It's an unfortunate truth that as we get older, our healthcare expenses generally increase—often, by a drastic amount. Unless you're one of those rare people who live to 100 having never visited a doctor, once you hit retirement age you'll want to make sure you have some money stashed away for that health-related rainy day.
According to the U.S. Department of Health and Human Services, seniors age 65 and older account for 36 percent of U.S. healthcare expenditures, even though they make up about 13 percent of the population. In addition, the average yearly healthcare expense for those over the age of 65 in 2012 made up 11.4 percent of their annual income.
Another report from the Employee Benefits Research Institute found that a person age 65 with a life expectancy of 90 would need more than $40,000 to cover recurring health expenses—prescriptions, doctor visits, and dentist visits, specifically—until they die.
With these kinds of numbers floating around, it's understandable that many seniors feel nervous about having enough money to pay for their own care. Independence and dignity are just as significant in one's later years as they are in one's working years, so it's important to find a solution that works for both the senior and his or her family.
One option that can be really effective is a life settlement. In fact, a recent survey of 100 people who sold their life insurance in a life settlement found that 77 percent of them used the proceeds to either fund medical or long-term care, or increase retirement income.
As our loved ones age, there are certain eventualities that most of us expect to have to prepare for. We know that our parents’ health may deteriorate. We know that they may end up needing long-term care. And we know that whatever their condition may be, they will go through major life changes like retirement that can change our relationships with them.
However, one uncomfortable truth that many adults aren’t ready for is that we may also have to help support our parents or loved ones financially after they stop working. This could mean anything from having a loved one move in with the younger generation, to paying thousands of dollars a month for specialized long-term care.
Every financial planner knows that as one ages, financial priorities evolve. Where once the most important thing for a client might have been maximizing stock market returns, now as she’s gotten older, it’s maintaining her quality of life in retirement.
For another client, the priority may have been sending his children to college without accruing student debt. Now, 15 years later, he wants to make sure he always has enough money to visit them when he wants to.
As with any age group, advising seniors requires advisors to use their general knowledge of finance and maintaining financial security, as well as their knowledge of the client’s preferences and tendencies as an individual. Put together, these two pieces of information help you protect your client’s best interests.
When it comes to great websites to spend a few minutes—or hours—on, you can’t do better than TED.com. With thousands of TED Talks all free to watch, the site gives you the ability to learn about the future of robotics, how people with autism see the world differently, how body language shapes our destiny, and much, much more.
So it stands to reason that there are plenty of TED Talks that can help out those of us in the financial world—maybe even help you become a financial superman. Here are six excellent TED Talks for financial planners and advisors.
No one likes to think about moving his or her mom or dad into an assisted living facility, but sometimes, if living at home has become unsafe, it’s the only option.
Deciding to move your parent into a facility can be one of the most difficult decisions you’ll ever make - but of course, it’s harder for the person who actually has to make the move.
Your mom or dad may have only just accepted the fact that they need some help getting through the day. And if you find a facility quickly, they may still not have fully acclimated to the idea that they’ll be living somewhere new.
If you’re dealing with helping your mom or dad make this transition, there are certain things you can do to help them feel more at home, right from the start.
When you’re living on your retirement savings, any opportunity to reduce unnecessary expenses is welcome.
There are lots of ways people go about this. Many sell a house that’s become too big and expensive to maintain, and move into a smaller condo or townhouse. Some people find they no longer need more than one car, so they sell the other to reduce their insurance and gas expenses and get rid of a car payment.
Still other people decide to launch a part- or full-time business, choosing to bring in additional income during their retirement years.
Every con artist knows that their victims are more easily manipulated when their emotions are running high.
That could mean getting a victim overly excited by promising easy money, or falsely offering a coveted item at an incredibly low price. It could even mean stoking someone’s anger by making them feel they’ve missed out on important financial opportunities, or that they’re lagging behind their neighbors somehow.
As our parents age, we find ourselves having to have all kinds of conversations with them on topics we’d rather not discuss. There’s the “How are you financially?” talk, the “What do I do when you die?” talk, and, just as unpleasant, the “I think it’s time to consider moving” talk.
For seniors who have been independent their entire adult lives, being told by their children that it’s time to adjust their living arrangements can be not just unnerving, but offensive. And unfortunately, some parents immediately put up walls when the subject is broached, declaring that they’re not moving under any circumstances.
If your mom or dad really is struggling with daily tasks, or experiencing safety issues from living at home, however, you’ll have to help them get into a better situation. What can you do to approach the subject in a positive, non-threatening way?
Retirement today is a lot different from what it used to be. Now that people are living longer and staying healthier as they age, people who retire at age 65 may be looking at spending the next 30 years of their lives in retirement. And for many, that’s just a bit too much golf and gardening.
This is part of why we’ve seen a rise in “encore careers", or second careers, that seniors are choosing to pursue out of passion and interest. Often, these encore careers involve starting a business - which isn’t too surprising, considering many seniors have spent the past 40 or 50 years working for somebody else.
While retirees are pursuing anything and everything, from art to music to engineering, there are several businesses that remain highly popular for senior entrepreneurs.
Although life settlements are quickly becoming a more mainstream alternative for both institutional investors and seniors, the majority of seniors who lapse their life insurance policies are not aware that selling their policy on the Secondary Market is an option.
According to a recent survey, out of 604 seniors surveyed, 86 percent did not know about the life settlement option.
Approximately, 90 percent of seniors who lapse their policies and are unaware of the possibility of a life settlement reported that they would have considered that option if they’d known about it; and 79 percent of senior financial advising clients believe their advisors should tell them about the life settlement option.
