I have written in the past about the expense incurred when my Father-in-law was suffering from Parkinson’s. He passed away 4 years ago. At that time, we could not believe how much his care cost. Well, those expenses were nothing compared to the expense of long term care now.
A recent study conducted by Genworth Insurance uncovered the following current expenses associated with long term are:

While the U.S. inflation rate was 2.1 percent for the first half of the year, the cost of a one-room assisted living facility grew by 6.67 percent from 2017 to 2018.
There, the annual median cost of a nursing home stay in a private room is $330,873, Genworth found.
Assisted living facilities offer residents more independence and less medical care and assistance than nursing homes.
For individuals who’d like to receive care at home and still live largely on their own, there’s the option of having a home health aide come to visit.
Indeed, home-health aides are expected to be a growing job sector, with a projected growth rate of 41 percent from 2016 to 2026, but median annual wages of $23,210, according to the Bureau of Labor Statistics.

My Father-in-law had some insurance to cover some of his care, the rest had to come out of pocket.
Prepare by identifying how you’d like to receive care.

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Helping my clients plan for their retirement by using a comprehensive planning program is a huge part of what I do each day. The amount of data I gather is much more than anyone expects when we first start working together, but the more I know, the more confident I can feel about the planning I provide. I have to ask – what are you doing to your plan? Some of my clients make these mistakes, not many, and some cannot be helped. Please, if it is in your control to not de-rail your retirement, avoid doing the following:
Spending too much on your Grandkids: I know you want to spoil them but do they really need that toy? Talk to your kids to see what would be a wise gift to get, and when.
Supporting your adult children: If you find yourself blindly writing a check every month, reconsider, especially if you’re endangering your own financial well-being. There has to be a time when the bank of Mom & Dad closes.
Skipping senior discounts: My husband has just crossed over to senior discount territory, but he does not like seeing those offers. If you continue to ignore the senior discounts you may be paying an extra 5-20% on a variety of items.
Taking Social Security too early: This is one of my biggest concerns for retirees. Often retirees will not wait until full retirement age to start their Social Security benefits. By taking the benefit early, most retirees will subject themselves to a 25% cut in Social Security forever. On the flip side, every year you defer past your full retirement age, you will receive an 8% increase in your benefit.
Underestimating your life expectancy: I often ask what family history dictates for life expectancy, but with advances in science, and better lifestyle choices, many of us are living longer. I like to use age 90 as a minimum life expectancy in my plans and if I am wrong, it generally works in favor of the client and their heirs.

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A number of years ago I did a personal cost analysis on eating dinner out vs. my cooking for myself and my husband. At that time, it was a fine line between the costs of eating out vs. cooking at home. I love to cook, I cook dinner almost every night, and it is much healthier to eat at home, but I am learning I am the exception.
I have a friend that never cooks anymore. She cooked the whole time her kids were at home, and was a very good cook, but she hated it. Now, she doesn’t even make breakfast at home. She has determined that for her and her husband, there is not much difference in cost, but the satisfaction factor is significant.
Spending at restaurants and bars has soared since the early spring, rising to the highest yearly pace in 25 years. Sales of food and drinks purchased outside the home leaped 10.1% in the 12 months from August 2017 to August 2018, according to a recent report by MSN Money. This may be a side effect of the empty-nest syndrome, or a sign of a stronger economy with consumer confidence being high.
I will continue to cook at home, but I am certainly the exception among my peers.

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I love a sale as much as the next person and some would even say I make a sport of it. October brings about a great time to buy some big ticket items. Here are a few examples:

IPHONE AND ACCESSORIES
Apple’s new iPhone XR, XS, and XS Max were announced Sept. 12. That means now is the time to buy an iPhone 8, 8 Plus, or X at a discount. Along with the release of a new iPhone comes a slew of new cases, headphones, and other accessories. If you have an older model iPhone, you can get accessories for less as retailers look to move them out.
CARS
October is prime time for striking a deal on a new car that happens to be stamped with last year’s date. Auto dealers are eager to make room on their lots for 2019 models.
VACATIONS
Prices on cruises and vacations typically take a dip in October, the shoulder month between summer vacations and holiday travel. With school is back in session, many destinations aren’t very crowded but still enjoy balmy and temperate weather.

Have fun but be a smart shopper this October.

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I recently heard from three different people in one week that their identities had been stolen. Each case was different, but the end result was the same. In one case, the person used their debit card to pay at a restaurant vs. a credit card. When someone is walking away with your card, they have all of the information they need on the back of the card to make purchases online. A credit card provides much more protection than a debit card does in cases of identity theft. Use your debit card sparingly. Another had to present their driver’s license at a medical office. Later that day, they received a call from the driver’s license office stating that someone was applying for a license in their name. This case did not go any further than that, but it could have been devastating. The third person has no idea where they may have gone wrong in the use of their credit to allow their identity to be stolen. We have to be careful as the crooks are way ahead of us. Here are some tips you can follow to protect yourself:Security Center Excerpts
TDAmeritrade Risk Management Dept.

