A common goal inherent in planning is to be able to sustain a desired lifestyle for as long as needed.
One key question and concern is: “On what age(s) is your planning based?”
I contend that many plans have not considered the following:
The Methuselah Foundation says, “By advancing tissue engineering and regenerative medicine, we want to create a world where 90-year olds can be as healthy as 50-year olds.”
Are you tempted to answer “Maybe ….but not in my lifetime?”
Well the goal for 90 to be new 50 is actually 2030!
(Source: Financial Advisor Magazine The 7 Disruptions by Bill Bachrach April 2016.)
If this goal is reached, here are some of the questions planners should be considering with clients now:
- What assumptions shall we use for life expectancy?
- How do we invest wisely to match those assumptions?
- If baby boomers and Gen Xers are going to live much longer than originally thought, what impact does this have on wealth transfer?
- How should millennials and younger Gen Xers be preparing for their future?
Here are some action steps to consider:
- Look at your own planning assumptions and see if they need to be revised. If they do, discuss with your planner soon, in order to allow as much time as possible to implement more suitable ideas.
- Boomer parents and grandparents may want to give their children and grandchildren the gift of completing their own planning by offering to pay for the planning fee.