Retirement Income Planning

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Are Your Aging Parents a Roadblock in Your Retirement Planning?

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Contributed by: Sandra Adams, CFP® Sandy Adams

As the meat in the so-called “sandwich generation,” the baby boomers are approaching retirement at a record pace. As we work with clients and client couples to get their financial and non-financial “ducks in a row,” it is becoming more and more common to discuss issues surrounding the assistance of one or both sets of parents and aging/long term care issues. If this sounds familiar, here are the possible roadblocks that this can cause for your retirement planning and some suggestions about what you can do to prevent them.

What are the Roadblocks?

  • Providing assistance/caregiving often limits the time you can work; you may be forced to take family leave time to provide care, go to part time work, or even take early retirement.

  • Working less reduces earnings, providing less Social Security earnings, and less in retirement savings for future retirement.

  • Stopping work prior to age 65 may mean a need to bridge a health insurance gap when that was not the original plan.

  • Caregiving can be stressful, especially if you are trying to continue to work and also have responsibilities with adult children and/or grandchildren, so your own health can become a concern.

  • With so much going on, just being able to keep your “eye on the ball” and concentrate on your own retirement goals can be a challenge.

What Can You Do to Make Sure To Stay On Track?

If you find yourself in the position of assisting aging parents, now or in the future, do not assume that all is lost. There are things that you can do to make sure that your own retirement will stay on track:

  • Have conversations with your parents and plan ahead as much as possible to make sure that their long term care is funded; have a conversation to discuss if they are willing and able to have non-family members provide care if and when the time comes (at least until you retire); have a professional moderate the planning conversation if it’s not a talk your family is comfortable having on their own.

  • If you do end up leaving work to care for an aging parent, discuss having a paid caregiver contract drafted or determine if your parent’s Long Term Care insurance policy has the ability to pay you for your services as a caregiver.

  • Make sure others take their turn and spread the responsibilities amongst others (see my recent blog on Family Care Agreements); take breaks and take care of yourself (caregiver stress is a real thing!).

  • Continue to meet with your financial planner on an annual basis to keep yourself focused on your own goals along the way—continue to save for retirement as you are able and make progress.

We all have roadblocks that slow our progress towards our goals; aging parents might be one of yours.  The love and care we have for our family—especially our parents—is not something we would ever deny, however frustrating it might be when it delays that ultimate freedom we call retirement. But if we plan ahead, and coordinate with our families and professional partners, we can hope to make the roadblock more of a speedbump.  Contact me if you have questions about how your financial planner can be of assistance.

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.

The information contained in this blog does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Sandy Adams and not necessarily those of Raymond James. Prior to making an investment decision, please consult with your financial advisor about your individual situation.

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Continuing to Work after Filing for Social Security

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Contributed by: James Smiertka James Smiertka

If there’s a chance you will earn income while you are collecting Social Security, you will want to know about an extremely important rule put in place by the Social Security Administration called the “Earnings Test.” There are a variety of reasons why someone may earn income while receiving Social Security.  Whether it’s simply pursuing a passion after retirement or the financial need to pick up a part-time job, it’s important to fully understand the implications of earning income and collecting Social Security benefits prior to reaching your full retirement age (FRA). (Click here to see what your FRA is.) Once you reach full retirement age, however, you are not subject to any reduction of benefits from the “earnings test” on your earned income. Let’s take a look at two different examples in detail:

If you are under full retirement age (FRA) for the entire year:

  • Earnings limit: $15,720

  • Reduction of benefits: $1 for every $2 you earn above the earnings limit

  • Example: John is currently 63 and his FRA is 66. John retires, immediately turns on Social Security benefits ($20,000/yr) but decides he wants to pursue his passion as a tutor and plans on earning $35,720 for the year. Since his earnings would be $20,000 over the Earnings Test limit ($35,720 – $15,720), one half ($1 of every $2 earned), or $10,000, would be withheld from his annual Social Security benefit, therefore, reducing John’s Social Security benefit to $10,000 for the year. 

