Feeding off investments

Most people in their 60s are making the transition from planning for retirement to living in retirement. To make sure you’re on track, here’s some advice:

Find Balance in your Portfolio

Seek investments that will provide income, such as corporate bonds or annuities. Also, if you haven’t already done so, get a financial planner who can tell you when you must take withdrawals and how to best manage your money.

And, make sure your retirement savings aren’t sitting in one investment vehicle. "They should do their best to assess the long-term economic viability of their retirement system, which provides current and future income, as well as medical and life insurance benefits," says one analyst.

Protect Yourself for

the Long Term

Statistics show people are living longer.

The closer you get to retirement, the more likely you will need additional insurance coverage. With that in mind, remember to:

• Review your

medical coverage.

Consider purchasing supplemental medical coverage to protect against gaps such as increased deductibles, higher out-of-pocket costs, and elimination of coverage.

• Purchase long-term

care insurance policies.

Compare the costs of long-term care insurance premiums versus the possibility of depleting assets to pay for such care. If you’re retired, you can use the premiums previously reserved for life insurance to cover long-term care insurance premiums. Ensure that policies cover the range of possible living arrangements, such as in-home health care, assisted living facilities, and nursing homes.

• Review your life insurance. Things would have changed from the 30s right through till now. You now need to put your finances in perspective to deal with changing realities.

*Establish a Contingency Plan

Only one in five retirees or pre-retirees has a written plan for managing income, expenses, and assets during retirement, research shows. If you don’t have an emergency fund with three to six months of living expenses, you could be headed for trouble.

Since many retirees live on a fixed income, it’s also important to create a budget to help decrease discretionary spending.

Any resulting savings should go into a diversified investment account. Those dependent on one income should also think about what life would be like if a spouse were to die.

Develop an Estate Plan

As you reach your twilight years, meeting with a qualified attorney to develop an estate plan is a priority. First on the list is updating your wills to ensure they reflect your current wishes.

Second, durable powers of attorney and health care proxies should be prepared to provide instructions for how you want your affairs and health care treatment handled in the event of your physical or mental incapacity.

Third, determine your interest in legacy planning for your children and future generations.