A Lifetime Of Wealth — In Senior Years

Adapted ...first appeared at http://thistlecreekhealthcare.ca/blog/

As our generation is undeniably though slowly aging, we want to ensure the future can be safe, happy, fun, resourceful, and richly rewarding.   The dreams we carry today speak of living life to the fullest ...whatever that specifically means to you!   And consider too the impact of our own parents' needs if they are still living...  And the needs we'll present when our own children reach our current age.   So let's ensure we and our families will be safe in enjoying Life and Wealth through the years ahead.

Two facts of aging

The fact we’re aging suggests two things for us.   (i) While we remain healthy we want abundant resources to fulfill all our life’s dreams and desires.   (ii) Then in the eventuality we become frail we need ongoing supports from loved ones and outside providers so we can continue to enjoy the best that is available to us at that time.  Both of these stages would benefit from a potentially unlimited supply of wealth to fund future lifestyle and needs.

So let me share a story.  Johan greeted me one morning and led me up the stairs from his front door as he explained that he had 33 months to live.  As we sat in his living room I asked, "why 33 months?"  He answered, "You saw the for-sale sign on the front lawn,  When the house sells I'll be moving into the lodge with my wife.  Last night I realized that in 33 months we'll be out of money.  We'll have to die then."

This was one of the last such stories of my life as a pastor.  I soon moved into financial service (1995) and began to help prevent the kinds of stress and terrible anxiety that was punishing the lives of people who outlived their money.  I always change the names, of course, but you can find other such stories and our solutions here on my website.

Inevitable Need to secure Financial Resources

So here’s the thing: as we will age longer than any other generation has done, we will need financial resources and lifelong income more than any prior generation.  We cannot rely on family members because their own financial stresses and needs will arise too.  And we don't want them losing their retirement dreams if it became necessary to pay for our costly health care.  Bottom line then:  we need to ensure our own financial security!  So what can this look like?

“Life Income Mandates” is a process to help secure income as long as we live. You’ll readily see how this draws significant inflow from various sources to help protect and stabilize your income.  Life income mandates combine dividend-income, real estate income, infrastructure income, fixed-income, and laddered life annuity income.  This makes it possible to ensure you never run out of money.  It can also offer an increasing income over the years to meet rising costs.  See more here on “Life income mandates”

Not 2% investments!   By contrast some people hold investments now paying only 2% to 4%.  At such levels you’d need a tremendous amount of money to avoid running out of money.  People earning less than 4% may spend their “last dollar” in their 70s.  The risk of earning so little is outliving your money and being left in very dire straits.

Not 50% risks!   Another contrast is a stock market that’s unsuitable for seniors’ needs.  Markets can fall 20%, 30%, even 50% or more.  This is especially dangerous when you’re drawing income because your account values could fall very suddenly.  The risk of this type of investing is that your money may suddenly crumble and accounts become near worthless…when your most needful years are still before you.

Sr couple hikingUnlocking home equity.  Looking forward whether for yourself or other family members you may consider home-equity to supplement income.  I dislike reverse mortgages and believe more can be accomplished through your bank with a home equity line of credit.  Sometimes it requires a strong chat with the loans manager to prove that a senior can be a good candidate for a HELOC (Home Equity Line of Credit)…to help sustain low-tax monthly income.   (See: House-Rich Cash-Poor here.)

Life insurances may also supplement living expenses.  If you contributed significantly in years gone by, you might be in a position to take several times more in income, than what you had ever deposited.  This depends on the type of insurance and several other factors. You probably also want to retain enough value in the insurance to meet specific needs for family, burial, tax and estate costs, at the end of life.

Long Term Care Insurance is another insurance that helps families manage costs of home-based or institutional care.  (See Eva's article at “How Can You Support Yourself In Comfort as You Age?”)   When the insured person is unable to manage two or more “activities of daily living” this triggers an income, paying even $1000 to $10,000/month. This can support the cost of personal needs and health services, eg. accommodation, extended care, any form of personal support.  This proves a valuable part of financial security as we age - something all of us should consider implementing.

Aging baby-boomers.  We’ve seen what it means when people run out of money.  With the vast baby-boom generation we will probably see much more of this over the years ahead.  Today is the time these baby-boomers can act now to protect income for the rest of their lives.  As well, these “boomers” want the best for their parents.  So it is vital that we all ensure families gain resources and strategies to protect lifelong income and lasting wealth!

Other people?  Does this only touch "others"?  Do we believe running out of money would never happen to ourselves?   Are the values of our properties, business, or investments secure from ever being spent and gone?  Consider Johan and his wife (above): they could be our parents, our neighbours, friends or even ourselves if we live long enough and haven't prepared.  What if this is you or me at the age of 83 or some later time?  To realize you had to die because the money was gone, would be painful, scary, and threatening.

A Lifetime of Wealth -- in Senior Years

To be successful with money and in life is to realize we have the power to Align our Wealth today with the life and resources you want to enjoy forever.  Let's discuss this -- here in the comment section or even let's sit down together -- and ensure you will enjoy A Lifetime Of Wealth – through senior years and always.

More resources in the inner learning modules at: GuaranteedIncome4Life.ca
Amazon or Kindle: “A Lifetime Of Wealth — And How Not To Lose It.”
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Brian Weatherdon, MA CFP CLU CPCA MDRT

1 comment

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