When I’m Sixty-Four: Long-Term Healthcare In Retirement

The Most Complex Insurance Explained, Part 2

In 1967, the Beatles released the song, “When I’m Sixty-Four.”  The lyrics are a preemptive plea to secure a relationship even when the realities of old age set in.  Now, as the nation’s largest generation whistles this tune into retirement, the question seems less rhetorical:

Who is going to take care of us in retirement?

Not everyone will need long-term care insurance (LTC), but everyone needs a long-term healthcare plan.  Your long-term care plan should incorporate the following: facts about you (and your spouse, if applicable), your age, your personal health, longevity of lineage, your retirement income and assets, your tolerance for risk, the costs and demographics of long-term care in your geographic area and information about any long-term care insurance that you own or have considered owning.

This post is the second in a two-part series.  You can read the first on Long-Term Disability (LTD) by clicking HERE.

Long-Term Care Insurance

One very important thing to remember is that Medicare does not cover the costs of most long-term care needs. Allen Hamm, in his book, Long-Term Care Planning, shares the following statistics:

  • 71 percent of Medicare recipients mistakenly believe Medicare is a primary source for covering long-term care.
  • 87 percent of people under the age of 65 mistakenly believe their private health insurance will cover the cost of long-term care.

The Three-Step Investor’s Guide To Navigating The Financial Advisory Fiduciary Issue

Originally in ForbesAs an educator in the arena of personal finance, I generally avoid matters of public policy or politics because they tend to devolve into dogma and division, all too often leaving wisdom and understanding behind. But occasionally, an issue arises of such importance that I feel an obligation to advocate on behalf of those who don’t have a voice. The issue of the day revolves around a single word: “fiduciary.”

At stake is a Department of Labor ruling set to take effect this coming April that would require any financial advisor, stock broker or insurance agent directing a client’s retirement account to act in the best interest of that client. In other words, the rule would require such advisors to act as a fiduciary. The incoming Trump administration has hit the pause button on that rule, a move that many feel is merely a precursor to the rule’s demise.

Why? Because a vocal constituency of the new administration has lobbied for it—hard. They stand to lose billions—with a “b”—so they’re protecting their profitable turf with every means necessary, even twisted logic.

The good news is that informed investors need not rely on any legislation to ensure they are receiving a fiduciary level of service. Follow these three steps to receive the level of service you deserve:

The Ironic Conflict Of Interest Of The Fiduciary Financial Advisor

Originally in ForbesThe Trump administration’s move to delay implementation of the Department of Labor’s fiduciary rule has inspired me to delay implementation of my commitment to remain silent on matters of public policy and politics. It’s that important.

financial-aadvisorIt seems pretty obvious that those in the financial establishment who oppose the rule do so primarily out of self-interest. After all, it’s estimated that they will lose billions in profits if the final rule goes into effect. I get it.

But I was fascinated recently when a member of the media wondered aloud if my advocacy for a wider fiduciary standard was also simply an outgrowth of my own bias.

Indeed, who’s to say I’m not just grinding my own axe on this issue? Maybe I’m in favor of all financial advisors being held to a fiduciary standard because I’m a fiduciary financial advisor and part of a national community of financial advisors that supports the fiduciary standard.

That would be a convenient rebuttal from the anti-fiduciary community, but here’s the (huge) problem with that rationale:

Top 3 Reasons For Millennials To Choose A Roth IRA

Originally in ForbesMuch—too much—has been said and written about the relative superiority of Roth IRAs versus Traditional IRAs. The debate over which is better too often involves the technical numerical merits. In truth, the Roth wins in almost every situation because of its massive behavioral advantage: a dollar in a Roth IRA is (almost) always worth more than a dollar in a Traditional IRA. This is true regardless of one’s age, but the Roth IRA is even more advantageous for Millennials.

I must first disclaim that you can disregard any discussion of Roth or Traditional IRA if you’re not taking full advantage of a corporate match in your employer’s 401(k)—free money is still better than tax-free money. But after you’ve “maxed out” the match in your corporate retirement account, here are the top three reasons Millennials should consider putting their next dollar of savings in a Roth IRA:

1) Life is liquid, but most retirement savings isn’t.

Yes, of course, in a perfect, linear world, every dollar we put in a retirement account would forevermore remain earmarked for our financial futures. But hyperbolic discounting—and the penalties and tax punishments associated with early withdrawal from most retirement savings vehicles—can scare us away from saving today for the distant future. The further the future, the more we fear.

The Roth IRA, however, allows you to remove whatever contributions you’ve made—your principal—without any taxes or penalties at any time for any reason. Therefore, even though I’d prefer you to generally employ a set-it-and-forget-it rule with your Roth and not touch it, if the privilege of liquidity in a Roth helps you save for retirement, I’m all for it.

My Complete 10-Step Bullet Journal Productivity System

In a recent Forbes post, I offered five reasons for why analog task management can be more productive than a digital alternative. But in addition to the WHY, I pledged to offer specifics on exactly WHAT and HOW I’ve applied the Bullet Journal system in my own pursuit of productivity.

bullet_journal_heroFor fans of my online productivity system hack using Trello, please know that it still works just fine! You will see the familiar blend of Steven Covey as well as David Allen’s GTD principles in my analog system, with just a few modifications and some new Bullet-friendly verbiage.

Before you jump in, I do recommend that you watch a short video in which Bullet Journal founder Ryder Carroll explains the system in his own words. Then, here is precisely how I’ve adapted the concept for my own purposes as a financial advisor, writer, speaker and productivity seeker:

5 Reasons Why Non-Digital Time Management Is More Productive

As technological innovation marches forward in so many aspects of life, there is a movement gaining momentum to return to the past in search of something important that progress may have left behind.

