Plan Now for Your 100+ Life

Contributed by: Sandra Adams, CFP®

Between 1900 and 2020, the average life expectancy in the United States rose by more than 30 years. This was due, in part, to improvements in multiple health measures and medical advances such as vaccines and antibiotics. As of 2021, there were 89,739 centenarians living in the U.S., nearly twice as many as there were 20 years ago, according to data from the Population Division of the United Nations. According to research by Dr. Michael Roizen, emeritus chief wellness officer at the Cleveland Clinic and Al Ratner, former CEO and chairman of Forest City Enterprises, as published in their book: “The Great Age Reboot: Cracking the Longevity Code to Be Younger Today and Even Tomorrow,” there are promising medical breakthroughs happening now that could prolong life even more in the near future. According to Dr. Roizen, there is a point in the near future when “90 will be the new 40” in which people will live to be 150 and retire at age 75!

Whether you WANT to live to 100+ may be irrelevant — it may be happening whether you desire to live that long or not. If we will truly be living to age 100+, how should we begin to plan for this? Not only from a financial perspective, but from a personal, psychological and emotional standpoint so that we can have meaningful and valuable long lives? Most of us need to make some changes to prepare for a longer life.

Change Your Mindset About Work

We need to start by changing our mindset about working. Retirement needs to be thought of as more than just the end of your first career/working life at the age of 65 and moving into a life of leisure. If we plan to live to 100+, most of us will need to work past age 65 in some capacity. But can that allow us to work in the same career with a more flexible schedule, or start a business, or do something completely different — something we have always wanted to do, but didn’t feel we could take the risk when we were younger? This is the time to make our next phase of life your best phase of life, starting with making your work meaningful and challenging. For some, this may be by finding our purpose and passion and putting it to work first by finding a way to continue to support us financially a little longer than we originally planned; by doing this, we put ourselves in a better position to be financially independent for the full extent of our long lifespan. For others, this may mean putting our time and talent to work volunteering for causes that mean the most to us and giving back to our communities.

Change Your Mindset About Health

Making a priority of health and well-being is another change we must make if we are to thrive in our quest to live the 100+ life. In order to maintain overall well-being, the following are important steps you need to follow:

• See your doctor(s) regularly for check-ups and proactive testing and vaccinations.

• Maintain a healthy diet (learn to cook or purchase healthy meals if you don’t now).

• Drink plenty of water.

• Avoid unhealthy habits (smoking, drinking too heavily, etc.)

• Maintain a healthy weight.

• Maintain a regular sleep schedule (6 – 8 hours of sleep nightly is recommended).

• Maintain social engagement; avoid social isolation.

• Keep your mind active (continuous learning).

• Maintain a safe living environment.

• Get regular exercise, including cardio, weight training and stretching.

• Get fresh air as much as possible.

• Use stress reduction exercises, including meditation.

• Maintain good mental health; seek a therapist, if needed.

• Seek resources for care assistance, when/if needed.

Change Your Routine and Pursue Your Passions

Determine now what you will do in your next phase of life. When and if you do stop working (some of us will work in some capacity forever), what will you do that means something to you? What are the goals you want to accomplish during your lifetime that are meaningful, personally satisfying, and psychologically rich? All of these components need to exist in your mix of goals and it is important to have a good balance. To fill your life of 30+ years of retirement, you will need to come up with a long list of goals and activities to fill your years. Start now to think of the things you might want to accomplish and the timeframes in which you might want to accomplish them. List anything that you’d like to make happen - getting these wishes down on paper makes them that much more likely to happen! Your “wish list” may include:

• Travel to a particular destination.

• Writing that novel that you always said you’d write.

• Starting a non-profit or working for one that supports a cause that matters to you.

• Taking a mission trip.

• Taking a ride in a hot air balloon.

• Going back to school and getting your college degree.

• Visiting the town where your great grandmother was born in another country and starting to put together your family history.

There are so many possibilities! And the goals that are meaningful to you will be different than those that are meaningful to someone else. The sooner you get started, the better. None of us know our future health trajectory — so get working on those goals and make them happen while you can. The good news is, for many of us, the longer we stay mentally engaged, healthy, and active, the better chance we have to keep going strong!

Change Your Social Engagement

It seems that who we engage with as we age is important. First, stay engaged — with SOMEONE! Staying engaged with people from different generations is a key to staying active and healthy in your next phase of life. This engagement may come in the way of activities with the many generations of your family. Or it may come by being intentionally engaged with other generations — by where you choose to live, how and where you choose to volunteer, engage socially, etc.

Start now!

