Three Important Spans of Life

 

Uncertainty is a reality of life and nowhere is this more applicable than later life when people face uncertainties about their health (will I get diabetes or dementia?), wealth (will I outlive my savings?), and life expectancy (how long will I live?). This post will describe three important spans of life.

Life span is the length of time a person lives, from birth until death. Health span is the portion of life spent in relatively good health, with physical and mental ability to perform desired activities and maintain independence. Wealth span is the period when people have sufficient financial resources to support their desired lifestyle. These three spans are closely connected, especially during later life.

 

Most people want all three spans to be long. In other words, to live a long life (longevity) in good health with enough money to support themselves. This outcome takes planning and positive daily habits. Below are strategies to lengthen the three spans of your life.

 

Life Span

 

People can support longevity by avoiding tobacco, maintaining a healthy weight, eating a nutritious diet, staying physically active, getting adequate sleep, managing stress, receiving recommended preventive care, and maintaining meaningful social connections. Regular medical and dental checkups are also important to identify health problems early. Avoiding preventable injuries, particularly falls and automobile accidents, also becomes increasingly important with age.

 

Health Span

 

Lengthening health span means a longer period of healthy functioning. Strength training can help preserve muscle mass, while aerobic activity supports cardiovascular health. Balance and flexibility exercises may reduce fall risk and help people remain mobile. Cognitive stimulation through reading, learning new skills, hobbies, and social activities can support mental well-being. Also, managing chronic conditions, taking medications appropriately, and addressing hearing or vision problems.

 

Wealth Span

 

Strategies include saving consistently before retirement, avoiding excessive debt, maintaining an emergency fund, diversifying investments, controlling spending, and developing a sustainable retirement withdrawal strategy. Delaying Social Security, when appropriate, can increase monthly benefits, while working longer can provide additional earnings and allow retirement savings to grow. Retirees should also plan for inflation, taxes, health and long-term care expenses, and longevity risk.

 

The goal is not just maximizing each span independently but aligning your health span, wealth span, and life span. Successful aging is about more than adding years to life. It is also about adding life to those years with good health and financial resources to make later life enjoyable and meaningful. Remember, the greatest wealth is health (Virgil, BC).

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. 

Take-Aways From AFCPE Symposium Recordings-Part 2

In this post, I continue to summarize some of my key take-aways from the video recordings of concurrent sessions held at the 2025 Association for Financial Counseling and Planning Education (AFCPE) Symposium. Below are some additional take-aways:

Financial Literacy and App Use- Digital financial literacy is the ability to use websites, apps, and other electronic tools to enhance financial well-being. A study found that frequent financial app users are six times more likely to have an employer retirement savings account and occasional users were 2.5 times more likely. App users were also more likely than others to set retirement goals.

 

Perceptions of Debt- Culture shapes the way that people view debt. It is not just about the numbers but whether or not someone’s debt is viewed as a “family responsibility.” There is a growing number of Americans who “look good on paper” but that is not how they feel.

 

Hedonic Treadmill- This is the human tendency to pursue one pleasure after another. We keep moving the goal post of what makes us happy unless we are aware of it. Lifestyle creep is like a silent inflation. One recommended strategy was putting something in an online shopping cart and waiting before making a purchase (or not). Happiness flows from experiences- not purchases.

 

Cryptocurrency- About 14% of U.S. adults own some type of cryptocurrency and the United States federal government is the largest known government holder of Bitcoin in the world. Crypto use is most common among men under age 50 and crypto ATMs, which look like regular automatic teller machines, are increasingly available. Cryptocurrency is decentralized and not subject to regulation.

 

Book Clubs as a Financial Education Tool- Personal finance concepts can be taught through a book club that combines structured reading and conversation, either online or in face-to-face meetings. Learners receive a reading schedule with assigned chapters each week. Books used in one book club were Die With Zero, The Latte Factor, Happy Money, and The 30-Day Money Cleanse.

