Safemoney Blog

October 15 to December 7: Your Window to Make Changes

Today marks the start of Medicare’s Annual Election Period (AEP)—October 15 through December 7. During this time, beneficiaries can review and adjust health and prescription drug plans for the coming year.

Any changes you make now will go into effect January 1, 2026.

Missing this window could leave you stuck in a plan that’s no longer optimal—or paying higher charges in some cases.

What You Can Do During Open Enrollment

During this period, Medicare beneficiaries can:

• Switch from Original Medicare (Parts A & B) to a Medicare Advantage (Part C) plan (or vice versa)
• Enroll in, switch, or drop a Part D prescription drug plan (if you have Original Medicare)
• Change from one Medicare Advantage plan to another
• Drop Medicare Advantage and return to Original Medicare (noting supplemental coverage implications)

If you don’t take any action, your current coverage will generally automatically renew for 2026—unless your plan is discontinued or significantly changed.

What’s Changing in 2026 You Should Factor In

When comparing plans this year, don’t just look at premiums. Some of the key updates and cost shifts include:

• Higher Part B premiums and deductibles: The standard Part B premium is expected to rise to about $206.50, with the annual deductible increasing to around $288.
• Prescription drug changes: The out-of-pocket cap for Part D will increase to $2,100 (up from $2,000).
• Plan updates in Medicare Advantage and Part D: 2026 regulations affect formularies, prior authorizations, and provider networks.
• Automatic renewals: Many plans will renew automatically unless you opt out or switch.

Because of these shifts, a plan that looked good last year might not be the best fit now.

Final Thoughts

Medicare Open Enrollment begins today. Don’t let this opportunity pass by. With premiums, networks, and coverage details changing for 2026, now is the time to review your options.

Take a few minutes to compare your plan, confirm your doctors and prescriptions, and make any necessary adjustments before December 7. Small actions now can prevent big costs later—and help protect both your health and your financial future.

Sources: Centers for Medicare & Medicaid Services (CMS), National Council on Aging (NCOA), Medicare.gov, Medicare Resources, PAN Foundation, NerdWallet, Investopedia, Kiplinger

Disclaimer: This article is for educational and informational purposes only. It is not medical, legal, or financial advice. Please consult licensed professionals about your specific Medicare, insurance, or retirement situation. SafeMoney.com is not affiliated with or endorsed by any government agency.

The post Medicare Open Enrollment Starts Today: What You Need to Know first appeared on SafeMoney.com.

You’ve Worked Hard for It—Now It’s Time to Protect It

After decades of saving, investing, and preparing for retirement, the last thing you want is for unexpected risks to threaten your financial security. Yet, that’s exactly what happens to many retirees who underestimate how unpredictable retirement can be.

October’s National Financial Planning Awareness Month is the perfect reminder that a strong plan isn’t just about earning more—it’s about protecting what you’ve earned.

Let’s explore the most common risks retirees face and the strategies you can use to safeguard your savings.

The Five Biggest Retirement Risks—and How to Manage Them

1. Market Volatility: The Silent Wealth Killer

Market downturns hurt most when they happen early in retirement—when withdrawals compound losses.

This is called sequence-of-returns risk. For example:
Two retirees with identical portfolios can experience dramatically different outcomes based solely on when a market decline occurs.

Safe Money Strategy:
Protect a portion of your portfolio in vehicles that can’t lose value, such as fixed indexed annuities (FIAs). They offer potential market-linked growth while preserving principal from losses.

2. Longevity Risk: Outliving Your Money

People are living longer than ever—many well into their 80s and 90s. The challenge? Your retirement income needs to last as long as you do.

How to Plan for Longevity:

• Create lifetime income streams through annuities.
• Delay Social Security to maximize your monthly benefit.
• Maintain a portion of growth assets for long-term inflation protection.

Remember: Longevity amplifies every other risk—from inflation to healthcare. Planning early reduces those compounding effects.

3. Healthcare and Long-Term Care Costs

Even with Medicare, healthcare expenses can add up. Fidelity estimates the average couple retiring at 65 will spend over $315,000 on healthcare alone during retirement.

Long-Term Care (LTC) Risk:

A single extended care event can drain savings quickly.

Protection Options:

• Annuities with LTC riders – provide enhanced income if care is needed.
• Hybrid life insurance – combines death benefit and LTC protection.
• Health Savings Accounts (HSAs) – offer tax-free withdrawals for qualified medical expenses.

Planning early locks in lower premiums and ensures coverage when you need it most.

4. Inflation: The Slow Erosion of Buying Power

Even moderate inflation can quietly erode your retirement income over time.

Example:

At 3% inflation, $60,000 today will only buy what $33,000 does in 20 years.

Protection Strategies:

• Use annuities or bond ladders with inflation-adjusted features.
• Keep a portion of assets in growth-oriented investments.
• Adjust your withdrawal strategy every few years to account for rising costs.

5. Taxes: The Overlooked Retirement Expense

Taxes don’t stop at retirement—they just change form. Distributions from IRAs, 401(k)s, and pensions are usually taxable. Without planning, this can reduce your take-home income and trigger higher Medicare premiums.

Tax-Efficient Strategies:

• Consider Roth conversions before RMD age to create future tax-free income.
• Use Qualified Charitable Distributions (QCDs) to reduce taxable income.
• Coordinate withdrawals strategically across taxable, tax-deferred, and tax-free accounts.

A proactive tax strategy can save thousands over your retirement years.

The Role of “Safe Money” in Risk Management

Safe money doesn’t mean no growth—it means no unnecessary risk. By combining guaranteed income sources (like annuities) with flexible, conservative investments, you can reduce volatility while still pursuing growth.

This balance between protection and participation helps keep your income steady, your savings safe, and your confidence high—no matter what happens in the market.

