Protecting your assets in retirement July 10, 2015Is your worst fear running out of money? There are many reasons that people run out of money during retirement. The biggest is a lack of planning. Many people in the past decade have learned that the interests and gains on their retirement accounts have not outpaced inflation by the same rate that they had projected. Conservative assumptions while planning can help protect you.To protect your standard of living, live below your means. Over the years expenses will arise that will eat away at your savings beyond of your normal level of spending. You will need new cars, a new roof, new appliances and etc. The less you spend, the larger the buffer you will have to protect you from these issues.You may feel responsible to help family through difficult financial situations. It is best to discuss financial issues before they arise. You may want to discuss savings, debt, and inheritance planning with your parents and adult children. Knowing how stable their situation is may be a key factor in your plan. Try bringing up the subject by discussing things you have been doing to prepare your own finances.Healthcare expenses are a top concern for many people in retirement and rightly so. Do you remember a time that healthcare costs have gone down? Medicare will cover some of your health care cost but be prepared for the accompanying expenses. One in three people will require long-term care with an average cost of more than $75,000 per year. The average stay in a long-term care facility is more than 900 days. A long-term care insurance policy can help protect your savings and therefore income for your spouse.If you have a large number of assets you may want to protect yourself against lawsuits with private liability insurance.The issue of taxes is an important one since tax rates do change. If your retirement savings are in a Roth IRA you already paid your taxes on that income and you can let that worry go.The first thing to do is start planning how to address any issues that may affect you. Talk with an advisor to get the details right.