The 100+ life is truly something most of us should be thinking about, anticipating and planning for. How can we start planning now in order to have to have the most engaging, meaningful and healthy long life possible? One in which we thrive during our entire life, give back to ourselves and our communities in a meaningful way, and are able to support ourselves financially for our entire lifespans? Only by starting the planning process now and anticipating a long life can we be prepared. Work with your professional planning team to start designing your Longevity Plan now. Be prepared for your 100+ Life!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc., is not a registered broker/dealer and is independent of Raymond James Financial Services.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Any opinions are those of Sandra D. Adams, and not necessarily those of Raymond James.

How to Reduce the Risks of Dementia and Diminished Capacity to Your Retirement Plan

Contributed by: Sandra Adams, CFP®

Senility is what they used to call it and it only happened to the very elderly like our great grandparents.  Surely, not us. We are healthy, educated, and financially well off, so we don’t need to talk about senility or plan for it. THINK AGAIN!

Senility is now known as Alzheimer’s, a disease that accounts for 60-80% of dementia. The statistics are alarming! According to the Alzheimer’s Association, more than 1 in 9 people over age 65 have Alzheimer’s disease. The chances of an Alzheimer’s diagnosis doubles every five years after age 65 (beginning at approximately 5.3% at age 65 and going from there).   If the disease runs in your family, a head injury, hypertension, diabetes, stress, excess weight, depression, and many other conditions increase your risk of diagnosis.

Risks of Not Planning

I don’t need to tell you that losing your memory is a scary proposition. The fact that you could live for years (if you are otherwise healthy) without knowing who you are, where you are, who any of your loved ones are, and not recall your short nor most of your long-term past is frightening.  Even more disturbing is that you also forget how to care for yourself, and your body begins to forget how to function.  Family may be able to assist you at first, but as time goes on professional care is usually needed.  A few thousand per month for at-home caregivers is not out of the question.  As more care is required, the few thousand dollars per month can quickly become five thousand to ten or twelve thousand dollars a month, depending on the level of care needed and where you live. The impact on your financials, if you haven’t planned, can be detrimental.

In addition to the care risks, there are capacity risks.  Those who develop Alzheimer’s or related dementia go through a period (sometimes before their diagnosis or possibly early in their diagnosis) when their capacity is considered “diminished.”  They are not yet considered fully incapable of making their own decisions. In other words, the right to make decisions has not yet been taken from them, but their ability to make decisions is compromised.  In this stage of the game, we are generally watching for behavioral changes in clients:

• Missing Appointments

• Getting confused about instructions/having difficulty following instructions

• Making more frequent calls to the office to ask the same questions

• Trouble handling paperwork

• Difficulty recalling decisions or actions

• Changes to mood or personality

• Poor judgment

• Memory Loss (generally)

• Difficulty with basic financial concepts

Concerns that are more significant can be financial fraud and exploitation. Clients with diminished capacity are incredibly vulnerable to others who try to take advantage of their inability to understand what is or is not real. Unfortunately, 1 in 10 seniors over age 65 are victims of financial exploitation, according to the Government Accountability Office, with losses totaling over $3 billion annually. While most of this exploitation is at the hands of strangers, sometimes family, friends, and caregivers exploit the vulnerable.

Proactive Solutions

Now that I have completely frightened you about dementia and diminished capacity, let’s take a step back and look at what we can and should be doing to plan and protect your plan proactively against these risks.

From a personal health perspective, the Alzheimer’s Association suggests:

• Combined physical and mental exercise

• Continuous Learning

• Social Engagement

• Get good sleep

• Eat a healthy diet (Mediterranean Diet recommended)

From a financial planning perspective, it makes sense to put together a proactive aging strategy as part of your retirement planning to address the potential risks of dementia/Alzheimer’s/diminished capacity on your comprehensive financial plan.  What should this aging strategy address?

•  Legal Documents

• Care

• Finances

• Legacy

Dementia and diminished capacity are scary.  We don’t want to think about a time when we might not remember our names, remember our loved ones, or even recognize our reflections in the mirror. Dementia and diminished capacity can wreak havoc on our families and our financial security if we don’t plan. Take steps today to put together an aging strategy so that you and your loved ones are prepared. Preparation is the best defense!  If you or anyone you know need assistance with this topic, please let us know.  We are always happy to help!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The Importance of Naming Your Future Advocates

Contributed by: Sandra Adams, CFP®

Estate planning and topics like “incapacity” or “end of life” are topics that most clients dread and often put off taking care of. Not only are these unpleasant topics to think about, but there are often difficult decisions to make in the process.

