Take-Aways From “Free Lunch” Cremation and Funeral Seminars

 

It seems like almost every day, I receive a postcard or brochure about a “free meal” seminar at a local restaurant. This happens when you live in a 55+ community within a Florida county that has many 55+ communities. Various vendors know where we live! Most of the seminars are related to investing but some are about prepaid funeral and cremation plans.

Curiosity got the better of me so a friend and I recently attended cremation seminars presented by two different prepaid funeral/cremation plan companies. I was curious to learn about local service providers and to see if my experience paying for my late brother’s cremation was typical. In that situation, I was 1,100 miles away and literally picked out cremation-related services on a website and added them to a “shopping cart,” similar to an Amazon order.

 

Below are four take-aways and Barbservations from the seminars:

 

Benefits of Preplanning- Both seminars stressed the benefits of pre-planning: peace of mind (especially for solo agers), assuring that your final wishes will be carried out, no “second guessing” of what you want by family members, no strain on family members’ finances, and locking in current costs vs. expenses that will undoubtedly increase in the future. There is also security in knowing that funds in a prepaid plan are placed in a state-run trust and are completely refundable.

 

Relatively Modest Costs- The lowest-priced cremation plans from both companies, including administrative fees, were under $1,500. This was close to the $1,690 that I unexpectedly paid for my brother’s cremation, which included mileage fees for transporting his body from Queens, NYC to a crematorium in central Long Island. I simply put that bill on my credit card and was reimbursed as a priority creditor several months later. Not everyone is able to easily “front” this expense, however.

 

Preliminary Planning- It is smart to determine your final wishes well in advance of death and share them with loved ones and service providers. This includes where you want to be buried, memorial service preferences, and other details, even writing your own obituary. For example, I want to be cremated and have my ashes scattered at a beach. I learned that prepaid funeral/cremation plan companies can actually make that happen with a special beach for just this purpose. I also learned that both companies have special Veterans packages that are aligned with national cemeteries.

 

The Elephant in the Room- It was clear, by reading the audience, that people were concerned that they may not actually die in Florida. Thus, they were hesitant to sign a contract with a Florida prepaid funeral/cremation plan company. Several noted that the surviving spouse of a couple would likely move out-of-state to be closer to family. Both companies’ basic plans cover picking up a body within a 75 mile radius. Their premium plans, however, can follow deceased clients anywhere.

 

Two final thoughts from the seminars: 1. Death is not a “what if”; it will definitely happen and 2. Planning (whether it includes a prepaid funeral/cremation plan or not) is a gift for loved ones.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

Insurance is Wealth Protection

I recently attended a webinar by the New York Public Library titled Insurance is Wealth Protection. The speaker started out by saying “Insurance is often misunderstood and improperly explained." The purpose of this post is to discuss essential “need to knows.”

Below are six key take-aways:

 

The Purpose of Insurance- Insurance provides financial protection against unexpected losses or risks. It helps individuals and businesses recover from events like accidents, illness, or property damage. Insurance promotes stability, peace of mind, and economic security by transferring risk from the insured to the insurer and helping make policyholders whole after suffering a financial loss.

 

Life Insurance- The purpose of life insurance is to provide financial support to beneficiaries after the policyholder's death. It helps cover expenses like funeral costs, debts, and daily living needs. Life insurance ensures loved ones maintain financial stability. Key factors to consider are age, number of dependents, and dependents’ financial needs. The speaker quoted an orphaned young adult (the child of a client) who told him “thank goodness my parents did this for me.”

 

Life Insurance Types- Term life insurance covers a person’s life for a set period. Usually, you can purchase coverage increments of 10 to 30 years. About 85% of term policies expire and beneficiaries get nothing. Permanent insurance covers your life for life and usually has a cash value component that policyholders can borrow against. The speaker recommended consulting an insurance specialist and doing a life insurance needs analysis.

 

Health Insurance- The speaker noted that 66.5% of bankruptcies involve medical debt. Also, the cost of health care keeps going up every year (as does the cost of medical supplies and medical malpractice insurance) and this is a major challenge of our times. Webinar attendees were advised to be aware of what they are NOT covered for and to shop around and make adjustments to their coverage (if needed) during open enrollment season.

