Retiring can be a wonderful yet confusing time. Making sure you have your finances organized before taking this big step will alleviate undue stress, allowing you to take advantage of the time you have been looking forward to having. Let us take the guesswork out of what you will need to establish before taking this leap towards your future, with a 4-step retirement financial planning checklist to guide you.

Step 1: Inspect your retirement income sources

Knowing where your retirement financing comes from will allow you to establish how much income will come from each source and how long it will provide what you need. Your retirement savings and income sources can come from:

• Savings accounts
• Annuities
• Life insurance
• Pension
• Social security

For assistance in determining what sources of income you can expect to receive, contact us. Our clinical concierge will direct you to the most appropriate financial specialists for your needs. 

Step 2: Uncover how much tax you will pay on your retirement income  

Knowing how much tax you need to spend on your retirement income is imperative in establishing if you have saved enough for your financial retirement. Sources of income may be taxed differently, and therefore you will need to scrutinize the tax payable for each income source to navigate your retirement financial planning.

The trusted website for retiree finances, Kiplinger, has a great Arizona state tax guide for seniors. To access this, click here.  

Step 3: Calculating your expenses for retirement financial planning

The income a senior will need to have saved to retire largely depends on what expenses they carry. Living costs differ from person to person, but they can include things such as: 

• Loans and debt
• Health Care
• Taxes 
• Living and leisure expenses
• Housing expenses

Estimating your expenses is an integral step to ensure you have enough saved for retirement and if you need to make any adjustments to your retirement financial planning.

Step 4: Deciding on your retirement date

Once you have followed the above 3 steps on the checklist, setting this date should be a lot less daunting. These are some aspects to take into consideration:

• Are you ready to stop working?

If you have a close connection with colleagues and still enjoy working, you may want to cut back on your hours or work part-time instead of retiring. Working part-time will give you spare time in your day, allowing you to earn an income and retain your network of friends into your retirement.

• Time with your partner

 Create a cohesive plan with your partner. For example, perhaps they want to continue working, which means that you can assist with domestic responsibilities until they decide to retire, or you may want to keep working until your partner retires so that you can do activities together. You will both need to assess your expectations and personal goals. 

• Your retirement wish list

 This is a personal list of goals or dreams you have. Everyone has different things they would like to do when they retire. While one person would like to play golf for hours on end, another may want to tackle that novel they have always wanted to write or donate all their time to a charity close to their heart. Whatever your wish list is, having a clear plan for your retirement will help to guide you in selecting the retirement date.

Takeaway

Although retiring can seem daunting, if you set time aside to plan your financial retirement plan, you can build a secure course of action that allows you to do the things you love while mitigating financial stress.

We suggest starting your financial retirement planning well in advance, as examining your financial income sources will give you time to adjust your plans if necessary. 

This post was inspired by Aging in Place’s “Retirement Financial Planning Checklist.” To read the original, please click here. 

The story below details an account of financial elder abuse prevention and how our coalition came together to help seniors in need.

In a heartwarming tale of justice and support, a story recently emerged about a 78-year-old individual who faced an unsettling situation with her life savings. With her sibling, 83, as her only beneficiary, she sought financial advice from an insurance “advisor” who proposed an annuity that tied up a substantial portion of her nearly one million dollars in life savings for a totally inappropriate period of 17 years. As if that wasn’t enough, the surrender charge started at a staggering 20%.

Thankfully, the story took a turn for the better when Pelleton Capital Management, one of our valued coalition members, stepped in to make a difference. The dedicated team at Pelleton Capital Management took it upon themselves to fight for the rights of these elderly siblings. They crafted letters on their behalf, addressing and sending them via certified mail to the President of the insurance company, the AZ Attorney General, and the AZ Insurance Commissioner, shedding light on this unethical and abusive situation for these aging seniors.

