Why It’s Important to Care for the Caregivers

If you picture yourself receiving long-term care at some point, you likely envision a medical professional sitting bedside, tending to your needs. However, the bulk of long-term care in the U.S. is actually provided by family caregivers.1

According to a recent Merrill Lynch study, 20 million Americans become caregivers each year. Moreover, family caregivers collectively spend $190 billion a year of their own money on adult care recipients. And the toll doesn’t end there. In addition to 92 percent of caregivers using their own money and/or coordinating or managing finances to aid loved ones:2

  • 98% provide emotional support
  • 92% provide household support
  • 79% provide care coordination
  • 64% provide physical care

Women usually do more caregiving than men, the study found, averaging six years of caregiving in their lifetime compared to four for men. As a result, caregiving can bring more of a financial burden for women because of the time they may need to take away from their careers to care for loved ones.3

The financial burden of caregiving, for both men and women, should not be underestimated. The study shows 53 percent of respondents have made financial sacrifices as caregivers, and 21 percent have dipped into their savings.4

If you’re in a similar situation and are concerned about having enough income in retirement, please contact us. We work with clients to create retirement strategies through the use of insurance products that help them work toward their long-term retirement income goals.

Increasing attention is also being given to the psychosocial burden experienced by family caregivers. The responsibility and stress can contribute to their own physical conditions, including chronic diseases caused by unhealthy eating habits, sleeping poorly and not getting enough physical activity.5

Caregivers have twice the incidence of heart attack, arthritis, heart disease and diabetes compared to non-caregivers. Their chronic stress can even lead to cognitive reduction such as short-term memory loss and attention deficits. To cope with their complex lives, caregivers also may be prone to develop dependence on alcohol, smoking, prescription drugs and psychotropic drugs for mood enhancement. Caregivers also tend to have higher obesity rates.6

To help family members who are caring for a loved one with cancer, the Memorial Sloan Kettering Cancer Center in New York developed a support program that included webcasts with staged therapeutic interactions between therapists and informal caregivers, and a message board where study participants could post responses to experiential exercise questions. Initial results found that program participants experienced reduced symptoms of depression.7

Technological advances may also help ease caregiving challenges. For example, wearable devices can monitor heart rate and blood pressure, among other vitals. These devices can be linked to mobile phone apps, alerting a caregiver of any changes that might trigger a serious health issue.8

Some wearable devices use GPS and geofencing technologies to track patients, allowing them more mobility while also helping caregivers monitor patients’ locations. Newer devices use artificial intelligence to recognize trends in vital signs or movement that can lead to health or injury concerns.9

Regardless of what innovations the technology industry creates to aid caregivers, there is some comfort in knowing that the primary skills necessary in a caregiver cannot be replicated by artificial intelligence or a robot. Human caregivers not only offer compassion, empathy and the ability to meet retirees’ emotional needs, but these soft skills can be learned and improved — which will prove to be a critical sector of our workforce in years to come.10

Content prepared by Kara Stefan Communications.

1 Advisor News. Nov. 1, 2017. “92% Of Caregivers Are Financial Caregivers.” https://insurancenewsnet.com/oarticle/92-caregivers-financial-caregivers#.WgOptLaZOfU. Accessed Dec. 4, 2017.

2 Ibid.

3 Ibid.

4 Ibid.

5 Kathy Birkett. Senior Care Corner. “How Are YOU, Family Caregiver — Are You Caring for Yourself?” http://seniorcarecorner.com/family-caregiver-caring-for-yourself. Accessed Dec. 4, 2017.

6 Ibid.

7 Meg Barbor. The ASCO Post. April 25, 2017. “Attrition High but Positive Trends Observed in Web-Based Intervention Addressing Caregiver Burden.” http://www.ascopost.com/issues/april-25-2017/attrition-high-but-positive-trends-observed-in-web-based-intervention-addressing-caregiver-burden/. Accessed Dec. 4, 2017.

8 1-800-HomeCare. Oct. 12, 2017. “What Are the Top Emerging Tech Trends for Home Care In 2017?” https://www.1800homecare.com/homecare/new-tech/. Accessed Dec. 4, 2017.

9 Ibid.

10 Harry Welchel. ChirpyHire. July 31, 2017. “Senior Care and The Future of Work.” http://blog.chirpyhire.com/senior-care-and-the-future-of-work/. Accessed Dec. 4, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Innovating to Solve Problems

The 2017 hurricane season was one of the most active of the new century, and scientists are predicting hurricanes will likely get more intense in the decades to come.1 But these predictions for worsening conditions in the future may pave the way for stronger innovation.