3 Simple Steps to Get Started This Month

1. Review your retirement risks.
   Identify which risks (market, healthcare, taxes, etc.) could most affect your lifestyle.
2. Reallocate strategically.
   Move a portion of assets into protected income solutions to balance growth and safety.
3. Meet with a financial professional.
   Get personalized guidance to ensure your income strategy covers all five major risks.

Final Thoughts

You’ve worked a lifetime to build your retirement. Don’t leave your future vulnerable to risks you can prepare for today.

This Financial Planning Awareness Month, make it your mission to protect what you’ve built—because the best time to safeguard your retirement is before something unexpected happens.

‍ Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of experience helping families navigate retirement and legacy planning, Brent is committed to making financial education simple, clear, and trustworthy.

Disclaimer: This article is for informational and educational purposes only and should not be construed as financial, tax, or legal advice. Consult a licensed professional regarding your specific situation. SafeMoney.com is not affiliated with or endorsed by any government agency.

The post Protect What You’ve Built: Managing Risk in Retirement first appeared on SafeMoney.com.

From Retirement Savings to Reliable Income

You’ve spent decades saving and investing for retirement. But when the paycheck stops, the real question becomes: how do you turn those savings into reliable income for life?

October’s National Financial Planning Awareness Month reminds us that accumulation is only half the journey—the other half is distribution. Without a plan for lifetime income, even a strong nest egg can feel uncertain.

Let’s explore how you can turn your retirement savings into a predictable, stress-free paycheck you can count on.

The Shift From Accumulation to Distribution

During your working years, your focus is simple: save, grow, and invest. But retirement changes everything. The goal shifts from growth to income stability—and that requires different strategies.

A well-designed income plan should:

• • Cover essential expenses (housing, healthcare, insurance)
  • Protect against market downturns
  • Account for inflation and longevity
  • Leave flexibility for lifestyle goals and legacy wishes

Step 1: Identify Your Guaranteed Income Sources

Start by listing your reliable, predictable income streams. These typically include:

• Social Security benefits
• Pension income
• Annuity payments

If those don’t cover all your expenses, you have an income gap—and that’s where other strategies come in.

Step 2: Add Predictable Income with Annuities

Annuities are one of the most effective ways to create a personal pension. They transform a portion of your savings into guaranteed lifetime income—no matter how long you live.

Types of annuities to consider:

Why it matters: Unlike investments, annuities guarantee income for life—even if markets drop or you live past 100.

Step 3: Optimize Social Security Timing

When to claim Social Security is one of the biggest financial decisions you’ll make. Taking it early (age 62) locks in a smaller benefit, while waiting until age 70 can increase payments by up to 8% per year.

Example: A retiree eligible for $2,000/month at 62 could receive nearly $2,600/month at 67—or $3,200/month at 70.

Waiting might not always be best, but making an informed decision based on life expectancy, spousal benefits, and income needs is crucial.

Step 4: Use the “Bucket Strategy” for Flexibility

Not all your income has to be guaranteed. A bucket strategy divides your assets into time horizons:

• Short-term (0–5 years): Cash and stable funds for immediate expenses
• Mid-term (5–10 years): Fixed indexed annuities or conservative investments
• Long-term (10+ years): Growth-oriented investments for inflation protection

This approach balances security and growth while ensuring you never have to sell assets during a downturn.

Step 5: Protect Against Inflation and Longevity

Inflation silently erodes purchasing power over time. Even a modest 3% inflation rate can cut your buying power in half over 25 years.

Solutions to consider:

• Annuities with cost-of-living adjustments
• Hybrid life insurance with long-term care riders
• Tax-efficient withdrawals from Roth accounts

Combining these helps maintain your standard of living even as prices rise.

Step 6: Plan for Taxes and RMDs

Required Minimum Distributions (RMDs) begin at age 73 for many retirees and can create taxable income spikes. A tax-efficient income plan may include:

• Roth conversions before RMD age
• Charitable giving strategies (QCDs)
• Balancing withdrawals from taxable vs. tax-deferred accounts

Your goal isn’t just income—it’s after-tax income that lasts.

Turning Planning Into Peace of Mind

When your income is predictable, your lifestyle becomes sustainable. Instead of worrying about market headlines or interest rate swings, you can focus on what really matters: living your retirement with confidence and purpose.

The best income plans combine:
Guarantees (annuities, Social Security)
Flexibility (investments, cash reserves)
Protection (insurance, estate planning)

Together, they create the foundation for your lifetime paycheck plan.

Final Thoughts

Your retirement shouldn’t feel like a guessing game. With the right strategy, your savings can become the reliable income you’ve worked for your entire life.

This Financial Planning Awareness Month, take time to review your income sources and speak with a financial professional about turning your assets into guaranteed income streams. The sooner you start, the more confidence you’ll gain.

‍ Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of experience helping families navigate retirement and legacy planning, Brent is committed to making financial education simple, clear, and trustworthy.

Disclaimer

This article is for informational and educational purposes only and does not constitute financial, legal, or tax advice. Consult a licensed professional for advice specific to your situation. SafeMoney.com is not affiliated with or endorsed by any government agency.

The post Turning Savings Into Income: Your Lifetime Paycheck Plan first appeared on SafeMoney.com.

When it comes to financial planning, doing nothing can be the most expensive decision of all. Every year you delay taking action—whether it’s buying life insurance, starting an annuity, or repositioning investments—you lose something that can’t be recovered: time.

October’s National Financial Planning Awareness Month serves as a reminder that financial confidence begins with early preparation. And waiting even a few years can have lasting consequences on your income, security, and peace of mind.

The Hidden Costs of Waiting

1. Lost Compounding Growth

Compounding is often called the “eighth wonder of the world” for a reason—it rewards time, not timing.

Let’s say you plan to start saving $500 a month for retirement at age 50. If you wait just five years—until age 55—you’ll end up with nearly 30% less at retirement, even if you earn the same rate of return.