 

Suitcases and Savings- It is helpful to make three rankings for travel planning purposes: must do, nice to do, and not important to do. Next, create a sinking fund to save for travel expenses unless you already have money saved. Finally, brainstorm ways to decrease travel expenses. An online search or AI can help. Older adults should not delay travel during their healthy and mobile “go-go” years.

 

Retirement Planning- Retirement is akin to divorce. People break up with their employer and working life in general. Living without a mapped out schedule can be scary. Coalescence (i.e., older adult adolescence) was proposed as a new term for retirement. It is a period when people redefine their identities beyond careers. Components include social interaction, relevance, and excitement.

 

Familial Identity Theft- Estimates indicate that up to one-third of all identity theft is familial (i.e., someone steals a family member’s personal information to commit fraud). There are three consequences for victims: financial, emotional (e.g., betrayal), and physical (e.g., insomnia). Research found that familial ID theft can co-occur with other forms of abuse (polyvictimization). 

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.

Take-Aways From AFCPE Symposium Recordings-Part 1

 

A great feature of the annual Association for Financial Counseling and Planning Education (AFCPE) Symposium is that AFCPE records all the breakout sessions and makes them available online to attendees for one year. Long gone are the days when you needed to 1. choose one session from multiple topics of interest and miss hearing others, or 2. buy cassette/DVD recordings of missed sessions.

 

Over the past ten months, when I had time, I slowly made my way through video recordings of parts of the 2025 Symposium that I was interested in. This post provides a very eclectic summary of my key take-aways from the “rest of the 2025 AFCPE Symposium.”

Money Mindsets- Relationships with money last an entire lifetime; actually longer via estate planning decisions that affect others. A good way to change a difficult money relationship is to flip the script. Example: “I’m bad with money” to “I’m working on my relationship with money.”

 

Heirs Property- This is where a property owner dies, heirs do not have a deed or will, and land or a home are underutilized. Someone pays property taxes but real property cannot be sold or borrowed against without clear title. The best solution is an honest family conversation about moving forward.

 

Youth Financial Education- Research has found lower credit card delinquency rates and better post-secondary education loan decisions linked to financial education graduation requirements. In addition, teachers’ finances are positively impacted by personal finance professional development.

 

Buy Now, Pay Later- BNPL, where payments for something are spread into future installments, is most attractive to young adults and people with income constraints. It can lead to overspending and impulse buying. Research found that BNPL use is associated with decreased long-term planning.

 

Trauma-Informed Financial Education- Trauma is not the same as stress, which tends to dissipate over time. Trauma sticks around. Financial trauma is caused by persistent financial instability and multiple negative experiences (e.g., homelessness, domestic abuse) result in complex trauma.

 

AI for Professionals- People who know how to use AI are valued. Benefits of AI include time savings, a “cool, trendy factor,” and brainstorming ideas and content. Cons include incorrect output called hallucinations, math errors, and environmental concerns (e.g., water, electricity, and noise).

 

Reverse Mortgages- 95% of borrowers still have equity in their homes when they pass away with a reverse mortgage (RM). At least one borrower must live in the home for six months and a day or a RM loan comes due. A RM line of credit is based on the age of the youngest borrower. Heirs of a RM house have three options: sell it, purchase it, or give the house to the lender and walk away.

 

Debt Relief Options- If it is not possible to repay existing debt, people have six debt relief options: 1. Direct negotiation with creditors, 2. Debt consolidation (refinancing), 3. A debt management plan (DMP) through a non-profit credit counseling agency, 4. Debt settlement, 5. Bankruptcy (Chapter 7 or 13), and 6. Debt forgiveness, where a debt is cancelled (e.g., Public Service Loan Forgiveness).

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.

 

Take-Aways From a NGPF Virtual Conference

 

I recently attended parts of the 2026 Next Gen Personal Finance (NGPF) “Back to School” Virtual Conference. Keynote speaker Beth Kobliner discussed trends in personal finance from 1996, when she first wrote her book Get a Financial Life, to the 5^th edition available in 2026.

Yanely Espinal from NGPF led a breakout session about teaching about sports betting and prediction markets.

