Wealth plays an important role in living out a long and healthy lifestyle. Local financial expert Roger Cowen from Cowen Tax Advisory Group explains how to set up a financial strategy that can help to protect both your health and wealth moving towards retirement.
How is our health tied to our wealth?
A recent study shows having wealth and suddenly losing it can be hazardous to your health. Researchers found people who lost at least 75% of their wealth in a short period of time had a 50% increased risk of death within the next two decades.
A sudden loss of wealth can have a significant impact on a person’s physical health because of stress-related illnesses, and also on a person’s mental health with an increased risk for anxiety, depression or substance abuse.
How do we help protect our wealth?
If you are nearing retirement, your financial strategy should reflect this stage in life.
Depending on your comfort level, your strategies can be riskier when you’re in your 20s and 30s. This is the time in your life you are trying to accumulate and grow your wealth. When you are in your 50s and 60s, the focus should be on preserving your wealth.
It’s best to talk to your financial professional to make sure your retirement strategy has the proper risk and diversification for your age.
Avoid Emotional Decisions
Fear and greed can be the driving forces behind many financial decisions.
Proper planning can help you stay the course knowing that each financial strategy has a purpose to help you reach your long term retirement goals.
Why is it so important we protect our health in retirement?
Healthcare will likely be one of your biggest expenses in retirement. If we can stay healthy, we can help keep more money in our pockets.
Strategize Social Security
Age 62 is the earliest you can claim Social Security, and it’s also the most popular age to do so.
However, if you take Social Security before you hit full retirement age (which is 66 or 67 depending on the year you were born), your benefit is permanently reduced.
If baby boomers can hold off to claim, their monthly benefit will increase by 8% each year up until age 70.
You can check out the Social Security calculator on my website, cowentaxgroup.com
Consider Long-Term Care Insurance
The life expectancy for both men and women has increased more than 10% since 2000.
Living longer will cost us more. Studies show most Americans turning age 65 will need some form of long-term care in their life.
It’s important you discuss your wishes with your spouse and family members now. Sit down with your financial professional to determine if long-term care insurance is right for you.