HOLDREGE, Neb. — Late-life planning may be something that
many people are not comfortable with, but many will no doubt identify with.
Financial Planner Tim Moomey has more info on the
consequences of not being prepared.
According to data compiled by the Social Security
Administration, a man reaching age 65 today can expect to live, on average,
until age 84.3, and a woman turning age 65 today can expect to live until age
Nearly 25% of 65-year-olds today will live past age 90, and
10% will live past age 95.
Moomey said while statistics show your parents (and
yourself) will likely be around a long time, the chances of diminished mental
and physical capacity increase with longevity. Meaning at some point, your
parents will likely need assistance ranging from help with their finances and
health care choices to even completing every day activities.
Ideally, Moomey said financial conversations would occur
before any decline of cognitive abilities, but it’s not unusual for financial
advisors to see elderly clients who no longer have the cognitive abilities to
handle all aspects of their finances, including their investments.
"As we get older, we may begin to have more
difficulties with those financial decisions, and you will be needing to help
those elderly clients with making some of those tough decisions," said
Moomey. "It would be my opinion that we should all have those important family
conversations about finances, healthcare and power of attorney early, with your
aging parents and with your growing children, to help lessen the burden and
avoid confusion later if mental capacity does diminish."
Moomey advises to talk with a financial advisor, or if your
parents or those you are caring for already have a financial advisor, talk to
that person to be sure that everyone knows what the expectations are and who
will be making the decisions in the future, and don't wait until it's too late.
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