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A12 BUSINESS
Friday 16 September 2022

4 non-investment questions to ask an

adviser before retiring

By KATE ASHFORD Nerd-
Wallet
Using a financial adviser
for your investment needs
is 100% on brand, but what
about the other parts of
your retirement life? For ex-
ample, a third of people
ages 64 and up have a fi-
nancial adviser, but only
2% of them asked their ad-
viser to help with their Medi-
care choices, according
to a July 2022 report f rom
health care consulting firm In this June 15, 2018, file photo, cash is fanned out from a wallet
in North Andover, Mass.
Sage Growth Partners. Associated Press
But Medicare and other
non-portfolio topics like for coverage. Each year, New York City.

travel and long-term care both Medicare Part B and “Others have more limited
can affect your finances. Medicare Part D base their assets.”
“We are actively bringing premiums on your reported No matter what is the case,
these ideas to our clients, modified adjusted gross in- it’s crucial to discuss poten-
but there are still plenty come from two years prior. tial costs and whether you
of advisers out there that So if you filed individually have the savings to man-
are not,” says Crystal Cox making more than $91,000, age them. If you don’t,
, a certified financial plan- or filed jointly making more you’ll need to run the num-
ner in Madison, Wisconsin. than $182,000, you’ll pay bers on products like long-
“They’re still focused just additional amounts each term care insurance or a
on the investments and the month. hybrid policy that com-
portfolio.” “Because there’s a look- bines permanent life insur-
Here are some questions to back on earnings for Medi- ance with a long-term care
ask at your next meeting. care expenditures, we’ll rider.
1. WHAT RETIREMENT DECI- adjust plans accordingly, “We’re always working with
SIONS DO I NEED TO THINK because they might be an expert to do projec-
ABOUT? paying considerably more tions and see what makes
Your life in retirement may the first couple of years in sense,” Brady says.
not continue as it has in the retirement than later in re- 4. DO I HAVE ENOUGH
past. Do you plan to travel? tirement,” Lash says. MONEY TO HAVE SOME
Do you intend to move to a It’s also wise to consider FUN?
different state or downsize? guidance on Medicare A successful retirement
How often will you want to choices in general, be- isn’t always about the tan-
buy a new vehicle? cause you sometimes can’t gibles. For many, it’s a time
“Most people just think, ‘I change coverage later if to realize dreams of travel

need a certain amount of your health situation shifts and other experiences, but
money to live on,’” says and Medicare is compli- spending too frugally can
Daniel Lash , a CFP in Vien- cated. get in the way.
na, Virginia. “What about “We do an annual meeting “Often clients are overly
all the ancillary things that with somebody that spe- conservative for fear of
come along with living? All cializes in Medicare,” Lash running out of money, but
the things you want to do?” says. “All clients are invited in the process they short-
Mapping your retirement to attend.” change the retirement ex-
plans can help you and 3. CAN I AFFORD TO SELF- perience,” says Kevin Lum,
your adviser pinpoint when INSURE FOR LONG-TERM a CFP in Los Angeles. “By
and how you’ll need cash. CARE? the time they realize their
“Do you have an idea A person turning 65 now abundance, they’re too
of where you’re going has about a 70% chance old to spend it.”
to move, and what does of needing some kind of Talk to your adviser about
real estate look like in that long-term care, and costs your big-ticket wishes and
general area?” Lash says. are steep: It’s $54,000 a whether you have enough
“They’ve thought about re- year for an assisted living money to splash out a little
tiring, not ‘What am I going facility and nearly $95,000 before you settle into qui-
to do when I retire?’” for a shared room in a nurs- eter spending.
2. WHAT SHOULD I KNOW ing home, according to Actual retirement spend-
ABOUT MEDICARE? insurance company Gen- ing looks more like a smile
Although you generally worth’s 2021 Cost of Care than a straight line, Lum
can’t sign up for Medi- Survey. says, with more spending
care until you’re closer to “Some people are well at the beginning on things
65 years old, your income enough off that they’re like travel and more spend-
in the years beforehand comfortable self-insuring,” ing at the end on long-term
will affect what you pay says Kevin Brady , a CFP in care needs.q