Their efforts did not go unnoticed, as the insurance company responded by doing the right thing. They sent a check for the full amount, symbolically acknowledging the error and ensuring justice prevailed. It was a moment of triumph, demonstrating that good things do happen to good people.

This heartening tale of financial elder abuse prevention also emphasizes the crucial role of organizations like Senior Resource Connectors and the coalition of age-friendly businesses in serving the senior community. The philosophy of Pelleton Capital Management is simple yet powerful: do good things for good people, and your efforts will be rewarded. By standing up for the vulnerable and offering support and guidance, they exemplify how an advocate can positively impact our seniors’ lives.

Furthermore, these seniors now have a new financial advisor who, as an Accredited Investment Fiduciary, will legally put their client’s best interests above the firm’s interests. This aspect highlights the importance of having a trustworthy and reliable financial advisor, especially in the later stages of life when financial decisions become so critical.

In conclusion, this inspiring story serves as a reminder that no matter the challenge, standing up for what is right can lead to life-changing outcomes. It also emphasizes the significance of supporting organizations like Pelleton Capital Management and Senior Resource Connectors and all their coalition members, whose dedication to serving the senior community yields meaningful results. Let’s celebrate this “HAPPY ENDING” and strive to create more of them by looking out for one another and ensuring fairness and justice for all.

If you’d like to become a part of our coalition of age-friendly businesses, kindly get in touch with our team by calling (602) 698-9720 or sending an email to info@seniorresourceconnectors.com.

These are the burning questions that we all have, but we don’t have the answers to. ‘What will long-term care cost for my senior?’ The answer to this question will vary from person to person. Most seniors who get to the point of needing long-term care will not come out of needing it. However, there are examples such as after a surgery or fall. One might need specialized care for only a short while. These situations usually will have a better answer as to how long your senior will need maintenance and what long-term care will cost.

Long-term Care

There are many options for long-term care, from aging in place to assisted living and more. Many will have their children or other relatives help them. However, this can quickly become a financial burden on that person as they may not be able to perform their regular job anymore.

Society isn’t the same as it has been in the past where people have someone staying at home caring for children, or there were even housewives. Those positions are pretty much a thing of the past, and everyone has to work due to the overall cost of living.

Though the cost of living is rising with the price of housing, healthcare, and basic necessities, it is often overlooked that this cost will increase exponentially once seniors are faced with the decision to age in place or have to move to an assisted living facility.

If the person’s home is paid off, then aging in place is far more economical, in most cases, to stay at home.

Assisted Living Options for Long-Term Care

However, assisted living facilities all have different pricing structures. Some structures will take over all of a person’s assets as payment until the end. This means they will not leave any inheritance to their families but also will not become a burden on them for any reason.

All these factors must be considered when you are looking at the cost. The cost of aging is only increasing with inflation over time. How long a person will need this sort of care is entirely unknown and unique to that person.

As of 2020, the average cost of assisted living is $4300/month, according to Genworth’s Cost of Care Survey. If you are looking at a private room, it is about $8,821/mo, with semi-private being a little less at $7,756/mo. That is money that many of the elderly in the upcoming generations simply don’t have.

We are not living in the times of pensions as we once were either. Times have changed the costs are only increasing.

Long-Term Care Insurance

There are options for long-term care insurance. However, this insurance typically has some rules that need to be met before it will kick in. These rules might be over what a person needs. However, the patient still needs care. These rules are things such as they need help with at least two daily activities. They could also insist on a high deductible that must be paid before the benefits kick in.

When it comes to the long-term planning of your loved one or yourself, determining what is suitable for you is a very personal choice. There are many options, even some that take over your assets to give you lifelong care.

However, these choices shouldn’t be made overnight. Be sure to do your research and determine what would work best for your situation. While we wish there were easy answers about how long and how much it will be, it is anyone’s guess.

What is the difference between nursing home and long-term care?

While long-term care is generally used for situations in which the senior is unlikely to come out of the care, skilled nursing is generally designed to rehabilitate a patient so that he can return home if at all possible.

