Making Your Money Last Longer

Article submitted by Val Vogel of Burns, Vogel & Associates.
For more information, he can be reached at 504-465-8557.

To enjoy a comfortable retirement we save and save, but wonder, will it be enough?

Three valuable tools for making your money last longer are annuities, long-term care insurance and life insurance. Choosing which are appropriate for you must be evaluated with the help of a competent financial advisor. Not to consider these products at all would be shortsighted, if not disastrous.

Annuities may be "deferred" or "immediate". A lifetime income is available through the immediate annuity with different payment options available. As life expectancy continues to climb, having a supplemental income that we cannot outlive is an advantage worth our careful consideration. It is important to secure a contract from the highest rated financial institutions.

Deferred annuities may be either "fixed" or "variable". A discussion of various companies and their features should begin with the intent of your investment. A good advisor will give you two or three alternatives that match your objectives. Is it primarily for income, for future emergency need, or for your heirs?

Long-term care insurance is another protection for your quality of life. An unexpected illness or injury could cause you or your loved one to need custodial care services. "Be rich, be poor, or be insured." The fact is that while Medicaid helps the poor, and unlimited resources bless others, the majority of us fall in the middle and will have to spend down our savings for decent care. The older we are in securing insurance, the more expensive our premium will be. It is imperative to make this review ASAP!

Finally, life insurance is a tool with great potential. Life insurance is income tax free, and it can avoid estate taxes, where applicable, by the proper use of trusts and beneficiaries. IRA assets and special needs' trusts can be leveraged through this medium. We can also give generously to charities simply by designating them as partial beneficiaries on existing policies.

Review of all legal documents should include the beneficiary designations of life policies, retirement plans and annuities. These should reflect the intent of your Will and any applicable Trusts. Plan now, and make your savings last!