Your Retirement Wardrobe Fill Your Financial Closet With These Essentials

Submitted by Ruth Ahen, Modern Woodmen

On weekdays, you wear a suit to the office. On weekends, you slip into your well-worn blue jeans for a picnic at the park. And don’t forget those comfortable yoga pants for workouts or your favorite pajamas for movie marathons on the couch. While clothes don’t make the woman (or man), your closet likely consists of a variety of wardrobe essentials, which ensures you’re prepared for any and every occasion.

Just as you wouldn’t fill your closet with all evening gowns (unless you are a Hollywood celebrity), you should take care to have a diverse and well-rounded financial wardrobe, too. This will help you dress for retirement and prepare for any occasion.

According to the 2011 LIFE/ LIMRA insurance barometer study, one of Americans’ top two financial concerns is having enough money for retirement. Combat those fears with these retirement wardrobe essentials your closet shouldn’t be without. by Kim Woodward

EMPLOYER-SPONSERED RETIREMENT PLAN
Your best-fitting suit
When you go to an interview or have an important meeting planned, you reach into your closet for that dependable suit. You immediately feel prepared and confident. Similarly, if you have an employer-sponsored retirement plan, it should be a priority in your retirement planning. Ensure that you know how yours works so you can take full advantage of employer contributions and save enough to retire comfortably.

IRAs
Your little black dress
Just like your little black dress is a great choice for any special occasion, individual retirement savings plans (IRAs) are appropriate for retirement. Depending on the type of IRA you choose, you may qualify for tax- deductible contributions, a tax credit or income tax-free withdrawals. All of your earnings will accumulate on a tax-deferred basis. This is the go-to piece in your retirement wardrobe.

ADEQUATE LIFE INSURANCE PROTECTION
Your most comfortable blue jeans and T-shirt
As comfortable and well-worn as your favorite weekend uniform, life insurance is something you should never be without. Not only does it protect your loved ones throughout your lifetime, it also protects a spouse who is depending on your income for his or her retirement. Make sure you have enough life insurance to cover this loss.

ANNUITIES
Your flannel pajamas
During retirement, you’d like to have a steady stream of income. With certain types of deferred annuities, you can turn a lump sum into a stream of income payments that are guaranteed to last as long as you live. Modern Woodmen’s deferred annuities provide tax-deferred growth until you take a withdrawal. This is a simple way to provide retirement income. And just like flannel pajamas, annuities can help you feel comfortable.

INVESTMENTS
Important accessories
Additional savings and smart investment choices can help you build a larger retirement nest egg. Like stylish scarves, necklaces and handbags, these accessories – including professionally managed mutual funds and individual stocks and bonds – can enhance your other wardrobe essentials and really pull everything together.

Founded in 1883 as a fraternal benefit society, Modern Woodmen of America offers financial services and fraternal member benefits to individuals and families throughout the United States.

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