Idaho Estate Planning

"Facing Retirement" Takes On New Meaning for Idahoans

It can be hard for us to really believe we are facing retirement.  Sometimes, we just don’t want to admit that the time is fast approaching. We’ve all been told that we need to save for retirement long before the time arrives, but it’s hard to think ahead of how things will change for us.  If only we could ‘picture” it …

As reported in a recent Financial Planning article, executives of Bank of America’s Merrill Edge program have altered the face of retirement planning, literally. A new online tool, Face Retirement, ages a consumer’s photo so investors can see what they’ll look like several years down the road.

The new tool is supposed to motivate Americans to save more for their retirement and to engage in conversations about their financial future. The tool was prompted, in part, by a Stanford University experiment finding that those who exposed “themselves” to their “older selves” were more likely to begin thinking about retirement and planning for it than those who were not exposed to the images.

The tool performs other functions as well. It can show a potential investor what prices will look like with inflation in the future. And most importantly, the tool can predict the amount of savings a person will need at the age of retirement.

If you need some extra motivation to start saving more for retirement, check out the new tool mentioned above – hopefully, you’ll have a better “picture” of your future. After that, call Idaho Estate Planning at 208-939-7658 and ask for Bill. He'll set you up for a consultation and get you moving in the right direction. Remember, good planning is no accident.

The Future of Reverse Mortgages in Boise Idaho

In a response to the speculative loan market, we have seen increased regulation in the banking and loan industries. Yet the structure of one type of loan has gone relatively unchanged in that time - the reverse mortgage loan.

A reverse mortgage is a special type of home loan that allows homeowners to convert a portion of their home equity into cash. The equity you built up over years of making mortgage payments can be paid to you to supplement your income.

The issue was recently brought up in a Reuters article titled, “Federal clampdown looming on reverse mortgages.”

According to the Department of Housing and Urban Development, reverse mortgages are a safe plan that can help older Americans supplement Social Security, meet unexpected medical expenses, and make home improvements. Unfortunately, riskier loan structures are making reverse mortgages increasingly dangerous. In response, the federal government is planning to take a more conservative approach when evaluating new reverse mortgage loan applications. This means reverse mortgage loans will be harder to acquire in coming months.

For purposes of estate planning, the reverse mortgage is an idea worth exploring. In practice, when your home is no longer used as a primary residence, the cash, interest, and other finance charges from the reverse mortgage loan must be repaid. However, all proceeds beyond such amounts owed on the reverse mortgage belong to your spouse or estate and no debt is passed along to the estate or heirs. This makes the reverse mortgage option an appealing idea for older homeowners who may need supplemental income, but hope to avoid passing on debt to family members.

If you or your loved ones are concerned about needing additional income during the coming months, reverse mortgages are worth discussing with your family and estate planning attorney before lending standards become too strict. 

At Idaho Estate Planning, we understand the challenges faced by elder Americans. We have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. Remember, good planning is no accident.

Fiscal Cliff Could Hurt Health of Boise Idaho Seniors

Financial health and physical health can go hand-in-hand. In these trying economic times it is important to make sure your finances are secure, not only for the health of your bank account, but for your physical health as well.

This issue was recently taken up in a CNN article titled, “10 ways falling off the fiscal cliff could hurt your health.”

According to the Congressional Budget Office, if the fiscal cliff is not avoided, the scheduled reduction in Medicare’s payment rates for physicians will lower Medicare spending by $11 billion. This overall spending reduction results in a 2% cut in existing Medicare budgets. Consequently, these reductions will mean a decrease of available Medicare funds to help pay for essential healthcare needs.

In many instances, Medicare funds are used to pay for vital services like nursing home and hospice care, which are crucial to the wellbeing of our elderly population. Reduced Medicare funds mean reduced payments to health care providers which, in turn, may cause hospitals and care providers to stop accepting Medicare patients.

As we prepare for the possible approach of the fiscal cliff, a consultation with an experienced elder law attorney can ensure that your access to healthcare is protected. An experienced elder law attorney also may help file an appeal in the event your health care provider denies your Medicare payments.

Trying to keep up to date on Medicaid, Medicare or any other issues faced by America's Elderly can be a daunting task. At Idaho Estate Planning, we understand these challenges. We have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. Remember, good planning is no accident.

Remodel Your Idaho Home with Retirement In Mind

These days, preparing for retirement doesn’t just mean stabilizing your finances, preparing your estate, or securing affordable health insurance. For many, planning for retirement means making in-home renovations for a more accommodating lifestyle.

 As a recent article in Bloomberg highlights, assisted living costs are on the rise. Consequently, many individuals nearing retirement are opting to renovate their homes to avoid increased assisted-care costs. If you are heading towards retirement, it is vital to your financial health and the stability of your estate that you consider “Remodeling as Retirement Planning.” Substantially remodeling your home to further accommodate an aging body may cost a pretty-penny up front, but it may pale in comparison to the yearly cost of a nursing home.

