Following along with the blogs of financial advisors is a great way to access valuable, educational information about finance — and it doesn’t cost you a thing! Our financial planners love to share their knowledge and help everyone regardless of age or assets.
How To Financially Care For An Aging Parent
by Todd Minear, Open Road Wealth Management
As baby boomers age, more families are struggling with caring for their aging parents. It’s emotionally, physically, and financially difficult. However, it’s something we will all face at some point in our lives. So, it’s important to create a financial plan long before dementia or Alzheimer’s disease sets in.
Seven in 10 adults say major barriers prevent them from openly talking about financial issues related to caring for an aging parent. That’s according to a study by the National Endowment for Financial Education (NEFE).
Elder Abuse: How To Protect The Elderly From Financial Crimes
by Todd Minear, Open Road Wealth Management
You work hard all your life, saving for your future, and the minute you retire thieves are ready to steal your money. The National Council on Aging says financial scams are so common, they’re considered “the crime of the 21st century.”
Elder financial abuse is at least a $2.6 billion problem. Much of it is under-reported, so the financial loss is likely much higher.
There are all sorts of scams, and they’re constantly changing. Thieves target the elderly because they know they can get large sums of money quickly. It’s easy to earn the trust of an aging person.
Elder Care Decisions Begin at 50
I’m a big believer in discussing elder care with my clients as young as age 50.
I use this age as my starting point for a few reasons:
1- Downsizing may be on the brain. With 55+ communities on the rise, it’s a good time to consider if moving is in your future and how it impacts your retirement and elder care plans. You may like to downsize to a 55+ community right away so you can enjoy the community for 20-25 years before needing a second transition to assisted living. Conversely, you may decide to downsize directly to a Continuing Care Retirement Community (CCRC) in your 70s so that you’re only having to move and coordinate care once.
Long Term Care Insurance: Is It Worth Considering?
Age 50-60 has traditionally been the sweet spot for reviewing long-term care insurance options. New research is even indicating that the zone could be shifting downward to 45-55 as the LTC landscape continues to change and actuaries get a better handle on appropriate pricing to minimize the need for premium hikes. Waiting too long to purchase this type of policy is akin to buying home insurance as the house burns down. Premiums exponentially increase, and the threat of having an unexpected health crisis may remove your preferred health discount, if not disqualify you entirely.
You May Also Enjoy:
XY Planning Network Advisors Offer Tips on Playing Catch-Up with Retirement Savings
by Alan Moore, XY Planning Network
It's hard to imagine retirement when you're in your twenties, thirties, and into your forties. Setting big goals that won't turn into realities until you're at least 50 is tough - and saving up for those goals is even tougher.
We may get it. Yes, retirement is important and we need to save now. But it's such a distant future that for many of us, it's simply hard to get motivated to put our hard-earned money away. We want to play today, not plan for tomorrow.
The reality is, however, we'll one day have to face the decisions we made about our retirement savings. What are you supposed to do if you're "hurtling towards middle age" and don't have anything saved for your golden years?
Good Financial Reads: The Retirement Edition
Contributors, XY Planning Network
Recently I was talking to a good friend of mine, who is in his early fifties, about his retirement planning. I asked him how prepared he was. Here is what he said:
I am all covered. I will retire at 65. I expect my retirement expenses to be 70% of my pre-retirement expenses. I will have saved up $1 million by the time I retire. I will invest this money in a portfolio of stocks and bonds with my stock allocation equaling 100 minus my age. Once I retire, I will start drawing 4% from my portfolio each year, which will comfortably cover my retirement needs.
I then asked him a follow-up question about how he plans to cover his long-term care needs. I do not think I will require such care, but if I do, I will cross the bridge when I get to it, he said.
Lastly, he summed up his understanding of Social Security, claiming that his benefits will be tax-free.
In that one discussion, my friend helped me identify the three most dangerous myths of retirement planning.