Retirees fear becoming a burden

Long version

It’s human nature to want to make things easier for our loved ones – and to have great concern about adding any stress to their lives. In fact, 72% of retirees say that one of their biggest fears is becoming a burden on their families, according to the Edward Jones/Age Wave Four Pillars of the New Retirement study. How can you address this fear?

First, don’t panic. In all the years leading up to your retirement, there’s a lot you can do to help maintain your financial independence and avoid burdening your grown children or other family members. Consider these suggestions:

  • Increase contributions to your retirement plans and health savings account. The greater your financial resources, the greater your financial independence – and the less likely you would ever burden your family. So, contribute as much as you can afford to your IRA, your 401(k) or similar employer-sponsored retirement plan. At a minimum, put in enough to earn your employer’s matching contributions, if offered, and increase your contributions whenever your salary goes up. You may also want to contribute to a health savings account (HSA), if it’s available.
  • Invest for growth potential. If you start investing early enough, you’ll have a long time horizon, which means you’ll have the opportunity to take advantage of investments that offer growth potential. So, in all your investment vehicles – IRA, 401(k), HSA and whatever other accounts you may have – try to devote a reasonable percentage of your portfolio to growth-oriented investments, such as stocks and stock-based funds. Of course, there are no guarantees and you will undoubtedly see market fluctuations and downturns, but you can help reduce the impact of volatility by holding a diversified portfolio for the long term and periodically rebalancing it to help ensure it is aligned with your risk tolerance and time horizon. Keep in mind, though, that diversification does not ensure a profit or protect against loss in a declining market.
  • Protect yourself from long-term care costs. Even if you invest diligently for decades, your accumulated wealth could be jeopardized, and you could even become somewhat dependent on your family, if you ever need some type of long-term care, such as an extended stay in a nursing home or the services of a home health care aide. The likelihood of your needing such assistance is not insignificant, and the care can be quite expensive. In fact, the median cost for home health services is nearly $55,000 per year, while a private room in a nursing home can exceed $100,000, according to Genworth, an insurance company. To help protect yourself against these steep and rising costs, you may want to contact a financial professional, who can suggest an appropriate strategy, possibly involving various insurance options.
  • Create your estate plans. If you were ever to become incapacitated, you could end up imposing various burdens on your family. To guard against this possibility, you’ll want to ensure your estate plans contain key documents, such as a financial power of attorney and a health care directive.

It’s safe to say that no one ever wants to become a financial burden to their family. But putting appropriate strategies in place can go a long way toward helping avoid this outcome.

Edward Jones is a licensed insurance producer in all states and Washington, D.C., through Edward D. Jones & Co., L.P. and in California, New Mexico and Massachusetts through Edward Jones Insurance Agency of California, L.L.C.; Edward Jones Insurance Agency of New Mexico, L.L.C.; and Edward Jones Insurance Agency of Massachusetts, L.L.C. California Insurance License OC24309

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This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Number of words: 534

Short /radio version

PSA: Retirees fear becoming a burden  

TBA: Dec. 6, 2021

Here’s something to think about: 72% of retirees say that one of their biggest fears is becoming a burden on their families, according to an Edward Jones/Age Wave study. Fortunately, there’s much you can do to avoid this fate.

For starters, contribute as much as you can afford to your health savings account, IRA, 401(k) and other retirement accounts. And devote a reasonable part of your portfolio to investments that offer growth potential.

Another suggestion: Prepare yourself for the possible costs of long-term care, which can be enormous. You may never need to enter a nursing home or use the services of a home health aide, but you won’t want to risk having your family assume these expenses. A financial professional can suggest an appropriate protection strategy.

Finally, make sure your estate plans include key documents, such as a financial power of attorney and a health care directive.

Taking these and other steps can help ease the worries of burdening your loved ones – and that’s a liberating feeling.

This content was provided by Edward Jones for use by (FA’s NAME), your Edward Jones financial advisor at (Branch address or phone #).

​Edward Jones, its employees and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.

Member SIPC

11:60

Words: 168 (excluding FA’s name, address/phone number and disclaimer)