Aside from making decisions about what to leave people once you are gone and who to leave things to, some of the most critical decisions that need to be made have to do with who you name to make decisions on your behalf – most importantly during your lifetime when you might not be able to make them for yourself. This would come into play with your:

• Patient Advocate/Health Care Durable Power of Attorney

• General/Financial Durable Power of Attorney

• Trust – listing of your Successor Trustee

For each of these, it is important to choose someone that you trust. Someone that could take over handling responsibilities and making decisions for you if you could no longer handle those for yourself, either on a temporary or permanent basis. It is important to note that the advocates for each of these roles DO NOT have to be the same person. You may decide to name a different Health Care/Patient advocate than the person you name for your General/Financial and Successor Trustee. For instance, your daughter that is a nurse may be the perfect person to name as your Patient Advocate. Likewise, your daughter that is the accountant is the perfect person to name as the General/Financial and Successor Trustee because numbers are in her blood. It is also important to remember that you should name at least one or two backup advocates, just in case your first choice is for some reason not available when the time comes. Another tip – it is not a great idea to name multiple people to serve at the same time that cannot make decisions independently. For instance, don’t name your three children to act as your Patient Advocate together – BAD IDEA – even siblings that get along likely won’t all agree when the pressure is on!

What happens when you are single and have no children or family (and maybe no close friends younger than you) to name as your advocate? Surprisingly, this comes up quite often and this makes it hard to find an appropriate advocate. Try naming professional advocates. Here are some possibilities:

• Often, attorneys are willing to serve as General/Financial Powers of Attorney

• Health Care Professionals like Geriatric Care Managers that will serve as Patient Advocates. There is likely to be an hourly cost for their services, but these folks are well qualified and will serve and the proper fiduciaries when the time comes.

• For successor trustees, attorneys or Financial Institution/Broker-Dealer Trust Departments can be named as success trustees or co-successor trustees (also for a cost) to make sure the trust document is followed and the client is protected.

These advocate decisions, especially those that apply to possible lifetime incapacity, are some of the most important estate planning decisions you will make. As much as you don’t want to make them, it is important that you do. We encourage you to consult with your financial planner and estate planning attorney on these and other important estate planning decisions. Don’t put off today making these important decisions that could impact your financial plan!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Beware of Social Security Phone Scams

Contributed by: Nick Defenthaler, CFP®

Identity theft scams threaten millions of Americans. Reports of phony phone calls continue to flood into the Social Security Administration (SSA) and its Office of the Inspector General (OIG). Scammers claim to be Social Security employees and mislead victims into giving out personal information or making cash/gift card payments. But don’t worry, with our tips you can stay sharp and protect yourself.

Social Security employees WILL occasionally contact people. The SSA contacts those who have ongoing business with the agency, by telephone. However, they will NEVER threaten you. They will NEVER promise a Social Security benefit approval or increase in exchange for information or money. In those cases, the call is 100% fraudulent and your only option is to hang up.

You will receive a legitimate call from the SSA if you recently applied for a benefit, require a record update, or, of course, had requested a phone call from the agency. Otherwise, it’s abnormal to receive a call from the agency.

Social Security employees will NOT:

• Suspend, revoke, or freeze your Social Security number

• Demand an immediate payment

• Ask you for credit or debit card numbers over the phone

• Require a specific means of debt repayment, like a prepaid debit card, a retail gift card, or cash

• Demand that you pay a Social Security debt without the ability to appeal the amount you owe

If there is a problem with your Social Security number or record, the SSA will, in most cases, mail a letter. If you need to submit payments to Social Security, the agency will send a letter with instructions and payment options. NEVER provide information or payment over the phone or Internet unless you are certain of who is receiving it.

There is also an email scam to lookout for. Victims have received emails that appear to be from the SSA or the OIG with attached letters and reports. These documents may seem real at first glance and may include official letterhead and government jargon. But look closer for spelling and grammar mistakes.

Unfortunately in today’s world, you need to have your guard up. Feel free to contact us at any time if you’re weary of a potential scam related to your financial plan – we are here to help any way we can.

If you’re interested in learning more, the SSA addresses the telephone impersonation scheme here.

Nick Defenthaler, CFP®, RICP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® He contributed to a PBS documentary on the importance of saving for retirement and has been a trusted source for national media outlets, including CNBC, MSN Money, Financial Planning Magazine, and OnWallStreet.com.