For example, the governor of Puerto Rico, which was devastated by Hurricane Maria in September, suggested the island rebuild its power resources into a microgrid. This strategy means that power outages caused by storms would be more localized so a huge area isn’t impacted when one system goes down. It also would accurately pinpoint which grids need repair and better assign resources so that power can be restored more quickly.2

The microgrids could be powered by alternate and renewable resources such as wind and solar energy, which would be better for the environment and less expensive for residents. This type of innovation could avoid the need to completely rebuild infrastructure the next time a major hurricane hits the region.3

There are two issues when considering the catastrophic nature of a disaster like a hurricane. The first is societal – how do we restore power and other infrastructure after a crisis? The second is personal – how do we recover when our homes are damaged or demolished? While we seek and embrace innovations that can lessen the damage caused and hasten our recovery, the current solution is to insure against losses that can devastate us financially.

Other issues that are cropping up in today’s society are spurring innovation. For example, researchers say the U.S. workforce participation rate is declining. In fact, a recent analysis found that one-third of prime-age men not in the labor force have a disability. Rising incarceration rates have impeded the workforce even after release, due to criminal records.3

Furthermore, increasing numbers of baby boomers are retiring each day, and younger generations might not have, at this point, the skills and experience to take their place.4 With so many critical issues converging, who will work America’s jobs?

Enter robotics, artificial intelligence and machine learning. Today’s technology not only has robots and computers performing a wide range of routine physical work activities better and more cheaply than humans, but they are increasingly capable of providing cognitive insights that were once considered too difficult to automate. This includes sensing emotion, driving vehicles and even making decisions.5 Scientists project that automation is poised to change the daily work responsibilities for a spectrum of jobs, including miners, landscapers, commercial bankers, fashion designers, welders and even CEOs.6

It’s worth considering both the pros and cons of automated labor. While this type of innovation may create a less expensive workforce for American companies, it also reduces the overall tax base. Which leads us to the question: Will the remaining human workers have to pay higher taxes to cover government programs and expenses, or will companies need to pay taxes on robot workers?7

Content prepared by Kara Stefan Communications.

1 Michael Greshko. National Geographic. Sept. 22, 2017. “Why This Hurricane Season Has Been So Catastrophic.” https://news.nationalgeographic.com/2017/09/hurricane-irma-harvey-season-climate-change-weather/. Accessed Nov. 9, 2017.

2 Brad Jones. World Economic Forum. Oct. 6, 2017. “Puerto Rico is using an unusual method to restore power after the hurricane.” https://www.weforum.org/agenda/2017/10/puerto-rico-is-using-an-unusual-method-to-restore-power-after-the-hurricane. Accessed Nov. 9, 2017.

3 Eleanor Krause and Isabel V. Sawhill. The Brookings Institution. Feb. 3, 2017. “What we know – and don’t know – about the declining labor force participation rate.” https://www.brookings.edu/blog/social-mobility-memos/2017/02/03/what-we-know-and-dont-know-about-the-declining-labor-force-participation-rate/. Accessed Nov. 9, 2017.

4 Dona DeZube. Monster.com. “Bye Bye Boomers: Who Will Fill your Workforce Gap?” https://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/strategic-workforce-planning/baby-boomer-workforce-gap.aspx. Accessed Nov. 9, 2017.

5 James Manyika, Michael Chui, Mehdi Miremadi, Jacques Bughin, Katy George, Paul Willmott and Martin Dewhurst. McKinsey Global Institute. January 2017. “Harnessing automation for a future that works.” https://www.mckinsey.com/global-themes/digital-disruption/harnessing-automation-for-a-future-that-works. Accessed Nov. 9, 2017.

6 Ibid.

7 Kari Paul. MarketWatch. Sept. 28, 2017. “Why robots should pay taxes.” https://www.marketwatch.com/story/why-robots-should-pay-taxes-2017-09-12. Accessed Nov. 9, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Best Places to Live in Retirement

Many retirees believe the best place to live in retirement is right in their own home. Let’s explore some of the “best places” where that home might be located and what it might look like.

It’s worth noting that the retirement experience varies widely. Some people have the money to relocate or buy a second home. Some people have plenty of retirement funds but choose to remain where they are. Come talk to us if you’d like help in creating a retirement income plan to assist you with figuring out what you may be able to afford.

According to a study by U.S. News & World Report on the top states for people 65 and older, Colorado is the best place in America to spend your retirement years. The study evaluated which states are most effective at helping retirees meet their health care, financial and community involvement needs.1

If you have a specific retirement haven in mind, be sure to do some research about it. For health care services, for example, U.S. News publishes a guide to the best hospitals with a searchable database. To learn about a locale’s cost of living, consider the Council for Community and Economic Research’s Cost of Living Index. To get a feel for an area’s year-round climate, check out the interactive climate data tools at the NOAA National Centers for Environmental Information.2

Relocating after retirement can be difficult for some people, especially those with close friends and family ties to an area. If this is a concern for you, consider a short-distance move. Perhaps move to a nearby town that has less hustle and bustle, and more outdoor and cultural activities. If your motivation is to downsize, you may even be able to do that in your own community. In this case, you can get rid of the big house and accompanying maintenance chores and expenses, but stay close to family and friends.

