Posts Tagged ‘long-term care planning’

3 reasons women aren’t prepared for their retirement years…

November 19th, 2013 No Comments

Women face distinct challenges in retirement years

As more and more women enter retirement years, they are realizing their financial resources are lacking. Typically, women in the work force have earned less than men, and many have moved in and out of the work force over the years, leaving their financial nest egg lacking. Many women fear outliving their savings, regardless of income. Women have higher rates of disability and chronic health issues and are more likely to need long-term elder care as they age.

  • 1. Women typically live longer. Women aged 65 this year can expect to live to age 86, so that’s 20+ years of living off their nest egg.
  • 2. Women have invested too conservatively. Many women haven’t invested as aggressively in the stock market as their male counterparts.
  • 3. Women tend to distrust financial advisers. A senior vice president at E-Trade, Lena Haas, reports that women ranked the financial industry last in a 60-industry list, even below used car salesmen.

Women are encouraged to:

  • have a retirement plan
  • have an estate plan
  • consider long-term care insurance
  • review investment plans
  • attend educational group financial planning sessions
  • educate themselves about various aspects of retirement

For more, read the USA article at http://usat.ly/1cFgimf.

It’s Save for Retirement Week…are you saving enough?

October 23rd, 2013 No Comments

The third week in October is Save For Retirement Week

Retirement comes sooner than many of us would like to admit, and many of us—from baby boomers to millennials—just aren’t saving enough to fund our retirement and long-term care goals. Assume that you will live into your 90s. As a general rule of thumb, you probably need to save at least 8 times your ending salary to have enough to live on for around 25 years in retirement. Long term care costs may bump the total up even more (see our Long-Term Care Community Resource Bulletin). Now is the time to start saving..or saving more.

Calculator to determine if you’re saving enough: http://cnnmon.ie/1bf3tyy

Check out The Dream Big Site, created especially for younger savers, to help them plan their financial goals. It has tips, tools, and other resources: dreambigsite.org

Saving for Retirement: All About Annuities

October 3rd, 2013 No Comments

Long Term Care Planning

In October, we’re bringing awareness to long-term care planning. Annunities may help with your NJ elder care planning.

“Are you planning for your retirement?” the TV ads ask. If your answer is, “Umm, not really,” you have plenty of company. Financial advisers across the Web scold Americans for not saving enough for retirement. While this is a real problem, many Americans are struggling just to keep up with the current costs of living. There are quite a few reasons:

  • Losses in savings and retirement accounts caused by record low interest rates and the collapse of several investment firms in 2008
  • Interruptions in income and savings caused by lay-offs
  • Stagnant incomes for those who managed to remain employed
  • Uneven relief, if any, in the costs for food, energy and other basics of life

In fact, more Americans than ever plan to work past their retirement age to make up for lost income and savings they experienced during The Great Recession, The Wall Street Journal reports. Thankfully, annuities provide some relief.

Annuities 101

One option for families thinking about retirement saving strategies is to consider annuities, which are long-term investment strategies that provide an income stream for retirees and people older than 59-and-a-half. Annuities are actually insured by the firms that sell them to protect investors from losing income. Some may even guarantee a fixed rate of return. It’s like having a warranty on your investment.

Annuities can be designed to fit different needs. They can be arranged to pay out funds to owners or their heirs for as long as they live or for a specific period of time. The latter reason makes them a common strategy used to pay out court settlements. Private placement variable deferred annuities (PPVAs) are even more attractive, particularly to lawyers working on court settlement details, because of their flexibility, transparency and ability to accept other investment forms, such as hedge funds and commodities. PPVAs can only be sold by brokers licensed by the Financial Industry Regulatory Authority.

Selling Annuities

There is a healthy market for individuals who want to sell their annuities for any number of reasons, including to pay bills during a period of unemployment, save a residence from foreclosure or pay for college tuition. However, according to annuity.org, annuity owners who plan to sell should carefully consider other options to raise money. The main concern is most annuities out there today are part of retirement packages. Retirement annuities sold before age 59-and-a-half come with a 10 percent tax penalty from the IRS. There are very few exceptions to this rule.

Selling an annuity can bring unexpected costs, including a 7 percent fee if you opened it within the past year, in addition to age-related penalties. These “surrender charges” decrease with each year, usually by about one or two percent until they drop down to zero. Some annuities also let you take out earned interest without charge or allow a withdrawal up to 10 percent of the fund without the surrender fee.

Guest author: Tom Weaver | Tom is a financial planner from St. Paul.

Boomers, are you confident you’ll have enough saved for retirement? Many aren’t…

April 2nd, 2013 No Comments

A new study by the Employee Benefit Research Institute has shown that 28% of U.S. baby boomers report they don’t have confidence they have enough money saved for retirement. With advances in medical care, people are now living longer. As a result, the need  for long term care, such as home care NJ, has increased. These costs should be part of financial planning for retirement. 18% of boomers stated they are now planning to retire well after the age of 62–they are now saying they are planning to retire at age 70 or older. Read the Wall Street Journal story at http://on.mktw.net/XGykBo.

