July 8, 2016 by Brad Gunning

Common Retirement Mistakes

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Planning for retirementThe USA Today published an article titled Seven Big Mistakes Couples Make in Retirement. While the agents at Montana Life Group likely can’t help with Mistake #1 (couples that never talked to each other about retirement), we certainly can be a useful tool in avoiding Mistakes #3 (couples that didn’t do proper financial planning), #4 (they didn’t plan for emergencies) and #5 (they didn’t consider the costs of health care or long-term care).

Proper Financial Planning for Retirement

Montana Life Group specializes in financial protection, which encompasses a solid retirement plan. Annuities can be a useful piece in the retirement puzzle as they are tax-deferred and generate guaranteed income. Our most popular type of annuity – a multi-year guaranteed annuity, or “MYGA” – is a safe alternative to the stock market, with significantly higher returns than a CD. If you’re interested in learning more about using annuities in retirement our agents can help! Request a custom annuity quote or give us a call at 406-548-3135.

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Planning for Emergencies

You may be collecting a solid paycheck today and using some of your income to create a nice nest egg for retirement. If you suffer an unexpected illness or injury and can no longer work, generating an income may be difficult, if not impossible. But it doesn’t have to be. Planning for emergencies is a vital component to ensuring a financially secure retirement. One way to plan for an emergency is to protect your ability to earn an income by purchasing a disability insurance policy. The best time to buy a disability insurance policy is while you’re still young and healthy. You’ll get the cheapest rates and be able to add useful riders, such as guaranteed renewable and non-cancelable riders.

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Planning For The Costs of Health Care or Long-Term Care

From the USA Today article: [F]ailing to plan for long-term care expenses is a huge mistake couples make. Couples need to consider long-term care insurance, especially the newer hybrid policies that are now being offered as riders to traditional life insurance policies. “Eight out of every 10 couples will have an individual who requires long-term care,” she says.

Long-term care is certainly an expensive aspect of retirement and purchasing a solid long-term care insurance plan can alleviate some of the financial crunch.

It’s also important to remember that Medicare only covers about 80% of health care costs. If you aren’t prepared to pay the extra 20%, it can impact your financial security during retirement. Medicare Supplement insurance, also known as “Medigap“, covers that 20% gap.

For those who can’t afford a Medigap policy, an alternative to Original Medicare and Medigap is Medicare Advantage. Medicare Advantage, also called Medicare Part C, is less expensive, but there are some limitations on the doctors or hospitals you can see with your coverage.

Prescription Drug plans, also known as Medicare Part D, can be purchased to handle the costs of your medical drug prescriptions.

Medicare Supplement quote

 

 

No Cost and No-Obligation Insurance Quotes

If you’re interested in a any of the above types of insurance, we can help. Just fill out the form below and we’ll provide you with a free quote.

Summary
Article Name
Common Retirement Mistakes
Description
What are the most common retirement mistakes and how can we help you avoid them?
Author
Publisher Name
Montana Life Group
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