The takeaway: The earlier you start, the less money you have to put in to reach your goals.

2. Rising Interest Rates and Market Volatility

Financial markets move constantly, and waiting can mean buying in at a less favorable time. The same is true for annuities or life insurance—interest rate environments and product designs change.

• When rates rise: New products may offer better yields, but your current savings may already be missing potential growth.
• When markets fall: Recovering from losses later in life can take years—time most retirees don’t have.

Safe Money Strategy: By incorporating fixed or fixed indexed annuities, you can capture growth opportunities now while locking in downside protection for the future.

3. Higher Insurance Premiums as You Age

Life insurance and long-term care coverage are priced based on age and health. Waiting just one year to apply could increase your premiums—or worse, you may become uninsurable due to a health change.

Example:
A 60-year-old applying for the same permanent life policy might pay 40–50% more than a 55-year-old.

The takeaway: Protecting your health and insurability early often saves thousands over time.

4. Missed Tax Planning Opportunities

Tax-efficient planning is a year-round strategy, but waiting until later can limit your options.

• You may lose chances to perform Roth conversions in lower tax years.
• You could miss the window to harvest tax losses or make charitable deductions.
• Required Minimum Distributions (RMDs) might force higher taxable withdrawals later.

Smart move: Work with an advisor to evaluate year-end opportunities before December 31. October is the perfect time to start.

5. The Longevity Factor

Delaying your plan can also increase the risk of outliving your money. The longer you wait to secure guaranteed income sources, the less monthly income you can lock in for life.

Example: A 60-year-old purchasing a lifetime income annuity today might receive $6,000 annually per $100,000 invested. Waiting until age 65 might reduce that income to $5,000—simply because there are fewer years to accumulate deferred growth.

In other words: Waiting doesn’t just cost you time—it can cost you income for the rest of your life.

How Procrastination Impacts Peace of Mind

Beyond dollars and cents, waiting to plan often leads to stress, uncertainty, and missed opportunities.

When people delay:

• They lose sleep worrying about market losses.
• They miss open enrollment deadlines for Medicare or benefits.
• They fail to protect family members from the unexpected.

Conversely, those who plan early often experience the opposite—confidence, calm, and clarity.

Taking Advantage of the Present

Here’s how you can take meaningful action this month:

Review Your Current Situation

Assess income sources, debt, insurance coverage, and long-term care needs.

Create a Retirement Timeline

Identify when you want to retire and what income sources will start when.

Protect Your Future Income

Consider guaranteed income options, such as annuities, that remove market uncertainty.

Update Beneficiaries and Estate Plans

Small administrative updates today can prevent major issues for your loved ones later.

A Real-World Example

Mark and Linda, both 58, delayed their retirement planning because they “weren’t ready.” Two years later, market volatility reduced their 401(k)s by 20%, and Linda’s health condition made her ineligible for affordable long-term care coverage.

By waiting, they lost both time and options. Had they started earlier, they could have:

• Locked in higher guaranteed income rates,
• Qualified for joint long-term care coverage, and
• Preserved more of their retirement assets through tax-efficient planning.

Time Works Both Ways

The truth is simple: every delay has a price tag. Whether it’s missed compounding, higher taxes, or reduced insurance options, waiting to act rarely saves money—it costs it.

But the good news is it’s never too late to begin. Taking even one small step today—scheduling a financial review, exploring income options, or updating your plan—can make all the difference.

Key Takeaway

Don’t let procrastination dictate your retirement future. Use this Financial Planning Awareness Month as a turning point to take control of your finances, protect your family, and secure your lifetime income.

Your future self will thank you.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of experience helping families navigate retirement and legacy planning, Brent is committed to making financial education simple, clear, and trustworthy.

Disclaimer: This content is for informational and educational purposes only and should not be considered personalized financial, tax, or legal advice. Consult with a licensed financial professional regarding your individual situation. SafeMoney.com is not affiliated with or endorsed by any government agency.

The post The Cost of Waiting: Don’t Delay Your Financial Plan first appeared on SafeMoney.com.

For many retirees, the fear isn’t dying too soon—it’s living too long without enough money. Even diligent savers can discover that Social Security and investments alone may not cover all their expenses. That’s where the concept of an “income gap” comes in.

Your retirement income gap is the difference between what you’ll need to live comfortably and the reliable income you’ll have coming in.

According to the Employee Benefit Research Institute, only about 1 in 3 retirees feel “very confident” their savings will last their lifetime. This lack of confidence usually comes down to not knowing how big their income gap really is—or how to close it.

Step 1: Estimate Your Retirement Expenses

To calculate your gap, first outline what you’ll need annually in retirement. Be sure to include:

• Essential expenses: housing, utilities, groceries, healthcare, insurance premiums.
• Lifestyle expenses: travel, hobbies, dining out, gifts for family.
• Inflation factor: prices tend to rise over time, so build in an annual increase of 2–3%.

Example: You expect to spend $70,000 per year in retirement, including essentials and lifestyle extras.

Step 2: Tally Your Guaranteed Income

Next, identify your predictable, guaranteed income streams. These may include:

• Social Security benefits
• Pension payments
• Annuity income (if owned)

Example: Between Social Security ($28,000) and a small pension ($12,000), you’ll receive $40,000 per year guaranteed.

Step 3: Identify the Gap

Subtract guaranteed income from projected expenses.

Example: $70,000 (expenses) – $40,000 (guaranteed income) = $30,000 income gap per year.

This gap will need to be filled by withdrawals from savings or other income strategies.

Step 4: Review Savings and Investments

Suppose you’ve saved $500,000 in retirement accounts. How long will that last if you need to pull $30,000 per year, especially during market downturns?

• If invested in the market, a downturn could shrink your balance just as you need income.
• If withdrawn too aggressively, savings may run out in 15–20 years.

