Long Term Planning

1
Will You be a Financial Burden to Your Adult
Children?
2
A case study

• Lois has a long history of money mismanagement,
  but shes gotten much better about saving money
  as shes gotten older. When her mother died, Lois
  inherited a modest sum, and was quite disciplined
  with the money. She didnt buy the shoes she
  wanted or take the trip she desired. She wasnt
  going to do those things until she was confident
  she had enough saved where she didnt ever need
  to borrow from her children. She may have been
  careless with money in the past, but vowed that
  she would never be a burden on anyone, especially
  when it came to money.

3
Planning So You Dont Have to Ask for Financial
Help from Kids

• Lengthy life spans have played a role in
  increasing the odds that many seniors will
  deplete their savings, face debilitating health
  problems, and need to turn to their children for
  financial help or caregiving. Its true that
  children should honor their mothers and fathers.
  But this doesnt mean they should do so at their
  own financial peril. And, similar to Lois, most
  parents dont want to become a burden to their
  children.

4
Word of advice

• As a senior, its important to plan ahead to get
  your finances and health in the best shape
  possible. Some of the things seniors should
  consider and plan for include

5
Unanticipated health care costs

• According to the 2018 FRHCCE, the average person
  retiring in 2018 at age 65 will need to pay
  around 5,000 per year in health care premiums.
  As you near retirement, you will have major
  decisions to make, including when to retire, when
  to claim Social Security, how to pay health care
  expenses and long-term care expenses, and how to
  generate enough cash flow after your retirement.
  These decisions are of course all interconnected
  and can make a drastic difference in your
  retirement lifestyle.

6
Long-term care planning

• When it comes to retirement and aging, you must
  consider the strong likelihood that at some point
  you will need to receive long-term care, weather
  that involve home healthcare, living in an
  assisted-living facility or nursing home, or all
  three. The costs of such care are catastrophic
  for most families. For example, home healthcare
  can cost 50,000 or more per year
  assisted-living can run close to 100,000 per
  year or more and nursing home care can run as
  high as 150,000 per year or more in the DC Metro
  Area.

7
Self-care

• Research is now telling us that longevity is over
  70 lifestyle.
• Therefore, its important to integrate self-care
  into a retirement plan. Spending money on
  preventive health routines to take care of
  yourself now can help you avoid significant
  health problems that lead to even costlier
  expenses later on.

8
One Situation that has a Hefty Financial Impact
on Adult Children (but its often a labor of love)

• Did you know that other than a spouse, the most
  common people to be tasked with caring for a
  senior loved one are adult children? Currently,
  10 million adult children over age 50 are acting
  as a caregiver for their aging parent(s), a
  number that equals a quarter of all Baby Boomers.
  Its a good idea for parents and adult children
  to be proactive and have a frank discussion about
  their long-term living situation and their
  potential care needs down the road.

9
Call us to Plan for Retirement and Long-Term Care

• Here at the Farr Law Firm and Lifecare Financial
  Services, we stay on top of the strategies you
  need to put in place to keep yourself and your
  family protected. If youve not done Retirement
  Planning, Estate Planning, or Long-Term Care
  Planning (or had your plan reviewed in the past 5
  years or last 3 years if youre over 65),
  please call us to make an appointment for a
  no-cost consultation. Contact details on next
  slide.

10
Call us now for free consultation

• Retirement Planning Fairfax 703-691-1888
• Retirement Planning Fredericksburg 540-479-1435
• Retirement Planning Rockville 301-519-8041
• Retirement Planning Washington, D.C.
  202-587-2797