Below are some of my key take-aways:

 

Young Adult Personal Finance

 

New Book Topics- New topics in the 5^th edition of Get a Financial Life (and the world of personal finance) include social media influencers, online gambling and prediction markets, Buy Now, Pay Later (BNPL) purchases, peer-to-peer (P2P) apps like Venmo and Zelle, and “frictionless’ payment methods (e.g., mobile wallets like Apple Pay and Google Pay) where people don’t feel the “pain” of spending money like they do when they pay with cash. Money in P2P apps is not FDIC-protected.

 

First-Time Homebuyer Age- In 1996, the average age of a first-time home buyer was 28 years old. In 2026, it is age 40. This means twelve fewer years of home equity building and a greater probability than previous generations of carrying mortgage debt into retirement.

 

Money Mindsets- People want quick cash without the preparation, work, and time needed to build wealth. This can lead to risky behavior by young adults (especially males) because so many things like housing seem out of reach. Ms. Kobliner also cautioned viewers not to buy sale items on a credit card with a higher APR% (interest) than the sale percentage off.

 

Sports Betting and Prediction Markets

 

Opportunity Cost- Gambling products are designed with a negative expected return for participants in the aggregate. The true cost of gambling is not just a losing bet but the compound interest on an investment that was never made. Research has found that young adults are redirecting money originally earmarked for investing into sports betting, thereby slowing possible wealth accumulation.

 

Normalized Behavior- Online gambling is a form of entertainment but not an investment strategy to build wealth. However, surveys have found that young adults normalize gambling because they believe it is a form of investing. With gambling, people take a risk on a chance-based outcome where loss is built in. With investing, people take a risk to own an asset that can potentially grow over time.

 

The House Edge- This is a casino’s or betting platform’s built-in mathematical advantage. Some people get lucky in the short-term, which encourages them to keep playing. However, the longer they play, the more the house edge eats away at their balance. Prediction markets want a high volume of bettors because they earn a percentage on each bet made.

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.

 

Take-Aways From a Class About AI

During the past 3.5 years, I have used AI and taught about a dozen classes and webinars about AI use to both professional and consumer audiences. I also like to attend programs about AI to learn more myself. Below are eight take-aways from a recent AI class that I attended:

AI is Not Going Away- The genie is out of bottle, so to speak. AI is not going anywhere. Job security is a big concern but the biggest issue is not losing a job to AI, but losing a job to a person who knows how to use AI. There will continue to be less human interaction for business transactions. If people don’t get on board, they will be locked out.

 

The Two Sides of AI- AI can be both awe-full (i.e., a deep amazement of something that is very grand or powerful) and awful (i.e., very bad, ugly, or unpleasant). On the positive side, AI use enhances productivity and is like having a personal assistant. AI concerns include impacts on water and electricity and misuse by bad actors that program AI to do bad things.

 

AI Improvements- When the generative AI program ChatGPT launched in November 22, it was basically a one-way experience. Users posted a query or directions to create something via a prompt and received a response. Flash forward to today and AI is holding conversations with its users, often suggesting extensions of the content that was initially requested.

 

Sobering Comparison- The class presenter compared the potential for AI misuse to another frightening discovery, the creation and use of the atomic bomb during World War II. Both have the potential for severe consequences if misused.

 

AI Characteristics- Users need to know that AI can hallucinate. This is where it produces content that seems well-written but is incorrect. In addition, AI output may contain biases such as racism, agism, and misogyny. Therefore, AI content must always be reviewed by a subject matter expert. AI also tends to be sycophantic and agree with what others have said, instead of offering challenges.

 

AI Availability- Unlike human workers, AI is available 24/7/365. It never takes vacations or retires. Some free AI platforms cut users off for a day or so after excessive use within a short period of time. Some people like AI (vs. a human agent) for financial questions because they don’t need to feel ashamed to ask a “dumb question.”

 

AI Summaries- AI can be used to summarize books and articles. Just include in the prompt the link for a specific publication.  AI can also be used to summarize email exchanges and online Zoom calls (with meeting notes). Some people also use AI for medical research so they can have a more informed interaction with their doctor.

