Retirement preparation is a career-long commitment to providing financial security during your golden years. With patience, perseverance, strategic planning, and solid discipline, you can reach your financial goal and retire with less stress. While all the planning in the universe could not include the unexpected, some commonalities after retirement could distract your retirement savings plan. The dental practice coaches at Bryant Consultants share practical information for protecting your retirement when the unexpected happens.
Illness or Disability
Although thinking of illness or disability can be emotionally unsettling, it is a possibility best planned for ahead of time. When you get sick, incapacitated, or injured, your medical and out-of-pocket expenses can add up quickly without the support of lost wages. Dental industry professionals are highly susceptible to disability because the most common injuries occur to the arms, shoulders, eyes, or hands, which are the most irreplaceable tools needed for a dental career. Our small business consultants recommend putting extra money into your emergency fund to offset a higher disability insurance premium in the future instead of purchasing additional disability insurance. Creating an emergency fund worth six months of expenses to cover bills can help pick up where disability insurance is lacking and is a viable retirement plan if needed.
Divorce
Most married couples do not plan for a divorce. However, understanding the impact a divorce can have on your financial future is critical. Marriage is a contractual agreement voided upon granting a divorce in a court of law. Once divorced, the accumulated assets from the marriage get divided, which can sometimes increase monthly expenses with two house notes and monthly utility bills like water, electricity, gas, internet, etc. Unfortunately, the dental office consultants warn that the retirement nest egg you built together will likely be split as well. Therefore, before final proceedings for your divorce, speak with a financial advisor to reset your financial plan.
Caring for Aging Parents or Family Member
Caring for your aging parents or a disabled family member can cause financial and emotional exhaustion. Parents or family members requiring consistent care may need to enter a retirement home, which can appear to be an unsustainable expense. Without understanding your parent’s financial situation and plans, you could feel compelled to offset retirement home costs with your savings. Therefore, the small business consultants recommend creating a new budget with the latest figures re-allocating monthly expenses. Then, to protect your retirement, use the benefits and monies from your parent’s retirement accounts until empty, including paying the costs Medicaid does not cover.
Children’s College Tuition
Each year the cost of a college education grows, and it can be disheartening not to have enough for your child’s education. Parents often fund a 529 Plan designed for college savings but often find that their contributions are not enough, prompting the use of your retirement fund to make up the difference. Some parents turn to student loans to invest in their child’s future with a low interest rate and payment deferral until after graduation. Others may choose to get a bank loan with their child’s name for the difference to establish credit and teach financial responsibility. However you decide to cover the expenses, the dental practice consultants advise clients to conduct thorough research and speak with a financial planner before finalizing paperwork on your loan.
It can be hard to go through unexpected moments of life after retirement. But, with some forethought and planning, the unexpected may not bring as many challenges. If you would like to learn more or schedule a complimentary one-hour consultation, please contact Bryant Consultants by calling (877) 768-4799. We provide consultation, training, and coaching and will continue to post relevant updates regarding the coronavirus pandemic. To ensure that you receive the latest updates, please follow us on Facebook and Instagram.
