Today’s Puzzle:

Getting old can be tough. As you enter retirement, there are all sorts of difficulties you may face. Dan will help you plan a worry-free retirement.

(Click the featured times below to jump forward in the episode)

Puzzle Of The Week:

  • [2:38] – Life is finite. We know our days on this earth are numbered, but none of us know how the end will come for us. Have a financial plan in place that will leave you prepared.  

Jigsaw Pieces:

[4:55]– Don’t Forget Your Power Of Attorney. 

  • Getting old necessitates an estate plan. Most of you have a will or trust in place, and some of you have even named beneficiaries and begun developing a plan for how to pass your assets. As you’re in the process, don’t forget to set-up a power of attorney.
  • There are two types of power of attorney; one is medical and the other is financial. A power of attorney gives someone (typically a spouse) the authority to make decisions and take action on your behalf in the event you’re incapacitated or fall ill. While it’s natural to put this responsibility on your spouse, it’s not always wise. After all, who’s to say you won’t outlive your spouse, and even if your spouse is still alive, they might not be in a place to make such weighty decisions. Therefore, it’s important to update your estate plan and name someone who is able to act on your behalf.

[6:28] –  Don’t Forget Long-Term Care. 

  • As you age, you need a long-term care plan. Medicare and Medicaid won’t pay for everything. You need a plan that covers nursing home costs, healthcare professionals who come to you, etc…Often, these types of care aren’t covered, and nursing homes can cost upwards of $70,000-$90,000 a year. That’s a hefty bill to place upon your spouse, and long-term care coverage can mitigate the burden.

[7:34] – Not All Assets Are Equal. 

  • Getting old necessitates legacy planning. It’s natural to want to leave your assets to your kids, but not all assets are the same. You need to be careful how you go about doing this if you want to do so evenly. As an example, a house and IRA account of equal worth are not necessarily equal assets. Uncle Sam is going to tax the IRA account way more than he’ll tax the house. While both assets could be $500,000 on paper, reality might suggest otherwise. It’s worth discussing who wants what with your children, and it’d be wise to include your advisor in the conversation.

Question Of The Week:  

  • [10:27] – Sue asks whether she should dump her bond account. 

Puzzle Solver Assignment:  

  • [13:59] – Homework time! If you don’t have a back-up power of attorney in your plan, you need to get one. You might also need to replace your current power of attorney. In order to do this, start by seeing who your power of attorney is. Find out who would be calling the shots were you to be incapacitated. Next, discover what you’d need to do to activate your power of attorney. If you can’t answer those two questions, you need to find out. Finally, we’ve included a download on estate planning to get you started down the right path. 

The Full Picture:


Free Stuff:

Click the image to get a free retirement rescue toolkit.

Additional Resources:

The host: Dan Cuprill – Schedule A Time To Meet – Or Call: (513) 563 – 7526

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