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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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20Dec
Women and Social Security
Retirement

Did you know that 55% of Social Security beneficiaries are women?

Social Security is important for all seniors, but it’s a particularly valuable program for women for a combination of reasons.

  1. The Social Security Administration data continues to indicate that, on average, women have shorter lifetime work histories than men.  This is true in spite of the growing number of women in the workforce.
  2. Next, because women still tend to outlive men by an average of 5 years, they will receive payments longer than men. (Source: Centers for Disease Control and  Prevention)

Unfortunately, the widow will receive only one Social Security check.  While it represents the larger of the two checks that the couple had received, this reduction in income is still significant.  As of December 2015, retired male workers were receiving an average benefits check of $1,500 per month, compared to $1,182 for women.  (Source: www.ssa.gov)

This is depicted in the chart below.

(Credit also to the Motley Fool “6 Social Security Facts you’re Probably Not Aware of”, Sean Williams, September 15, 2016.)

This is one of the reasons that the Resonate team specializes in working with women.  Whether married, never-married, partnered, divorced, or widowed, we welcome you.  We know how to take the complicated issues and make them clear and understandable; we are committed to working in your best interest, and are excellent at helping create a plan and pathway to get you from “where you are to where you want to be”.   We provide financial peace of mind so that you can relax and enjoy life.

Let’s talk!

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

(513) 605-2500

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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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