 

Other AI Uses- AI uses that were mentioned include 1. Providing data about people and searching for an obituary to find out if they died, 2. Creating recipes from food on hand, 3. Summarizing a book, play, or movie, 4. Using AI as a companion to stimulate conversation (AI will respond and ask you questions), 5. Creating letters, emails, and poems for personal or professional use, and 6. Creating personalized graphics like the one for me above.

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.

Third Quarter Summary of Webinar Take-Aways

We are almost three-quarters through 2026 and it’s time for another quarterly summary of takeaways from webinars, podcasts, and classes that I have recently attended. Below are seven “nuggets” that stood out to me as I reviewed notes taken in my personal learning journal:

Tax-Deferred Retirement Savings Plans- When you invest in traditional (pre-tax) individual retirement accounts (IRAs) and qualified employer plans, you are in a “long-term partnership” with the IRS. All of the money that you accumulate is not yours. When you reach the age for required minimum distributions (73 or 75, depending on year of birth), the IRS wants its cut.

 

Stock Investing Timelines- Investments need to match the time frame for financial goals. Stocks are generally way too volatile for a one-year time horizon but, for long-term goals, it is a very different story. There has never been a 20-year period in the U.S. that cash outperformed stocks. Market declines will happen for sure; we just don’t know when.

 

Financial Accounts- One webinar presenter suggested having five accounts- two checking accounts and three savings accounts- each with a designated purpose. Like five fingers on a hand, the accounts are 1. Checking for bills, 2. Lifestyle checking (for fun), 3. Emergency savings (3 to 6 months of living expenses), 4. Short-term savings (for upcoming planned goals), and long-term savings.

 

Cybersecurity Concerns- AI has increased the frequency of cyberattacks and vigilance is key. Attackers are scaling at a rapid pace and sending specially crafted “hyper-personalized” e-mails and texts to lure victims. The age 60+ age demographic has the highest dollar losses and reports of crime. Multi-factor authentication (e.g., biometrics, texted code) blocks about 99% of unauthorized logins.

 

Home Inspections- Insurance companies are increasingly requiring 4-point inspections after  policyholders have lived in their home for a specified number of years. This is because insurance companies will only pay claims for various home components before their longevity is complete. 4-point inspections typically include: 1. HVAC and compressor, 2. water heater, 3. electrical panel, and 4. roof. Some include appliances and plumbing. Insurance companies want to see their condition.

 

AI Impacts- Many browsers today include an AI component. For example, Google Gemini. This saves time and makes it very easy to find an answer to a query. Instead of a search engine simply providing a list of resources to find an answer (that users must sort through), AI provides the answer, thereby boosting productivity. The more you use AI products, the more they know your preferences.

 

Medicare Insights- Medicare premiums are billed every three months if they cannot be deducted from a monthly Social Security benefit. The annual open enrollment period for Medicare is October 15 to December 7. Medicare Advantage (Part C) plans are rated with stars (five is the highest) and are available at www.Medicare.gov. The lowest star rating that beneficiaries should accept is 3.5.

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.

 

 

Money After 80

For the past four years, I’ve taught a class called Money After 70, which describes over a dozen changes in the finances of septuagenarians (people between 70 and 79 years old) and those who are older. Recently, a student requested a new class specifically for octogenarians (people between 80 and 89 years old); i.e., Money After 80. The class isn’t prepared yet but below are some thoughts.

 

People age 80 and older often face financial planning challenges that differ significantly from those they encountered during the early years of retirement. Their emphasis often shifts from “go-go” years spending, and perhaps continued employment, to preserving assets, maintaining independence, managing health care costs, simplifying finances, and ensuring a smooth transfer of assets to heirs.

 

Below are five key financial planning issues faced by people age 80+:

 

Remaining Life Expectancy- According to Social Security actuarial tables, an 80-year-old's average remaining life expectancy differs by gender. An 80-year old man and an 80-year old woman have an average remaining life expectancy of 7.6 years (age 87.6) and 9.2 years (age 89.2), respectively. Personal health status and lifestyle choices can significantly impact these numbers, however. Some people live long enough to become nonagenarians (age 90-99) and centenarians (age 100+).

