10 Tips for Retirement Savings


1

Purchase Long-Term Care Insurance

Sure, she's smiling. She has long-term care insurance.
Sure, she's smiling. She has long-term care insurance.
©­iStockphoto/­Annett Vauteck

It's a pretty depressing thought, sure, but we're all going to die one day. Unfortunately, none of us can say how and when we'll die. That's why it's a good idea to purchase long-term care insurance. This specialized form of insurance covers the cost of health care that extends long beyond a typical hospital stay.

On the surface, buying long-term care insurance doesn't seem to have much to do with saving for retirement. Remember, however, that smart saving also involves spending at times. With long-term care insurance, you're actually buying a policy that protects your retirement savings. Having to spend your nest egg on long-term care -- which can easily reach into the tens and even hundreds of thousands of dollars, depending on the quality and length of the care -- is not what you've been saving up for throughout your career.

Related HowStuffWorks Articles

More Great Links

Sources

  • Appleby, Denise. "Retirement savings tips for 25- to 34-year-olds." Investopedia. (Accessed March 17, 2009.)http://www.investopedia.com/articles/younginvestors/06/tips25to34.asp
  • Appleby, Denise. "Retirement savings tips for 65-year-olds and over." Investopedia. (Accessed March 9, 2009.)http://www.investopedia.com/articles/retirement/07/tips65plus.asp
  • Chatzky, Jean. "Jean Chatzky's top 10 retirement tips." MSNBC. June 21, 2005. (Accessed March 9, 2009.)http://www.msnbc.msn.com/id/8111372/
  • Coombes, Andrea. "With lower tax bill, favorable new rules, time to consider a Roth." Fox News. March 9, 2009. (Accessed March 9, 2009.)http://www.foxbusiness.com/story/markets/industries/lower-tax-bill-favorable-new-rules-time-consider-roth/
  • Lewis, Michael. "How banking fees corrupt Wall Street." Bloomberg. April 18, 2002. (Accessed March 9, 2009.)http://rogueeconomistrants.blogspot.com/2008/09/michael-lewis-on-banking-fees.html
  • "Good ways to get started cutting back." Federal Deposit Insurance Corporation. Winter 2008/2009.http://www.fdic.gov/consumers/consumer/news/cnwin0809/cuttingback.html
  • "Savings fitness: a guide to your money you're your financial future." U.S. Department of Labor. (March 9, 2009)http://www.dol.gov/ebsa/pdf/savingsfitness.pdf
  • "Top 10 ways to prepare for retirement." U.S. Department of Labor. (March 9, 2009) http://www.dol.gov/ebsa/Publications/10_ways_to_prepare.html
  • "Understanding and comparing 401(k) fees." NADART. (March 16, 2009) http://www.nadart.org/Portals/0/Library/PDFs/401kfees.pdf

UP NEXT

5 Reasons You Might Need to Visit the Social Security Office

5 Reasons You Might Need to Visit the Social Security Office

HowStuffWorks explains why you might need to go to the Social Security office. Newborn needs SS number, replacement card needed, etc.