Post-Retirement Planning

Financial Concerns / Social Security / Retirement Planning / Estate Planning

Generally speaking, many of their same building blocks like acting cautiously, diversifying, balancing risk and reward again play a role in post retirement planning. However, as we saw earlier, the senior is faced with concerns, fears, anxiety, and challenges that the pre-60 year old does not have.

• Since the retiree no longer has earned income coming in, liquidity now becomes a greater concern when selecting the correct product. If an annuity is being considered, perhaps, an annuity with a shorter surrender charge period might be considered.

• Since Social Security income is being received, reducing income taxes on Social Security can become a topic for discussion. As seen earlier, earnings credited on annuities but not withdrawn might help a senior reduce taxes on their Social Security income.

• While probate can be discussed at any time in life, discussing ways to avoid probate may have more relevance to the post-60 year old now. Dollars paid to a named beneficiary in an annuity can bypass the expense, delay and publicity of probate.

• Since family and friends are entering nursing homes, Long-Term Care insurance might help a senior maintain their financial and emotional independence.

• Since the retiree is more apt to have retirement distributions in an IRA, the Stretch IRA could be a way for one to receive income, reduce taxes, and pass on more dollars to the heirs.

• Speaking of heirs, the multitude of death benefit options in many annuity contracts, and carefully designating beneficiaries can effectively help one continue a legacy by transferring wealth.