 

Larger RMDs- Required minimum distributions (RMDs) generally become larger as people get older because retirees have fewer remaining years over which to withdraw their retirement savings. Even if an IRA or 401(k) balance remains unchanged, the percentage of a tax-deferred account that must be withdrawn increases each year. For example, it’s 3.77% at age 73 and 4.95% at age 80. As retirees get older, their age-based RMD divisor gets smaller, and their RMD withdrawal gets larger.

 

QLAC Withdrawals- A Qualified Longevity Annuity Contract (QLAC) allows individuals to use a portion of their retirement plan savings to purchase deferred lifetime income. QLACs, therefore, help protect against outliving assets by providing guaranteed income later in retirement when other resources may decline. Under current rules, QLAC payments must begin no later than age 85.

 

CCRC Entrance- The average age of entrance into a Continuing Care Retirement Community (CCRC), also called a Life Plan Community, is generally in the early to mid-80s. Most CCRCs encourage residents to move in while they are still healthy, independent, and able to participate fully in community life. A key financial planning consideration is that many CCRCs require a substantial entrance fee (often hundreds of thousands of dollars) plus monthly fees.

 

Housing Changes- Many octogenarians make key decisions related to their housing. For example, if they decide to “age in place,” they install accessibility improvements such as ramps, grab bars, stair lifts, walk-in showers, and wider doorways. If they are widowed or become more frail, they might opt to move closer to a family support system or into an assisted living facility. The average age of entry into assisted living in the United States is generally in the mid-to-late 80s.

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.

 

 

Need to Knows About Section 530A Child Savings Accounts

I recently attended a webinar about a new way to save money for children: Section 530A (of the IRS tax code) accounts, which became available in July 2026 as a result of the 2025 OBBBA tax law. Below are some key facts to know about 530A accounts:

Government Seed Money- For children born from 1/1/25 through 12/31/28, the U.S. government will provide $1,000 in funding as a pilot project. Eligible individuals must be U.S. citizens and have a valid Social Security number issued before they apply. Also, thanks to philanthropists, children born from 2016 to 2024 can receive a $250 seed if they qualify by their residence’s median income.

 

Enrollment Process- Information about 530A accounts can be found at https://trumpaccounts.gov. To enroll, a new IRS Form 4547 must be filed with the IRS, along with a current year tax return. Another option is to use an online portal for which a mobile app is now available. Accounts may be opened by a parent, legal guardian, adult sibling, or grandparent. No income caps on them apply.

 

Retirement Focus- 530A accounts are a type of individual retirement account (IRA) that allows children to start saving for retirement much earlier than was previously possible, thereby providing a tremendous head start on a child’s lifetime wealth accumulation. Unlike traditional and Roth IRAs, however, earned income is not required. Obviously, most babies do not have jobs.

 

Additional Deposits- Beyond the seed money, up to $5,000 per year can be contributed to 530A accounts that grow tax-free until a child reaches age 18. The $5,000 limit will rise with inflation starting in 2028. Deposits can be made by parents, family members, and/or charitable organizations. A child’s parent’s employer can also contribute up to $2,500 (of the $5,000) as an employee benefit.

 

530A Account Investments- Account funds are automatically invested in a low-cost index fund where fees and expenses cannot exceed 0.1% of the investment balance. Initial trustees are BNY partnered with Robinhood. Withdrawals are typically not permitted during the growth phase before December 31 of the year before an eligible child turns 18.

 

Distribution Options- There are four options for beneficiaries at age 18: 1. Take distributions from the account (e.g., for college), 2. Keep the account open and invested, 3. Roll the account over to a Traditional IRA, and 4. Convert the traditional IRA to a Roth IRA. Standard IRA tax rules apply, meaning investment gains and money from the government or donors is taxed as ordinary income.