Man dies on the way to his wife’s funeral…

February 26th, 2013 No Comments

In the news: A 94-year-old New York man died unexpectedly in a limousine on the way to his wife’s funeral. His daughters reported their father, Norman Hendrickson, didn’t like to waste money, so the family decided to have both their mother and father’s funerals together. The couple, who met in Europe during WWII, had been married almost 66 years. Read the story at http://nbcnews.to/13lsM1o.

Have you talked to your parents about their final wishes or long-term care plan? As an elder care NJ provider, we encourage you to have the conversation with them soon!

Mild cognitive impairment can put you at risk for financial abuse

February 13th, 2013 No Comments

About 20% of Americans over the age of 70 have mild cognitive impairment, or MCI. It’s described as a stage between an expected mental decline of normal aging and the more significant decline of dementia. You may have more difficulty with completing tax forms, for example, or keeping on top of your finances, but it’s not severe enough to stop you form doing your day-to-day activities. An interesting article on USAToday.com reinforces the need for baby boomers to make their long-term plans BEFORE they have MCI. Not doing so in advance may lead to unsavory people taking over your finances at a time when you’re most vulnerable. The article offers tips of ways to prepare, such as putting together a support team of those you trust to take care of your finances. It’s also advisable to prepare your documents, such as medical directives (such as your desire to have home care NJ rather than living in a nursing home) and power of attorney. Read more: http://usat.ly/Yrh6ml

 

Will boomers outlive their own life expectancy expectations?

February 6th, 2013 No Comments

Visiting Angels - In The NewsAn interesting NBC News article describes retirement patterns in baby boomers, those born between 1946 and 1964. One of particular interest to us in the elder care New Jersey field is the observation that boomers will outlive their own life expectancy expectations. As a result, they aren’t planning to save enough money to cover their long-term care needs should they live a longer life. Life expectancy for men is currently 75.7, and for women, it’s 80.8 years (based on 2010 statistics). But if someone only saves enough to last until they’re 80, and lives until they’re 90, there will be quite a financial gap.

Other trends: boomers are retiring outside the U.S.; they’re entrepreneurs; they use technology; they’re in more debt; they have been giving financial support to their aging parents as well as their children; they aren’t moving to Florida. Read the article: http://nbcnews.to/VEpUoD.

 

Expenses in retirement you may not be expecting…

January 17th, 2013 No Comments

You’ve been saving your money for retirement, but there just might be several expenses you haven’t planned for. A recent article on USNews.com raised some of these “surprise” expenses.

For example, have you planned for your long-term care should you need extra NJ elder care living assistance? These costs can be needed all of the sudden when a crisis hits, so it’s best to plan in advance for home care assistance such as Visiting Angels NJ, for instance.

Another unexpected cost is helping to pay for your parent’s long-term care. They may find Medicare, Social Security, and their pensions don’t make ends meet.

This tough economy may be brutal on your adult children. If they’re out of work, you may want to give them some unplanned financial assistance.

Unplanned expenses from trips can also be financially draining. Out-of-town weddings, funerals, and other life events may occur which you won’t want to miss.

To read more of these unexpected expenses, read the article at http://bit.ly/13HvtZN

Series on aging stresses importance of talking to your parents about end-of-life wishes before a crisis happens…

December 13th, 2012 No Comments

Visiting Angels - In The NewsNBC News, in conjunction with AARP, has been featuring a series about aging. In one video installment, the focus was on having a conversation with your older parents about their end-of-life wishes–how they would like to handle topics such as how they would like elder care should they need extra help (such as home care NJ), where they would like to live, how they would like their funeral to be arranged, what their plan is to financially pay for long term elder care, who would be appointed power of attorney, where important paperwork is located, etc. These conversations about death and dying are extremely difficult for both adult children as well as adults, but by being proactive BEFORE a crisis arises will greatly reduce stress and anxiety.

Go to NBC new’s website at http://nbcnews.to/Z323pp to view their series on aging.

Have you had “the conversation” (end-of-life wishes) with your loved ones?

October 11th, 2012 No Comments

No one likes to think about the end of their parents’ lives, nor their own, for that matter. Most of us know, especially those in elder care New Jersey, it’s important to have “the conversation” with your loved ones about end-of-life wishes, or to at least get them in writing (80% of people surveyed think they should have their wishes in writing, but only 7% have done so, according to the California Health Foundation). ABC News is partnering with The Conversation Project and is featuring a series focusing on long term care and end-of-life planning. At theconversationproject.org, you can download a starter kit to help get you and your family started. Questions such as, where would you prefer to be when you die?, at what point would you want to stop looking for a cure, and instead focus on being comfortable?, what do you need to do to get your affairs in order?, and many more questions and ideas to ponder. Visit abcnews.go.com/health/conversation to watch videos and learn more.

Photo: MorgueFile by HERMSdesign