This is why relying solely on savings can be risky—especially with people living into their 90s.

Strategies to Fill the Retirement Income Gap

1. Fixed Indexed Annuities (FIAs)

An annuity can turn part of your savings into a personal pension, guaranteeing income for life. FIAs in particular allow for potential growth without market losses, making them popular for bridging income gaps.

Benefit: Removes guesswork. You’ll know that part of your gap is permanently covered.

2. Social Security Optimization

Claiming Social Security at age 62 may be tempting, but delaying can increase your benefit by as much as 8% per year until age 70.

Benefit: A higher monthly check for life reduces your gap.

3. Life Insurance with Living Benefits

Permanent life insurance can build cash value, which may be tapped for supplemental income. Some policies even include long-term care riders, helping with medical expenses that otherwise widen your gap.

4. Smart Tax Planning

Taxes reduce the money you keep. Strategies like Roth conversions, charitable giving, or managing withdrawals across different account types can shrink the income gap by lowering your tax burden.

5. Adjusting Lifestyle Expectations

Sometimes filling the gap isn’t about more income—it’s about trimming expenses. Downsizing a home, cutting debt, or adjusting travel expectations can close the gap without financial strain.

Common Mistakes When Addressing the Income Gap

• Relying only on investments: Market volatility can devastate retirees who withdraw during downturns.
• Ignoring inflation: A plan that works today may fail in 10 years if inflation isn’t factored in.
• Failing to plan for healthcare: Medicare doesn’t cover everything, and medical bills can widen the gap fast.
• Not reviewing annually: Life changes—so should your retirement plan.

Taking Action Today

National Financial Planning Awareness Month is the perfect reminder to measure your retirement income gap and take action.

Ask yourself:

• Do I know my annual expenses in retirement?
• Do I know how much guaranteed income I’ll have?
• Do I have a strategy to cover the difference—without risking running out of money?

If the answer is “no” or “I’m not sure,” now is the time to work with a qualified financial professional.

Final Thoughts

Knowing your retirement income gap gives you control. Instead of hoping your savings will last, you’ll have a clear plan to bridge the shortfall with guaranteed income, smart tax moves, and careful lifestyle planning.

Small steps now can turn uncertainty into confidence—and help you enjoy retirement the way you’ve always envisioned.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of experience helping families navigate retirement and legacy planning, Brent is committed to making financial education simple, clear, and trustworthy.

Disclaimer: This article is for informational purposes only and should not be considered financial, legal, or tax advice. Please consult a licensed financial professional about your individual situation. SafeMoney.com is not affiliated with or endorsed by any government agency.

The post How to Calculate Your Retirement Income Gap (Why It Matters) first appeared on SafeMoney.com.

Every October, National Financial Planning Awareness Month serves as a reminder to pause, reflect, and take action on your long-term financial goals. Just as people use spring for “cleaning up” their homes, October is a chance to organize your financial life before year-end.

For retirees and those approaching retirement, this awareness month is more than just a calendar event—it’s an opportunity to evaluate whether your plan for income, taxes, insurance, and investments is truly built to last a lifetime.

At SafeMoney.com, we created this article to answer the most common questions retirees and pre-retirees have about financial planning, retirement income strategies, and how new laws, taxes, and market conditions can impact your nest egg.

What Is Financial Planning Awareness Month?

National Financial Planning Awareness Month was established to highlight the importance of setting financial goals, creating a strategy to reach them, and making sure your plan stays on track as life changes.

Key aspects include:

• Budgeting & Cash Flow – Understanding how much you spend versus save.
• Retirement Income Planning – Ensuring your money lasts as long as you do.
• Insurance Protection – Life insurance, long-term care coverage, and annuities.
• Tax Efficiency – Reducing unnecessary taxes on Social Security, IRAs, and 401(k)s.
• Estate Planning – Making sure your legacy is protected for loved ones.

When done right, financial planning isn’t about restricting yourself—it’s about creating confidence and security for the future.

Why Planning Is More Important Than Ever in 2025

With inflation, rising healthcare costs, and uncertainty in the markets, today’s retirees face challenges previous generations didn’t. According to the Insured Retirement Institute, only about 24% of Baby Boomers are confident they have enough saved to last through retirement.

October is the perfect time to reassess your strategy because:

1. Year-End Deadlines Are Approaching

• RMDs (Required Minimum Distributions) must be taken by December 31.
• Charitable giving strategies can reduce taxable income.
• Last-minute IRA or Roth conversions can optimize your tax bracket.

2. Healthcare Costs Are Rising

• Medicare open enrollment overlaps with Financial Planning Month. This is an ideal time to evaluate your healthcare coverage alongside your retirement income strategy.

3. Longevity Is Changing the Game

• People are living longer, which means your income may need to stretch 25–30 years. Planning for guaranteed income sources—like annuities—can help.

5 Key Steps to Take During Financial Planning Awareness Month

1. Review Your Retirement Income Plan

Ask yourself: Do you know exactly how much income will come from Social Security, pensions, annuities, and your investments? Many people underestimate how much they’ll need.

Tip: Traditional rules of thumb—like the “4% withdrawal rule”—may no longer be reliable in today’s environment of longer lifespans, higher healthcare costs, and unpredictable markets. Instead of relying on a single percentage, consider building a retirement income plan that blends guaranteed sources (such as annuities or pensions) with flexible withdrawals from savings and investments. This approach can help ensure your money lasts as long as you do, no matter what the markets bring.

2. Protect Against Market Risk

The last few years have shown how quickly markets can shift. If too much of your retirement money is exposed to volatility, a downturn could force you to lock in losses.

Safe Money Strategy: Consider products like fixed indexed annuities, which allow you to participate in potential market gains without suffering losses from downturns.

