Posted: February 20, 2018

After 55, Double-Check Your Preparations for Retirement

When you enter your mid-fifties, your retirement plan enters its countdown phase. This is the time to examine key aspects of your retirement strategy.

As you near retirement age, you want to evaluate your risk exposure. If a market downturn leads to a couple of years of investment losses starting when you are 60, your portfolio may have only a few years (or less) to recover by the time you retire. It may be time to shift from your longtime investment approach to another. This is also the ideal time to crunch numbers with the help of a financial professional and determine how much you have saved, how much income you think you will need once retired, and how much income may be produced from those savings, Social Security, and optional part-time work. A projection of your income tax rate is also vital. Lastly, while you may not be able to enter retirement debt-free, you want to pay off as many high-interest debts as you can, or at least transfer balances on high-interest credit accounts to accounts with smaller interest charges. Recent Federal Reserve data shows that households headed by those aged 55-64 have average total debt of about $131,900.1

Should You Look at a Life Plan Community?

Affluent couples and individuals do not always have a chance to “age in place” near family caregivers and convenient medical services. Life plan communities have emerged to respond to that reality. About 2,000 of these developments can be found in North America, designed to help seniors age nicely in a resort-style environment.

Many retirees live independently in these communities, yet they can also opt for assisted living or memory care if needed without having to move away to a nursing home or other facility. Retirees either rent or buy into these developments, which are not cheap; the enrollment fee averages about $250,000, and some health care and wellness amenities offered may be outside the basic contract and cost extra. Long term care assistance varies among these communities; many prefer out-of-pocket payment for services rather than Medicare or Medicaid. Still, wealthy retirees without family near may find much to enjoy in these villages.2


The Financial Industry Regulatory Authority (FINRA) just implemented Rule 2165, giving financial advisors the ability to put disbursements from investment accounts of seniors on hold if the advisor “reasonably believes that financial exploitation of the specified adult has occurred” or will occur.3

Securities sold, advisory services offered through CUNA Brokerage Services, Inc. (CBSI), member FINRA/SIPC, a registered broker/dealer and investment advisor. CBSI is under contract with the financial institution to make securities available to members. Not NCUA/NCUSIF/FDIC insured, May Lose Value, No financial institution guarantee. Not a deposit of any financial institution.

CUNA Brokerage Services, Inc., is a registered broker/dealer in all fifty states of the United States of America.

This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty.

1 - [3/17/17]
2 - [2/3/18]
3 - [2/9/18]
4 - [5/3/17]

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