The catchy jingle encouraged us to "kiss a little longer" and "hold tight a little longer". We can all relate to the feeling of not wanting to let go of a really good thing.
When it comes to retirement, we all want the good times to last. But living a long, healthy life comes with a hidden price tag. In Chapter Five of the Wells of Wealth, Don Chamberlin explains that longevity is the risk that magnifies all other risks. The longer you live, the more your retirement plan is severely tested by factors like inflation, taxes, and especially healthcare.
If you think this won't happen to you, you aren't alone. A Nationwide Retirement Institute survey shows that most Americans are underestimating both their chances of living to 100 and the financial demands that longevity brings. In a room of 30 people, statistically, 10 percent of them will make it to age 100. If you are married and make it to age 65, one of you has a 25 percent chance of making it to age 97.
Are you prepared for the financial realities of a long life?
• • •
Even if you stay relatively healthy, healthcare is going to be a major expense.
According to the Fidelity Retiree Health Care Cost Estimate, the average 65-year-old who retired in 2024 will need approximately $165,000 saved just to cover the cost of healthcare expenses in retirement.
If you're married, this number doubles.
A common misconception is that Original Medicare will cover all of your medical costs in your golden years. It won't. Original Medicare was designed to prevent people from going bankrupt due to a lengthy hospital stay, not to provide comprehensive health insurance for 20 or 30 years.
Original Medicare does not cover:
Prescription drugs.
Routine dental, vision, or hearing care.
Eyeglasses, contacts, or hearing aids.
Long-term or custodial care.
Medicare will only cover a stay in a nursing home if you need rehabilitative care or skilled services for up to 100 days, and only after a qualifying inpatient hospital stay. If you need care that you don't recover from, Medicare doesn't cover it.
Nobody wants to imagine moving into a nursing home, but the statistics highlight why a plan is necessary:
Statistically speaking, if you are a woman, you are probably going to outlive your spouse.
Losing a life partner is emotionally devastating, but without a plan, it can be financially catastrophic. When one spouse passes away, the surviving spouse faces three harsh realities:
You don't have to leave your future up to chance. At Chamberlin, Healthcare & Medicare is one of the seven pillars of a holistic retirement plan. There are proactive steps you can take to protect your assets:
If reading this made you realize your plan might have some gaps, don't panic. Prepare.
Take our Free Retirement Readiness Quiz: In seven minutes or less, gauge your preparedness for one of life's most significant transitions. Get your free score and find out what to do next.
The next step is setting up a 20-minute, no-pressure call with one of our trained and certified Retirement Educators. These are Certified Financial Education Instructors who are trained to answer questions, not certified to sell products, so don’t worry about pressure to sign on that day.
They’ll walk you through the Holistic Planning process, talk through your current financial situation, and, if we seem like a good fit for each other, they’ll pair you with a certified financial planner and fiduciary who will guide you through the rest of the journey toward a comprehensive plan. After the call, we'll create a customized Mini Plan at no cost to you.
This Mini Plan includes 3 essential reports:
Your Social Security Maximization Report,
Your Tax & Portfolio Audit,
And based on those first two reports, your custom, tailored Wealth of Wells Plan.
We used to charge our clients $2,500 for this comprehensive analysis, but we’ve made it free as our way of helping Americans create more predictable retirements.
(And don’t forget to ask your Retirement Educator about your free copy of “The Wells of Wealth System” book! We’ll mail it out within a couple days of your call at no cost to you.)
Even if you’re not quite ready to take that step, we still want you to feel knowledgeable and empowered as you move that direction. Check out the Learning Center on our website for videos and blog posts that will help you understand the different factors at play in a holistic retirement plan and how you can start making small changes today that will have a big impact tomorrow.
• • • • •
Chapter 1: Got Risk? The 3 Biggest Reasons Why People Run Out of Money
Chapter 2: Have It Your Way: 5 Steps to Planning Your Retirement Income
Chapter 3: Time to Make the Dough-nuts: How to Avoid Running Out of Money in Retirement
In the meantime...
This commentary reflects the personal opinions, viewpoints and analyses of The Chamberlin Group. It does not necessarily reflect the views of Foundations Investment Advisors, LLC (“Foundations”) and is provided for educational purposes only and the contents are solely maintained by and the responsibility of the applicable 3rd party. The 3rd party content is subject to change at any time without notice, and does not represent an express or implied opinion or endorsement of any specific investment opportunity, investment strategy or planning strategy. Foundations in no way deems reliable any statistical data or information obtained from or prepared by third party sources in this commentary, nor does Foundations guarantee its accuracy or completeness. No legal or tax advice is provided or intended.
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