Finance FAQs #5

Q5.What can I do to prevent a serious illness or injury from using up all my assets?

A5. Donna Burrill, Burrill Financial Services :

Pre-retirement

1. Create and maintain an emergency fund to pay 3 or 4 months of living expenses
2. Review your group disability insurance and purchase an individual policy to supplement it. If you do not have group insurance get an individual policy. (Caution: If your spouse works and your are living on that paycheck too, do not assume you can 'get by' on one paycheck in a crisis)
3. Maintain comprehensive medical insurance

Post-retirement

1. Create and maintain an emergency fund of $1000 or so.
2. Own the best long-term care policy you can afford
3. Maintain a Medigap policy and Part B Medicare coverage or use a Medicare HMO
4. Sources of help:

• Life insurance agent — yours or one recommended by a friend
• Federal Housing Authority (FHA) for information on reverse mortgages
• Larimer County Dept of Social Services for Medicaid
• Local Social Security office for Medicare

When seeking out a professional advisor, be sure to check out their credentials and check to see that any certifications are still valid.

1. Life and health insurance licenses with the Colorado Division of Insurance
2. Securities licenses — National Association of Securities Dealers (NASD)
3. Securities and Exchange Commission - (SEC)
4. Certified Financial Planners — College for Financial Planning
5. Society of Financial Service Professionals — CLU, CHFC, MSFS
6. Chartered Financial Consultants, Chartered Life Underwriters — American College in Bryn Mawr, PA.
7. Certified Public Accountant
8. Attorneys — Colorado Bar Association

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