30Nov
LGBT Financial Experience
Planning for the LBGT Community

Prudential Insurance Company recently published the 2016-2017 results from the “LGBT Financial Experience” survey.

keep-calmThe top financial concerns are:

1.  Am I saving enough for retirement?
2.  What impact does inflation have on my retirement goals?
3.  What can we expect in terms of health care costs in retirement?

Our own conversations with clients add this important dimension:

When we are ready, how do we find “gay friendly” retirement communities?

If you have similar questions and concerns, let’s talk and begin to create choices and solutions now.

If you have questions that are more of a legal or tax nature, our virtual team will join in the conversation.

The important thing is to take action and start the conversation with us now.

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

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22Nov
Resonate – A Special Place for Widows
Unique Process for Widows

qtq80-UCmIECResonate has a special place in our practice for widows.

I have been amazed at the resilience I see many widows demonstrate as they create a new vision for their life going forward.

Yet we also know that being widowed can be a very scary, sad and difficult space.

Just as we create “Diminished Capacity Directives” as guidelines to use during the aging process while everyone is as healthy and clear-headed as possible, I think it makes sense to also have the “What If I Am Widowed” plan in place on a pre-need basis.

Why is this important?  Because 700,000-800,000 women lose their husbands each year and will be widowed for an average of 14 years.
(Source: “Advice for Widows” Charest Company LLP)

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18Nov
The Most Overlooked Issue in Retirement Planning – Parts 4 & 5
Health Care Costs

question-markWhat will you pay for health care in retirement?

This is the final installment of the blog series.  See previous posts from Nov. 2nd and 14th.

Here is the third factor that influences what you will pay for health care in retirement:

Your Source of Coverage:

Some Americans are still fortunate to have a certain percentage of their health care benefits provided by their former employer.

For most Americans, this is not the case.

Most retirees need to choose between an Original Medicare, plan which includes buying supplemental Medigap insurance, OR to choose a Medicare Advantage Plan.

Here’s a chart comparing the two:

medicare-chart-resized

(Source: Merrill Lynch)

The fourth and fifth factors of heath care premiums in retirement are:

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14Nov
The Most Overlooked Issue in Retirement Planning – Parts 2 & 3
Health Care Costs

question-mark

What will you pay for health care in retirement?

In Part One of this series, I shared that 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 reference the entire blog dated Nov. 2nd.

In addition to your own genetics and health history, five factors will have a significant influence on your overall costs for care.

In this blog, I cover the first two factors:

Where You Live:

While Medigap and Medicare Advantage plans are offered in each state, the premiums can vary by as much as 30%.  (Source: HealthView Services.)

Here is their research on the 10 states with the highest cost for Part B, Part D and supplemental insurance for a 65 year-old person.

State First Year Total Over 20 Years
1. Florida  $3,710  $152,184
2. Michigan  $3,707  $152,175
3. Maryland  $3,695  $151,438
4. Massachusetts  $3,686  $151,110
5. Nevada  $3,682  $151,014
6. Louisiana  $3,651  $149,661
7. New Jersey  $3,683  $148,865
8. Illinois  $3,595  $147,203
9. Texas  $3,592  $146,969
10. Indiana  $3,549  $145,235

Source: FA Magazine

If you want to check out rates for where you live, go to the Medicare Plan Finder and enter your information.

Here is the next factor that will influence your retirement health care expenses:

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09Nov
Election Results
Economy

flickr-donkeyhotey-democratic-republican-partyNow that the election results are clear, this is what we expect to happen.

Until President-Elect Trump begins to reveal who he will select as Cabinet members and close advisors, the market may react negatively.  This is because the market typically does not like uncertainty.  This uncertainty extends from domestic policy to global trade and how other world leaders will respond to our election results.

Of course, no one knows how long this may last.

Hopefully, like the response to the unexpected Brexit vote, this, too, will be short-lived.

What we have done in anticipation of this:

For those of you who take cash distributions for living expenses, we already have between 6 and 12 months of your cash need escrowed.  Therefore, we will not be selling positions to raise cash in the near term.

Our investment philosophy is that we stay invested for the long term; we do not try to time the market based on daily events.

With that said, please remember that we have diversified your portfolio and that no Resonate client is 100% invested in the U.S. stock market at this time. Most Resonate clients are closer to a 60-70% equity position.  While we expect to see a drop in share price, there is no indication that any large U.S. companies will stop paying dividends due to election results.

Some of you will see this as an opportunity to buy quality companies “on sale”.

Also remember that many of you own annuities with guaranteed protected values which convert into guaranteed lifetime income.

Summary:

In the near term, expect volatility; if you find it agitating, listen to as little of the news as possible.

As always, reach out to us if you want to talk.

Until next time, live your purpose!

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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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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