 

Disability and Long-Term Care Insurance- Both policies cover the risk of being unable to maintain our lifestyle or independence. The former is targeted toward working age adults who are incapacitated and unable to work due to illness or injury and the latter toward older adults and others who are frail and need assistance with activities of daily living. For both policy types, coverage is generally more affordable the younger and healthier you are.

 

Property Insurance- The speaker advised asking about the cost of replacing your home to make sure you have adequate coverage. Also, preparing an inventory of personal property and considering umbrella liability coverage if you have wealth that could be seized as a result of a judgement.

The webinar ended with this final thought to consider: "Just because you have insurance does not mean that you are properly insured." When in doubt about your coverage, review your insurance policies carefully and seek professional advice where needed.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

It’s That Time Again! A Midyear Summary of Webinar Takeaways

 

It’s hard to believe that we are almost halfway through 2025. It is my custom at this time to provide takeaways from webinars that I have recently attended. 

Below are nine "nuggets" that stood out to me as I reviewed notes taken in my personal learning journal:

Sequence of Returns Risk- This is the risk that negative market returns early in retirement can deplete retirement savings faster than anticipated, potentially leading to financial hardship. One speaker noted that “this risk is non-existent unless you are withdrawing money from savings.”

 

Flipping a Switch- It is very hard to “flip a switch” and start spending retirement savings after decades of saving. It can be emotionally difficult for super-savers and many spend only investment earnings and leave principal intact. Learn more by reading my book, Flipping a Switch.

 

Retirement Shocks- The biggest “shock” to retirees’ finances is a significant long-term care expense. Other shocks are medical and dental expenses, inflation, death of a spouse, family responsibilities, changing tax laws, gray divorce, and frailty and cognitive decline.

 

Retirement Budgeting- Ideally, retirees should use dependable income streams (e.g., a pension, annuity, rent, and Social Security) to pay fixed expenses and variable income (e.g., investment payouts) for variable expenses.

 

Taking Risks- A speaker discussed the “30 Seconds of Bravery Rule” and advised viewers to “just have 30 seconds of bravery, do the thing you fear, and ask for what you want.” The worst that can happen is that people say no.

 

Frozen Credit- Freezing your credit is one of the best security protections you can take. When you need to “thaw” your credit to apply for a loan or utility service, ask the lender which credit bureau they use so you don’t have to unfreeze all of them.

 

Financial Education- Financial education is a lifelong endeavor because there will always be new financial products and tax laws change frequently. With respect to youth financial education, 29 states now guarantee a full semester personal finance course as a high school graduation requirement.

 

Tax Season- When does tax season end? Never! Tax planning is a lifelong process and even extends beyond the grave (e.g., tax-deferred accounts inherited by beneficiaries). Tax planning is also tightly intertwined with investing and retirement planning.

 

Financial Trauma- Trauma can result from the buildup of events over time or from a single event. It is a financial stressor that people do not have resources to deal with. A good analogy is a bank account. Resources are deposits and stressors are withdrawals.

 

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Tariffs and Inflation Stressing You Out? Fight Back!

I recently taught a new class titled Inflation-Fighting Strategies For Older Adults. Little did I know when I submitted a course proposal for the class in July 2024 that the U.S inflation rate would continue to remain “sticky” and that the country would be embroiled in tariff war that is estimated to be like an average tax increase of more than $1,900 per American household in 2025. What to do?

Consider these inflation-fighting strategies:

 

Groceries- Use store brands, eat more meatless meals, stock up on sale items, eliminate high-cost, high-calorie “junk” foods, use coupons and double coupons, join supermarket rewards clubs, buy local seasonal produce, build “impulse buys” into your shopping list so you stay within budget, use grocery shopping apps, and make recipe substitutions (e.g., applesauce instead of eggs for baking).

