Easy Way to Have Half a Million or More in Tax-Free Benefits in Retirement

How much money do you have in your 401(k), IRAs, and other savings? Will you have enough money to retire so you can actually enjoy your future retirement?

According to a recent Employee Benefit Research Institute survey, the average household retirement savings is about $100,000. However, experts recommend that retirees have about $1 million in savings to maintain their standard of living in retirement.

Achieving $1 million in retirement savings isn't an arbitrary goal, and here's why:

Rising living costs, projected to continue their upward trend, necessitate higher retirement funds for future retirees to cover their expenses. Social Security benefits are insufficient for most people's living costs. The Social Security Administration reports that about 40% of retirees depend on Social Security for more than half of their income. 

Additionally, many retirees must finance long-term health care, like in-home care, assisted living facilities, memory care, or nursing homes. Regardless of your retirement savings, these funds will supplement Social Security to provide your income upon retirement.

Do You Have All Future Expenses Covered?

What if long-term health care is necessary? Funding sources and potential impacts on lifestyle and family must be considered. Health insurance, including Medicare, typically doesn't cover long-term care; except for limited skilled services, the financial responsibility falls on the individual. Medicaid only becomes an option with minimal income and assets.

Self-funding long-term care poses a challenge unless individuals have multimillion-dollar resources. Even then, most wouldn't want to navigate the tax complexities associated with self-funding. Long-term care costs can rapidly drain savings, leading to several issues, including:

• Lowered retirement income: Paying for long-term care reduces assets, which in turn decreases income. This reduced income might necessitate lifestyle changes and complicate maintaining your standard of living in retirement.
• Lifestyle changes: Long-term care often necessitates significant lifestyle adjustments. A spouse might need to maintain their lifestyle despite the care recipient's changing needs. Maintaining a preferred lifestyle remains important regardless of the amount of care you need.
• Impact on spouse and adult children: Long-term care needs can significantly affect your spouse and adult children. These relatives may have to assume caregiving responsibilities, which can be both time-consuming and emotionally taxing. An older spouse or adult child might feel hindered from enjoying their life due to their caregiving duties. They might also need to financially contribute to your care, potentially straining their finances.

An Extra Nest Egg? Can It Be Achieved?

Imagine having an extra $250,000, $500,000, or even more in tax-free funds to cover quality care expenses without altering your lifestyle or imposing on your family. Long-Term Care Insurance can make this possible, and for most individuals, the premiums are reasonably priced.

You can accomplish this goal with Long-Term Care Insurance - How Much Does Long-Term Care Insurance Cost?

Let's say you are age 55 and your spouse is 52. An affordable shared benefits plan could provide you and your spouse with over $500,000 in tax-free benefits for long-term care at age 80 for under $350 a month (depending on the insurance company and health.)

Need a lower premium? Sure, the benefit design can be adjusted to fit your budget and desired benefits. Plus, if you live in a partnership state with a Partnership Long-Term Care Insurance policy, you get additional dollar-for-dollar asset protection.

What is a Partnership Long-Term Care Insurance Policy?

It frees up your savings, giving you enough money to enjoy your "golden years." Since you cannot avoid aging and the consequences of chronic health, frailty, dementia, and mobility problems, LTC Insurance is a perfect partner for your retirement and better than the lottery ticket you thought about buying.

One Million Dollars Nice Goal

That million-dollar nest egg is still an admirable goal; two or three million is even better. However, no matter what level of savings you have achieved, extra tax-free benefits to pay for long-term health care adds peace of mind, access to quality care, maintain lifestyle, and reduce stress and anxiety otherwise placed on loved ones. 

As you embark on your retirement planning journey, consider these crucial steps. Begin by amplifying your contributions to retirement savings accounts. Next, procure an affordable Long-Term Care Insurance policy, ideally in your mid-adulthood. Additionally, contemplate extending your working years. Lastly, think about downsizing your home. 

Consider these additional tips when planning your retirement savings:

1. Commence your savings journey early. The sooner you start, the more your money can compound over time.
2. Utilize employer-sponsored retirement plans. This often comes with matching contributions, effectively translating to free money boosting your retirement fund.
3. Invest your retirement savings astutely. With a plethora of investment options, it's crucial to select those aligning with your age, risk appetite, and financial aspirations.
4. Regularly recalibrate your portfolio. As retirement approaches, your investment strategy should shift towards a more conservative stance.
5. Regularly review and adapt your retirement plan. Ensure you're on track to achieve your goals by routinely monitoring your progress and making necessary adjustments.

Taking a proactive approach, including adding LTC Insurance today, ensures a more secure and enjoyable retirement tomorrow.