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A26 u.s. news
Diahuebs 15 september 2022

4 non-investment questions to ask an adviser before retiring

(AP) - Using a financial sure for long-term care?
adviser for your invest- A person turning 65 now has
ment needs is 100% on about a 70% chance of need-
brand, but what about the ing some kind of long-term
other parts of your retire- care, and costs are steep: It’s
ment life? For example, a $54,000 a year for an assist-
third of people ages 64 and ed living facility and nearly
up have a financial adviser, $95,000 for a shared room in
but only 2% of them asked a nursing home, according
their adviser to help with to insurance company Gen-
their Medicare choices, worth’s 2021 Cost of Care
according to a July 2022 Survey.
report f rom health care
consulting firm Sage “Some people are well
Growth Partners. enough off that they’re com-
fortable self-insuring,” says
But Medicare and other non- Kevin Brady , a CFP in New
portfolio topics — like travel York City. “Others have more
and long-term care — can af- limited assets.”
fect your finances.
No matter what is the case,
“We are actively bringing it’s crucial to discuss poten-
these ideas to our clients, but tial costs and whether you
there are still plenty of advis- have the savings to manage
ers out there that are not,” money to live on,’” says Dan- them. If you don’t, you’ll
says Crystal Cox , a certified iel Lash , a CFP in Vienna, need to run the numbers on
financial planner in Madison, Virginia. “What about all the products like long-term care
Wisconsin. “They’re still fo- ancillary things that come insurance or a hybrid policy
cused just on the investments along with living? All the that combines permanent life
and the portfolio.” things you want to do?” insurance with a long-term
care rider.
Here are some questions to Mapping your retirement
ask at your next meeting: plans can help you and your “We’re always working with
1. What retirement deci- adviser pinpoint when and an expert to do projections
sions do i need to think how you’ll need cash. and see what makes sense,”
about? Brady says.
Your life in retirement may “Do you have an idea of
not continue as it has in the where you’re going to move, 4. Do i have enough mon-
past. Do you plan to travel? and what does real estate look ey to have some fun?
Do you intend to move to a like in that general area?” A successful retirement isn’t
different state or downsize? Lash says. “They’ve thought always about the tangibles.
How often will you want to about retiring, not ‘What am For many, it’s a time to real-
buy a new vehicle? I going to do when I retire?’” Although you generally can’t forehand will affect what you ize dreams of travel and other
sign up for Medicare until pay for coverage. Each year, experiences, but spending too
“Most people just think, ‘I 2. What should i know you’re closer to 65 years old, both Medicare Part B and frugally can get in the way.
need a certain amount of about medicare? your income in the years be- Medicare Part D base their
premiums on your reported “Often clients are overly
modified adjusted gross in- conservative for fear of run-
come from two years prior. ning out of money, but in
So if you filed individually the process they shortchange
making more than $91,000, the retirement experience,”
or filed jointly making more says Kevin Lum, a CFP in
than $182,000, you’ll pay Los Angeles. “By the time
additional amounts each they realize their abundance,
month. they’re too old to spend it.”

“Because there’s a lookback Talk to your adviser about
on earnings for Medicare ex- your big-ticket wishes and
penditures, we’ll adjust plans whether you have enough
accordingly, because they money to splash out a little
might be paying considerably before you settle into quieter
more the first couple of years spending.
in retirement than later in re-
tirement,” Lash says. Actual retirement spending
looks more like a smile than a
It’s also wise to consider straight line, Lum says, with
guidance on Medicare choic- more spending at the begin-
es in general, because you ning on things like travel and
sometimes can’t change cov- more spending at the end on
erage later if your health situ- long-term care needs.
ation shifts — and Medicare
is complicated. “We do an an- “I’m not saying people should
nual meeting with somebody spend irrationally,” Lum says.
that specializes in Medicare,” “But thinking about retire-
Lash says. “All clients are in- ment spending as a fixed cal-
vited to attend.” culation that doesn’t change
across the retirement life isn’t
3. Can i afford to self-in- a smart idea.”