Elder Financial Abuse Elder financial abuse is a growing national problem, costing victims an estimated $2.6 billion annually. Shockingly, half of Americans over age 65 show signs of financial abuse, which can include unnecessary services, excessive fees, stolen checks, and even family members withdrawing money without consent. Ric emphasized the importance of adult children monitoring their parents’ finances, discussing estate planning, and obtaining power of attorney to safeguard against abuse. Five signs of financial abuse were outlined: unnecessary purchases, unexplained disappearance of money or possessions, unpaid bills, large withdrawals, and individuals exerting excessive control over elderly parents. If you suspect abuse, contact law enforcement, adult protection services, or the National Center for Elder Abuse.

Graduate School Debt and Career Planning The financial implications of graduate school debt can be staggering, and Ric cautioned parents against allowing their children to incur six-figure debt without understanding its long-term impact. He advised having serious career conversations with children to ensure their education aligns with future income potential and specialty areas that generate sufficient earnings. Strategies to minimize debt include scholarships, employer-sponsored education programs, and military service in exchange for tuition coverage. Ric stressed the importance of viewing education as an investment in a child’s future and evaluating whether the cost of the degree is justified by the career benefits.

Insurance Needs and Financial Protection Insurance is a cornerstone of financial planning, not for wealth creation but for financial protection. Ric outlined key types of insurance, including disability insurance to protect income, life insurance for dependents, auto insurance, health insurance, and long-term care insurance. Statistics show that one out of two Americans over 65 will need long-term care, with costs averaging $7,000 per month or $84,000 per year. Ric advised purchasing the minimum necessary insurance to cover potential losses and emphasized analyzing risks and financial implications.

401(k) Plans and Retirement Savings Dallas Salisbury, CEO of the Employee Benefit Research Institute (EBRI), shared insights on 401(k) plans, noting the average balance in the U.S. is $67,000, while individuals who have contributed for 30 years average just under $200,000. Ric and Dallas emphasized the need for early and consistent saving, highlighting the importance of educating individuals about saving at home, school, and the workplace. Automatic enrollment and contribution escalation in 401(k) plans were discussed as effective strategies to encourage saving, along with pre-diversified investment options to simplify decision-making. Ric stressed that saving for retirement is a personal responsibility, and individuals must actively choose to save to avoid financial shortfalls.

Consumer Behavior and Saving Challenges While many recognize the need to save, instant gratification and impulse buying often derail financial goals. Surveys show that most individuals could afford to save an extra $25 to $75 per week but fail to prioritize it due to lifestyle choices and advertising promoting immediate enjoyment. Ric and Dallas discussed initiatives like America Saves Week and Choose to Save campaigns, which aim to educate and motivate individuals to save for their financial future. Tools such as financial planning checkups and public service announcements were highlighted as resources to help individuals understand their financial situation and make informed decisions.

Medicare and Retiree Health Care Costs Medicare covers only 64% of health care costs for retirees, leaving individuals responsible for nearly 20% of expenses, with private insurance and government programs covering the rest. Ric warned that these out-of-pocket costs could amount to hundreds of thousands of dollars for retirees and their spouses, making it essential to factor health care costs into financial planning. Proper planning can prevent financial strain during retirement.

Market Volatility and Investment Strategy When it comes to setting sell orders on 401(k) retirement funds based on market predictions, Ric advised against this strategy. Timing the market is incredibly challenging, and short-term performance often has little impact on long-term investing success. He emphasized diversification as a protective measure against losses and warned against emotional reactions to market volatility, which can lead to poor financial decisions. Staying invested through market ups and downs generally leads to better outcomes than trying to predict and react to market swings.

All information provided is for educational purposes only and does not constitute investment, legal or tax advice; an offer to buy or sell any security or insurance product; or an endorsement of any third party or such third party’s views. The information contained herein has been obtained from sources we believe to be reliable but is not guaranteed as to its accuracy or completeness. Whenever there are hyperlinks to third-party content, this information is intended to provide additional perspective and should not be construed as an endorsement of any services, products, guidance, individuals or points of view outside Edelman Financial Engines. All examples are hypothetical and for illustrative purposes only. Please contact us for more complete information based on your personal circumstances and to obtain personal individual investment advice.

