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24May
What the Worldwide Aging Population Means for Women: Part 3
Health Care Costs

The first two parts of this blog provided the information supporting the fact that women face an unfair disadvantage in terms of planning for a successful retirement.

If you’ve not yet read parts one and two of this blog, please take a few moments to do so.

Here are the action steps that women can take to help prepare themselves for healthcare and retirement costs.

  1. Tell your story and expect to be heard and honored. You and your planning needs are unique.  You deserve the opportunity to “share your story as well as your hopes, fears and dreams”.

Regardless of your current life experience and financial knowledge, you deserve to be listened to without judgment.

You deserve to have all of your questions answered honestly and completely.

You deserve transparency around fees, commissions, and any other form of advisor compensation.

  1. Create a plan and follow it. Again, this is “your plan”.  It needs to be designed specifically for you to get you from “where you are to where you want to be”.
  1. Invest with appropriate risk level. Again, your investment portfolio needs to be designed specifically for you and what it is you want to accomplish.
  1. If you are of a pre-retirement age, be prepared to save aggressively to meet your goals.
  1. If you are already retired, then the allocation of your investment portfolio may be even more critical because you may no longer have the capacity to continue to save to reach your retirement goals.
  1. Be sure you understand how programs such as Social Security, Medicare, and employer-sponsored retirement plans can best be coordinated for maximum results.
  1. Consider products such as life insurance with long-term care riders, products that are designed to create guaranteed lifetime income in retirement, products that are designed to create income tax savings, and anything else that may be appropriate to help you reach financial peace of mind.
  1. Once your plan is in place, be sure to continue with annual conversations with your team of advisors.

As you can see, planning done well is complex and involves the integration of both programs, products and planning.

Do you remember the old Greyhound bus slogan, “Go Greyhound and Leave the Driving to Us”? 

It is suggested that the new slogan might be “Keep Texting and Leave the Driving to Us!”

Whether you find yourself familiar with the first slogan or relate more to the new slogan, we invite you to a conversation at Resonate.  Regardless of your age, our motto is to help you define and discover what Richness of Life means to you.  Then, it is our job to help create the pathway for you to experience this desired destination.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

 

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19May
What the Worldwide Aging Population Means for Women: Part 2
Health Care Costs

In the first part of this three-part blog, we talked about why the U.S. demographics of an aging society present more of a challenge for women than for men.

Here are some additional thoughts for your consideration:

In part one, we suggested that the fact that women still tend to outlive men by 3 to 5 years definitely contributes to the financial challenges that women face in retirement.

Here is a chart that supports that information:

The second reason that women face an uneven challenge is because we still experience a disadvantage in the work place.  In addition to the fact that women are still more likely than men to leave the workforce intermittently, we also know that women are more likely to hold lower- wage and part-time jobs, both of which are detrimental to funding future retirement.

So what can women do about this?  That will be the focus of part three in this series.

If you’ve already read enough, please contact us now.  Otherwise, please be sure to read part three.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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11May
What the Worldwide Aging Population Means for Women: Part 1
Health Care Costs

In his annual letter to shareholders, BlackRock’s Larry Fink shares these thoughts on April 10, 2017.

“The graying of the population in developed countries is without precedent in human history.

While most developing countries outside of China can look forward to a demographic tailwind for many years, developed countries are rapidly aging.”

 

 

(1)

“According to estimates by the United Nations between 2015 and 2030, the number of people in the world aged 60 years or over is projected to grow by 56%, from 901 million to 1.4 billion.  The number of people aged 80 years or over, the “oldest old” persons, is growing even faster. Projections indicate that in 2050 the oldest old will number 434 million, having more than tripled in number since 2015, when there were 125 million people over age 80.”

If you happen to be female, the situation is even worse.  For decades to come, women’s life expectancy on average will continue to be 3 to 5 years longer than that for men.  This results in higher healthcare expenses in addition to coping with inflation for a longer period of time. (2)

If you are age 50+ and in relatively good health, please do not wait any longer to contact us!

We will work with you to determine what you need in the way of income and assets to help assure a successful retirement.  Then, we will work with you to create a plan to fulfill that goal.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

 

Source:
(1) World Bank
(2) “Missed Opportunities” by Sue Watt, Morningstar April/May 2017
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28Mar
What Keeps You Up at Night?
Blogs / Articles
There can be many answers to the question ranging from “my health, my kids, my grandkids, our currently divided country, how to afford the cost of education, the rising cost of health care”, to name only a few.  I want to share an interview with Richard Orlando.

Orlando is CEO of Legacy Capitals, and Ned Dane of the Oppenheimer Family of Funds asks the questions.

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14Mar
HSA Account Owners Beware!
Health Care Costs

The interaction among employer-sponsored health plans, Medicare and health savings accounts (HSAs) is increasingly complex.

Many Americans become eligible for Medicare at age 65.

The exception to the rule is if someone is 65 and still covered under his or her own employer-sponsored health care or that of a spouse.

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27Jan
A Physician’s Perspective on Aging
Issues of Aging

Regardless of age, most Americans are concerned about the aging process – either for themselves or for a loved one.

Resonate shares your concerns.  I recently read an interesting article called “6 Warning Signs of Financial Decline and Better Health While Aging” by Leslie Kernisan, MD.  I thought she made some important points and hope you find value on the following thoughts.

Dr. Kernisan begins by citing a study from the National Endowment for Financial Education, which was covered in the New York Times.  She begins her article by sharing the key warning signs of financial decline from this study.

