Most people don’t think about living off of retirement income for 20 to 30 years after that last day of work, however it is a reality. More people are living into their eighties and nineties. Now is the time to start preparing for retirement with the help of a financial advisor.
Common retirement planning topics you should consider as you are working with an advisor include estate planning, long-term care planning, health care, and medical expenses. With more Americans living 17 to 20 years past retirement age, approximately 65 percent of seniors will require long-term care at some point. It is suggested by the United States Department of Labor to plan for your retirement income to last 30 years to avoid running out of funds.
A retirement planner can help you navigate the pitfalls of Social Security and retiring too early or too late. Although you can retire at age 62, if you do you will receive a lower monthly benefit than if you waited until the full retirement age of 66 (if you were born between 1943 and 1954). If you wait until age 70 ½ to withdraw, you risk paying tax penalties averaging 50 percent. You can receive Social Security benefits and work at the same time, however if you are younger than 66 years old and make more than the yearly limit, your monthly benefit may be reduced. As of 2016, the yearly limit is $15,720.
Your friends and family may be able to provide you with referrals for retirement planners in the area. You can also check out the ratings and reviews for 22 financial planning firms at the Better Business Bureau (BBB)
You will want to confirm that the planner is a Certified Financial Planner (CFP). You can search the database for free at the CFP Board of Standards for planners specializing in retirement planning, retirement investments, and estate planning. You can narrow your search even further by selecting your investable assets and whether you want to pay based on fee only, commission only, or fee and commission.
The National Association of Personal Financial Advisors (NAPFA) is another resource you can use to find retirement planners in your area. You can use the advanced search feature to find as many as 22 advisors in 17 firms within an 80 mile radius that specialize in retirement and estate planning.
The San Diego County Aging and Independence Services through the Health and Human Services Agency can put you in contact with elder law and advocacy services as well as the Long-Term Care Integration Project, nutrition services, health promotions, and in-home supportive services. You can contact the resource about elder law and advocacy by calling (858)565-1392. If you need to learn more about the long-term care program, call (858)495-5853. You can visit the website and click on other programs and services to find more contact information.
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