Meet one feisty 75-year old woman who is redefining retirement. Her empowering message may change people’s lives and how they think about retirement. Pam interviewed retirement research expert, Warren Cormier explains the different phases of retirement. Working past 70 is now the ‘new normal’.

Richard raised the issue of age discrimination at work for older people looking for jobs.

Resources

Resources: Warren Cormier study: Link

Age discrimination in the workforce: Link

Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services, whether it’s in-home care or in an assisted living facility or nursing home. Guest Phyllis Shelton, President of Got LTCi, reveals that home health care can cost as much as $5,000 a month, and average nursing home care costs are $7,500 a month.

Richard warns that if you’re thinking about buying long-term care insurance you should do it while you’re still healthy. Many insurers won’t underwrite policies for people with diabetes and other pre-existing conditions such as diabetes, Multiple Sclerosis, Parkinson’s Disease, and dementia.

Pam warns that when shopping for policies it’s important to research the financial stability of the insurance companies, since many companies that used to provide long-term care insurance either left the business or refused to pay benefits because they underestimated the health care costs and longevity of policyholders. People should work with unbiased, fiduciary experts who do not sell insurance in order to evaluate the need.

Resources

• Got LTCi : Link
• LongTermCare.gov: Information from the U.S. Department of Health and Human Services Link
• The American Association for Long-Term Care Insurance Link

Special Guest Expert:

Cindy Hounsell, president of WISER (Women’s Institute for a Secure Retirement)
WISER website: https://www.wiserwomen.org

Resources:

• Nextavenue.org site (for articles about retirement planning, saving and investing) Link
• WISER’s Your Future Paycheck Calculator Link
• Choosetosave.org site’s Ballpark E$timate Calculator Link
• Livingto100.com site (to estimate how long you will live) Link
• y Savage’s new book: The Savage Truth on MoneyLink

Who’s Giving You Financial Advice:

• Most people start thinking about hiring a financial professional when they’re approaching retirement. But the lack of a uniform code of conduct among financial professionals allows many glorified salespeople to legally pose as trusted advisors. This episode explains how different kinds of financial advisors work and earn their living--and why these differences matter.
• Guest pre-retiree Patty starts with the story of a personal finance class she attended with her husband at her local college. The “instructor” was an insurance salesperson who used the class to try to sell them annuities as the solution to their retirement income challenges.
• Guest Lynne Egan, the Deputy Securities Commissioner for the state of Montana, attended a similar class and confirms that these “trolling sessions” are both common and legal. It’s the job of investors to understand the differences between a glorified investment salesperson and a fiduciary financial advisors who is committed to acting in your best interests.
• Guest Phyllis Borzi, former assistant secretary of the Department of Labor during the Obama administration, worked tirelessly to introduce legislation that would have required all advisors to act as fiduciaries. Her efforts were legally thwarted by industry opposition. As a result there are no uniform standards of care among financial advisors.
• Registered representatives, or brokers, earn commissions selling products, and only need to meet the “suitability standard,” which means that as long as a product they recommend generally aligns with an investor’s risk tolerance and investment objective, the broker can recommend the product that pays them the highest commission. Investors who want to work with an advisor who puts their needs first need to to ask many qualifying questions, starting with, “Are you a fiduciary?”
• Legally, investment advisers are required to service as fiduciaries, which they fulfill, in part, by being paid directly by clients and receiving no commissions for managing their investments. But may investment advisers are also brokers, and can still receive commissions for selling certain products, such as insurance. Investors who want to hire “100% fiduciaries” should limit their choices to independent fee-only investment advisers who are not also brokers. Investors should also require the advisor to sign an industry standard fiduciary oath.
• Wealthramp.com helps individuals locate fully vetted, fiduciary fee-only financial advisors

Resources and Research:

• The latest developments in legal attempts to require all advisors to serve as fiduciaries: Link
• View the most widely recognized fiduciary oath and find firms that are committed to abiding by its principles: Link
• Research the background of any financial advisors to find out if they’re a broker, investment adviser or both and if they’ve ever violated securities regulations. Link