Financial Considerations

We're going to shift to some of the issues in financial planning for people who are aging alone. And this is where we come in to try to help. There are a lot of issues.

One of them is how do you know that you're not going to run out of money?

What's a safe withdrawal rate?

Can you spend more and enjoy your retirement?

Retirement Planning Software

And the answer is we have planning software. We put all of this information in, what you've saved, rates of growth, and then also inflation. We look at your expenses, and we put it all in, and we project out. And we can see that we do what-if scenarios. Maybe if you spend a little bit more, you still don't run out of money in later years. Or it could be that it shows there's a problem, that we've got to slow down and control the expenses, downsize, simplify, whatever it may be. But there's it's a huge issue.

If you are alone and you've got no other income, nobody else is going to come forward to help you, we want you to have that confidence. So we do that financial planning software so you can see that you're going to be okay and not run out of money. And even maybe you can afford to spend a little bit more. Another big financial planning issue for solo agers is controlling risk.

Risk

There are all sorts of risks, including investment risk and inflation risk.

We want to make sure that if the market goes down 30% that doesn't affect you. So we have ways that we invest so that you have some confidence that things are in order so that you're not going to run out of money or just have to worry about all of these other risks.

Healthcare & Long-Term Care

Perhaps the biggest risk for solo agers has to do with health care and long-term care.

If you're alone, there's nobody else who's going to come and help you. So you need to plan for long-term care, either getting the insurance or making sure that you've got some plan in place.

We have all sorts of options. We can get long-term care insurance possibly through using life insurance or a plain fixed annuity.*

How are you going to pay for these expenses?

Who's going to take care of you when you're older?

What services are available?

In addition to all the financial planning that we do for solo agers, we try to put the big picture together. One of the great things is there are always more services available, and we're kind of cultivating and curating different services for LGBTQ+ solo agers.

Aging In Place

For example, it may be that you want to age in place. Well, we've got experts who do that. They will come in. They will retrofit a house. They will look at maybe you need to change the doorknobs to levers, all sorts of things like that to minimize risk. It could be the opposite that you decide that you wanna be in some sort of a community.

It could be even independent living, but with other people around. So we've got they're basically like real estate agents, and they will know all of these different facilities that your budget the kinds of things you're looking for. And it's important to know that some of these facilities are pretty small—6, 8, 10, 12 people—and they're kind of hard to find on your own. And that may be what you're looking for. So we've got people who will help you do that.

Senior Move Managers

We have people who do the move-in. We have the senior move managers, and they're certified senior move managers. The idea there is somebody can come in and help you downsize, can be overwhelming. The idea is they can say, let this go. This is what you need. They can pack it, move it, and get it all set up for you for your comfort at a new place.

That's a very emotional thing to do, to let go of other things and know that you're going into a place that may be your forever final home.

Estate Liquidation

We also have specialists who will come in after that or if somebody has passed away and help liquidate an estate, return medical equipment, sell things, put things in storage, donate things, and ship them to other relatives. The list goes on and on. The point is there is a lot of help out there, and we want to be able to connect you with it.

You should not fear aging alone. There are more and more services. I joke there's One service that insurance will pay for. I call it rent a grandkid, and it's a young person who will come in and engage you, maybe play games with you, teach you computer things, take you out to the movies or shopping. The idea is that it's not just like a nurse's aide who sits there and watches in case you need something, but it's somebody who's gonna be active, including a younger person.

Legal Documents

Another issue to consider is legal documents.

Who has access to the legal documents?

You may have somebody in mind. It could be a friend or maybe a distant relative, a niece or nephew. And you thought, you know, if things get bad and I need help, that person will step in. We want that conversation. We want them, that person to have the tools.

Are they named as a power of attorney?

Do they have the documents?

We'll give you some strategies. Maybe you'll say, well, you know, I will remember you in my will or, you know, somehow that, you know, they will. You can make this work so that you've got somebody who will take care of you. Of course, if it's somebody close, you hope they do it out of the goodness of their heart. But still, there are strategies where their goodness can be rewarded eventually.

Trusts

If you're truly alone, there's no one and you don't even know who would have as a power of attorney. We have trust companies that we work with, and you can name a trust company that will step in and they will help make those decisions. Generally, it's people like us and we work with them. But, you know, that can be a very good solution if there's no one. They would be your executor. They would be the trustee of your trust. They would then have the power of attorney to make those decisions if there's nobody else to do it.

To sum it all up, there's a lot to plan for solo aging and for aging in place. We will help you with all of that. It's not just the financial aspect of it. 

Additional Resources:

What to Know About Assisted Living

Annuities: Finding Clarity Despite Conflicting Advice

Annuities: Separating Fact from Fiction

The Long-Term Care Conundrum: A Comprehensive Guide to Your Options

Longevity: An Underestimated Factor in Retirement Planning

Disclosures:

Although it is possible to have guaranteed income for life with a fixed annuity, there is no assurance that this income will keep up with inflation. There is a surrender charge imposed generally during the first 5 to 7 years or during the rate guarantee period.

Cetera Advisors LLC exclusively provides investment products and services through its representatives. Although Cetera does not provide tax or legal advice, or supervise tax, accounting or legal services, Cetera representatives may offer these services through their independent outside business. This information is not intended as tax or legal advice.