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| Stability Over Stress: Building A Retirement Plan For Uncertain Times |
If the latest economic headlines have you thinking, "Well, that’s not comforting," you’re not alone. Volatility can rattle even the most confident investors. The good news? You can take control.
On a special episode of the HerMoney Podcast, sponsored by LIMRA, retirement experts Jason Fichtner and David Blanchett shared how to navigate the noise.
First, don’t panic. According to Blanchett, people tend to react more strongly to turbulence as retirement nears. "It’s very behavioral — it’s this idea that you only get one shot at retirement and the implications of a market drop just before you retire are really significant," he says.
Second, build – and stress test – a comprehensive income plan.
"Go over your monthly expenses and match them up with your retirement income," suggests Fichtner. "Can you still cover your expenses? Can you still cover your expenses if inflation goes up 10%? Run those types of scenarios and see how you fare."
Start with free online tools or work with a financial professional. Just don’t rush it.
"It’s like buying a car," says Fichtner. "Test drive [potential solutions] before you buy. Realize that a lot of professionals will meet with you and either give you a free consultation, or you can do a one-hour session for a small fee. That’s a good place to start."
More from our friends at LIMRA:
👉 Navigating your way through retirement can be challenging. Here’s what you should know about fees and commissions if you’re working with a professional.
👉 There’s a lot of conflicting information online about annuities — and not all of it is accurate. Here’s a clear look at what’s actually true so you can make informed retirement decisions. |
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| This Week In Your Wallet |
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Ever wondered if you have too much (or not enough) invested in stocks? There’s a new formula for that. It’s the brainchild of Yale finance professor James Choi, and it factors in your income, savings, age and risk tolerance. In many cases, the formula recommends a more stock-heavy portfolio than old-school rules like 60/40 or "100 minus your age." "The formula’s central insight is that the future paychecks and retirement benefits that someone has yet to receive in their life are, when taken as a whole, like a bond because fluctuations in earnings aren’t strongly correlated with stock-market returns," The Wall Street Journal reports. As your wealth grows, the model suggests less stock exposure. For example, a middle-aged couple with $800,000 to invest might dial back equities, since taking more risk would affect a larger share of their total lifetime resources. As Choi puts it, "It’s more conservative when you have more money saved up." Want to test drive the formula? Here’s a tool that lets you plug in your own numbers.
Medical bills are quietly chipping away at retirees’ financial security. Between premiums, copays and services Medicare doesn’t cover, out-of-pocket costs now consume about one-third of the average retiree’s Social Security benefit and nearly a quarter of total retirement income, according to a new report from the Center for Retirement at Boston College. "Retirees get this because they’re writing the checks now, but those nearing retirement need to realize that this is coming up," Matthew Rutledge, an economist and the report’s author, tells Yahoo Finance. "It's a rude awakening for people once they get to retirement." As Yahoo Finance’s Kerry Hannon reports, there are things you can do to keep costs at bay – including working longer, building up your HSA and waiting to claim Social Security.
And speaking of health, as we close out February – aka Heart Health Month – we’re sharing 7 smart ways to invest in your own heart health. As experts explain, everything counts – what you eat, how often you move, how you manage stress, etc. The stronger your heart, the more birthdays you’ll typically celebrate (and the fewer medical bills you’ll likely face along the way). One of the simplest expert tips? Invest in things that keep you moving. "This can be comfortable shoes to wear around the block or tickets for you and your family to backpack through all the greatest museums on a long summer trip," says Dr. BreAnna Guan. "The more time we spend moving, being active outdoors and enjoying experiences with our friends and family, the better we’ll feel." |
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| Do You Need an Advisor — Or Just Some Advice? |
When it comes to your money, the hardest question isn’t always what to do — it’s whether you need professional help to do it. Maybe you’re saving and investing but still lying awake wondering if you’re missing something… maybe you’re rebuilding after divorce or juggling kids and retirement at the same time… Or maybe you’ve saved well, but market swings suddenly feel a lot scarier now that retirement is close.
In a special Mailbag segment for this week’s HerMoney podcast, Jean sits down with Willow founder & CEO Lacy Garcia (starting at the 29:45 mark!) to talk through when it truly makes sense to hire a financial advisor, when a one-time plan might be enough, and how to know if you’re overthinking it altogether. It’s a conversation you don’t want to miss! (And to learn more about HerMoney’s partnership with Willow or to connect with an advisor, explore here!) |
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| Things That Save You Money |
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| Ask Jean |
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| Q: |
Today’s question comes from Paula. She writes: I’m considering pet insurance for my two dogs. Does it just cover emergencies, or things like regular checkups? |
| A: |
As a pet parent myself, I am a big fan of pet insurance for my dog, Norman – but I also know how confusing it can be to shop for a policy. The pet insurance landscape is crowded, with hundreds of different plans.
As you shop, think about what kind of coverage matters most.
"The plan that’s chosen determines what the insurance covers," explains Dr. Katie Krebs, DVM, DABVP. "There are multiple levels of coverage—some include only emergency and sick visits, some include wellness care and routine dental maintenance, and some even include costs of boarding a pet if their human is traveling."
Dr. Sabrina Kong, DVM, adds that most plans "are referred to as basic, enhanced, and premium." Some focus on accidents or illnesses, while others are geared more toward routine checkups.
One crucial detail Kong highlights: "Most commonly, pet insurance providers don’t cover pre-existing conditions in pets."
Coverage can vary widely, so read the fine print to find the plan that works best for you and your pets. Oh, and btw, since you have two dogs, many providers will offer multi-pet discounts – don’t forget to ask about them! |
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| Submit your questions to Jean here. |
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