Neither Edelman Financial Engines nor its affiliates offer tax or legal advice. Interested parties are strongly encouraged to seek advice from qualified tax and/or legal experts regarding the best options for your particular circumstances.

The post Financial Planning, Elder Financial Abuse, and Protecting Your Wealth appeared first on ROI TV.

1. Life Insurance: Protecting Your Loved Ones

Life insurance provides financial protection for your family in case something happens to you. There are two primary types:

• Term Life Insurance: A straightforward policy that covers a set number of years and pays out a lump sum if you pass away.
• Whole Life Insurance: A more expensive option that combines insurance with an investment component.

If you’ve had major life changes—such as getting married, having children, or taking on significant financial responsibilities—you may need to increase your life insurance coverage.

2. Health Insurance: Coverage That Evolves With You

Health insurance is one of the most important policies to evaluate regularly. Whether you’re getting married, changing jobs, or moving states, your health insurance needs may shift. Pay attention to:

• Deductibles and Out-of-Pocket Costs: Can you afford your current plan if you need to use it?
• Network Providers: Are your doctors still in-network?
• HSA and FSA Options: If available, are you maximizing tax advantages?

A health insurance checkup can save you from unexpected medical bills and ensure you have access to the care you need.

3. Auto Insurance: Adjusting for New Vehicles or Driving Habits

Your auto insurance should be reviewed anytime you purchase a new car, move to a different location, or experience a lifestyle change that affects your driving habits. Consider:

• Collision vs. Liability: If your car is older, dropping collision coverage could save money.
• Mileage Adjustments: If you drive less now (e.g., remote work), you may qualify for lower rates.
• Adding or Removing Drivers: A new teen driver or a spouse may require policy updates.

4. Homeowners or Renters Insurance: Keeping Up With Property Values

If you own a home or rent an apartment, your coverage should reflect the current value of your property and possessions. Important factors to consider include:

• Property Value Changes: Rising home prices may mean you need additional coverage.
• Renovations and Upgrades: Did you add a pool, remodel your kitchen, or build an addition? Update your policy accordingly.
• Flood and Disaster Coverage: If you’ve moved to a new area, check if you need additional protection.

5. Disability Insurance: Protecting Your Income

Many people overlook disability insurance, but if you become unable to work due to an injury or illness, this coverage replaces lost income. Key times to reassess include:

• Job Changes: Your employer may offer better (or worse) disability benefits.
• Increased Income: Your coverage should match your current salary.
• Self-Employment: If you’re working for yourself, private disability insurance is essential.

6. Long-Term Care Insurance: Planning for the Future

As you approach your 50s, long-term care insurance becomes an important consideration. It helps cover costs associated with assisted living, home care, or nursing facilities. The earlier you enroll, the more affordable the premiums.

7. Umbrella Insurance: Extra Liability Protection

Umbrella insurance provides additional liability coverage beyond your auto and homeowners policies. If you have significant assets, a high-income profession, or rental properties, this extra protection is essential.

8. Changes in Family Status: Marriage, Divorce, or Children

Life changes like getting married, having children, or getting divorced significantly impact insurance needs. These changes may require updates to your beneficiaries, coverage amounts, or even entirely new policies.

9. Retirement: Adjusting Coverage for a New Phase of Life

As you enter retirement, your insurance needs shift:

• Health Insurance: Medicare options become available at 65.
• Life Insurance: If your dependents are financially stable, you may no longer need a large policy.
• Auto & Home Insurance: Some companies offer senior discounts—take advantage of them!

Final Thoughts

Insurance isn’t a one-and-done decision. Life changes, and so do your coverage needs. By reviewing your policies regularly, you can avoid gaps in protection and ensure you’re covered when it matters most.

All writings are for educational and entertainment purposes only and does not provide investment or financial advice of any kind.

The post 9 Important Reasons to Reassess Your Insurance Coverage appeared first on ROI TV.