In the year you reach full retirement age (FRA):

  • Earnings limit: $41,880

  • Reduction of benefits: $1 for every $3 you earn above the earnings limit

  • Example: Sue is currently 65 but is reaching her FRA of 66 in a matter of months. She recently started collecting Social Security, which provides her $30,000/yr. Sue is still working, earning $161,880 annually and was not aware of the Social Security Earnings Test. Her earnings would be $120,000 over the earnings test limit ($161,880 – $41,880), one third ($1 of every $3 earned), or $40,000 would be withheld from her annual Social Security benefit. Since this amount is greater than her Social Security benefit, her entire benefit for this year would be withheld.

It’s important to note that if you have had Social Security benefits withheld because of your earnings, they are not lost forever. Once you reach full retirement age, your benefit will increase to compensate for the benefits that were withheld. It does, however, on average, take nearly 2 decades to essentially recover the benefits that were withheld. The bottom line is that there are very few instances where it would make sense to start collecting benefits if there is a strong likelihood that you will continue working. Instead of collecting Social Security early and more than likely having the majority (if not all) of your benefits withheld, you could simply delay benefits which permanently increases your Social Security benefit up to age 70 (More information on that here).

As you can see, there are many moving parts with Social Security, especially for clients who still plan to work prior to reaching full retirement age. Before turning your benefits on, we always recommend that you reach out to your financial planner to discuss your situation in detail to ensure the strategy you’re selecting is in line with your own personal goals and objectives. If you’d like to chat about your benefits and discuss different filing strategies, give us a call, we are happy to help! 

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Jim Smiertka and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Examples provided in this material are hypothetical and for illustrative purposes only.

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How is Retirement Planning Relevant to me?

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Contributed by: Matt Trujillo, CFP® Matt Trujillo

Lately I have been meeting with younger clients, and have been hearing a recurring theme: “Retirement is 20-30 years away and I don’t know that I care too much about how the numbers look at this time.” The first time I heard this, I was a little taken aback…I had always assumed that one of our core jobs was to make sure people were on a good track for retirement.

However, the more I thought about it, this line of thinking isn’t that out of the box. Consider how much the world around us has changed over the last 20-30 years. It is reasonable to think that another 20-30 years from today the world could change dramatically again?

Hearing these clients voice concerns about planning for an event so far into the future, I decided to take a different approach. I decided to focus clients’ attention, instead, on the next five to ten years and what they want their net worth statements to say then. For instance, if you have a negative net worth due to student loan debt, saving for retirement might seem out of the question; but if you come up with a goal to have a specific positive net worth amount ten years from today, it helps refocus your financial plan to something more tangible and meaningful for you and your family. This type of thinking can be very powerful and motivating for clients. The clients I have engaged in this exercise have told me that they get the sense they are working towards something tangible and each year they come in they can really see the benefits of working with a planner.

So if you are under the age of 45, and retirement seems like a lifetime away, consider putting a different spin on the old fashion retirement goal. Approach the problem a little differently. I think you will find that planning in five to ten year chunks can be more manageable and very motivating.

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc. Matt currently assists Center planners and clients, and is a contributor to Money Centered.

Opinions expressed are those of Matthew Trujillo and are not necessarily those of Raymond James. All opinions are as of this date and are subject to change without notice.

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Everyone’s Favorite Topics: Social Security and Taxes

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Contributed by: Kali Hassinger Kali Hassinger

Throughout our entire working lives, our hard-earned cash is taken out of each paycheck and paid into a seemingly abstract Social Security Trust fund. As we see these funds disappear week after week, the pain of being taxed is hopefully somewhat alleviated by the possibility that, one day, we can finally collect benefits from the money that has been alluding us for so long. (Maybe you’re also comforted by the fact that you’re paying toward economic security for the elderly and disabled – or maybe not, but I’m an idealist). 

When the time to file for benefits finally arises, however, it may not be clear how this new source of income will affect your tax situation. Although no one pays tax on 100% of their Social Security benefits, the amount that is taxable is determined by the IRS based on your “provisional” or “combined” income. Provisional and combined income are terms that can be use interchangeably, so we will just use provisional from this point forward. Many of you may not be familiar with either term, but I’ll bet it’s no surprise that the beloved IRS uses a system that can be slightly confusing! No need to worry, though, because I’m going to provide you with the basics of Social Security taxation.

