6. Have you both named your beneficiaries?
Many of the places in which you’ve invested your money allow you to designate beneficiaries in case of your death. Naming beneficiaries allows you to pre-determine who will receive the death benefits of your life insurance policy, trust, 401(k), IRA, or employer-sponsored retirement plan.
You can name a living person, a trust, your estate, or any combination of these options. You and your spouse should periodically review and keep all your beneficiary designations up to date, because significant life events, such as a marriage, a divorce, a birth, an adoption, or a death in the family, can significantly change your perspective on who gets what.
7. Do you have life insurance?
A surviving spouse may face financial hardship for many reasons: loss of one Social Security paycheck, the reduction or even in some cases elimination of an employer-sponsored pension or retiree medical benefits, increased expenses at an older age due to disability and poor health. Therefore, you should always consider adding life insurance to your plans.
8. What about extended care?
Health insurance covers a lot, but there are situations that are not covered. At some point, we all may need some sort of extended care. Will your spouse or other family members realistically be able to manage this? It may be difficult (or even impossible) for them if you need help with everyday tasks, such as getting dressed. Find out more about the costs of long-term care services.
9. Are you financially liquid and flexible?
The savings strategy you’ve been following during the accumulation stage may not be the optimal one after retirement. Since you’ll be partly dependent on these assets going forward, it is wise to consider taking a more conservative approach. In addition, consider how you can make those assets a little more liquid and flexible, just in case you need them unexpectedly.
10. Should you retire?
A lot of people are realizing that, even with all the preparing, saving, and investing they’ve done, they may still need to work just a little longer, or start a second career doing something they have always wanted to do.
Once you’ve considered these questions, you may need some help in determining the best course of action. A New York Life financial professional is ready to help you explore options for your insurance and retirement needs and decide what’s best for you and your spouse.