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I would guess that when you read the term “financial shock”, you think of the market crash in 2008. Financial shock actually is an event that hits closer to home. Let me give you an example. In 1985, my father was a construction superintendent working on a high rise project. He got up at his normal 4:30AM to get ready for work, stepped into the shower, had a massive heart attack, and passed away. That is financial shock. He was 50, my mother was 48, and they were not prepared. Sudden death, the loss of a job, or costly medical issues can completely derail your life.
This is what we did to make sure the rest of our family was not caught unprepared:
When everyone was together for a happy family event we discussed these issues. One might think it is in bad form to discuss such depressing topics at a happy event, but it is not. We were all together, happy, and healthy, it was the best time to discuss these issues.
Please make sure that you have a good cash reserve, that your life insurance is up to date, beneficiaries are current, and the death benefit is enough to cover the unforeseen events. Make sure that all of your estate planning papers are in order and current.
Dealing with financial shock can take a huge toll on you emotionally, so please make sure it does not take a financial toll also.

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I grew up in a suburb of Detroit and the Queen of Soul was a big part of my childhood. Sadly, just days after she passed there was an article reprimanding her for dying without a will. I say “so what.” Her passing without a will may have made little difference to her heirs. Here is why.
If she had qualified retirement accounts, annuities, and insurance, all of those have stated beneficiaries so that those accounts would go directly to the beneficiaries without going through probate.
If she had bank accounts, or non-retirement accounts that had Pay on Death, or similar designation in the title, those accounts would pass to the heirs with a step-up in basis and outside of probate.
If she had any type of Trust set up for her heirs, the assets named in her Trust would pass outside of probate.
There may have been very little in her estate to be probated. While I don’t agree with not having all of the necessary estate planning papers in place, she may have done fine by her heirs without a will.

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I am always concerned as to how my clients are spending. Is a purchase a need or a want? Did you do sufficient research before that big purchase? There are a number of ways to live frugally, but not look like a cheapskate.
Shop at the back of the store first.
It does not matter whether you are shopping for clothing or office supplies, the sale items are always in the back of the store.
Buy used.
We always buy cars that have been leased by someone else, then returned. If you lease a car you must maintain the car and keep the mileage low in order to not pay a big chunk when you return the car. Lease returns end up being good cars to buy due to the good maintenance records, low mileage, and the often still have warranty left.
We also have only bought homes that have been in foreclosure. This may not be a choice for everyone as I did grow up in a construction family, but you can often buy below market.
Buy quality
I am a lover of shoes. I used to buy based only on appearance, not how they were made. My Husband asked me why I didn’t buy better made shoes and then just get them re-soled or repaired when needed. I started buying better made shoes and doing just as he suggested. I still love shoes but am saving money by buying better quality.
How you spend is everything and may make for a more successful retirement.

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I am not referring to owning the stock, I am referring to using Google to answer our urgent and burning questions. Here are a few of the most Googled financial questions:
In Maryland and New Mexico, there are a lot of questions about student loans. There are more questions about how to qualify vs. how to repay them.
People in Maine and Pennsylvania are looking into mortgage calculators. I would guess with the rates still on the low side, people want to know how much they can afford in a house.
Sadly, in Georgia the most Googled financial questions are about Pay Day loans. Many of the questions were about how they work and how you qualify for them. I really hope that is the loan of last resort as they are very expensive loans.
On a happier note, in too many States to list, the most Googled financial question is how 401(k) accounts work. Questions regarding the contribution amounts, fees, when you can/or have to withdraw, etc. were the most popular.
I love Google, but talking to a human can often be better.

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Supporting our kids is something we should do, but there needs to be a time when the Bank of Mom & Dad reduces its hours or shuts down completely. If your kids are well into their careers, it may be time for some tough financial love. Hopefully, you have done your job by teaching them how to budget, save, and spend wisely. It’s nice to be in a position to help, but you don’t want to be a lifelong ATM. If your adult children are still asking you for money, here are a few questions you should feel free to ask first:
Ask what it’s for. No matter the amount, you have a right to ask what the “loan” will be used for.
Set repayment terms. I put the word loan in quotes above due to the fact that often “loans” become gifts. You are not doing them or yourself any favors by not setting terms.
Feel free to say no. You may not be in a position to actually make the loan. If you are not on board as to the use of funds, or you will just help feeding a pipe dream, say no.

We owe it to our kids to teach them fiscal responsibility – do that and you will be able to gift them a lifetime of independence.

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