefer to stay in their own home, many will require more help than can be offered in that setting and must be cared for in a residential facility.
Here’s the headline: $119,238. That’s how much a nursing home costs the average resident for an average stay of 14 months. And that’s just the last phase of care. Before entering a nursing home, most seniors previously receive care at home — and potentially in a less intensive assisted living facility. All of these arrangements are part of the long-term care continuum.
An estate takes lifetimes to build but can be lost in the blink of an eye. Most of us don’t imagine assets that took decades to accumulate being drained in a few short years, but in some cases this is exactly what happens. Here are some of the top risks to an estate and some easy ways to manage those risks.
The success or failure of a financial plan is driven by a variety of possible influences. Factors like the right rate of savings, good investment selection, and careful risk management are all important and commonly recognized as elements of a high quality plan. Going a step further and incorporating a well thought out estate plan can turn a good plan into a great plan.