Consider where you might be able to access personal help as you age, and the best way to procure that help. For example, you could relocate to a neighborhood near a nursing or medical school, and hire a student to help you if needed. If you have an extra bedroom, consider offering free or low-cost accommodations in exchange for personal aid. Even when we don’t need help with health care needs, as we age it never hurts to have someone we know and trust around to help maintain the house and lawn, drive or run errands, or just check in for conversation.

Think long term – not what your health is like right now, but what it could be like 20 years from now. In other words, having stairs may increase your chances of a fall. They also will be difficult to use if mobility is an issue. For some, the solution may be to buy a single-story home with the idea of avoiding those potential problems.

Another option to consider may be to sell your home and rent a smaller home. This could allow a retiree to pocket equity from the home sale and keep expenses low enough for current income sources. Renting also may eliminate the risk of a large maintenance cost or unanticipated repair.3

These are all long-term considerations people should think about with regard to the “best place to live in retirement.”

Content prepared by Kara Stefan Communications.

1 U.S. News & World Report. “Best States: Aging in America Ranking.” https://www.usnews.com/news/best-states/rankings/aging. Accessed Nov. 21, 2017.

2 Melissa Phipps. The Balance. Sept. 4, 2017. “Find out Where You Should Retire.” https://www.thebalance.com/where-should-i-retire-2894254. Accessed Oct. 31, 2017.

3 Eric Petroff. Investopedia. March 17, 2017. “Retirement Living: Renting Vs. Home Ownership.” https://www.investopedia.com/articles/retirement/07/buy-rent.asp. Accessed Nov. 29, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

Artificial Intelligence: Innovation for Today’s World

Artificial intelligence (AI) is rapidly changing the way businesses build products and even provide customer service. We now have automated virtual assistants and “chatbots” answering customer service calls.1 We even have self-driving cars being tested for pizza delivery.2

These quantum leaps in technological advances present both opportunities and challenges. For example, the way we have adopted online financial transactions over the past 10 to 15 years has made everything from banking and paying bills to applying for a mortgage so much more convenient. However, as the recent Equifax security breach impacting more than 145 million people demonstrates, housing that much data in one central location creates a single-entry point for would-be hackers.3

That’s one reason we believe it’s important to work face to face with financial advisors you know and trust. Regardless of where technology takes us, there’s really no substitute for personal interaction, particularly when it comes to planning for your family’s insurance, higher education and retirement income needs. We appreciate the value of combining human intelligence with empathy and understanding, and we know our clients do as well. In this rapidly advancing world of artificial intelligence, it’s important to offer both convenience and personal service.

With that said, we work to keep up with innovations and their applications for today’s world, especially when they may create potential investment opportunities. There are all kinds of innovative things to report. The use of connected devices such as wearables, residential electric and gas meter readers, drones and business self-checkout terminals is expected to grow by 31 percent this year over 2016. Today’s number of 8.4 billion devices in use is projected to grow to 20.4 billion connected devices by 2020.4

AI devices, such as drones, are being adapted for all kinds of creative uses. Researchers in Australia have developed flying drones capable of doing three things:5

  1. Identifying sharks near swimmers and surfers
  2. Amplifying warnings to beachgoers via an on-board loudspeaker
  3. Sending out electrical impulses that irritate sharks and deter them from entering populated areas

One way AI can be more effective than the human brain is its capacity to access and analyze vast more stores of data. As humans, we possess memory and recall, but AI machines can be loaded with an infinite amount of data that can be scanned and identified quickly. Farmers are using this technology via smartphone to take photos of ailing crops, from which AI can pinpoint disease with up to 98 percent accuracy.6

In the construction industry, AI is being used to help project managers track the most egregious potential malfunctions based on plan specifications, phase timing and severity. This helps keep projects on time and on budget with a laser-like focus on safety and quality.7

AI is also having an impact in the retail industry. British fashion icon Burberry requested and uploaded scores of data regarding their clients’ buying habits. This enables frontline retail clerks to make immediate recommendations to complement client selections based on what customers purchased in the past. The intelligence has created a type of personalized shopping service that has proven enormously successful.8

Moreover, the retailer has been able to cut down on counterfeit sales by developing technology that can detect if an item is a Burberry “bootleg” product by analyzing a photo of it.9

Content prepared by Kara Stefan Communications.

1 Shep Hyken. Forbes. July 15, 2017. “AI and Chatbots Are Transforming The Customer Experience.” https://www.forbes.com/sites/shephyken/2017/07/15/ai-and-chatbots-are-transforming-the-customer-experience/#31527b2941f7. Accessed Oct. 13, 2017.

