Have You Neglected Long Term Care Planning for Your Estate?

by Baby BoomersEstate PlanningLong Term PlanningLong-Term Care

A recent Banker’s Life survey that included 1500 middle income Americans between the ages of 54 and 72 reveals that most baby boomers haven’t planned for long term care expenses.

Around 10,000 people across the United States are turning 65 in the United States every single day, and of those, nearly 70% of people who are reaching retirement age will need some type of long term care assistance during their lifetime, according to research collected by the Department of Health and Human Services. The cost of long term care can decimate a person’s lifelong savings.

Baby boomers were more likely to plan for their death than to have a long term care plan in place. In fact, over 81% of respondents had prepared some sort of funeral arrangements, but less than one-third had a plan for how they will receive long term care in retirement. This is especially problematic given that someone’s retirement savings could be practically destroyed by just one long term care event.

A healthy spouse could also be the one who suffers as a result of failure to plan for the possibility of long term care expenses. Right now, DHHS estimates that the average cost of health care for a retiree is $138000, but nearly 80% of respondents in the Banker’s Life study said that they had no money set aside for retirement care needs.

You need to think about how estate planning and long term care planning can work together for your future. Schedule a consultation with an attorney in Virginia today.

 

Baby Boomers Should Not Let This Critical Issue Lapse in Their Estate Planning

by with No Comment Baby BoomersEstate Planning

Are you thinking about looking ahead to your own future and imagining the perfect retirement you’ve been spending most of your working life for?
This is certainly a worthwhile goal but it is one that should always be approached with caution if you haven’t thought about possibly incapacitating events. Estate planning goes far beyond just setting aside goals for your retirement in the future.
In fact, estate planning requires careful consideration of what would happen to you if you experienced a sudden incapacitating event. These incapacitating events could come about as a result of a physical or cognitive disability or even a vehicle accident.
These can shake up your life and present numerous challenges for your future and if you don’t get the support of an experienced estate planning attorney to help you craft necessary tools such as a power of attorney for your finances and your medical decisions, you could expose yourself and your family members to difficult choices down the road.
This can even lead to family infighting and further conflict, all of which could have been avoided with some careful planning and getting ready for your future. When you are concerned about the next steps to take, schedule a consultation with an experienced estate planning attorney who can walk you through every aspect of a comprehensive estate plan.
 

Study of Baby Boomer Generation Shows Lack of Interest in Passing on Money to Heirs

by with No Comment Baby Boomers

Trillions of dollars will be passed on to future generations as baby boomers age in the next couple of decades.
A recent study conducted by PNC Financial Services Group shows that if you’re anticipating a major inheritance from your grandparents, you might want to think again because only three out of ten people between the ages of 65 and 75 currently listed as a priority to leave money behind for heirs. Instead, they list their major priorities as enjoying life and peace of mind.
Nearly 500 individuals participated in the study in August and those participants had a minimum of $50,000 in investable assets outside of their workplace retirement plan. The study found that baby boomers were not really interested in leaving that money behind to heirs as many may be interested in enjoying their money now.
Proper planning, such as using trusts, is extremely helpful for ensuring that your loved ones receive an amount of money both helpful to them as well as something they feel confident in managing those funds now and in the future.
Peace of mind was the most common goal for those between ages 65 and 75 and many of those people pinpointed that they wanted to enjoy financial security and comfort in their later years. The second most common goal came in at enjoying life and the top three retirement objective included travel. If you are thinking about passing on assets to your loved ones, schedule a consultation with an experienced estate planning attorney today.
 

For Retirees, Deciding Where To Live Takes On Major Importance

by with No Comment Baby BoomersElder CareRetirement Planning

One of the heady joys, or possibly one of the headaches, of retirement is deciding where to live.

Once work no longer dictates location, people embarking on the next phase of their lives are free to choose another locale.
“Choosing where to live could be the single most important and difficult decision retirees will make,” according to a recent story in The New York Times. “While it’s not impossible to undo a wrong decision, making the right one the first time is far less painful, emotionally and financially.
“As baby boomers move toward retirement or plan for it, 4.5 percent of those ages 55 to 65 move each year, according to Margaret A. Wylde, president and chief executive of the ProMatura Group, a market research firm in Oxford, Miss., which specializes in older consumers. In addition, she said, 20 percent of people in that age group looking for a home want to live in a 55-plus community, 30 percent would consider it and 40 to 50 percent prefer an all-age community but might change their minds.”
The key to making the right choice, the article points out, is establishing what are the most important aspects of one’s setting.
“When considering a move, experts say, the most important things are to know the kind of environment in which you will feel comfortable, your needs and what you can afford now and in the future,” the writer states.
“Know yourself,” advised Susanne Matthiesen, managing director of aging services at CARF International, an organization based in Tucson that accredits services for older people. “Know where you want to live. Are you the kind of person who is looking to be in a community with peers?”
“Determine your priorities,” the story goes on to say. “Do you want to be near family members? What kind of climate would you prefer? Would you like to live in an urban environment? Do you want services like lawn and landscaping included in a homeowners’ association fee? Do you prefer amenities like indoor and outdoor pools, scheduled activities and clubs, tennis courts and a golf course nearby? Are a variety of classes, university or otherwise, more important? Do you prefer walking trails or a lake or other body of water?”