3. Address Healthcare and Long-Term Care Costs

Medicare doesn’t cover everything, and long-term care can quickly drain savings. Exploring solutions like hybrid annuities or life insurance with long-term care riders can provide extra protection.

4. Optimize for Taxes

Retirement isn’t just about how much you have saved—it’s about how much you keep after taxes. Roth conversions, charitable giving strategies, and careful RMD planning can help reduce lifetime tax burdens.

5. Revisit Your Estate Plan

Your estate plan is more than just a will—it includes trusts, beneficiary designations, and powers of attorney. Keeping this updated ensures your wealth is transferred smoothly and in line with your wishes.

The Role of Life Insurance and Annuities in Financial Planning

Two tools often misunderstood, but essential, are life insurance and annuities.

• Life Insurance provides both protection and, in the case of cash-value policies, potential tax-advantaged growth. It ensures loved ones are cared for.
• Annuities act like a personal pension—providing guaranteed income you cannot outlive. Some annuities even offer enhanced benefits for long-term care.

Together, these solutions help balance growth, protection, and income in retirement.

Financial Literacy Is the Foundation

Financial planning awareness month is also about education. Without financial literacy, it’s easy to make costly mistakes, like claiming Social Security too early, taking unnecessary investment risks, or neglecting tax strategies.

Improving your financial literacy means asking questions, reading trusted resources, and working with advisors who focus on your goals—not just selling products.

Common Financial Planning Myths

• “I don’t have enough money to need a plan.”
  Truth: Everyone benefits from a plan, even if you’re just starting or living on a modest income.
• “Social Security will cover everything.”
  Truth: On average, Social Security replaces only about 40% of pre-retirement income. Most people need 70–80%.
• “Annuities are too complicated.”
  Truth: While some annuities can be complex, fixed and fixed indexed annuities are straightforward and focus on income security.

Taking Action This October

Financial planning isn’t a one-time event—it’s an ongoing process. This October, commit to at least one action step:

• Meet with a trusted advisor.
• Run a retirement income calculation.
• Update your will or beneficiaries.
• Explore annuity or life insurance options for added protection.

Even small steps now can create major confidence later.

What to Expect From This Series

Throughout October, we’ll be publishing articles on:

• How to calculate your “magic number” for retirement income
• The cost of waiting to create a plan
• How annuities and Medicare work together
• Myths and truths about life insurance in retirement
• Real stories of retirees who secured their financial future

Stay tuned each week for insights designed to help you move from confusion to confidence with your retirement planning.

Final Thoughts

October’s National Financial Planning Awareness Month is the perfect time to step back and ask: Am I truly prepared for the future? By reviewing income strategies, tax planning, insurance coverage, and estate documents, you’ll gain more peace of mind—and a stronger plan to protect what matters most.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of experience helping families navigate retirement and legacy planning, Brent is committed to making financial education simple, clear, and trustworthy.

Disclaimer: This article is for educational purposes only and should not be considered financial, tax, or legal advice. Consult with a licensed professional regarding your specific situation. SafeMoney.com is not affiliated with or endorsed by any government agency.

The post October Is National Financial Planning Awareness Month first appeared on SafeMoney.com.

It’s estimated that $68 to $84 trillion will change hands by 2045, with most of that happening in the next ten years. For families, this shift will bring both opportunities and challenges. Preparing now can make the difference between building a stronger legacy—or watching wealth disappear to taxes, fees, or disputes.

What Is the Great Wealth Transfer?

The Great Wealth Transfer refers to the massive movement of assets—savings, investments, businesses, and property—from Baby Boomers to their heirs. This includes:

• Retirement accounts like 401(k)s and IRAs
• Life insurance proceeds
• Real estate (homes, vacation properties, investment rentals)
• Family-owned businesses
• Stocks, bonds, and other investments
• Personal savings and valuables

Baby Boomers currently hold over half of U.S. household wealth, and as they age, that wealth will steadily move to children and grandchildren.

Why This Matters to Your Family

The Great Wealth Transfer will reshape finances for millions of American families. Here’s how it could impact yours:

Bigger Inheritances for Younger Generations

Millennials and Gen X may use inheritances to pay off debt, buy homes, invest, or fund retirement. Without a plan, though, much of this wealth could be wasted.

Estate Planning Challenges

Families without updated wills or trusts may face delays, higher taxes, and costly legal battles.

Rising Inflation and Market Changes

Passing money on is one thing—ensuring it keeps its value is another. Inflation can quietly erode wealth if not managed.

Family Conflict Risks

Without clear communication, inheritances can create disagreements that tear families apart.

Unequal Distribution of Wealth

Not all families will benefit equally. Much of the wealth transfer will occur among higher-income households.

Challenges Families Face

Here are the most common obstacles families encounter when passing wealth to the next generation:

• Estate Taxes and Fees – A portion of your estate could be lost to taxes and probate costs without proper planning.
• Financial Inexperience – Many heirs may not be prepared to handle large sums of money responsibly.
• Living Longer – Retirees may spend more of their assets during retirement, leaving less to pass on.
• Unclear Wishes – Without documented instructions, assets may not be distributed as intended.

How to Prepare Your Family

The Great Wealth Transfer isn’t just about money—it’s about values, security, and peace of mind. Families can take important steps today to prepare:

1. Create or Update an Estate Plan

• Draft or refresh wills and trusts
• Assign power of attorney and healthcare directives
• Review life insurance and beneficiary designations

2. Talk About Money Openly

• Discuss inheritance expectations before issues arise
• Share your goals for how wealth should be used
• Involve heirs in financial conversations early

3. Protect Your Legacy

• Explore ways to minimize estate taxes and probate costs
• Consider charitable giving through trusts or donor-advised funds
• Plan for business succession if you own a family business

4. Build Financial Confidence in the Next Generation

• Encourage heirs to work with trusted financial professionals
• Share resources on budgeting, investing, and tax basics
• Model good financial habits

The Role of Technology

Today’s digital tools make it easier than ever for families to prepare:

• Online estate planning platforms simplify legal paperwork
• Digital vaults keep important documents secure and shareable
• Investment apps and robo-advisors can help younger heirs grow wealth responsibly
• Even digital assets like cryptocurrency now play a role in estate planning

Final Thoughts

The Great Wealth Transfer is already underway—and it’s the largest shift of money in American history. Families that prepare now will preserve more wealth, reduce conflict, and pass down not just money, but values and security for generations to come.