2 Amar Toor and Tamara Warren. The Verge. Aug. 29, 2017. “Domino’s and Ford will test self-driving pizza delivery cars.” https://www.theverge.com/2017/8/29/16213544/dominos-ford-pizza-self-driving-car. Accessed Oct. 13, 2017.

3 Bloomberg. Oct. 2, 2017. “Equifax Says 2.5 Million More Americans May Be Affected by Hack.” https://www.bloomberg.com/news/articles/2017-10-02/urgent-equifax-2-5-million-more-americans-may-be-affected-by-hack. Accessed Oct. 2, 2017.

4 Liam Tung. ZDNet. Feb. 7, 2017. “IoT devices will outnumber the world’s population this year for the first time.” http://www.zdnet.com/article/iot-devices-will-outnumber-the-worlds-population-this-year-for-the-first-time/. Accessed Oct.13, 2017.

5 Charlotte Edmond. World Economic Forum. Sept. 4, 2017. “Meet Australia’s beach-protecting, AI-powered shark drones.” https://www.weforum.org/agenda/2017/09/australia-shark-drones-artificial-intelligence/. Accessed Oct. 2, 2017.

6 Jamie Condliffe. MIT Technology Review. Oct. 2, 2017. “OK, Phone: How Are My Crops Looking?” https://www.technologyreview.com/the-download/609028/ok-phone-how-are-my-crops-looking/. Accessed Oct. 2, 2017.

7 Zach Mortice. Redshift. Oct. 2, 2017. “Machine Learning Eases Construction Project Management—and Prevents Catastrophes.” https://www.autodesk.com/redshift/machine-learning-construction-project-management/. Accessed Oct. 2, 2017.

8 Bernard Marr. Forbes. Sept. 25, 2017. “The Amazing Ways Burberry Is Using Artificial Intelligence and Big Data to Drive Success.” https://www.forbes.com/sites/bernardmarr/2017/09/25/the-amazing-ways-burberry-is-using-artificial-intelligence-and-big-data-to-drive-success/#24388a014f63. Accessed Oct. 2, 2017.

9 Ibid.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Travel Tips

Anthony Melchiorri, the host of the Travel Channel show “Hotel Impossible,” says he prefers to stay in a roadside motel over a luxury hotel – as long as it has good online reviews. In his opinion, the mom and pop ownership model often leads to painstaking efforts for cleanliness, fresh flowers and a home-cooked meal – not to mention personal recommendations for uniquely local places to visit in the area.1

After all, the accommodation industry is all about hospitality, and hospitality is about personal service. It doesn’t get more personal than running your own business. We feel the same way about working with our clients. We know you want to talk to familiar people when you call for information. At the end of the day, we’re all looking for that extra touch, the human connection, something that sets service above the rest. Please contact us anytime. We are here to help you with your retirement income strategy questions.

This desire for the personal touch remains true whether you’re at home or traveling. In a recent interview, Mr. Melchiorri offered some interesting advice for planning a vacation. For example:2

  • If you’re booking a hotel, check out its most recent reviews online at sites like TripAdvisor and Yelp. Even large chains get bad reviews, and some of those roadside motels get charming It pays to check before you book.
  • While you may want to use one of those shop-and-compare websites to find a hotel, once you make a selection go to the hotel’s actual website to make your reservation. The hotel website is guaranteed to offer the lowest rate – Melchiorri says a website like Expedia is not allowed to have a lower rate than the hotel. In addition, when you book through a third party, it can be more difficult to get your money back.
  • Remember that hotels and motels are in the hospitality industry, and the good ones want to ensure you are pleased with your stay. Melchiorri encourages travelers to ask for things they want – an upgrade, a poolside room, to be upstairs or downstairs, bottled water or fresh flowers in their room. If hotel staff can accommodate you, they most likely will.
  • If you encounter a problem, he suggests you first make a polite complaint, then escalate to a more direct aggressive complaint, and finally, express your displeasure with a scathing online review.

One way to save money on accommodations is on parking. Many hotels charge for onsite parking or valet service. Consider downloading an app to your smartphone to help you find less expensive parking options. These apps look for parking based on your location and show the least expensive options, which can yield as much as 50 percent in savings. Other apps can find all available transportation options between your current location and your destination, so you can choose the most convenient with the best price.3

If you want to learn about the history of an area you’re visiting, check out local museum deals. Some places offer free entrance either on certain days or all the time. For example, the Smithsonian in Washington D.C. and nearly every museum in London offer free admittance year-round.4

If you’re traveling abroad, before you leave home, make copies of your passport and driver’s license; leave one with a friend and tuck another into your bag. It’s also a good idea to take photos of them on your smartphone and load them up to a password protected cloud storage site. Having copies of important travel documents can alleviate a lot of hassle if the originals are lost or stolen.5

You also may want to spread your cash in a few different places, such as your wallet, in zipper pockets and in your hotel safe. Should you lose your billfold or get robbed, you won’t be left totally without cash.6

Content prepared by Kara Stefan Communications.

