NuVision FCU January 2016
Clearing Financial Hurdles on the Road to Retirement

When friends and loved ones finally raise their glasses to bid you a long and healthy retirement, you do not want to be worrying about how your bills will get paid. That is why it is so important to participate in your company's retirement plan now.

On the road to retirement, however, other financial challenges are likely to crop up -- such as medical or financial emergencies or care of a loved one -- which might tempt you to lower your plan contributions or stop them entirely to free up necessary cash. But doing so could be a costly mistake.

Here are a few steps you can take now to help overcome these hurdles as they arise and make sure that your retirement savings strategy continues uninterrupted.

1. Maintain an Emergency Account

Financial planners often offer the following rule of thumb: Have three to six months' worth of living expenses set aside in a bank savings account to cover emergencies. An emergency account can help you in case of job loss, and it also can help you pay for unexpected household needs such as a new hot water heater or car radiator.

2. Plan Your Long-Term Care Strategy

Healthy, active, and independent -- these are adjectives you might use to describe yourself and your family members. But someday you may need to depend on someone else for care, or someone may unexpectedly need to depend on you.

Medicare offers limited coverage in such cases, and state-provided Medicaid kicks in only if you meet certain asset and income requirements, which vary by state. People who qualify for Medicaid generally live near the poverty level.

One way to protect your assets during a health-related crisis is by purchasing long-term care insurance, which covers costs typically not paid by Medicare, such as nursing home care. The policies can be a bit pricey, but in the long run, they may prove worth the expense. A trusted insurance agent can help you investigate long-term care insurance options.

3. Check Life and Disability Insurance Coverage

It is smart to regularly check that you have enough insurance coverage. Your life and disability coverage generally should replace enough of your income so that your family's current and future needs are met -- including everyday living expenses, short- and long-term debts, education for your children, and retirement for your spouse.

4. Develop a Budget That Meets All Needs

Last but not least, develop a budget that will meet your needs, including insurance and emergency savings. Start by tracking your spending for one month to see where the money goes. Then develop a written budget of necessary expenses, which should include debt obligations, mortgage or rent, utilities, insurance, and personal savings. Live on a set allowance each week to make sure you do not spend more than you can afford.

By following these four simple strategies, you may be able to overcome most financial challenges that lie ahead. Most important, these strategies will help you keep your commitment to saving for retirement.

Because of the possibility of human or mechanical error by Wealth Management Systems Inc. or its sources, neither Wealth Management Systems Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Wealth Management Systems Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

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Dwight Lee, Craig Fein, and Boris Castillo are LPL Financial Consultants located at NuVision Federal Credit Union. If you have any questions or would like to make an appointment, please call Dwight Lee at 714.375.8227, Craig Fein at 714.375.8222 or Boris Castillo at 323.859.5563.

© 2015 Wealth Management Systems Inc. All rights reserved.

Source/Disclaimer:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.

Because of the possibility of human or mechanical error by Wealth Management Systems Inc. or its sources, neither Wealth Management Systems Inc. nor its sources guarantees the accuracy, adequacy, completeness or availability of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. In no event shall Wealth Management Systems Inc. be liable for any indirect, special or consequential damages in connection with subscriber's or others' use of the content.

Representatives are not tax advisors or legal experts. For information regarding specific tax situations, please contact a tax professional. For legal advice, consult an attorney. Securities offered through LPL Financial, Member FINRA/SIPC. Insurance products offered through Kinecta Financial & Insurance Services, a subsidiary of Kinecta Federal Credit Union. CA Insurance License #0E24631. Insurance and investment products: 1) are not NCUSIF insured; 2) are not obligations of or guaranteed by the credit union or any affiliated entities; 3) involve investment risk, including possible loss of value. Kinecta Financial & Insurance Services and Kinecta Federal Credit Union are not affiliated with LPL Financial. Some insurance products available to California residents only.





Introducing our LPL Financial Consultants!



Craig Fein
LPL Financial Consultant
CA Insurance License #0E56240
714.375.8222
craig.fein@lpl.com



Dwight Lee
LPL Financial Consultant
CA Insurance License #0C08317
714.375.8227
dwight.lee@lpl.com



Boris Castillo
LPL Financial Consultant
CA Insurance License #0C97046
323.859.5563
boris.castillo@lpl.com

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NuVision Federal Credit Union
7812 Edinger Avenue
Huntington Beach, CA 92647

800.444.6327
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