Determining your provisional (aka combined) income requires the following formula: 

Adjusted Gross income (AGI) includes almost all forms of income (salaries, pensions, IRA distributions, ordinary dividends, etc.), and it can be found on the 1st page of your Form 1040. AGI does not, however, include tax exempt interest – such as dividends paid from a municipal bond or excluded foreign interest. These can be powerful tax tools in individual situations, but they won’t help when it comes to Social Security taxation. The IRS requires that you add any tax-exempt interest received into your Adjusted Gross Income for this calculation. On top of that, you have to add ½ of your annual social security benefits. The sum of these 3 items will reveal your provisional income for Social Security taxation purposes.

After determining the provisional income amount, the IRS taxes your Social Security benefits using 3 thresholds: 0%, 50%, or 85%. This means that the maximum portion of your Social Security Benefits that can be considered taxable income is 85%, while some people may not be taxed at all. The provisional income dollar amount in relation to the taxation percentage is illustrated in the chart below: 

As you can see, it isn’t difficult to reach the 50% and 85% thresholds, which can ultimately affect your marginal tax bracket.  These thresholds were established in 1984 and 1993, and they have never been adjusted for inflation. The taxable portion of your benefit is the taxed at your normal marginal tax rate. 

Social Security, in general, can be a very confusing and intimidating topic, but it is also a valuable income resource for all who collect benefits. Everyone’s circumstance is different, and it’s important to understand how the benefits are affecting your tax situation. I encourage you to speak to your CPA or Financial Planner with any questions.

Kali Hassinger, CFP® is a Registered Client Service Associate at Center for Financial Planning, Inc.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Kali Hassinger and not necessarily those of Raymond James.

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Retirement Behavior Zone

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Contributed by: Timothy Wyman, CFP®, JD Tim Wyman

Let’s face it; market volatility isn’t a whole lot of fun for any investor—unless that volatility is on the upside, of course. When investments experience downward volatility it can be hard on the psyche. In my experience, however, there is one group that is hit especially emotionally hard: those clients that are on either side of two years from their retirement date. While those with long term horizons feel some pain, it is generally muted because the funds are needed in the distant future and it doesn’t seem to bother them as much. Similarly, those that have been in retirement for a while seem to have the “been there – done that” mentality. They have been through volatility before, hopefully have weathered past storms, and understand volatility is part of the process to potentially get fair returns over time.

But how about those within two years, either side, of retirement? Often times, these clients are the most concerned, and rightfully so. The time that folks switch from being a net saver for so many years to a net spender is emotionally challenging in many cases. As former partner Dan Boyce used to say, it feels like you are eating your seed corn. (Full disclosure – this city boy never really understood it but many a client nodded as if to confirm the saying!).

According to research underwritten by Prudential Securities, “economic researchers have found that emotions play a significant role in how people make financial decisions.” At first, my response was a yawn and a hope that Prudential didn’t pay too much for such a conclusion. Fortunately there was more to the study, something with a little more meat on the bone. The study suggests that the five years before and after retirement is critical. That understanding this behavioral risk becomes even more important. Two specific risks cited in the study include sequence risk and behavioral risk.

At the risk of downplaying behavior risk, it is one that we have some control of, after all. Poor investor behavior during this two year of period within retirement can be hazardous to your financial health, for a long time if not forever. What’s the prescription? Yes this is self-serving, but working with a third party professional can help improve investor behavior. Vanguard suggests that behavioral coaching may bring about as much as 150 basis points (or 1.5%) of value add by advisors.

The second risk, sequence risk, is very real and much less controllable. Large negative returns early in retirement can indeed impact one’s retirement years. Fortunately, for many, one large loss year usually isn’t enough to derail years of proper planning. Again, what’s the prescription? In general, utilizing multiple asset classes, multiple investment styles, and multiple managers (aka asset allocation & diversification) provides enough risk parameters to lessen the potential sequence risk. 