1 Beth J. Harpaz. Washington Times. Sept. 6, 2017. “Why ‘Hotel Impossible’ star likes a good roadside motel.” http://www.washingtontimes.com/news/2017/sep/6/why-hotel-impossible-star-likes-a-good-roadside-mo/?utm_source=RSS_Feed&utm_medium=RSS. Accessed Oct. 2, 2017.

2 Ibid.

3 Talia Avakian. Travel and Leisure. Sept. 30, 2017. “These 18 Easy Tips Can Save You a Fortune on Your Next Trip.” http://www.travelandleisure.com/travel-tips/save-money-while-traveling. Accessed Oct. 2, 2017.

4 Ibid.

5 Mike Shubic. Travelocity. Oct. 2, 2017. “12 Genius Travel Planning Tips.” https://www.travelocity.com/inspire/12-genius-travel-planning-tips/. Accessed Oct. 2, 2017.

6 Ibid.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Assessing Risk

It is common to have a very traditional interpretation when we think of investment risk, such as the belief that stocks are seen as a risky investment, and bonds less so. But many issues have come to light in the past decade that cause us to think about risk differently. For example, there’s the risk of outliving your retirement savings, which is often cited as one of the primary concerns of today’s retirees.1

And that’s just today’s retirees. If you’re still in saving mode, your retirement could be even longer than today’s average retirement.2 Given this potential reality, it may be time for all of us to re-evaluate how we assess risk.

As financial advisors, we spend countless hours helping people develop a financial strategy for the future. That means we continuously research and discuss risk factors, and we understand how to apply them to each individual’s situation. Please contact us if you’d like help assessing what risk factors you need to consider in regard to your long-term financial goals.

Some people are naturally risk averse, and others are enthusiastic risk-takers. Most fall somewhere in between, with attitudes toward risk changing, depending on where they are in in their lives. It’s not uncommon for individuals to take more risks in their younger years, when they have more time to rebound from market setbacks, and then take a more conservative approach as they near retirement.3

If we pursue a strict risk/reward investment strategy, we can still come up short in meeting retirement goals. For example, say you are extremely risk-averse, so you invest all of your money in 10-year Treasury notes in order to generate around $56,500, which is the average annual household income. These securities, which are considered low risk because they are backed by the U.S. government, were paying out around 2.25 percent in October, so you would need to have $2.26 million invested to earn that much – even more if you factor in long-term inflation.4 In this particular scenario, we might say that such a level of risk-aversion is a luxury many of us cannot afford.

Let’s look at another type of risk. As a general rule of thumb, risk-averse U.S. investors are more comfortable investing in domestic stocks versus those in other countries. This year, that’s working out pretty well, when you consider that the S&P 500 boasted a 14.86 percent year-to-date return as of Nov. 2, 2017.5 However, a lot of countries are doing well these days, so diversifying to include foreign stocks could help improve a portfolio’s overall return while adding the risk-mitigation factor of broader diversification. To put this in perspective, consider that the MSCI World ex USA Index has yielded 15.51 percent and the MSCI Emerging Markets Index is at 25.08 percent for the year as of Sept. 27, 2017.6

It’s also important to evaluate different kinds of risk beyond that associated with individual holdings. There’s the potential risk of not keeping pace with long-term inflation’s impact on the purchasing power of our savings. There’s what’s called “sequence of returns” risk, which means your average annual return over a long timeline may be good, but if you experience declines during the beginning of your retirement years, the risk of loss is much higher.7

There’s also the risk of having significant health problems and needing long-term care. Some people experience this while others don’t, but there’s no way to be sure which camp we’ll fall into – so that’s a potential risk.

While many retirees may believe that their greatest risk is not accumulating a certain amount of money by the time they retire, we believe their goal should be to create a financial strategy that reflects their needs and objectives instead of chasing an arbitrary monetary amount.

Content prepared by Kara Stefan Communications.

1 Catey Hill. MarketWatch. July 21, 2016. “Older People Fear This More Than Death.” http://www.marketwatch.com/story/older-people-fear-this-more-than-death-2016-07-18. Accessed Oct. 24, 2017.

2 Jeff Stimpson. Forbes. Sept. 5, 2017. “How to Balance Investment Risk and Reward in Retirement” https://www.forbes.com/sites/nextavenue/2017/09/05/how-to-balance-investment-risk-and-reward-in-retirement/#629608b96ec4. Accessed Sept. 28, 2017.

3 Walter Updegrave. CNN Money. June 21, 2017. “How much investing risk should you take in retirement? http://money.cnn.com/2017/06/21/pf/retirement-investing-risk/index.html. Accessed Oct. 24, 2017.