Take the time to review your estate plan, talk openly with your family, and work with trusted professionals who can guide you through the process. The choices you make today will shape your family’s financial future tomorrow.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of experience helping families navigate retirement and legacy planning, Brent is committed to making financial education simple, clear, and trustworthy.

Disclaimer: This article is for educational purposes only and should not be considered financial, tax, or legal advice. Everyone’s situation is unique. Please consult a licensed financial professional before making decisions about estate planning or wealth transfer.

The post The Great Wealth Transfer: What Families Should Know first appeared on SafeMoney.com.

While both provide financial protection for your loved ones, they work very differently — and choosing the wrong one could cost you money or leave gaps in coverage. In this guide, we’ll break down the differences between term and permanent life insurance, the pros and cons of each, and how to decide which may be right for you.

What Is Term Life Insurance?

Term life insurance is the simplest and most affordable form of life insurance.

• It provides coverage for a set period — usually 10, 20, or 30 years.
• If you pass away during that time, your beneficiaries receive the death benefit.
• Once the term ends, coverage expires unless you renew (at a much higher premium).

Think of it as renting life insurance: you pay for protection while you need it, but when the term is over, the coverage disappears.

Key Features of Term Life Insurance

• Affordable initial premiums
• Predictable payments for the length of the term
• No savings or cash value component
• Often renewable or convertible into permanent coverage

What Is Permanent Life Insurance?

Permanent life insurance lasts for your entire lifetime, as long as premiums are paid. Unlike term, it doesn’t expire after a set period.

Permanent insurance also has a cash value component, which works like a built-in savings account. Part of your premium goes toward building this cash value, which grows tax-deferred over time. You can borrow against it, withdraw it, or use it to help pay premiums.

Types of Permanent Life Insurance

• Whole Life Insurance: Fixed premiums, guaranteed death benefit, and guaranteed cash value growth.
• Universal Life Insurance: Flexible premiums and death benefits, with interest-based or market-linked cash value growth.
• Variable Life Insurance: Cash value invested in subaccounts tied to the stock market (higher risk, higher growth potential).

Cost Comparison: Term vs. Permanent

One of the biggest differences is cost.

• Term insurance premiums are typically much lower — sometimes 5 to 15 times less than permanent coverage for the same death benefit.
• Permanent insurance has higher upfront costs, but it builds equity (cash value) and guarantees lifelong protection.

Example:

• A healthy 35-year-old may pay around $25/month for a 20-year, $500,000 term policy.
• The same individual could pay $300–$500/month for a permanent policy with the same death benefit.

Pros and Cons of Term Life Insurance

Pros

• Low cost, especially for young and healthy individuals
• Simple and easy to understand
• Best for temporary needs (like replacing income during child-raising years or paying off a mortgage)

Cons

• Expires at the end of the term
• Renewal premiums increase significantly with age
• No cash value — you don’t build savings or equity

Pros and Cons of Permanent Life Insurance

Pros

• Coverage lasts for life (guaranteed death benefit if premiums are maintained)
• Builds cash value that grows tax-deferred
• Potential to borrow against policy
• Useful for estate planning, legacy planning, or providing for dependents with lifelong needs

Cons

• Much higher premiums than term life
• More complex structure (cash value, loans, interest rates, policy charges)
• If managed poorly, loans and withdrawals can reduce or even lapse the policy

Which Is Right for You?

The best choice depends on your financial goals, family situation, and long-term needs.

• Choose Term Life Insurance if…
  • You want the most coverage for the lowest cost
  • You only need protection for a certain time (mortgage, raising kids, etc.)
  • You’d rather invest money separately than pay for cash value inside insurance

• Choose Permanent Life Insurance if…
  • You want guaranteed lifelong protection
  • You’re interested in building cash value and using life insurance as a financial planning tool
  • You have estate or legacy planning needs

Many families use a combination of both — for example, purchasing a large term policy for income protection while adding a smaller permanent policy for lifetime needs.

Final Thoughts

Both term life insurance and permanent life insurance can play important roles in protecting your loved ones. Term is cost-effective and temporary, while permanent offers lifetime protection and savings. The right choice depends on your unique needs, budget, and long-term goals.

Life insurance is not just about numbers — it’s about peace of mind. Having a trusted advisor guide you through your options ensures you make the right decision for your family.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: This article is for educational purposes only and should not be considered financial, tax, or legal advice. Indexed Universal Life policies vary by insurer and state, and guarantees are subject to the claims-paying ability of the issuing company. Consult with a licensed financial professional before making decisions.

The post Permanent vs. Term Life Insurance: What’s the Difference? first appeared on SafeMoney.com.

We created this article to answer the most common questions retirees and pre-retirees have about how new laws impact life insurance, taxes, and income planning. Our goal is to break down the bill in simple terms, explain the pros and cons, and help you understand what it may mean for your retirement strategy.

What Is the One Big Beautiful Bill?

The One Big Beautiful Bill Act of 2025 is a large tax and spending law that makes permanent some earlier tax provisions, creates temporary benefits for seniors, and reduces funding for several federal programs.

