Question: What part of retirement planning is most often overlooked?
Answer: Preparing for health care cost. Today investors are faced with lower returns and volatile markets that require pre retirees to save more and wait longer for investment strategies to mature. One strategy for long term investors to feel more secure in heightened periods of volatile markets is to have higher than normal amounts of cash. This allows them to feel more comfortable while their strategy matures. However in an investment climate with record low interest rates; earning reasonable returns on savings and money markets seems futile. When asked, many clients will express that their excess cash is for a rainy day or unexpected health care cost. One solution is to consider a permanent life insurance policy with high early cash value and long term care riders. This policy is not an investment even though it may earn a competitive return that is tax-deferred. These policies have most of your premiums available in the first policy year while earning a competitive return, providing long term care health coverage and a death benefit. Like I said it is not an investment, however it is very prudent cash and risk management that will leverage your dollar for likely needs of health care cost, tax deferred building of cash and an income tax free death benefit. For a review or other more advanced strategies in wealth management please do not hesitate to call us at 910-228-8995.
Scott A. Winslow, ChFC is an investment advisor representative with over 20 years’ experience having practiced in Wilmington area since 2001. His practice focuses on retirement income planning, tax management, and advanced wealth management techniques.
Scott A. Winslow, ChFC
Nabell Winslow Investments
Securities and advisory services offered through Cetera Advisors LLC, member FINRA, SIPC.
Cetera is under separate ownership from any other named entity. The information in this article is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult your legal or tax professional for specific information regarding your individual situation.