4 Bruce McCain. Forbes. Sept. 20, 2017. “Seeking Financial Security When Life Changes Strike.” https://www.forbes.com/sites/brucemccain/2017/09/20/seeking-financial-security-when-life-changes-strike/#589a300c2f0a. Accessed Sept. 28, 2017.

5 CNN Money. Oct. 24, 2017. “S&P 500 Index.” http://money.cnn.com/data/markets/sandp/. Accessed Nov. 2, 2017.

6 eTrade. Sept. 28, 2017. “International calling.” https://us.etrade.com/knowledge/markets-news/commentary-and-insights/international-calling?ch_id=S&s_id=Twitter&c_id=ESOC. Accessed Sept. 28, 2017.

7 Dana Anspach. The Balance. Aug. 14, 2017. “Learn How Sequence Risk Impacts Your Retirement Money.” https://www.thebalance.com/how-sequence-risk-affects-your-retirement-money-2388672. Accessed Oct. 24, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. 

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Tips for Aches and Pains

As we grow older, many of us get wiser. We may become more comfortable in our own skin. We may get better at our jobs, have a more reliable income and begin to collect assets. We can gain a better appreciation of what’s important in life.

We also can lose things. Some of us lose a degree of innocence and idealism. Some miss their doggedness and fearlessness – while others may find they no longer have the thick hair of their younger years.

We also may have gains and experience losses in our finances. We learn that what goes up generally does come down, but then it can go up again. We develop financial strategies designed to help us weather economic ups and downs. If your life learnings summon the need to protect a portion of your retirement assets and help insure yourself against the risk of financial loss, give us a call. As an independent financial services firm, we help people create retirement strategies using a variety of insurance products, including annuities, to custom suit their needs and objectives.

We also may experience more physical aches and pains as we age. But there are coping mechanisms for these things, too.

For example, a lot of people these days are suffering from pain caused by our modern obsession with gadgets. We are hunched over computer keyboards and smartphones, putting strain on the head and neck. Experts say it helps to take lots of breaks, get outdoors, and do hand and neck stretches. Experience tells us that moderation in all things is key; this is also true for gadgetry.1

Some pain may be controlled through alternative methods. The National Center for Complementary and Integrative Health, a division of the National Institutes of Health, reports there is growing evidence that acupuncture, hypnosis, massage, spinal manipulation and yoga may help manage some chronic conditions. Be sure to check with your health care provider before trying any of these methods, however, to make sure they won’t put your health or safety at risk.2

And then there are the effects of emotional pain. In recent months, many people have lost their homes, family and friends to hurricane winds, flooding, fire and earthquakes. It’s been a tough time even for those fortunate enough to survive. Some of the tactics recommended to help cope with this type of pain include committing to a routine to help get your life back on track, unplugging from news sources so you can get out of the disaster frame of mind for a while and adjusting expectations going forward.3

We may not always be able to recover the things we lose, but we can find comfort in recognizing and appreciating what we still have.

Content prepared by Kara Stefan Communications.

1 The Daily Star. Sept. 2, 2017. “Is a modern lifestyle giving you aches and pains? 5 expert tips for healthier pain management.” http://www.thedailystar.net/health/5-expert-tips-healthier-pain-management-backpain-1457293. Accessed Sept. 28, 2017.

2 National Center for Complementary and Integrative Health. September 2016. “Chronic Pain: In Depth.” https://nccih.nih.gov/health/pain/chronic.htm. Accessed Oct. 16, 2017.

3 Paige Smith. Huffington Post. Sept. 20, 2017. “7 Tips for How to Cope If You’re Rebuilding After a Natural Disaster.” http://www.huffingtonpost.com/entry/cope-rebuilding-natural-disaster_us_59c2a020e4b0186c220775c6. Accessed Sept. 28, 2017.

Guarantees and protections provided by insurance products including annuities are backed by the financial strength and claims-paying ability of the issuing insurer.

This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Investing for the Long Term

What does the phrase “long term” mean to you? For children, long term can mean waiting for Christmas or summer vacation that feels like a million years away. For young adults, long term may reference how long it takes to pay off student loans. As we get older, we begin to understand that long term can be a really long time – even decades. We may wonder where the years went. Suddenly we’re in our 50s, 60s, 70s or older. Long term tends to be a subjective phrase depending on what stage you have reached in life and what your goals are.

When it comes to investing, its meaning is only marginally clearer. In other words, if we’re encouraged to invest for the long term, how long is that – 10 years, 20, 30? It largely depends on what your financial goals are – a house, college tuition for the kids, retirement and so on. We take the time to help clients define their financial goals and then create strategies using a variety of investment and insurance products to custom suit their needs and objectives. Give us a call so we can work with you to help you pursue your long-term goals.