Here are the key highlights:

• Extra tax deduction for seniors 65+: Up to $6,000 for singles or $12,000 for married couples, on top of the standard deduction.
• Lower tax rates extended: The individual tax brackets from 2017 are now permanent.
• SALT deduction cap raised: Retirees in high-tax states may deduct more state and local taxes.
• Cuts to Medicaid, SNAP, and other programs: Reduced funding could increase out-of-pocket healthcare and living costs.
• Temporary benefits: Senior deduction and SALT relief expire in 2028 unless renewed by Congress.

Pros of the One Big Beautiful Bill for Retirees

1. Extra Senior Deduction

For retirees 65 or older, the extra deduction can significantly reduce taxable income. Many retirees with modest incomes may pay no federal tax on Social Security.

2. Lower Brackets Made Permanent

Uncertainty around expiring tax cuts has worried pre-retirees for years. Now, with brackets locked in, you can plan Roth conversions, withdrawals, or savings contributions with more confidence.

3. Bigger SALT Relief

For retirees in states with high property or income taxes, the raised cap on the SALT deduction may lower federal tax bills if you itemize.

4. Planning Clarity

With more certainty around tax rates, both pre- and post-retirees can better project future income needs and create strategies that align with long-term goals.

Cons of the One Big Beautiful Bill for Retirees

1. Temporary Benefits

The extra senior deduction ends after 2028 unless Congress acts again. That means planning too far ahead with this break could create surprises later.

2. Program Cuts

Medicaid and other programs will see reductions, which could increase out-of-pocket medical or long-term care costs for older Americans.

3. Income Phase-Outs

The senior deduction begins to phase out at $75,000 of income for singles and $150,000 for couples. It disappears completely at higher levels, limiting benefits for upper-middle-income retirees.

4. Future Uncertainty

By cutting programs and increasing deficits, the bill may force future tax hikes or spending changes. Retirees should be ready for additional adjustments.

Impact on Pre-Retirees

If you’re still working or a few years away from retirement, the bill impacts you in several ways:

• Tax stability: The extension of lower brackets makes long-term planning more predictable.
• Roth conversion timing: Knowing your tax rate allows you to consider converting traditional accounts to Roth IRAs while rates are favorable.
• Healthcare planning: Since Medicaid faces funding cuts, future retirees may need to budget more for out-of-pocket care.
• “Use it while you can”: With the senior deduction set to expire in 2028, those planning to retire soon should consider strategies to maximize benefits in the short term.

Impact on Post-Retirees

If you’re already retired, you’ll notice changes sooner:

• Lower taxes on Social Security: Many retirees with modest incomes may find their Social Security no longer taxable.
• Keeping more of your income: Withdrawals from IRAs or 401(k)s will be taxed at extended lower rates.
• Reduced safety nets: Retirees who rely on Medicaid, SNAP, or subsidized healthcare may face tighter eligibility and higher costs.
• Short-term relief, long-term uncertainty: The bill offers immediate tax benefits, but cuts to programs and temporary provisions could mean more changes ahead.

FAQ: The One Big Beautiful Bill Explained

What’s the biggest win for retirees?

The extra senior deduction—up to $6,000 for singles or $12,000 for couples—which may eliminate taxes on Social Security for many households.

What’s the biggest risk?

Cuts to Medicaid and other safety-net programs could make healthcare and long-term care more expensive.

Do higher-income retirees benefit?

Not as much. The senior deduction phases out with higher incomes, and those in top brackets see fewer advantages.

Is this permanent?

Some parts are permanent (lower brackets), but others (senior deduction, SALT relief) end in 2028 unless extended.

How should I plan around this?

Work with a financial advisor to project taxes with and without these breaks. Consider Roth conversions, maximizing deductions, and planning for healthcare costs.

Practical Planning Tips

• Run retirement tax scenarios: Use a retirement calculator to see how the new deductions and tax brackets affect your income.
• Consider Roth strategies: Converting now, while rates are stable and deductions are available, may lower your lifetime tax burden.
• Budget for healthcare: Cuts to Medicaid and subsidies could mean higher costs. Explore supplemental insurance or annuity-based income solutions.
• Stay flexible: Laws change often. Plan for today’s benefits but remain prepared for adjustments.

The Bottom Line

The One Big Beautiful Bill brings both opportunities and risks for retirees. On the positive side, it reduces taxes for many seniors, extends lower brackets, and provides short-term relief on Social Security taxation. But it also reduces funding for essential programs, phases out benefits for higher earners, and may create long-term uncertainty.

For both pre-retirees and post-retirees, the key is proactive planning. By understanding how the law affects your income, taxes, and healthcare costs, you can make informed choices that protect your retirement security.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: This article is for educational purposes only and should not be considered tax, legal, or financial advice. The information provided is based on publicly available details of the One Big Beautiful Bill (2025) at the time of writing and may change with future updates or amendments.

SafeMoney.com is not affiliated with any government agency or program and does not provide individualized tax or legal recommendations. Readers should consult with a qualified tax professional, financial advisor, or attorney before making decisions that may affect their personal retirement planning, Social Security benefits, or healthcare coverage.

The post One Big Beautiful Bill: What Retirees Need to Know first appeared on SafeMoney.com.

From income protection and tax advantages to legacy planning and long-term care support, the right policy can help retirees achieve peace of mind well beyond their working years.

Why Life Insurance Matters in Retirement

Even if your kids are grown and your mortgage is nearly paid off, life insurance may still be valuable. Retirement planning isn’t just about ensuring you have enough money to live on — it’s also about protecting your loved ones, creating flexibility, and reducing financial risks.

Life insurance can:

• Provide financial protection for a surviving spouse.
• Help cover final expenses and debts.
• Offer tax-advantaged savings through certain permanent policies.
• Act as a tool for legacy planning and wealth transfer.
• Support long-term care needs if you add a rider.

In short, life insurance isn’t just for the early years of financial responsibility — it can be a powerful asset throughout retirement.