If recent volatility has hit you especially hard (emotionally or in dollars) give us a call. If you are a current client we welcome the opportunity to review your portfolio and your plan, and if you are not a current client we welcome the opportunity to provide another opinion.

Timothy Wyman, CFP®, JD is the Managing Partner and Financial Planner at Center for Financial Planning, Inc. and is a contributor to national media and publications such as Forbes and The Wall Street Journal and has appeared on Good Morning America Weekend Edition and WDIV Channel 4. A leader in his profession, Tim served on the National Board of Directors for the 28,000 member Financial Planning Association™ (FPA®), mentored many CFP® practitioners and is a frequent speaker to organizations and businesses on various financial planning topics.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Timothy Wyman and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Past performance is not a guarantee of future results. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Raymond James is not affiliated with and does not endorse the opinions or services of Vanguard or Prudential Securities. Diversification and asset allocation do not ensure a profit or protect against a loss. There is no guarantee that using an advisor will produce favorable investment results.

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Social Security: Calculating your Benefit in 7 Steps

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Contributed by: Matt Trujillo, CFP® Matt Trujillo

When Social Security is concerned, you may find yourself wondering: “How is my benefit calculated?”

To help you understand, I’ve laid out the 7 steps it takes to calculate your Social Security benefit:

  • Step 1: Enter earnings from each year into the chart below into Column B. Only enter earnings up to the “maximum earnings” figure from column A. So for instance in 2001 if you earned $200,000 you would only enter $80,400 into column B because that is the maximum credit you can earn for that year. All earnings after $80,400 didn’t pay into social security for that year. For the years you didn’t have earnings or didn’t pay into social security enter $0 into Column B.

  • Step 2: Multiply the amounts in Column B by the index factors in Column C and enter the total in Column D. This gives you an estimated value of your past earnings in current dollars. 

  • Step 3: From Column D, pick 35 years with the highest amounts and add these amounts together.

  • Step 4: Divide the total from Step 3 by 420 (this is the number of months in 35 years); be sure to round down to the nearest whole dollar figure with whatever total you come up with. This figure is your average indexed monthly earnings

  • Step 5: Multiply the first $856 from Step 4 by .90; from $857 to $5,157 multiply by .32; and from $5,158 and up multiple by .15

    • This is probably the most confusing part so let me give an example:
      Step 4 average indexed monthly earnings = $8,000; 
      $856 * .9 = $770.40
      $5,157-$857= $4,300 * .32 = $1,376
      $8,000-$5,157= $2,843 * .15 = $426.45

  • Step 6: Add all the figures up from Step 5 and round down; if we use our previous example this would be $770.40 + $1,376 + $426.45 = $2,572.85 rounded down would be $2,572.

  • Step 7: Multiply the amount in Step 6 by 75%. Whatever figure you get is your estimated monthly retirement benefit if you retire at age 62.

I hope you find these 7 steps useful and easy to navigate. When it comes to retirement planning and Social Security benefits, if you have questions or concerns any of the planners here at The Center are willing and able to help you!  

Matthew Trujillo, CFP®, is a Certified Financial Planner™ at Center for Financial Planning, Inc. Matt currently assists Center planners and clients, and is a contributor to Money Centered.

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How Your Retirement Age Could Affect Your Social Security Benefits

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Contributed by: Melissa Parkins, CFP® Melissa Parkins

When planning for retirement, one of the biggest factors to figure out is how you will recreate your paycheck when you are no longer working to receive one from an employer. A couple of questions to think about:

  • Do you have a pension through your employer and if so, when are you eligible to start receiving income?

  • Will you live off of your portfolio?

  • Is Social Security the only income stream you have access to?

Many people (including myself!) long to retire early, but doing so could reduce your Social Security benefits. Your benefit will depend not only on how much you have earned in the past, but also when you decide to leave the workforce.

If you stop working before you have 35 years of earnings reported, then a zero is used for each year without earnings when your benefit amount is calculated. Any zeros will bring down your earnings average and reduce the benefits you will receive. Even if you have 35 years of earnings reported, if some of those years are low earning years (maybe at the beginning of your career), they will be averaged into your calculation and bring your benefits down lower than if you had continued to work for a few more years while, ideally, earning higher wages during your peak earning years.