It’s worth noting that even an experienced investor can’t say for sure whether they’ve got the right mix of investments for the long term. Take, for example, Jack Bogle, the founder of The Vanguard Group. He recently responded to a question he received from a young investor concerned about how potential catastrophes would impact his portfolio. Bogle replied by sharing his own portfolio mix (50/50 indexed stocks and short/intermediate bond indexes) but said that half the time he worries that he has too much in equities, and the other half that he doesn’t have enough. “We’re all just human beings operating in a fog of ignorance and relying on our common sense to establish our asset allocation,” he wrote to the investor. 1

The S&P 500 has nearly quadrupled in annualized returns since its low in 2009.2 Several prominent market analysts and investment firms suggest this means it’s about time for a market downturn.3 The question is, if you’re a long-term investor, do you sell in anticipation of a correction? After all, if the point is to buy low and sell high, it makes sense to take gains while prices are at their highest before they begin to drop. Or does it?

That’s not what long-term investing is about. The reason returns over 30 years tend to outperform those from, say, five years, is that time is what typically smooths out those periods of volatility. If we continue investing automatically, we may end up buying during those periods of price drops and we can potentially make stronger gains as prices rise again.4

If we base our investment decisions on when the market will take a turn for the worse, we could end up missing out on the future gains that could have been made. Long-term investing may involve patience, unlike children who anxiously await the holidays.

Investing involves risk, including the potential loss of principal.  No investment strategy can guarantee a profit or protect against loss in periods of declining values. It’s important to consider any investment within the context of your own goals, risk tolerance, investment timeline and the composition of your overall portfolio. This information is not intended to provide investment advice.

Content prepared by Kara Stefan Communications.

1 Andy Clarke. Vanguard Blog for Advisors. July 12, 2017. “Stocks and the meaning of “long term.” https://vanguardblog.com/2017/07/12/stocks-and-the-meaning-of-long-term/. Accessed Oct. 12, 2017.
2 Joe Ciolli. Business Insider. Sept. 15, 2017. “An investing legend who’s nailed the bull market at every turn sees no end in sight for the 269% rally.” http://www.businessinsider.com/laszlo-birinyi-interview-investing-legend-bull-market-sage-2017-9. Accessed Sept. 19, 2017.
3 Paul J. Lim. Money. Sept. 19, 2017. “ ‘Unnerved’: These 5 Big Wall Street Players Are Predicting a Downturn.” http://time.com/money/4943479/wall-street-prediction-stock-market-downturn/. Accessed Sept. 19, 2017.
4 Maya Kachroo-Levine. Forbes. Sept. 18, 2017. “Should You Invest As Usual When Stocks Are This High?” https://www.forbes.com/sites/mayakachroolevine/2017/09/18/should-you-invest-as-usual-when-stocks-are-this-high/print/. Accessed Sept. 19, 2017.

This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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How to Help Avoid Fraud and Scams

The recent security breach at credit rating service Equifax brings home the reminder that each of us must be ever-vigilant in protecting our private information.1 It can be easy to become lackadaisical. We expect companies with which we conduct financial transactions to keep our data secure.

Unfortunately, hackers seem to be advancing their skills at a faster rate than large corporations can keep up. Moreover, the tools available to consumers to help protect their data – including credit monitoring, identity monitoring, identity restoration and identity theft insurance – are more reactive than proactive.2

One of the newer recommendations, however, is to freeze your credit report at each of the three national credit agencies – Equifax, TransUnion and Experian. This action stops a credit agency from releasing your information to a third-party request without your permission, eliminating the prospect of someone using your information to open an account without your knowledge.3

While some transactions may leave us at the mercy of third-party security systems, we can still be cautious about how we seek information and who we obtain it from. When it comes to your retirement savings and insurance, you should work with financial professionals you trust. They should be thoroughly vetted for credentials and experience. Also, don’t feel compelled to give out personal financial information at your first meet and greet.

Unfortunately, one demographic that seems to be vulnerable to fraudsters is the elderly. One report estimated that up to $36.5 billion is scammed each year from older Americans.4

Some of the financial scams that target the elderly include fraudulent calls requesting bank or investment account information, mail or email solicitations that appear to be bills for a product or service that wasn’t provided, or overcharging for a service act that was provided. Older adults who are forgetful or unfamiliar with the ways services are charged today may assume they should give out the information or money requested – not realizing that the fault lies with the perpetrator.5 It’s generally a good idea to have a trusted family member or friend review the request before responding.

Above all, remain vigilant when someone asks for money or personal information.

Content prepared by Kara Stefan Communications.