 

Income Tax Rules- IRA distributions before age 59.5 are subject to a 10% penalty unless an exception applies. Common exceptions are education expenses and a first-time home purchase. When a 530A account is converted from a rollover IRA to a Roth IRA, the beneficiary/owner must pay taxes on pre-tax contributions and earnings. Taxes will likely be low in a young adult’s tax bracket.

 

Account Purpose- Before opening a 530A account, designate a purpose for this money. Is it savings for college or retirement? For college savings, also consider 529 plans where qualified distributions are tax-free and up to $35,000 can rollover to a Roth IRA. If it’s retirement, 530A accounts have a powerful edge with almost two decades of extra savings and compound interest growth. The website for 530A accounts states that an account with an initial $1,000 and no further deposits could be worth $243,000 by age 55 based on historical S&P index averages. With $5,000 annual contributions added, the account could be worth $13 million!

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.

 

 

Need to Knows About Fraud

I recently attended a seminar and a webinar about consumer scams and risk reduction strategies to avoid becoming a victim. Below are eight key take-aways:

Fraud Statistics- Approximately three million fraud reports were filed with the Federal Trade Commission in 2025 with reported losses of $15.9 billion. The five top fraud categories were imposters, online shopping, internet services, business and job opportunities, and investments.

 

Government Impersonation Scams- These are imposter scams where scam artists pretend to be from government agencies like Social Security and the IRS. They often demand payment with gift cards or wire transfers and threaten to cut off benefits. Other scammers request personal information that the government already has to “verify” an account. If contacted, hang up or delete immediately.

 

Account Monitoring- It is wise to monitor financial accounts regularly to ensure that there are no errors or irregularities that might indicate identity theft. Use two-factor authentication (2FA), such as biometric data or a texted code, to further strengthen account security.

 

Checking Account Fraud- Paper checks contain a bank account routing number and account number that can be misused if mail is stolen or gets into the wrong hands. Experts advise receiving money, paying bills, or sending money using secure digital payments such online bill-pay platforms and peer-to-peer apps. Always store checkbooks in a secure place (e.g., locked desk drawer).

 

Tech Support Scams- These typically start with pop-up windows that claim that a computer has a virus. The pop-ups contain a “tech support number” and instruct victims to call it. Next, scam artists ask for remote access to the computer to “fix” a problem that does not really exist. They then request payment and personal information for their “service” and have access to sensitive personal data.

 

Scam Prevention Tips- Personal decision rules can help prevent scam opportunities. Examples include letting “potential spam” calls go to voice mail, never letting your credit card out of your sight, never clicking on links from unknown sources, and never sending money to someone that you have not met in person, which is a key part of “romance scams.”

 

Red Flags- A common red flag of scams is being contacted out of the blue and pressured to act fast because an “opportunity” is a limited time offer. Poor grammar and spelling, the use of words like “guaranteed” and “risk-free,” and being asked to pay in an unusual way (e.g., Bitcoin ATMs) are other scam indicators. Common scam targets are older adults and youth and young adults.

 

Tech Tune-Ups-Experts recommend using strong passwords (e.g., JZv5Cmjt! vs. password2468), locking a smart phone when it is not in use, not keeping sensitive personal and financial data on a smart phone, keeping anti-virus software and security updates current on a computer, and not using unsecured public Wifi hotspots (e.g., at airports).

 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.

 

CCRC “Nitty-Gritty” Need to Knows

 

In a post last year, I wrote about a class that I taught for the first time about continuing care retirement communities or CCRCs. I recently taught the class again. Below are some additional things to consider about CCRCs:

CCRC Definition- A CCRC, also known as a life care or life plan community, is a senior living community that provides independent living, assisted living, memory care, and skilled nursing care on one campus as residents’ needs change. There are approximately 2,000 CCRCs in the U.S.

 

Elitist Concerns- CCRCs are expensive! Entrance fees are often $400,000 or more, especially when a “second person fee” is charged for a couple. Industry experts estimate that only about 10% to 20% of older adults have the financial resources to comfortably afford a traditional CCRC.