Long Term Care Premium Increases — Things to Consider if You Receive a Notice

Contributed by: Sandra Adams, CFP®

No one likes to receive a letter stating that their premiums are going up — especially with a Long Term Care insurance policy that already seems relatively expensive. Unfortunately, when you own something other than a “paid up” Long Term Care Insurance Policy, the question is not if but when you might receive such a notice. To review, remember that the law allows insurers to apply to regulators for an increase in premiums.

Increases are allowed only if they apply to all policyholders and the company’s data shows current premiums will not cover current and future claims based on costs, projected interest rates, projected increases in claims or length of claims. (Companies cannot increase premiums for specific individuals based on increases in age, gender, health conditions, or filing of a claim.)

Taking the time to make an educated decision about your options when a premium increase occurs is crucial when it comes to Long Term Care insurance, especially as you get older. The more time passes, the greater the likelihood that you might need this type of insurance.

If you are faced with a premium increase, you typically have a limited number of options: 

1. Pay the increased premium and keep your current coverage.

2. Continue to pay your current premium or a reduced premium and accept some combination of reduced benefits (likely in this category, your Long Term Care insurance company will offer you a short list of options from which to choose). *NOTE: We have recently discovered that the list of options provided WITH the premium increase are not the only options. If you wish to consider additional options, you (and/or you advisor) can contact the Long Term Care company to request additional options. For example, a client in their mid-80s may consider an option to discontinue the compound inflation rider going forward and considerably decrease the premium. The added benefit for someone in their mid-80s is negligible at that point.

3. Take the Contingent Non-Forfeiture Option. If the percentage of premium increase is at a certain level, you may be able to stop paying premiums, and you would be entitled to a long-term care benefit based on the amount of premium dollars you have already paid.

It makes sense to carefully weigh your options when it comes to the Long Term Care insurance decision. Understand that you have full control. The Long Term Care insurance company will provide additional options if you request them — but you have to ask. And work with your financial advisor to review your options and see what makes sense. The only option that likely DOES NOT make sense is NOT writing the check to the Long Term Care insurance company at all!

Sandra Adams, CFP®, CeFT™, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Webinar in Review: Grief and Healing

Contributed by: Sandra Adams, CFP®

According to the U.S. Census Bureau, over 24% of the U.S. population over the age of 65 is widowed.  But widowhood impacts people of all ages, and the effects are often more painful and long lasting when the loss happens earlier in life.  At The Center, we have worked with clients of all ages that have, expectedly or unexpectedly, been impacted by the loss of a spouse. Each person goes through a different grief process and has his or her own individual experience with grief and loss.  The transition is one that is difficult and can take years — but there is light at the end of the tunnel.

On December 12th, Dr. Peter Lichtenberg joined us to present a webinar on Grief and Healing.  Dr. Lichtenberg, who was twice widowed by the age of 55, shared his own personal experience with grief and loss — twice.  While each experience was different in its own right, he was able to learn about himself while learning to honor and keep with him the spirit of two women that he has loved so deeply in his life. Dr. Lichtenberg provided information about patterns of grief, feelings to be aware of when experiencing loss, and advice on how to get through the hard times to get to a point of acceptance and rebuilding of a new life. 

Dr. Lichtenberg’s Lessons Learned from his Grief and Loss experiences:

1. Don’t underestimate the power of loss early on.

2. Have the right person stay with you after the death.

3. Plan and be prepared (estate planning documents, etc.)

4. Arrange the funeral or memorial service the way you want it, and let others help you with the final details.

5. If you have children, find a way to keep the same routine, and keep them in their routine.

6. Communicate, communicate, communicate — especially during the first month.

7. Find a professional skilled in dealing with death and dying who can listen and help you on your journey.

8. Think about how you want to talk about your loved one.

9. The journey of grief will bring you in touch with your frailties; try to view this as a journey of growth and exploration.

10. Revisit notes, letters and pictures from your loved one. These affirmations are a powerful force in healing.

11. Experience as much gratitude as you can. Gratitude is a powerful healing force that allows you to live in the present.

12. Know what depression is, and how it differs from grief.

If you were unable to listen to the webinar on December 12th, we encourage to listen to the replay. And if you or someone you know has experienced the loss of a loved one and needs assistance or resources, please feel free to reach out to us at The Center.  We are here to help!

Sandra Adams, CFP® is a Partner and Financial Planner at Center for Financial Planning, Inc.® Sandy specializes in Elder Care Financial Planning and is a frequent speaker on related topics. In addition to her frequent contributions to Money Centered, she is regularly quoted in national media publications such as The Wall Street Journal, Research Magazine and Journal of Financial Planning.

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The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Dr. Litchenberg is not affiliated with Raymond James.