Having just been told that our pension health benefits are being terminated at the end of the year, I found this article in USA Today quite nauseating... ......Larry Rosenthal, president of Rosenthal Wealth Management Group in Northern Virginia, agrees that retirees can better prepare if they have the cash reserves and have a line item in their financial plan. Corporations are still trying to do more with less, and wherever they can cut, they cut, he says. People can try to get prepared for something like this. He says people have to budget rising health care costs or unanticipated future costs of health care. You take a couple thats 70 years old, he says. All of a sudden they get a letter saying their expenses are going up $5,000 a year. That could blow a hole in somebodys budget. Theres really no solution after the fact, he says, other than youve got to make spending choices. Now, instead of three vacations a year, take two. Go out to dinner get one entrée instead of two. Thats why its important to run a financial plan from a cash-flow perspective — to make sure you plan for the unexpected. Added Anspach: For retirees who find themselves in a situation with unexpected bills, one option is to take a look around the house for valuables that can be sold. Many people have gold jewelry that is rarely worn, or perhaps collectibles or antiques that have value. For those who are still planning, we advise they head into retirement with an emergency fund — money that was not considered available for retirement income in their plan, Anspach says. This emergency fund is there to be used for sudden unexpected expenses. Jacobsen said it bothers her that companies are getting away with withdrawing health benefits and pensions, especially the companies that are doing well financially. Im not sad, Im mad, says Jacobsen. You cant work 30,40, 50 years and then have the rug pulled out from under you. They dare doing it because the court system is letting them do it.
Posted on: Sun, 09 Nov 2014 18:44:24 +0000
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