They are:

  • Taking longer to complete everyday financial tasks
  • Reduced attention to details in financial documents
  • Decline in everyday math skills
  • Decreased understanding of financial concepts
  • Difficulty identifying risks in a financial opportunity

For each of these warning signs, the New York Times lists several specific examples (e.g. taking longer than usual to complete a check register).  If you’ve had any concerns about an older person’s financial abilities, I highly recommend you use this list as a guide.

It can be found here.

Now, here are five important things Dr. Kernisan adds that we need to know about aging and financial decline.

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11Jan
Money… From Source of Stress to Valued Resource
Intergenerational Planning

Money… for many of us….is a complex, controversial and sometimes competitive topic.  While each generation has its distinct challenges, money can also be the number one stressor for individuals, couples, and families.

In this blog, I explain how each generation relates to money, how money stresses the generations, and offer solutions to the crushing stress factor.

Let’s begin with the World War II Generation or those born between the years of 1925 and 1942.

For many in this generation, also called “The Silent Generation”, money was associated with the deep scars of scarcity created by the Great Depression.  Therefore, the emphasis was on saving and always spending less than they earned.  This generation was largely content with keeping one house for as long as possible and keeping cars and other possessions until they wore out.  The primary money motivator for the WW II Generation was to replace scarcity with “having enough” or sufficiency.

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13Dec
Social Security Myth
Issues of Aging

soc-securityThere seems to be an increasing amount of misinformation circulating in regard to the Social Security system. The following information is sourced from: www.ssa.gov.

The purpose in writing this blog is to correct this myth:

The Social Security System is going to be bankrupt by 2034 (or any other year you may have heard).

Here’s why this statement is not true:

People who are employed will continue to contribute to Social Security from each and every paycheck.

In fact, we now know that those earning over $118,500 a year will pay Social Security taxes up to $127,200 of annual earnings.  This represents a 7.3% increase in the “maximum taxable earnings amount” from 2016 to 2017.

What is true is that the 2016 Social Security Board of Trustees report does anticipate the program will exhaust its $2.8 trillion-plus in existing spare cash by the year 2034.

What this means is the Social Security administration would pay out in benefits what it receives in payroll taxes.

Without other changes to the Social Security system, the trustees anticipate this could lead to a 21% reduction in benefits across the board.  Of course, there are many options that could be implemented between now and then to create better results for those receiving a Social Security check.

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05Dec
Practical Caregiving Tips for Advocates and Their Aging Loved Ones
Issues of Aging

caregivingAs many of you know, Resonate’s reputation is growing rapidly on a national level as we continue to provide resources and facilitate conversations on the Issues Associated with Aging.

In addition to many of you, I, too, have served in the roles of caregiver and advocates for aging parents.  I understand the stress, heartache, fatigue, and joy that often accompany these necessary roles.

I recently saw some very practical “Caregiving Tips” in the November issue of AARP.

  1. “Now which key is it?” When someone has difficulty sorting through the choices of keys (s) he owns, use nail polish to distinguish them.  Also, keep the number of keys to a minimum.
  1. “Remember sponge rollers?” In addition to proving a cushion for sleeping, they can also be used to push onto items such as pens, toothbrushes, and silverware to create an easy grip.
  1. “I broke another glass today.” Consider substituting plastic for glass.  Alternatively, place four to five ordinary rubber bands around a glass for easy gripping.

Now let’s focus on you… the advocate and/or caregiver.

These roles can be very stressful…especially because we so often feel inadequate or unprepared.  It is crucial for you to manage the stress before it manages you.  Here are some suggestions from the Brandywine Senior Living website:

  1. Know your stress triggers. Create a plan ahead of time regarding what you need to do when you feel these triggers activate.
  2. Attend a local support group specific to the situation with which you are dealing.
  3. Ask for help. To whom can you delegate or with whom can you share some of the load?
  4. Keep a journal. The simple act of writing to express your feelings is a wonderful outlet for stress.
  5. What actually needs to be done today, and what can wait?
  6. Take care of yourself physically, emotionally, spiritually, and psychologically. Consider respite stays, schedule massages, stay as flexible as possible, practice forgiveness.
  7. Find answers to your financial questions. Oftentimes, finances are major source of stress.  Having a plan for how best to use existing assets, navigating the world of long term care, and medical insurance can relieve much of that stress.

The Resonate team offers resources in each of the seven areas above.

We look forward to hearing from you, so that we can create a framework of support for you and your loved ones.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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02Nov
The Most Overlooked Issue in Retirement Planning – Part One
Health Care Costs

Whquestion-markat will you pay for health care in retirement?

Fidelity research suggests that a 65-year old couple retiring in 2016 will need an estimated $260,000 to cover their retirement health care costs.  Please note this represents a $15,000 increase from the 2015 estimate of $245,000 shown in the chart below.

Source: Fidelity Investments

health-care-graphWhile we know this can only be an estimate, here is how the costs break-down:

  • About one-third of the cost is for Medicare Part B (doctors’ services and out-patient care) and Medicare Part D (prescription drugs).  Even the most healthy of Americans incur these costs.
  • Then consider the out-of-pocket expenses of such things as hearing aids, increasing dental costs, and eye care.
  • Of course, the most expensive potential cost of all is the need for care at home or in a facility.  These expenses can easily crest $150,000.

While this information begins to address the importance of including planning for health care in retirement, each individual’s situation is unique.  Let’s talk about your situation and be sure that we plan correctly to meet your life and legacy goals.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.

(513) 605-2500

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