Retirement Made Easy # 4

Already Retired?

A neighbor might attend your retirement party, a Good Neighbor helped make your retirement possible.

Thought Starters

How much can I spend in my retirement?
When do I have to start using my retirement savings?
Will my money last?
How will taxes affect my income in retirement?
What do I do with the money sitting in my 401(k)?
What happens if my health changes?

Review all of Your Income Sources
People are living longer so demands on your resources are greater than ever before. To help maximize and protect yours, consider:

Leaving a portion of your investments within a higher risk allocation that is adjusted for a longer timeline.

Placing two to three years of expenses in a liquid account for market downturns. Interest Bearing Savings, Checking, or Money Market accounts are good for this purpose.

Reviewing your asset allocation with your State Farm agent. Using our Client Portfolio Report, your agent will determine your comfort with investment risk. Then, your agent will compare how your assets are invested in stocks, bonds, and cash with a model portfolio based on your risk tolerance.

Annuities, which can help protect you against outliving your income.

Deciding when to take Social Security benefits. At 62, you can begin receiving your Social Security benefits but waiting until your Full Retirement Age will entitle you to your entire retirement benefit. For more information, visit the Social Security Web site.
Any other income sources including pensions, a part-time job or consulting work, income from a rental property, etc.

Make a plan for Distributing Funds
A common mistake is to withdraw too much money in the early years of retirement. Have a sensible plan tailored to your needs and goals:

Use Calculate My Retirement to help you estimate retirement spending.

All the tools to help you create a more detailed analysis can be found at: www.bobbyromander.com

Sign up for Medicare & Prescription Drug Coverage
Generally, you can apply for your Medicare Benefits three months before your 65th birthday. State Farm offers Medicare Supplement plans to cover the gaps where Medicare falls short.
Check into Prescription Drug (Part D) Plans. Your State Farm agent offers options through an alliance with Humana®.
Check into Medicare Part C (Medicare Advantage) Coverage. Your State Farm agent offers option through an alliance with Humana.

Other Things to Consider
Protect Against the Unexpected

Concerned about the high cost of medical services and long-term care arrangements? Long-term care insurance can be the answer.
Stay mentally, socially, and physically fit. Choose the lifestyle that fits you best,if it's getting a part-time job, volunteering for your favorite non-profit, or joining a gym.

Protect Your Family's Future
Life insurance can help provide for your loved ones when you’re no longer there to help. Review your current life insurance policies to determine if they adequately cover your family’s needs.
Set up a will or make sure that your current will is up to date.

Create an estate plan that:

Provides cash payment of estate expenses including federal estate tax.
Provides income to family members after you’re no longer here.
Provides for the disposition of a business at death.
Distributes assets to family members and other heirs with the least amount of loss possible.

An estate plan is an ongoing process that involves the creation, conservation, and distribution of property. Your plan can be as simple as having a will, or it could require the use of life insurance, trusts, business continuation plans, or charitable arrangements.

We can assist you with the first steps of estate planning — analyzing your estate. Talk to your agent today about this service. For more informations visit www.bobbyromander.com