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Road Block To Retirement

  Sanjiv Gupta CPA  Published 
Road Block To Retirement

Have you ever wondered if you may hit a roadblock in your journey to retirement?

I will cover some basic strategies that can help you limit the damage caused by an unexpected event or change of lifestyle.

A Protracted Illness21st Century Major Crisis

Nursing home care is super expensive both in India and the United States.   The nursing home cost can exceed well over $250/day in the US.  In a recent phone call with Kiser, I was told that paying $500/night for stay at the hospital is a great deal. Well – maybe for Kiser, not for me.

If your family has a history of a health problem then you should consider long term care insurance.   At least have a plan in place to deal with such a situation.  You don’t want to end up spending all your retirement savings on nursing homes.

Starting or Selling a Business 

Having a second stream of income during retirement can be very helpful.  Consider buying a business that has a long history of profitable years and has a good management team in place.   A real estate management company and good running restaurants can be great investments.

You want to delay collecting from social security as much as possible.  Consider using income from Roth IRA, investment, and businesses during the early part of your retirement.

Divorce: Don’t even think about it

Divorce can cause all sorts of the problem including major financial issues.  You can do some damage control by purchasing annuity but try to avoid divorce as much as possible.

Taking care of Kids or Grand Kids

Supporting kids and grandkids during retirement can take a big chunk of your savings.  Carefully plan your retirement with your CPA to see how much you can spare to help your kids.  You can also consider buying a life insurance policy or funding a 529 college saving plan for your grandkids.

Volatile Markets 

Retirement is not the right time to invest in volatile markets.  You want to play safe bets but talk to a financial adviser who can find safe bets with good returns.


Thinking about retirement? Here are a few questions you can ask your Financial Advisor?

  • Which income should I draw from first?
  • What other cost should I consider?
  • As I get closer to retirement, how should I adjust my allocation?
  • Which options for covering health care costs make the most sense for my situation?
  • How often should I make changes to the portfolio?