1 NPR. Sept. 8, 2017. “Credit Reporting Agency Equifax Reveals Massive Hack.” http://www.npr.org/2017/09/08/549373796/credit-reporting-agency-equifax-reveals-massive-hack. Accessed Sept. 19, 2017.
2 WatchBlog. Government Accountability Office. April 11, 2017. “How Useful Are Identity Theft Services?” https://blog.gao.gov/2017/04/11/how-useful-are-identity-theft-services/. Accessed Sept. 19, 2017.
3 Adam Shell. USA Today. Sept. 11, 2017. “How to defend yourself against identity theft after the Equifax data breach.” https://www.usatoday.com/story/money/2017/09/11/how-defend-yourseafter-equifax-data-breach-credit-report-freeze-strong-defense-against-identity-thef/654065001/. Accessed Sept. 19, 2017.
4 Kelli B. Grant. CNBC. Aug. 28, 2017. “$36 billion might be a low estimate for this growing fraud.” https://www.cnbc.com/2017/08/25/elder-financial-fraud-is-36-billion-and-growing.html. Accessed Sept. 19, 2017.
5 Barbara Kate Repa. Nolo. “Elder Abuse: Financial Scams Against Seniors.” https://www.nolo.com/legal-encyclopedia/elder-abuse-financial-scams-against-29822.html. Accessed Sept. 19, 2017.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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When One Spouse Retires First

It’s easy to think of retirement and dream of a relaxed stroll into the sunset with your significant other by your side. After all, many advertisements repeat this theme with salt-and-pepper-haired couples strolling hand in hand across a beachfront.

Yet, this is not always the case. Anymore, we often see couples retire at different times – perhaps one spouse actually enjoys going to work every day while the other can’t wait to retire. Different retirement times, however, can open financial and emotional rifts for couples. What if the retired spouse enjoys travel, or wants to spend long stretches with family? Did the couple consider the financial impact of one spouse retiring versus both spouses? What if the working spouse is resentful of the time or money the retired spouse spends on activities?1

At our firm, we help with issues related to couples’ financial preparedness for retirement. If you and your spouse are looking toward retirement–either at the same time or years apart – give us a call.

With the proper planning, the financial piece of retirement doesn’t have to play into your marital dynamic. Based on your circumstances, a wide variety of solutions can help provide one or more retirement income streams while allowing an investment portfolio the opportunity to grow—possibly even throughout retirement. Many of today’s retirees hope to benefit from ongoing growth opportunities to help offset the potential long-term impact of inflation, rising health care and long-term care costs, and increasing longevity.

Now, couples with a big age gap may need a totally different set of strategies from other couples. For instance, if you have a significantly younger spouse, it may be more appropriate to invest a higher percentage of an investment portfolio in stocks than it would be for couples closer in age.2

One way the IRS helps out couples with a large age gap is with an opportunity to reduce the size of required minimum distributions (RMDs) from tax-deferred retirement plans, which are generally required to start at age 70 ½. When the account owner is at least 10 years older than their spouse, and the spouse is the named beneficiary, the older spouse can use a different factor for their RMD calculation, which can result in a lower payout. The benefit to this rule is that it gives more of the older spouse’s funds the opportunity to keep growing while the younger spouse continues to work.3This information is not intended to provide tax advice. Be sure to speak with a qualified professional about your unique situation.

Another retirement income option to consider for age-gap couples is a joint-and-survivor annuity. There are many different types of annuities to choose from, but joint-and-survivor actually refers to the type of distribution option that most annuities offer. If you purchase an annuity and choose this payout option, the annuity will continue to make payments to the surviving spouse, regardless of which spouse dies first.

A 50 percent option will continue to pay out half of the original amount to the survivor once the first annuitant dies, and a 100 percent option, while offering a lower original payout, guarantees the same amount for the life of both spouses.4This can be a suitable component of a retirement income plan for couples with a significant age gap.

Whether you and your spouse are similar ages or decades apart, and whether you plan to retire on the same day or years apart, you should be planning for the financial – and emotional – components ahead. If you’re ready to plan, we can help.

Content prepared by Kara Stefan Communications.

1 Karen DeMasters. FA Magazine. May 12, 2017. “Who’s Retiring First?” https://www.fa-mag.com/news/couples-retirement-gap-32725.html?section=3. Accessed Sept. 11, 2017.
2 Kerri Anne Renzulli. Time. June 14, 2017. “Money, Marriage and a Big Age Gap: 6 Ways to Make Sure Your Retirement is Safe.” http://time.com/money/4810932/age-difference-relationship-couples-retirement-advice/. Accessed Sept. 11, 2017.
3 IRS. 2017. “IRA Required Minimum Distribution Worksheet.” https://www.irs.gov/pub/irs-tege/jlls_rmd_worksheet.pdf. Accessed Sept. 11, 2017.
4 Zacks. 2017. “How Does a Joint and Survivor Annuity Work?” http://finance.zacks.com/joint-survivor-annuity-work-2270.html. Accessed Sept. 11, 2017.

Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by company. Annuities are not a deposit of nor are they insured by any bank, the FDIC, NCUA, or by any federal government agency. Annuities are designed for retirement or other long-term needs. Guarantees and protections provided by insurance products including annuities are backed by the financial strength and claims-paying ability of the issuing insurer.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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