 According to a MetLife Mature Market Institute study, the US National Average for yearly nursing home costs is just over $75,000. Accordingly, a relatively simple $10,000 renovation to your home might provide you with extra years of independent living, and save you thousands in assisted living costs along the way.

Even though many renovations come with a lofty price tag, some can be as simple as removing area rugs to reduce the risk of tripping. If you’re interested in renovating your home, consider consulting this recent Bloomberg article for a few retirement-friendly renovation tips and tricks.

Idaho Estate Planning is part of the Senior Resource Network of Idaho, a non-profit network of elder care professionals and providers. Let us know your concerns and we will help you find the resources you need. Remember, good planning is no accident.

 

Boise Seniors Enhance Your Hiring Potential!

As the dawn of a new year approaches, many companies will begin to re-evaluate their staffing needs. This might mean companies will increase their hiring initiatives, or they could decide to shed jobs. Either possibility means having an updated resume ready at the New Year may pay dividends. Even if nothing changes for you around the turn of the year, it wouldn’t hurt to have a spruced up resume.

For older individuals, reaching retirement means managing a budget with savings, social security, and part-time income. Having a polished resume is extremely important, as an analysis of the most recent job data by the AARP Public Policy Institute shows. Consider this: unemployment for older job seekers is now 56 weeks on average, compared with 37 weeks for younger workers. In light of this trend, it is crucial for older workers to revise their resumes to catch the eye of potential employers.

As reported recently in The Wall Street Journal, a new program known as the American Association of Community Colleges’ Plus 50 Initiative is helping seniors do just that. The Plus 50 Initiative recognizes the experiences, skills, and leadership that the baby boomer generation possesses. Given the possibility of unemployment facing many older workers, the Plus 50 Initiative seeks to harness the experience of an older generation and use it to teach new skills to an already successful generation.

Many times, the only thing standing between a senior and a job is a lack of technical knowledge and computer experience. Taking a short class on computer software is one of the best ways for older job seekers to brush up on these skills, enhance their resumes, and show employers that they are up to date with technology.

As the New Year approaches, consider taking some time to reevaluate how you can best market yourself in an ever-changing economy and job market.

Lottery Winners & Inheritors Face Similar Challenges

In recent weeks there has been a lot of conversation surrounding the Powerball Lottery. What would you do with $550 Million? Most people say they would first purchase a new car and a new house, take a vacation and then take care of family and friends.  Unfortunately, if you take this approach with your millions, you won’t be a millionaire much longer. 

The number of lottery winners who wind up in financial ruin, despair or both are increasingly common.  As told in a recent Detroit Free Press article titled “Windfall pitfalls: Big Powerball winners share lessons, risks of success,” an estimated 70 percent of people who land sudden windfalls lose that money within several years. The windfall may come in the form of lottery winnings but it also includes large inheritances.

There are, however, ways to prevent this economic ruin.  People must plan for their psychological needs as well as their financial strategy.  Past winners and financial planners offer some advice: make and stick to a budget, invest wisely, learn to say no and be prepared to lose friends.  One past lottery winner suggests that even before you claim your ticket, find a lawyer and a financial adviser and start building a strategy.

The same can be said for those facing an inheritance. Getting ones estate planning in place before taking posession of the funds makes good sense. Even if you aren't facing the possibility of becoming an instant millionaire getting your estate plan organized is always a good idea. Call us today and we'll make it happen. Remember, good planning is no accident.

Talk With Your Parents About Estate Planning

Discussing retirement and elder care planning with aging parents can be difficult for all parties involved.  For many parents and adult children, these conversations can be awkward and potentially emotional.  A recent study by Fidelity Investments documents the extent to which the two generations are failing to communicate on this topic, as conveyed by Forbes in an article titled “Generations Apart: Talking Retirement And Estate Planning Over Turkey.”

According to the study, 89% of families agree that health and elder care discussion are important.  But only 10% of adult children believe the conversations they have had with their parents have been “very detailed.”  Similarly, only 19% of children say the same about estate planning conversations, and only 11% of adult children feel they have discussed retirement readiness with their parents in detail.

There are several implications of inadequate discussions.  For example, nearly 25% of adult children believe they will have to help their parents in retirement while nearly all of the parents in the study said they will not need financial help from their children.  Similarly, some adult children underestimate the value of their parents’ estates by more than $100,000.  On the other hand, however, some adult children may not save enough because they expect a large inheritance from their parents. For more on this matter, you can consult the article “Parents and Adult Children Not in Sync as Many Families Still Struggle with Financial Conversations” on Fidelity.com.

To help facilitate these discussions, Fidelity also offers conversation starters on their website.  No matter how the conversation is started it is critical that it happen. At Idaho Estate Planning, we understand the challenges faced by elder Americans. We have the experience and expertise to help you maintain your options and protect yourself as well as your loved ones now and into the future. Remember, good planning is no accident.