One potential point of confusion when planning to retire early comes on your Estimated Benefits statement. When you look at your Social Security statement, your reduced expected benefit at age 62 actually means the amount you are expected to receive if you work until age 62 and begin collecting benefits at that time. Likewise, your increased expected benefit at age 70 means the amount you are expected to receive if you work until age 70 and then begin collecting benefits. So if you do retire early or at different ages than the two listed, the number shown as your estimated benefit could be different.

At my current age of 25, retiring early is something I aspire towards – I picture a long, lavish (read: expensive) life of luxury! Hey, a girl can dream! Many people (maybe more realistically than me) also strive to retire early, and if you don’t have access to a pension, then you may be depending more heavily on your Social Security benefit. If you do retire early, then you may receive a reduced benefit. However, retiring early is not unrealistic; but in order to have enough money to live at your comfort level, it may require working part time for a bit after retirement or even saving more now to make up for a potentially lower Social Security benefit. When making these decisions, talk with your Financial Planner about your retirement goals to see how best to build your plan to financial independence.

Melissa Parkins, CFP® is an Associate Financial Planner at Center for Financial Planning, Inc.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Melissa Parkins and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

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Pensions: Understanding the Hurdle Rate

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Contributed by: Nick Defenthaler, CFP® Nick Defenthaler

Monthly payments or a lump-sum? This is often times the “million dollar question” for those in the workforce who still have access to a defined benefit – a pension plan. As I’m sure you’re aware of, pension plans, in the world we live in today, are about as common as seeing someone using a Walkman to listen to music – pretty much non-existent. Most companies have shifted from defined benefit retirement plans that offer a fixed payment or lump-sum upon retirement to defined contribution plans such as a 401(k) or a 403(b) as a cost savings measure. However, if you’re lucky enough to be eligible for a pension upon retirement, the hurdle rate, or internal rate of return, is one of the more important, quantitative aspects about receiving a pension that will influence your decision to either take the lump-sum or receive fixed monthly payments.

What the heck is a hurdle rate?

To keep things simple, the hurdle rate, also known as the internal rate of return, is essentially the rate of return necessary for the investment of the lump-sum option to produce the same income as the fixed monthly payment option. One of the most important factors that will go into this calculation is life expectancy. Typically, the longer you expect to live the higher the hurdle rate will be because the dollars will have to support your spending longer. Let’s take a look at an example. 

Tom, age 65, will be retiring in several months and has to make a decision surrounding his pension options. He can either take a $50,000/year payment that would continue in full, even if he pre-deceases his wife, Cindy (also 65), or he could take a lump-sum distribution of $800,000 that his financial planner could help him manage. Tom and Cindy both have longevity in their family and feel there is a good chance at least one of them will live until age 95. If either of them lived another 30 years and they invested the $800,000 lump-sum, the IRA would have to earn a 4.65% rate of return to produce the same $50,000 of income the fixed payment option would offer. If, however, age 85 was a more realistic life expectancy for Tom and Cindy, the hurdle rate would decrease to 3.78% because the portfolio would not have to produce income for quite as long. 

Some financial planners would argue that 4.65% as a hurdle rate at age 95 is more than doable in a well-balanced, diversified portfolio over three decades, but others may not (check out Tim Wyman’s, CFP®, blog on how professional opinions can differ). While we certainly have our opinions on long-term market performance, the most important decision, in my opinion, determining between lump sum or fixed payments, is how the decision made will help you sleep at night. 

Keep in mind that this is just one of the many factors we help clients evaluate when making this important decision with their pension. While we wish there was a clear, black and white, right or wrong answer for each client situation, that’s virtually impossible because there are so many different variables that go into analyzing your financial options. We’ll help you look at and understand all of your options, but ultimately it’s your decision on what route you take depending on what makes you feel the most comfortable. In the end, at The Center we work with our clients to ensure that they can live their plan when they are ready and in a manner that they are confident with. When making important financial decisions, especially regarding your pensions, remember that we are here to help.

