FINANCIAL FOCUS: Are you prepared for the unexpected?

Published: Wednesday, December 11, 2013 at 09:58 AM.

Premature death: None of us can predict our longevity. If something happens to you, could your family stay in your home? Could your children still attend college? You need adequate life insurance to protect these goals.

As you approach retirement, and during your retirement years, you may want to focus on these challenges:

Living longer than expected: You probably don’t think that “living longer than expected” is necessarily a bad thing. However, a longer-than-anticipated life span also carries risk of outliving your money. Some investment solutions can provide an income stream that you can’t outlive. Also, be careful about how much you withdraw each year from your various retirement and investment accounts.

Need for long-term care: If you had to stay a few years in a nursing home, the cost could be hundreds of thousands of dollars. These expenses could jeopardize your financial security. You could “self-insure,” but as that would be extremely costly, you may want to “transfer the risk” to an insurance company. A financial professional can help explain your choices.

None of us can foresee the future. But you can at least take positive steps to prepare for the unexpected.

Joe Faulk is a financial adviser.

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