Who needs long-term care?

People often need long-term care when they have a serious, ongoing health condition or disability. The need for long-term care can arise suddenly, such as after a fall or stroke. Most often, though, it develops gradually, as people get older and frailer or as an illness or disability gets worse.

Contact Senior Resource Connectors

Your roadmap when it comes to determining the best care plan for your senior loved one in Arizona – at any age or stage. Visit our resource center, view our business directory, or connect with us below.

What is Aging in Place?

When seniors remain in their homes and communities as they grow older, we call this “aging in place.”

According to RHI Hub, nearly 90% of older adults want to stay in their own homes as they age. It can promote satisfaction, good self-esteem and can contribute to overall happiness due to independence and freedoms they may not have in a nursing home. But, as with all things in life, aging in place comes at a cost.

Why aging in place can result in excessive cost implications

However, there can be devastating cost implications for the family. While some adults have prepared well for their future, most haven’t. Those seniors who have not adequately prepared for their future can leave the family with the complete expense of looking after them. In addition, unseen costs such as housing, electricity, food, and medical costs are a financial strain that can accumulate over time.

Looking after a senior with high needs can also be time-consuming. Where does this time come from? In many households, both men and women are part of the workforce, leaving little to no time to care for their adult parents. The value of time cannot be underrated when it comes to their quality of life and having to look after their children, too.

Possible solutions for high aging in place costs

Bringing a viable solution to the table is an essential task.

1. One possible solution is to utilize federal funds to help manage the cost of eldercare. This would include compensation for home caregivers who have lost their income due to the responsibility of taking care of an older parent. Remuneration will help with their peace of mind and improve their capacity to save for their own eventual care needs.
2. Another feasible solution would be to make home health care a “good American job,” giving paid caregivers the ability to unionize, negotiate higher pay and better benefits, as well as bargain for worker’s compensation. This may help resolve ongoing staff shortages affecting the industry. 

A forward-thinking solution would be to have a virtual administrative program to assist elders with making payments or doing tasks that they struggle to do themselves. This could enable paid caregivers who begin to find physical tasks strenuous, enter another sphere of their work and extend the longevity of their career.  

As Forbes put it in Do You Really Want To Age In Place, “Older people must judge for themselves what is appropriate. The key is to try to find options that fit your individual preferences.” Then, with the help of their family, seniors must find a cohesive solution that adds value to their life, without affecting the wellbeing of their loved ones. 

Society should also start by laying the foundations to improve paid caregiving and home health care for future generations. Small changes now can have a monumental impact on our future. 

Contact us for access to resources, advice, and guidance -our services will always be free. 

*Disclaimer: This blog post was inspired by a recent article posted by Vox. To view the original, click here

Contact Senior Resource Connectors

Your roadmap when it comes to determining the best care plan for your senior loved one in Arizona – at any age or stage. Visit our resource center, view our business directory, or connect with us below.

This week, Scott sits down to chat with Robert Montgomery, a Licensed Financial Professional & Medicare Insurance Agent with Universal Wealth.

Robert recalls how he made a career change at the age of 55 after witnessing how his own mother battled cancer and lost everything due to medical bills piling up. He muses about how much joy it brings him to help people plan for retirement and to help them understand the ins and outs of Medicare.

If you’re an adult child looking after Mom or Dad, and you need advice, guidance or a trusted referral, Senior Resource Connectors is your go-to.

Get in touch with us in the following ways:

Call Us: (602) 698-9720

Visit Us Online: https://seniorresourceconnectors.com/

We are privileged to talk to seasoned fiduciary Charles Scott from Pelleton Capital Management. Charles shares how a little bit of planning at the right time can save families stress, tears, and financial heartache when disaster strikes with an aging loved one or parent.

If you’re a caregiver or family member needing help, advice, or a trusted referral, reach out to us at Senior Resource Connectors to get connected with the right resources at the right time.