Nick Defenthaler, CFP® is a CERTIFIED FINANCIAL PLANNER™ at Center for Financial Planning, Inc. Nick is a member of The Center’s financial planning department and also works closely with Center clients. In addition, Nick is a frequent contributor to the firm’s blogs.

This material is being provided for information purposes only and is not a complete description, nor is it a recommendation. Any opinions are those of Nick Defenthaler and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investing involves risk and investors may incur a profit or a loss regardless of strategy selected. Diversification and asset allocation do not ensure a profit or protect against a loss. The example provided in this material is for illustrative purposes only.

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Social Security Cost-of-Living Adjustment in 2016

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Contributed by: James Smiertka James Smiertka

You may have already heard, but there will be no Social Security cost-of-living adjustment (COLA) in 2016. This doesn’t happen incredibly often—it’s only the third instance in the past 40 years. Over the past 8 years, the total of annual social security COLA has been only 14.3%, compared to 69.6% in the period from 1975 to 1982. Yearly Social Security COLA depends on the Consumer Price Index as the Social Security Administration states, “monthly Social Security and Supplemental Security Income (SSI) benefits will not automatically increase in 2016 as there was no increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 to the third quarter of 2015”.

The CPI-W value was affected by the significant decrease in the price of gasoline and fluctuations in other areas as well, but as the prices of housing and medical care continue to rise, critics argue that the CPI-W does not accurately reflect the spending of older, retired individuals. Experts argue that the actual cost-of-living for a Social Security beneficiary is increasing as many costs to retirees have increased at a higher rate than the 2.2% average COLA increase since 2000.

It’s known that the lack of a 2016 COLA will impact nearly 70 million people, including retirees, disabled workers, spouses, and children who receive benefits. Some retirees may actually see a drop in their Social Security benefit for 2016 due to the 0% COLA and the potential increase in Medicare Part B premiums (see Matt Trujillo’s blog on Medicare Part B increases for more information).

Everyone’s retirement scenario is unique, and although the 2016 COLA is not likely to have a huge impact, you can contact your financial planner at Center for Financial Planning, Inc. with any questions or concerns about your specific plan.

James Smiertka is a Client Service Associate at Center for Financial Planning, Inc.

This material is being provided for information purposes only. Any opinions are those of James Smiertka and not necessarily those of Raymond James. The information has been obtained from sources considered to be reliable, but Raymond James does not guarantee that the foregoing material is accurate or complete.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

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Put the Adventure in Longevity Planning

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Contributed by: Sandra Adams, CFP® Sandy Adams

We are living longer – like it or not.  Currently, one in four Americans is over age 60.  And according to a 2012 report on mortality in the United States from the Centers for Disease Control and Prevention's National Center for Health Statistics, the average life expectancy for a person age 65 years old in 2012 is 19.3 years – 20.5 years for women and 17.9 years for men.  And if you are lucky enough to have good genes, access to good health care, good food, etc., the sky is the limit. Good news, right?

Surprisingly, the longevity conversation most commonly brings about negative feelings and topics when discussed in client meetings.  Thoughts immediately come to mind of diminished mental capacity or dementia, physical limitations, need for long term care, nursing homes, etc. Clients immediately default to an aging future where they have limited control or limited abilities and it is not a future they are looking forward to.  Longevity is NOT a good thing (they say)!

But what if we changed the way we thought about those extra years we might have?  What if we, instead, viewed them as a gift of extra years that we weren’t expecting to have?  Extra years to do those things we never had time to do when we were working or raising families?  Those bucket lists that never got checked off?  Those adventures left unexplored?  Yes, of course, we need to plan for those “what if” scenarios that might happen later on in life, but let’s make those plans and put them away for later.  And in the meantime, let’s enjoy the extra years we are being given.   You can get some great ideas from some folks who are making the most of their extra years by going to www.growingbolder.com.

Of course, all of this takes good financial planning.  Living longer means stretching your income sources and your investments for your (even longer) lifetime.  And having clear strategies for funding your longevity adventures, as well as any potential long term care needs, will be important.  Contact your financial planner to begin having your longevity planning conversations now.  The sooner you begin to plan, the sooner your adventures can begin!

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.

Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website's users and/or members.

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