 

Early Planning- Experts advise moving to a CCRC before you need to. Once you have illnesses, limited mobilities, and special medical needs, it will be difficult to move and you possibly may not be accepted. In addition, many CCRCs have waiting lists that are five to ten years long to get in.

 

Widowhood Scenario- Spouses in a couple should consider what they will need as singles when the first spouse passes away. CCRCs can provide peace of mind as a source of future long-term care instead of relying on children, which adds a burden to their lives (time and money).

 

Downsizing Challenges- Selling a home and moving to a (generally) smaller CCRC unit can be emotionally, mentally, and physically taxing. It generally takes longer than people think, even when everything goes smoothly. People need to allow adequate time for selling and packing their “stuff.”

 

Pre-Move Measurements- There are online programs (and some CCRCs even have downsizing consultants) to help with laying out rooms and positioning possessions. Don’t pay to move things that won’t fit. Also, remember that CCRC residents typically live there for the remainder of their life.

 

Nitty Gritty Questions- Visit with staff and residents of a CCRC and ask questions about things that are not typically found in the slick brochures that CCRCs provide:

 

§   Is the CCRC profit or non-profit? Is there a “parent” company?

§  What is the CCRC’s bond rating? Ask to see their latest financial statements.

§  What facilities, activities, and amenities are provided?

§  Can you move between housing types (e.g., a cottage to an apartment after a spouse passes)?

§  How much of the entrance fee is pre-paid long-term care expenses for a tax deduction?

§  Is there a residents’ council? If so, how active is it?

§  Is there a resident’s handbook (ask to see it before buy-in)

§  If you move to a higher level of care, how is the transfer made, including moving possessions?

§  What is the average job tenure of CCRC employees?

§  What are the CCRC’s policies on parking and pets?

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.

Medicare Need to Knows

 

I recently attended a face-to-face class and a webinar about Medicare. Below are ten key take-aways:

Medicare Description- Medicare is a federal government health insurance program primarily for Americans (U.S. citizens and legal permanent residents) age 65+ and certain younger individuals with a qualifying disability (end-stage renal disease and ALS).

 

Medicare Administration- Medicare is administered by the Centers for Medicare & Medicaid Services (CMS), which is an agency within the U.S. Department of Health and Human Services.

 

Medicare vs. Medicaid- Medicare is a national program that is primarily age-based. Medicaid is a federal/state partnership that varies by state and is need-based (i.e., income and asset limits).

 

Medicare Parts A and B- Both parts are collectively known as “Original Medicare.” Part A covers inpatient hospital care and Part B pays for doctors’ services and outpatient care.

 

Medicare Part C- Commonly known as Medicare Advantage, Part C an all-in-one private insurance alternative to government-run Original Medicare. Coverage is coordinated by a private insurance company approved by the federal government rather than by the government itself. Some Part C plans include dental coverage. Open enrollment period every year is a time to shop around.

 

Medicare Coverage Split- According to KFF, 55% of Medicare beneficiaries are enrolled in Part C and the remaining 45% retain Original Medicare. Most people in the latter group buy Medicare supplement insurance (Medigap) to cover Medicare deductibles and coinsurance.

 

Medicare Part D- This is insurance program that helps cover the cost of outpatient prescription drugs. It can be added to Original Medicare or Medigap insurance or it can be part of a Medicare Advantage plan that bundles prescription drug coverage with medical benefits.

 

Medicare and Long-Term Care- Medicare does not cover long-term "custodial" care (help with everyday activities like bathing or eating). However, it does cover up to 100 days of skilled nursing facility care or rehabilitation following a qualifying hospital stay of at least three days.

 

Medicare Losses- Medicare experiences billions of dollars in annual losses due to fraud and abuse. Senior Medicare Patrol (SMP), a federal program, helps Medicare beneficiaries and caregivers prevent, detect, and report Medicare fraud, errors, and abuse. SMP operates in every U.S. state.

 

Medicare Appeals- Beneficiaries can appeal a decision not to cover a specific medical procedure. A common culprit is that the billing code was entered incorrectly. About 70% of appeals are successful. Of course, documentation is needed to present a strong case.

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.