As 2016 marches on, we’re seeing many of the financial planning trends play out as predicted at the end of last year. A rise in the importance of technology, more financially literate clients, and longevity are all playing a larger role in financial planning this year, with some interesting results.
Here’s a look at the important financial planning trends we’re seeing this year.
While certain financial issues are the same for everyone - stick to a budget, save for retirement, consider your long-term care needs - there are some things that, like it or not, women need to think about more than men.
That's true of retirement planning, as well. When it comesto planning for retirement, women and men face a lot of the same challenges. Simply making sure they have enough money is at the top of the list; ensuring they'll be able topay for any medical or long-term care needs is a close second.
But just like women have to deal with certain issues specific to their gender throughout their adult lives, the same is true once they reach their golden years. Just look at the Netflix show Grace and Frankie, about two women in their 70s whose husbands leave them. Suddenly, they're dealing with splitting up finances, living independently of their husbands, and even considering going back to the workforce.
If you’ve read our blog in the past, you may know that Ashar’s president, Jason T. Mendelsohn, is an oral cancer survivor. Diagnosed with stage 4 HPV-related tonsil cancer in 2014, Jason went through seven months of chemotherapy and radiation treatments, as well as surgery to remove his tonsils and 42 lymph nodes.
As he says in his survival story video, throughout this very difficult time Jason’s thoughts were most often with his family - his wife, three children, parents, and brother and sisters. Keeping his mind on them helped him to get through each day of treatment.
At the same time, Jason’s family was also his biggest concern. As a husband and father, he was forced to consider very seriously the question that no parent wants to come face-to-face with: Would his family be OK if he couldn’t be there to take care of them?
In April, President Obama signed into law the reauthorized Older Americans Act, a piece of legislation that provides essential programs for seniors throughout the country.
The original law expired more than four years ago, and senior advocates like the AARP have been urging Congress to reauthorize it for years - many since before its expiration. It’s an important victory for older Americans in many ways, although there are still certain issues that must be addressed (most notably: funding for these programs).
So what does the Older Americans Act do? Overall, its aim is to increase the ability of seniors to stay in their homes and communities by providing services - in-home meals, transportation, information, recreation, etc. - that make that a possibility.
As many financial advisors are no doubt aware, the life settlement industry is still only vaguely understood among the general public. In fact, many financial advisors themselves are unfamiliar with how the life settlement process works, whether life settlements are truly beneficial to their clients, or how to go about initiating one should their client be interested.
One major reason we keep this blog is to help explain the answers to those questions. For example, we’ve written about how life settlements can help seniors pay for long-term care; how life settlements can help improve a client’s retirement situation; maximize philanthropic giving; and much more.
Few of us ever really expect to become family caregivers. Most of the time, the circumstances that lead to us becoming caregivers creep up on us gradually - maybe a loved one begins having trouble remembering her medications, then falls while at home, then gets lost while out driving to the grocery store one day.
However gradually these changes may seem to occur, the pivotal moment when the family member is actually faced with the choice of becoming a caregiver almost always seems sudden. It can feel as if you’ve been thrust into the position, no matter how prepared you think you might be.
Becoming a caregiver is a rewarding act of love and kindness, but it can also be a very difficult road. These tips will help as you grow into your new role.
For seniors who live at home, safety is a big concern. Especially for those who live alone, it’s important to be aware of potential safety issues so that the comforts of home can continue to be enjoyed for as long as possible.
Whether you’re a senior yourself or a friend or family member who’s caring for a senior, there are lots of relatively simple things you can do to help diminish safety hazards.
As the Wall Street Journal reported late last year, many universal life insurance carriers have been raising premiums on policies that were sold as many as 30 years ago.
This has been difficult enough for policyholders who have found their premiums suddenly increased by thousands of dollars. Now, however, cost of insurance charges, or COI, for universal life policies are also on the rise, according to an article in LifeHealthPro.
COI charges account for mortality, administration, marketing, and other expenses incurred by an insurance company. These charges are determined by the insured’s current age, the current net amount of risk, and the original rating class. COI charges are usually deducted from a premium payment before crediting the rest to the policy’s account value.
Traditionally, the life settlement market has been concerned with life insurance policies with larger face values - typically, of $1 million and above. This has been due to simple economics: the return for investors is greater on high-face value policies. The market for large policies, and even jumbo policies of $10 million-$100 million, is stronger than we’ve seen in the last decade. It’s a seller’s market and the demand for eligible policies far exceeds the supply.
Institutional investors are now looking to supplement their portfolio demands with smaller face policies of $50,000-$500,000 and making strong offers.
Let’s be frank: Baby Boomers today deserve a standing ovation for everything they’ve done throughout their lives. Supporting families, raising healthy children, saving what they can to ensure a happy, fulfilling retirement - that’s hard work. After 40-plus years of being responsible and looking after those you care about, it’s time to sit back and enjoy what you’ve created.
Traditionally, that has meant retiring. But today, a lot of Boomers are finding that stepping back from the working world isn’t necessarily as rewarding as they once thought. Some find that retirement won’t afford them the same standard of living that they had while working.
That’s why so many seniors are now embarking on a second, or encore, career. Choosing to go into an encore career can be an exciting, but also daunting decision. Here are a few tips to help you make your own encore as successful as possible.
