The Financial Perils of Old Age

The Financial Perils of Old Age

By Larry Swedroe, Director of Research In planning for retirement, most people—and their advisors—consider issues such as: How much savings will be needed to maintain a desired lifestyle (in other words, what’s your “number”?) Current assets and what rate of return will be needed to achieve the stated retirement goal What allocation to risky assets, such as equities, is required to achieve the needed rate of return What lifestyle adjustments can be made if risks appear? While addressing these issues is important and necessary, the all-too-common unwillingness of the elderly to even discuss the possibility of losing their independence, and the awkwardness of the subject for other family members, unfortunately can lead to a lack of planning for the financial burdens that long-term care can impose. That brings to mind the adage that the failure to plan is to plan to fail. And failing to plan simply ignores the fact that, according to the National Family Caregiver Alliance, the probability of an individual over 65 (there are 35 million Americans in this category and the figure will double over the next 25 years) becoming cognitively impaired or unable to complete at least two “activities of daily living” (which include dressing, bathing and eating) is almost 70%. Alzheimer’s Increasingly Common Raising the importance of the issue is that, today, one in nine people 65 or older has Alzheimer’s, while nearly one in three of those 85 or older (the fastest-growing part of the U.S. population, with 4 million people in this group currently and almost 20 million people expected to be there in 2050) has the disease (with women having...
Now and Then

Now and Then

Dave Goetsch, Executive Producer of  The Big Bang Theory, reflects on his investment experience in the recent market downturn and contrasts his new perspective with memories of the 2008-2009 financial crisis. Seeing all the recent headlines about the sudden downturn in the stock market has transported me back to February of 2009, when I was close to despair. It’s striking how different I feel now. In February 2009, the stock market was down around 50% from its high, and everyone seemed to feel like the sky was falling. I was familiar with this state of panic because my relationship to the financial markets was that I didn’t trust them. They were always going up and down in ways no one could predict, and I couldn’t trust those folks who said that they could anticipate what was going to happen. So when the market went down, I went down with it—sinking into a depression, knowing there was nothing I could do. What a difference nine years make. I haven’t changed because the stock market rebounded. I changed because I learned that there was a different way to think about investing. I was right not to trust those people who thought they could predict what was going to happen in the markets, but I was wrong in thinking that there was nothing to do. I’ve learned that I can have a great investment experience if I just accept a few simple truths. I have to understand the uncertainty of the market. The stock market, as measured by the S&P 500 Index, has returned about 10% per year over the last 90 years,1 but...
Women Changing the Face of Business

Women Changing the Face of Business

Manisha Thakor and Kristy Wallace, the CEO of Ellevate Network, launch a conversation about leadership, gender diversity, and what it will take to begin closing the gender achievement gap in business and social entrepreneurism on a recent MoneyZen Podcast. For the original article, click...
End-of-Year Financial Planning Priorities

End-of-Year Financial Planning Priorities

By: Stuart Vick-Smith Maximize retirement savings, manage spending, watch for tax deductions and rebalance your portfolio. BAM ALLIANCE member Stuart Vick Smith tackles some priorities to consider hitting on your year-end financial to-do list.   KVUE: End-of-Year Financial Planning from Stuart Vick Smith on Vimeo. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM ALLIANCE Click here to read the original...
Effectively Communicating With Clients Separates Advisors From Algorithms

Effectively Communicating With Clients Separates Advisors From Algorithms

By:  Carl Richards It starts with learning to ask great questions, listening to the answers with complete focus and showing empathy. For financial advisers, learning to have great conversations with clients is the golf swing of our business. But it doesn’t come easily to everyone, and few of us have any direct training.With Master Communicator, I plan to share the lessons I’ve learned over the years about how to communicate effectively. And it all started with something I’m sure you’ve experienced, too. More than once, you’ve probably sat across from a client and tried to explain something super critical. But the only response you got was a blank stare.  To continue reading, please click here.   By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them. The opinions expressed by featured authors are their own and may not accurately reflect those of the BAM ALLIANCE. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. © 2016, The BAM...