{"id":10113,"date":"2021-04-09T07:00:35","date_gmt":"2021-04-09T12:00:35","guid":{"rendered":"https:\/\/www.cainwatters.com\/digitalblogs\/?p=10113"},"modified":"2025-09-22T14:07:38","modified_gmt":"2025-09-22T19:07:38","slug":"what-ifs-derail-retirement","status":"publish","type":"post","link":"https:\/\/www.cainwatters.com\/digitalblogs\/what-ifs-derail-retirement\/","title":{"rendered":"Four \u201cWhat Ifs\u201d That Can Derail Your Retirement Goals"},"content":{"rendered":"\t\t
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Navigating the unexpected begins with knowing what to expect<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Saving for a comfortable retirement is a career-long commitment. It takes planning, patience, perseverance and a whole lot of good old-fashioned discipline to reach this ultimate financial goal.<\/p>

Some might say it also takes a little luck. Life, after all, is anything but predictable.<\/p>

On the other hand, being aware of and prepared for the common scenarios that can pull your retirement savings plans off track can take some luck out of the equation. Because if 2020 taught us anything, it\u2019s to expect the unexpected in life.<\/p>

So let\u2019s start by examining a few of the most common \u201cwhat ifs\u201d that could derail even the best laid retirement plans.<\/p>

WHAT IF I GET SICK OR DISABLED AND CAN\u2019T WORK?<\/strong><\/p>

This is one we hate to think about, but it\u2019s a contingency everyone needs to plan for. If you get sick, injured or incapacitated for an extended amount of time, the costs can add up fast. Medical bills. Out of pocket costs. Lost wages. Those in the dental industry are especially susceptible to disability because the most common injuries (hands, arms, shoulders, eye) are what dentists rely on the most.<\/p>

The logical way to protect against this scenario is to spend more on personal disability insurance, right?\u00a0 \u201cNot necessarily,\u201d says Toni Lee<\/span><\/a>, CPA and partner at Cain Watters & Associates.<\/p>

Toni recommends putting those extra dollars into your emergency fund now, which can offset the higher disability insurance premiums later.<\/p>

\u201cHaving an emergency fund of at least six months will help cover expenses that disability insurance does not,\u201d says Toni. \u201cAs the cost of personal disability premiums go up with age, you\u2019re able to keep your coverage at a financially manageable level because your emergency funds are a viable back up option, if needed.\u201d<\/p>

WHAT IF I GET DIVORCED?<\/strong><\/p>

No one goes into a marriage planning for a divorce. But being aware of the impact a divorce can have on reaching your financial goals is definitely worth understanding.<\/p>

Marriage is a contract, and when that contract is voided, the assets get divided while expenses can almost double. Instead of one house payment, there are two. Same with all the bills that go along with it like electric, water, internet, gas, etc.<\/p>

Your retirement nest egg will most likely be split in half as well. Toni suggests meeting with your financial advisor well before the divorce is final to start resetting goals and expectations.<\/p>

\u201cThe sooner both parties get that reality check on how divorce will impact their long-term goals, the sooner they can either try to make the marriage work or start planning their individual financial strategies moving forward.\u201d<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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As a rule of thumb, Toni says divorcees should plan on working another 5-7 years to make up for the division of assets.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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WHAT IF I HAVE TO CARE FOR AGING PARENTS?<\/strong><\/p>

We\u2019ve discussed before how continuing financial support of your adult children can be a threat to your retirement<\/span><\/a>, but another difficult topic is caring financially for aging parents.<\/p>

This is a tough one to plan for, but aging is a part of life, and through open communication it is possible to plan ahead. For both parties sake, aging parents should make a plan now<\/span><\/a> and share it with the family in writing to ensure they communicate their desires in advance. Knowing both their wishes and financial situation <\/em>ahead of time will help everyone plan to see it through.<\/p>

When the time comes, entering into a retirement home might seem like an almost unsustainable expense. So much so that many often feel compelled to help offset the costs by dipping into their own savings.<\/p>

Before reaching for your own long-term savings, consider this: The high cost of senior care is typically offset by a reduction in previous expenses. (i.e. house, car, groceries etc.)<\/p>

\u201cMuch of those costs are already in the budget,\u201d says Toni. \u201cSo going into a senior living home is mostly a re-allocation of monies that were already being spent elsewhere.\u201d<\/p>

Only when the parents\u2019 retirement accounts are emptied should the adult children step in to make the difference Medicaid doesn\u2019t cover, if necessary.<\/p>

WHAT IF I DON\u2019T HAVE ENOUGH TO PAY FOR MY KID\u2019S COLLEGE?<\/strong><\/p>

Let\u2019s face it. College isn\u2019t cheap<\/span><\/a>. Even with a concerted effort to fund a 529<\/span><\/a> each year of a kid\u2019s life, many parents find they still don\u2019t have enough to foot the bill for four (or five or six!) years of college.<\/p>

Whether the 529 Plan is just a semester or two shy or the college fund is still at zero, the last thing you want to do is take money out of your own retirement to pay for their college. This includes lowering the contribution percentage to your retirement funds so there\u2019s more cash on hand.<\/p>

Student loans are not \u201cbad debt\u201d like credit cards. They are an investment in your kid\u2019s future, as well as your own. Government-backed student loans carry a low interest rate and payments are not due until after they\u2019re out of college.<\/p>

\u201cOne added benefit I\u2019ve heard many of my clients talk about is that a student loan can be a powerful motivator for a student to hold up their end of the bargain,\u201d says Toni. \u201cYou can always help them pay it down later, and it\u2019s a great way to help your kid build credit.\u201d<\/p>

WHAT IF I\u2019VE BEEN IGNORING IT?<\/strong><\/p>

Let\u2019s say you\u2019ve been doing a fantastic job executing your long-term plan:<\/p>