 

Eating Out- Drink water instead of a soft drink or alcohol, share an entrée or dessert, eat appetizers as a meal, select BYOB restaurants for meals with adult beverages, take advantage of value meals and “early bird specials,” join restaurant rewards clubs, and bring take-out containers for leftovers.

 

Gasoline- Drive less by consolidating trips, use apps like GasBuddy and Waze to find cheap gas, pay with cash if gas is cheaper, join a fuel rewards program, check tire pressure and lighten loads, and carpool with others to reduce miles driven.

 

Road Trips and Vacations- Pack food and beverages in a cooler, stay at hotels with free breakfast, get hotel coupons at rest stops, travel with a group and share expenses (e.g., a beach house), travel on planes and trains at “off peak” times, join hotel and airline rewards programs, and take daycations (one-day trips) and staycations (a vacation spent in your local area instead of traveling somewhere).

 

Utilities- Adjust your thermostat to be a little warmer in summer and  cooler in winter, turn down the water heater, unplug items not in use, take advantage of off-peak hour electric rates, change HVAC system air filters regularly, wash most laundry in warm water, and empty drier lint traps.

 

Clothing- Shop department store sales and use coupons, join retailer loyalty programs to earn rewards, shop at thrift and consignment stores, shop for deals online, and make clothing repairs and alterations to extend the life of your wardrobe.

 

“Big Ticket” Items- Decide whether you can wait out inflation and “tariff turmoil” for items like cars, electronics, furniture, and houses. If not, use the Rule of Three worksheet to compare three alternative vendors for products and lenders for loans. Be sure to ask about discounts (e.g., Veterans).

 

Insurance- Play “what if” (i.e., I increased deductible, changed the policy amount, etc.) with you insurance agent, double-check policy discounts that you qualify for, shop around for coverage (using the Rule of Three), and sign up for auto-pay or online billing statements.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Do You Need a Financial Advisor or Robo-Advisor?

I recently taught a new class titled Do You Need a Financial Advisor or Robo-Advisor? because many of my students were asking about hiring financial professionals during classes about retirement planning, investing, and income taxes.

Below are eight take-aways:

Frequency of Use- According to one study, less than half (44%) of American adults said they worked with a financial professional in 2023 but 88% said they thought that doing so would be helpful. Obviously, this is a major disconnect.

 

Common Financial Challenges- Studies indicate the following: not knowing where to start, being overwhelmed by investment choices, lack of time or expertise to manage finances, fear of making costly mistakes, and new income tax calculations such as required minimum distributions (RMDs).

 

When Financial Advisors Are Useful- Common situations include retirement planning and decumulation (spending down savings) decisions, major life transitions (e.g., widowhood and retirement), complex tax situations, and receipt of an inheritance, settlement, or large prize.

 

Benefits of Working With a Financial Advisor- Advantages include personalized financial guidance, expertise in tax planning and investments, retirement and estate planning guidance, a holistic approach to financial management, behavioral coaching to curb emotional investing mistakes, and objective “third party” insights.

 

Common Myths- One myth is that “all financial advisors are expensive.” The truth is that many offer hourly rates or flat fees that do not involve ongoing investment management expenses. A second myth is “I don’t need an advisor if I’m good at managing money.” In reality, even financial experts seek outside guidance.

 

“Alphabet Soup”- There are dozens of certifications in the personal financial planning space. Among the most widely recognized are: accredited financial counselor (AFC®), certified financial planner (CFP®), chartered financial consultant (ChFC®), certified public accountant/personal finance specialist (CPA/PFS), and chartered retirement planning counselor (CRPC®).

 

Advisor Compensation Methods- There are three main types: 1. Fee-only (advisors that charge an hourly rate, a flat fee, or a percentage of assets under management), 2. Commission-only (advisors that earn commissions by selling financial products), and 3. Fee-based- Advisors that charge a fee for advice but may also receive commissions on product sales.

Questions to Ask a Potential Financial Advisor- Here are five key questions: What are your qualifications and certifications?, How long have you been a financial advisor? What types of clients do you typically work with? Are you a fiduciary (obligated to act in clients’ best interests)?, and Have you ever been subject to any disciplinary actions?

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.