No, you can’t beat the convenience of streaming and digitized music, but the listening experience still falls short of dropping the needle on a vinyl record. Similarly, while the ubiquity of tech-driven tools may make the process of managing our time easier than ever, we may actually end up increasing our productivity by decreasing efficiency through an analog, manual, pen-and-paper system.

Personally, I’d been successfully employing a time-management system for years—a simplified, customized amalgamation of David Allen and Steven Covey’s wisdom—designed using the online tool Trello. As someone who believes our most valuable investment is time, however, I was still curious when a friend I respect told me about a new system that he’d been using effectively. But when I invited him to show me, he didn’t pull out his phone or tablet, but a simple journal—a Bullet Journal.

The Bullet Journal is a product, but it’s also more than that. It’s really a modifiable productivity method that has grown into a community. The system, interestingly, was created by a digital product designer, Ryder Carroll, as a way to bring the discipline of task management under the practice of mindfulness. After testing out the system for a few months—and becoming an adherent in the process—I discussed the inspiration for the Bullet Journal with Mr. Carroll.

While how, exactly, I’ve adapted the Bullet system in my work as a financial advisor, writer and speaker—including the specific journal and writing tools I use—does make for an interesting story, today I’d like to address the bigger question:

WHY?

Filling That Career-Shaped Hole

Originally in ForbesMichael Brundage had everything working for him: a great marriage, healthy children and a successful career in commercial real estate. But something—something big, but invisible—was missing, and the result was a depressive streak that led my friend and colleague to pursue therapy.

Then, in the middle of an early session, his therapist discerned the problem, which she immediately shared with Michael: “You hate your job. That’s the problem.”

do-over-cover-2Initially, Michael protested, somewhat confused. He was good at his job—very good—and it paid well, ensuring a more than comfortable lifestyle for his family. Wasn’t that what a job was supposed to be about? Indeed, several generations of Americans have bought into the notion that our work is primarily—if not solely—a means, not an end in itself.

“As a culture, we’ve collectively bought into the lie that work has to be miserable,” writes career expert Jon Acuff in his newest book, Do Over.

Michael had learned, in his words, “what a long shadow not liking your job can cast over the rest of your life.” So he decided to do something about it.

He read voraciously, including Do Over, in which Acuff offers a method to career management regardless of where you stand on the love/hate job continuum.

Acuff’s counsel applies to four different types of career transitions that everyone faces:

What 2016 Taught Us About Investing

Originally in ForbesInvesting is a pursuit best liberated from short-term analysis that tends to mislead more than edify. But 2016 was one of those rare years that provided a lifetime’s worth of education in a brief period.

Here are the three big investing lessons of 2016 that can be applied to good effect over the long term:

1) Discipline works.

January was greeted with panic-inspiring headlines like, “Worst Opening Week in History.” While hyperbolic, the truth in headlines such as these may have been more than enough to scare off investors frustrated by seemingly unrewarded discipline in recent years.

With threats of international instability (Brexit) and domestic volatility (historically wacky election cycle), there were ready reasons to cash in even the most well-conceived investment plan, opting for observer status over participant. But to do so would’ve been a huge mistake.

Indeed, the S&P 500 logged an impressive 11.9% for the year, with small- and value-oriented indices pointing even higher.

The American Retirement Dream Is Not Dead

American retirees are screwed. The 401(k) experiment has failed. Social Security’s going bust. Savers haven’t saved nearly enough and don’t have the means to improve the situation.

However hyperbolic, this is the message that has been sent and, for many, is indeed the way it feels. But how do the facts feel?

Pension Facts:

  • Many companies have abdicated the role they once played in helping support employees’ retirements through defined benefit pension plans by promoting and then under-supporting defined contribution plans, like the 401(k).
  • Most pensions that remain — even those run by states and municipalities — are “upside down,” lacking sufficient funds to pay what they’ve promised. The entity conceived to insure underfunded pension plans is also underfunded.

401(k) Facts:

  • Some large financial firms have filled many of the 401(k) plans they manage with overpriced, underperforming funds, and offered little in the form of substantive education for the masses now left to their own devices.
  • After a six-year effort to ensure that financial advisors who manage retirement assets would be required to act in the best interests of their clients, there’s a corporate and political movement afoot for firms to reclaim potential lost profits if they were forced to do right by their clients.
  • Even some of the individuals who initially conceived the 401(k) concept and lobbied for it have recanted their support, regretting it ever started.

Social Security Facts:

  • The program intended only to be a safety net has become the primary financial resource in retirement for too many.
  • The surplus funds received when the huge baby boomer generation paid in — which are now being used to help replace the inherent shortfall of smaller generations — are projected to run out in 2034, thereby reducing the system’s ability to pay benefits by 25 percent.

There — how does that feel, now?

Top 5 Books To Put The ‘Personal’ Into Your Finances This New Year

Originally in ForbesBecause personal finance is more personal than it is finance, just about every step we take in our personal development aids us in financial planning, and vice versa.

top-5It is in better understanding ourselves that even the most confounding financial decisions are made simple. Therefore, it’s entirely possible for a seemingly non-financial book to have a meaningful impact on your financial life, while the reverse is also true.

Consider, then, this list of my choices for the top five (mostly) recent books that can improve your life, work and financial serenity in 2017:

5) The Whole 30: The Official 30-Day Guide To Total Health And Food Freedom is not your typical diet book. I don’t do those. But I am fascinated by various “life hacks,” small behavioral changes we can make in our diet, exercise and sleep patterns that make life more livable.