Life Insurance as Income Protection

For couples, retirement often relies on two sources of income, whether from Social Security, pensions, or retirement accounts. When one spouse passes away, the surviving partner may lose a significant portion of that income.

Life insurance can help bridge the gap by providing a tax-free death benefit that replaces the lost income stream. This ensures the surviving spouse can maintain their standard of living without draining retirement accounts prematurely.

Example: If a couple relies on two Social Security checks, losing one may cut their monthly income by thousands. A life insurance policy can help fill that gap for years to come.

Tax Advantages of Permanent Life Insurance

Certain types of life insurance, such as whole life and indexed universal life (IUL), build cash value over time. This cash value grows tax-deferred and can be accessed during retirement through policy loans or withdrawals.

Benefits include:

• Tax-free loans: Borrow against your policy without triggering taxable income (as long as the policy stays in force).
• Supplemental income: Use withdrawals to cover retirement expenses.
• Estate planning benefits: Death benefits are generally income-tax-free for beneficiaries.

While life insurance should never replace retirement accounts like 401(k)s or IRAs, it can serve as a tax-efficient supplement to those plans.

Policy Loans: How They Work (and Common Mistakes to Avoid)

Policy loans can be a useful feature of permanent life insurance, but they don’t always work the way people expect. Here’s what you need to know:

How Policy Loans Work

• With permanent life insurance, you can borrow against your policy’s cash value.
• The insurer lends you money, using your cash value as collateral.
• You don’t withdraw funds directly, which is why loans are generally not taxable (if the policy stays active).

The Benefits

• Access funds without selling investments.
• Loans are typically not considered taxable income.
• Flexible repayment options.

The Risks & Mistakes People Make

• Interest accrues on the loan. If unpaid, it reduces your death benefit and cash value.
• If the loan balance + interest ever exceeds your cash value, the policy may lapse.
• If a policy lapses with a loan outstanding, the IRS may treat the loan amount as taxable income.
• Different policies (whole life, IUL, variable) have different loan provisions — and not all are equally favorable.

Best Practices

• Work with your advisor before taking loans.
• Borrow conservatively — don’t drain too much of your cash value.
• Monitor your policy annually to ensure it stays in force.
• Understand your insurer’s loan provisions before using this feature.

Policy loans can be powerful, but they require careful management to avoid unintended consequences.

Life Insurance and Long-Term Care Planning

One of the biggest threats to retirement savings is the cost of long-term care. Nursing homes, assisted living, and in-home care can drain assets quickly. Traditional long-term care insurance has become expensive and less available, but life insurance policies with long-term care riders offer an alternative.

These hybrid policies allow you to:

• Access part of the death benefit to pay for long-term care expenses.
• Preserve financial resources for your spouse or heirs.
• Ensure you don’t have to choose between care and legacy.

This dual-purpose protection makes modern life insurance an appealing option for retirees concerned about healthcare costs.

Life Insurance for Legacy and Estate Planning

For many retirees, leaving a financial legacy is a priority. Life insurance provides a simple and efficient way to transfer wealth to the next generation or to charitable causes.

Key benefits include:

• Avoiding probate: Death benefits go directly to beneficiaries, bypassing lengthy court processes.
• Equalizing inheritance: Useful when passing down businesses or real estate to multiple heirs.
• Paying estate taxes: For high-net-worth families, life insurance can cover estate tax obligations without liquidating assets.

Life insurance ensures that your retirement plan doesn’t just support you while you’re alive but also protects your family after you’re gone.

Common Misconceptions About Life Insurance in Retirement

Despite its benefits, many people overlook life insurance in retirement because of myths:

• “I don’t need life insurance once my kids are grown.”
  → False. Spousal income protection, estate planning, and long-term care are all valid reasons to keep coverage.
• “Life insurance is too expensive in retirement.”
  → Policies can be tailored to your needs and budget — sometimes with smaller coverage amounts that still make a big difference.
• “I have enough savings, so I don’t need it.”
  → Savings can be unpredictable with market risk, inflation, and healthcare costs. Life insurance offers guaranteed protection.

By addressing these misconceptions, retirees can see life insurance as part of a balanced retirement strategy, not just an expense.

How to Choose the Right Life Insurance Policy in Retirement

Not all policies are created equal. Here are a few factors to consider:

• Purpose: Is the goal income replacement, estate planning, or long-term care coverage?
• Coverage Amount: Do you need enough to replace income, cover debts, or simply provide a legacy?
• Budget: Make sure premiums are sustainable throughout retirement.
• Policy Type: Term insurance may be useful for temporary needs, while permanent insurance works better for legacy and tax planning.

Working with an independent advisor can help you compare options across multiple insurance carriers to find the best fit for your retirement plan.

Final Thoughts: Life Insurance as Part of a Complete Plan

Retirement planning is about more than just accumulating savings — it’s about protecting income, managing risks, and leaving a lasting impact. Life insurance can provide all three.

From protecting your spouse to offering tax advantages, covering long-term care, and ensuring a smooth wealth transfer, life insurance is a versatile tool that belongs in many retirement conversations.

At SafeMoney.com, we help people see the bigger picture. Whether you’re approaching retirement or already there, our resources and advisors can guide you toward a comprehensive plan that includes life insurance where it makes sense.

With the right strategy, life insurance can provide peace of mind today and financial security for tomorrow.

Written by Brent Meyer, founder of SafeMoney.com. With more than 20 years of hands-on experience in annuities and retirement planning, Brent is committed to helping Americans make informed, confident financial decisions.

Disclaimer: This article is for educational purposes only and should not be considered financial, tax, or legal advice. Indexed Universal Life policies vary by insurer and state, and guarantees are subject to the claims-paying ability of the issuing company. Consult with a licensed financial professional before making decisions.

The post The Role of Life Insurance in a Comprehensive Retirement first appeared on SafeMoney.com.