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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27Oct
Serving the Full Diversity of an Aging Population
Issues of Aging
shingles-vaccination_364x200_155138886Michael Adams is the executive director of SAGE (Services & Advocacy for GLBT Elders).

Here are the five main things he says must change for the U.S. to be prepared to serve the “full diversity of its aging population.”

  1. Basic Health Care: LGBT elders are half as likely as heterosexuals to have close family to lean on for home health care.  This means they are more dependent on professional caregivers and providers.  In addition to costing more, the risk of encountering prejudice also increases.
  1. Caregiving Issues: Unlike heterosexuals, the LGBT community members often need special arrangements to be recognized as having certain rights in the medical world.  For example, Resonate offers access to Personal Service Agreements when deemed appropriate.  (Source: AARP: “LGBT Advocate Sees Hurdles Ahead” August 2016)  It is crucial to understand what is needed and proactively put it in place – before there is need.
  1. Financial Insecurity: LGBT older persons are less financially stable than Americans are as a whole. (Source: SAGE Data August 2016)  Past discriminatory policies from taxation through Social Security have negatively affected financial well being today.
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21Oct
The Gift of Experience
Intergenerational Planning

gift-boxThe longer I am in this business, the more opportunity I have to see the results of our thinking and work manifest into clients enjoying a well-planned retirement. I also am privileged to share in the sacred parts of life transitions and the passing on of a treasured legacy.

We regularly talk with our clients about the two legacies we all create…. One is the legacy we live each day and the second is the cumulative result of the daily Living Legacy wrapped up in our Leaving Legacy.

This writing by Wayne Mueller beautifully describes the process we are grateful to share with our clients and their families. (Excerpted from A Life of Being, Having and Doing Enough by Wayne Muller)wayne-muller

We make only one choice.

Throughout our lives, we do only one thing- again and again, moment by moment, year after year. It is how we live our days, and it is how we shape our lives.

The choice is this: What is the next right thing for us to do? Where, in this moment, shall we choose to place our time and attention? Do we stay or move, speak or keep silent, attend to this person, that task, move in this or that direction?

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17Oct
Investing for Women
Investing

investing-for-womenThe August-September issue of the Morningstar Magazine for professional advisors has an interesting interview with Sylvia Kwan.  Sylvia is the chief financial officer of Ellevest – a company that specializes in investing for women.

Here are some of their positions with which your Resonate team agrees:

  1. “Investing shouldn’t be unisex.” Women’s investment preferences and goals are often different from men’s.  These preferences need to be heard, acknowledged, and factored into the investment portfolios.

  2. “Women working outside the home experiences more wage losses than male counterparts.”  This is due to taking career breaks to honor family commitments and due to the ongoing gender pay gap. Couple this with women’s actuarially longer lifespans and there is an obvious need for custom planning for women.

  3. “Life changes are a certainty.”  While we may not yet know what will change (health, issues with aging parents, divorce, special needs of children), we are committed to continually building our relationship so that we are there when you need us to again listen and provide appropriate (although different) recommendations.

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12Oct
Seed Planting for Lasting Legacies
Intergenerational Planning

a person holding a small bonsai plant isolated

Over the years, I have worked to develop questions that are hopefully both engaging, compelling and that transcend the usual tax and financial discussion.

When it comes to intergenerational planning and leaving a legacy, we ask our clients to join us in a very special conversation focused on them.

Here are some of the questions we ask:

  1. Other than money and tangible assets, what do you want to leave your children and grandchildren?
  2. What do you consider to be your most important accomplishments?
  3. How is the world different because of you?
  4. What lessons do you still want to teach others?
  5. What knowledge or wisdom do you still have to share? With whom do you want to share it?
  6. What do you want people to say after you leave a room?
  7. What do you want to family to say when you are gone from this earth?

If you are interested in creating a legacy that includes and transcends the technical, then your Resonate team is excited to share a conversation with you.

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

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04Oct
Resonate’s Enhanced Services
Intergenerational Planning

Richness of Life

 

 

As a natural result of our clients’ busy lives, it is becoming increasingly clear that planning to meet their life and financial goals is rapidly becoming more complex.

Therefore, to act on our dedication and commitment to our clients, I am pleased to share that we have enhanced our services to include the following:

  1. Tax strategies designed to optimized the tax efficiency of a retirement portfolio both current and in the future.
  2. An annual Medicare check-up.  Whether you are currently covered with Medicare or you know someone who is, here are items that need to be updated each year:
  • A change in prescription medications;
  • Gradual increases in the Medicare gap filler or Part D premiums;
  • If a current carrier has discontinued the Medicare Part C or D plan;
  • A change in legal name;
  • A change of residence.
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22Sep
Rise of the Robo-Advisor
Blogs / Articles

robo-advisors I am increasingly reading about the “Rise of the Robo-Advisor” and thought some recent information might interest you as it did me.

For those of you who might not be familiar with the concept, Robo-Advisors are computers programmed to create investment portfolios.  They tend to be most popular with younger investors.

Did you know that, a “decision to protect its investors by Betterment, (a large Robo-advisor) resulted in Betterment temporarily suspending trading the morning after the Brexit vote?  “This decision, made on only a 2% drop in the market, disappointed and surprised many Betterment users. “

(Source: “Betterment’s Brexit Shock” by Suleman Din Techzone Financial Planning August 2016)

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20Sep
And the Scams Continue
Economy

Wells Fargo  is the latest recipient of a massive fine ($185 million) for fraudulent activity impacting thousands of their customers.  The employees who opened thousands of accounts without the knowledge of their clients, say that the corporate imposed sales quotas were simply impossible to reach consistently.  So they chose to break the law to reach their goals. (The source for this information is the Wall Street Journal September 14. “Wells Boss Says Staff At Fault For Scams” and “Wells Fargo Isn’t Sorry Enough”)

Quotas and sale goals are common throughout the entire banking and large wire-house industry.  Conflicts of interest can be a natural outcome any time there are shareholders to satisfy.

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14Sep
Inherited IRAs for Non-spouse Heirs
Intergenerational Planning

inherited-iraRecently we’ve had a significant number of questions from clients regarding inherited IRA’s for non-spouse heirs.

Here are some of the common pitfalls that sadly trap the unaware:

  1. Not properly dividing the IRA among the heirs.  For example, if the account is not split,  the age of the oldest beneficiary will be used to calculate the Required Minimum Distributions (RMD’s). This shortens the number of years the money can grow tax-deferred.
  2. Naming a trust as the beneficiary of an IRA requires special communication with the IRS by October 31 of the year following the year the owner died. Otherwise the trust is considered a non-designated beneficiary which may trigger payout of the entire IRA sooner than planned.
  3. While Roth owners never have to take distributions, non-spouse beneficiaries must take distributions.
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07Sep
Divorced / Widowed Women’s Feelings
Retirement

The feelings associated with divorce often mirror those associated with the death of a spouse because life as she knew it is ending.

Among others, these feelings may include anger, regret, relief, inadequacy, self-doubt, sadness and fear.  It always creates stress.

Resonate understands the parallels in the journey walked by women who are divorced and those who are widowed.

Many of the financial questions are the same:

  • “What will I be able to afford?”
  • “Will my money last as long as I do?”
  • “Can I stay where I am living?”
  • “Do I have enough money to continue to travel and see my children and grandchildren?”
  • “We always said that we would take care of one another; what happens now?”
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