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Article Title:
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Protection of Your Hard-Earned Retirement

Article Description:
====================

Many articles discuss debt, what it is, how to get out and stay
out, how to learn to spend cash instead of using credit cards and
how to give up the bad debt habits developed over a lifetime.
More articles discuss your retirement accounts, what the mutual
funds really look like internally, how to choose investments
based on your tolerance for risk and different strategies for
investing in today's economy. What is only lightly touched on is
protection of your lifestyle today and in Retirement, which is
what you will discover in this article...


Additional Article Information:
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872 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2009-07-07 13:36:00

Written By:     Irene A. Majchrzak
Copyright:      2009
Contact Email:  mailto:[email protected]


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Protection of Your Hard-Earned Retirement
Copyright (c) 2009 Irene A. Majchrzak
Debt Free To Retire
http://debtfreetoretire.com/



Many articles discuss debt, what it is, how to get out and stay
out, how to learn to spend cash instead of using credit cards and
how to give up the bad debt habits developed over a lifetime.
More articles discuss your retirement accounts, what the mutual
funds really look like internally, how to choose investments
based on your tolerance for risk and different strategies for
investing in today's economy.

What is only lightly touched on is protection of your lifestyle
today and in Retirement. In the recent past, one year ago, I
would have recommended today's protection begin with a cash
reserve of 3-6 months of cash to carry your debts of mortgage,
taxes, utility bills, food, and gas for your car. Added up this
amount may total $10,000. The economy may be coming back or it
may be a bubble that could burst into a new down market or bear
market therefore, saving in a cash reserve today doubles the
amount of money you need to protect your lifestyle for 6-9
months.

Obviously, if you don't have a cash reserve trying to get
thousands of dollars into a cash reserve fund may be really
difficult. In financial planning programs, I usually encourage my
clients to consider 60 months of saving to come up with the
money. Does not having the time to save mean you should not start
to save? Absolutely not! Primarily, because you may not lose your
job or have emergency expenses that will drain your savings.

You need to start somewhere to protect your lifestyle. So while
you are paying down any credit card debt try to save some money
in a bank account. Increase the savings as your debt decreases
always keeping in mind that purchases must be managed as well to
keep from being overburdened again, with debt. If necessary save
some money into another account for those items you feel are
essential to buy.

This is also a good time to review your life insurance or
disability insurance available through your employer. You are
probably aware of your health insurance benefits and may not have
decided to take advantage of the insurance opportunities that are
yours for very little money through your employer. Talk to your
Human Resources department or your benefit manager to find out
what your costs are, what coverage you will have and the
possibility of covering your spouse and children. Protection of
your lifestyle depends on making sure you will not go into debt
through the use of credit cards to manage your bills while you
are unable to work.

If you are retired or soon to be retired, you may want to
evaluate your benefit package to see how it is impacted once you
are retired. Start with your health insurance. Medicare does not
become available until you are 65. You will need to have coverage
until then. Check with your employer based program. Understand
the benefits and consider changing your health benefits to two
single plans instead of a family plan as long as there are no
dependents. College-age students may benefit from their School
Health Plan and save you money as well.

Once you quit working disability benefits, through your employer,
may not be necessary. Private plans may give you coverage until
age 65. If you are considering working a part-time job,
consulting, etc. you may want to call your agent and discuss
continuing your plan. Understand exactly what your coverage will
be, when it will start, how much you will receive and the taxable
nature of your coverage.

For all of you looking to protect your lifestyle in retirement
reviewing your life insurance and discussing long-term care
insurance with an advisor would be very beneficial. Make sure any
term life insurance held by your employer will still be a benefit
for you after retirement. It usually decreases and becomes a
nominal amount of coverage. Know it ahead of time. Make sure the
amount will cover any existing debt, mortgage included.

Long Term Care is nursing home coverage. Do not confuse this with
the health care benefit of coverage for acute illnesses, often
found in many health insurance benefits. Few companies include
this new benefit for their employees, You will need to purchase
these plans, privately. Many people feel that the expense for
nursing home coverage is way too expensive. Unless you are on
Medicaid, you could lose your home, your social security
benefits, your pension and your income from annuities and
retirement funds without Long Term Care Coverage. Protection of
your lifestyle for yourself and your family are most important.

There are Long Term Care benefits available through many agents
and insurance companies. The New York State Partnership is one
plan to consider because it initially, covers your admission to
nursing homes, assisted living programs and many begin with home
care coverage. The most important part of these plans is to make
sure that the decisions for coverage begin with your doctor and
not with the insurance company or their case managers. Nursing
home costs today in our area average about $60-75,000 per year.
Policies covering these costs usually include a 5% cost of living
increase to keep pace with the growing inflationary costs of
coverage. 




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Irene A. Majchrzak helps people retire debt-free with a sense 
of well-being and the freedom to have the things they want.
Get her free ebook, Debt Free to Retire, by going to 
http://debtfreetoretire.com


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