Patriot Wealth - February 2019

EMBRACING ‘SPENDOPHOBIA’ 3 WAYS TO INVEST IN YOURSELF AFTER RETIREMENT

TRAVEL

You’ve spent your entire life being told to save, save, save. Now you’re finally retired, so it’s time to spend some of that money — but you’re scared! This is only natural because it means breaking a lifelong habit of socking away money and refusing to touch it. You’re not alone. A recent study of retirees’ spending habits showed many people actually spend less than they can afford to. They’re scared of the “what ifs” that come with living on a fixed income. However, at age 70 1/2, you have to start taking the required minimum distributions (RMDs) from your traditional IRA and 401(k) whether you want to or not. Instead of stressing over the fact that you’re pulling money out of these accounts, embrace the opportunity to do something for yourself.

might be outside your budget, but new kitchen countertops or a deeper tub will add a touch of luxury to the space you spend the most time in. Upgrading your home is almost always a good investment because it adds equity, which will pay off down the road. That extra cash will come in handy if you decide to sell later on in order to downsize or you plan to enter assisted living. Don’t forget to set aside money for ongoing maintenance, such as a new water heater or roof repairs.

It can be tempting to hold off spending money as long as possible. After all, who knows how long you need your savings to last? Travel, however, is one thing you can indulge in early without feeling guilty. Even the most leisurely trips can be physically demanding, so it’s better to see the world at 70 rather than wait until you’re 90. To keep yourself on track financially, use the bucket system to set up a separate savings account just for travel.

GO BACK TO COLLEGE

INVEST IN YOUR HOME

It might sound counterintuitive to go to college when you’re not planning to go back to work, but continuing your education after retirement offers many benefits. Many individuals

Once you no longer have to work five days a week, you’ll be in your home more often, so why not make it amazing? An in-ground pool or a private tennis court

IS LONG-TERM CARE A PART OF YOUR RETIREMENT PLAN? NOW IS THE TIME TO START

No one wants to talk about living out their retirement in assisted living, but with rising costs and higher demand, long-term care should be a topic at the forefront of everyone’s retirement plan. The U.S. Department of Health and Human Services estimates that 70 percent of retirees will need some sort of long- term care in their lives. When this is combined with the median annual cost of assisted living, $45,000, the financial impact on your retirement becomes substantial. All of this begs the question, are you prepared for long-term care?

be extremely stressful and overwhelming. In some cases, relatives can be nonexistent or unreliable, which can leave you with a lack of options. All of this is undesirable but becomes even more dangerous when you factor in rising costs.

RISING COSTS

The price of nursing facilities is increasing quickly. You could be paying anywhere from $3,500–$8,000 per month to make sure most basic needs are met. In 2017 alone, these costs were up 3.36 percent, and they are projected to continue to rise through 2019. Overlooking long-term care in your retirement plan can put you and your family in a problematic situation. Take the burden off your shoulders now by incorporating the probability of assisted living into your retirement plans. No matter where you’re at in life, it is never too late to plan. Contact us today and let’s put something in motion so your retirement is ready for any bumps along the way.

WHO IS RESPONSIBLE?

Medicare won’t cover your long-term care needs. Medicaid can assist with them, but it would require spending down all of your assets to become eligible, which could bankrupt your spouse. Failure to plan can cause long-term care to fall on family, which can

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