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Life insurance for college students
Do you have an old permanent life insurance policy that has accumulated cash value? Having an unused life insurance policy isn’t a bad thing. It’s certainly better than the alternative.
However, your needs today may not be the same as they were when you purchased the policy. You may have purchased your life insurance when you were younger. Perhaps you had young children in the home or a spouse who relied on you for financial support. Maybe you were still in the early stages of your career and saving for the future.
It’s easy to tell when Medicare open enrollment season has arrived. If you’re near age 65 or older, you may receive telemarketing calls from Medicare sales agents. Or perhaps you start seeing Medicare sales booths pop up in retail stores or shopping malls. In fact, it’s common these days to see Medicare sales professionals in grocery stores.
There are no shortage of individuals who want to sell you Medicare coverage, especially during open enrollment season. However, just because there are plenty of opportunities to purchase coverage doesn’t mean you should use just anyone for your coverage.
Medicare is one of the most important financial decisions you’ll make in your retirement. Fidelity estimates that a 65-year-old retiring in 2019 will pay $285,000 out-of-pocket in retirement. That figure includes costs for premiums, deductibles, copays, and services not covered by Medicare.1
Clearly, your Medicare policy will influence the amount you spend on premiums, deductibles, and more. In 2020, there are more than 3,000 Medicare Advantage plans available.2 Choosing the right plan for your needs and budget can not only help you get the care you need in retirement but protect your assets.
How do you find the policy that’s right for you? One good step is to talk with an experienced professional before you make any decisions. Below are a few specific ways a qualified financial professional can help you find the right policy and make wise decisions.
Did you know Medicare has potential penalties? It’s true. It’s possible that you could pay penalties on your Medicare premiums when you file. Fortunately, though, you can avoid these penalties if you file for coverage by the right deadlines.
Generally, you’re eligible for Medicare at age 65. However, there are certain windows in which you must apply. For example, you can initially apply for Medicare parts A and B during a 7-month period that starts three months before your 65th birthday and ends three months after. You can also file for coverage during the General Enrollment Period that occurs during the first three months of every year.1
If you don’t file for coverage during those periods, you may face a penalty. The penalties vary based on the specific part of Medicare:
What’s your strategy for retirement? Is it based on your unique needs and goals? Or is it based on general ideas and conventional retirement wisdom?
There are plenty of “experts” online offering retirement wisdom for the masses. In fact, if you search “retirement” on Google, you’ll find more than 880 million results with retirement tips and strategies.
The problem with retirement advice for the masses is that it’s not customized to your unique goals. There are plenty of pieces of conventional retirement wisdom that aren’t right for every person or situation. Below are two examples of common retirement income rules and tips that may not be right for you:
You should plan on taking 4% withdrawals from your savings to fund your retirement.
You may see a new figure on your 401(k) statement soon. In December of last year, President Trump signed the SECURE Act, which stands for Setting Up Every Community for Retirement Enhancement. The bill’s goal was to make it easier for Americans to save for retirement.
One of the provisions in the bill changes the way 401(k) administrators report account balances to participants. At some point soon, your statement will not only include your account’s balance, investment performance, and other traditional information, but it will also include a projection of your future monthly income.
It’s been a volatile few weeks in the financial markets. In mid-February, we were still enjoying a relatively healthy economy. And then the coronavirus arrived. Between Friday, February 21 and Monday, March 16, the Dow Jones Industrial Average has dropped by 30.37%.1
The rapid decline has left many investors with two questions:
There’s no easy answer to the first question. If history is any guide, eventually the decline will stop, and the economy will recover. The second question is even more difficult to answer. There are certainly protection options available, but not all options are right for all investors. Your strategy should be based on your unique needs, goals, and tolerance for risk. Below are a few options you have available:
Shifting to a more conservative strategy.
Tax time is almost here again. Are you one of those filers who wait until the last minute? You’re not alone. Unfortunately, procrastination can be costly, especially in retirement when every dollar count. If you wait, you may rush and that may cause you to miss valuable deductions, credits, and other strategies.
The good news is you still have time to prepare. Below are five actions you can take today to get prepared for tax time and possibly save yourself some money. If you haven’t gotten started on your tax planning, now is the time to do so.
Unprepared for retirement
As a married couple, your life is often marked by milestones. There’s the day you met and the day you married. You buy a house and perhaps welcome children. You celebrate anniversaries and birthdays and advances in your careers.
And then there’s the ultimate milestone - retirement. That’s the day you are both able to leave the working world behind and live life on your own terms. You can spend your time however you wish. You can travel, pursue new hobbies, spend time with family, and generally do whatever you wish. Life should be perfect, right.
Retirement is supposed to be a joyous occasion. After all, this is the time when you get to leave the constraints of a busy career behind. You’re free to set your own schedule and spend your time as you wish. There’s no boss to report to. No clients to manage. No big projects to complete. You’re free to do whatever you like.
So why is retirement so difficult for many people? Very often, new retirees realize that this new phase of their life isn’t all they had expected. They miss socializing with their colleagues at work. Without a job, they feel a lack of purpose. They have trouble transitioning to life at home. In fact, a recent study showed that retirees were twice as likely to suffer from depression as those who are still working.1
The government passed a year-end spending bill in December, and it included one piece of legislation that could have a big impact on retirees. It’s called the SECURE Act. The bill’s name is an acronym for Setting Every Community Up for Retirement Enhancement.
The legislation is aimed at helping Americans save more for retirement. While many of the changes will certainly be helpful, they may also require you to revisit your retirement strategy. The SECURE Act affects many different areas, from your 401(k) plan to your IRA to even how you take withdrawals in the later stages of retirement.