Avoiding Serious Money Mistakes During Retirement

By | 06/26/2018

Are you getting ready to retire? If so, hopefully you’ve been saving throughout the years so that you can comfortably retire and enjoy your time spent off work. But, unfortunately, there are always unwelcome things that pop up from time to time that prove to be unavoidable. Some of these things can significantly impact your retirement and put you at risk for financial disaster. Here are few things that may pop up and what you can do today to possibly avoid the fallout down the road.

Facing Disability

As much as you try to stay in shape when you’re younger and visit the doctor on a regular basis, a health crisis can still strike. Heart attack, stroke or cancer can not only turn your world upside down at the moment, they can cause long-term damage that can leave you disabled or with limited mobility. If you’re challenged with a limited mobility, or your spouse is affected by cancer or a serious disease, it can make getting around hard. Avoid costly nursing home care by making your home more handicap accessible. Install a wheelchair ramp in your home so that you and others can easily get in and out safely and securely. Using lift chairs can also help with getting out of the seated position more easily. Some models even allow you to comfortably sleep in the chair, because the chair reclines back to a completely flat position. Save money by calling your health insurance company to see if they will pay a portion or all of an assistive device or accessory.

Sudden Financial Emergency

No one can totally prepare for a financial emergency. Hopefully, you’ve saved enough money over the years for such an event. But catastrophic emergencies can occur at any time and require more funds than what you’ve saved or what you’re able to quickly access. In this event, you’ll need to get your hands on some fast cash. You can go to your bank and ask for a personal loan, but in many cases it might not be enough. One option would be to remortgage your home. This will utilize the equity in your home to get a hold of some fast cash. The downfall is that you’ll have to pay back the loan, although the interest rate should be reasonable, making the monthly obligation affordable. On a positive note, you’ll have access to cash and be able to take care of your business. Another option is a reverse mortgage. The benefit is you’ll have the equity from your home in cash and deposited in your bank to spend however you like, the con is that you’ll no longer own your home—the bank will. When you pass away, your home will go to the bank and won’t be an asset to give to your heirs.

Ongoing Health Crisis 

If you’ve been diagnosed with a serious disease such as cancer, chances are you’ll have a long road of treatment and recovery ahead of you. In many cases no amount of money in the bank can help provide a secure enough cushion to avoid financial strain. That’s why it’s important to have multiple insurance policies to protect your assets during a health crisis. Chemotherapy drugs aren’t always covered under Medicare, therefore, a secondary insurance is important to help pick up the out of pocket costs and divert premiums. Some secondary medical insurance policies or health care savings accounts can help make it easier to deal with out-of-pocket expenses and assist with mileage and prescription costs. This can help you avoid a drained bank account. Now, not later, is the best time to meet with your insurance agent to go over your policy and get the best ongoing coverage for retirement.

Protection from Scams

Just about everyone knows about the different types of scams floating around out there at the moment. With everything from IRS phone scams to fake letters from your bank asking to verify information, con artists are getting more creative with their tricks and especially love to target the vulnerable population—the elderly. You may be getting scammed for thousands of dollars and not even know it till it’s too late. This is when you may wish to seek a cash advance or personal loans. Accessing quick funds can keep you financially afloat until your bank resolves the theft issue. In addition, talk to your bank about signing up for fraud protection, so you’re notified if anything suspicious occurs within your account.

Staying financially secure during retirement doesn’t need to be complicated. If you don’t have things on track, reach out for help. Speak with your bank, financial advisor and insurance agent for sound advice related to your specific situation.

Author: Liquid Independence

Editor in Chief at Freedom 35 Blog.

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