Planning for the

By Nick Landaker Planning for the Future

Few people enjoy thinking about or anticipating the worst-case scenario. Still, a financial, estate planning or care manager professional, can make you are prepared. Planning involves two main components with lots of moving parts in between. The two crucial pieces are finances and education.

People must be prepared for any scenario financially, but also know their options along the way. Starting at the end and working your way back is a good strategy for educating yourself and creating the financial cushion you will need for the future. Of course, much depends on how long someone lives and how long they will reside in more expensive care environments. The current lifespan for 2021 in the US is 78.99 years. And as you probably know, more and more people are living to 100 and beyond.

The Cost of Long-Term Care

Worst Case Scenario: Nursing Home

There might be some disagreement that this is the worst-case scenario, but it is the most expensive form of care for many people and the least desirable. According to Genworth, the median monthly cost of care for a semi-private room in a nursing home in 2020 was $7,756 a month. Medicaid pays for over 6 out of 10 nursing home residents due to that high cost. Qualifying for Medicaid means that the estate is exhausted. People run out of money.

The alarming information about poor infection control, inadequate care, and surging COVID cases has added to the negative views of long-term nursing home care.

Jane was doing reasonably well, living in her home for many years when she fell and broke several bones. Jane qualified for rehab but could never regain her previous functioning level. Due to the high level of care she needed, nursing home placement was the only option (or so she thought). Jane's home still had a mortgage, and she had to sell her house to finance her nursing home care. Her profit from the sale was $150,000. That amount will pay for about a year and a half of care, with nothing left to leave her children.

Assisted Living

You might be surprised to learn that Medicare does not pay one cent towards an assisted living. The US's median monthly cost for assisted living in 2020 was $4,300. But costs can be much higher than that if you require additional care. Prices for an assisted living continue to rise.

Assisted living costs rose 6.15%, the highest spike among all care segments. Those costs are expected to go even higher due to staff shortages and COVID costs. Someone could live in assisted living for several months or several years. Older adults should plan for several years' worth of assisted living costs.

Independent Senior Living

For many older adults, independent senior living is a transition from home to somewhat more supportive care. Depending upon the community, services might be robust or lacking altogether. Independent living rates will vary dramatically depending on where someone lives and the type of community they choose. Costs can range between $2,000$9,000 or more per month, depending upon amenities. Although most people probably plan on staying in independent living for the remainder of their lives, they often need to bring in an in-home caregiver as their needs evolve, or move into assisted living.

Home Care

Since most older adults say they want to age at home, home care is the best way to make that possible. Hours of care are tailored to individual needs and care goals. It’s worth noting that costs can start to exceed the monthly cost of assisted living, but if someone starts to require more care due to declining health and mobility, their monthly costs in assisted living will go up as well.

The median hourly cost for homemaker services in 2020 was $23.50 an hour. If This article is sponsored by Home Care Assistance, for more info visit > www.homecareassistance.com

a person wants to remain in their home, there are ways to finance that care that won't involve moving. One overlooked part of advance planning should be pursuing a healthy lifestyle that involves regular exercise, fall prevention, and a nutritious diet. Home care can help reinforce these healthy habits.

Family Caregiving

Family caregiving is often where things start. Family caregiving is a time-honored tradition but one that comes with costs. According to AARP, "More than half of family caregivers have to take time off from their main job, reduce hours at work or quit their jobs altogether to accommodate their responsibilities, AARP researchers found. This can mean diminished chances for promotions, less job security, fewer employment benefits, reduced money set aside for their retirements and lower Social Security benefits for themselves when the time comes."

Family caregivers provide about 470 billion dollars' worth of care in the US a year. And getting back into the job market in the current employment environment could be a real challenge. So, even though a family caregiver may think they are saving money by providing hands-on care themselves, they must consider the long-range financial consequences.

Out of Pocket Medical Costs

Traditional Medicare and Medicare Advantage plans don't pay for everything. Far from it. Dental care, hearing aids, and co-pays can add up over time. According to a Kaiser Family Foundation report, the average out of pocket costs, including premiums, were $5,460 a year in 2016. It is prudent to plan for higher costs than that as a cushion.

Future Planning for Today

Learn more from an elder care professional, their job is to give clients options and the price tags associated with those options. Working through resistance and educating yourself will provide the confidence to make informed choices and the financial stability to support the lifestyle you want as you age.

Mardi Gras is BIGGER and BETTER than ever at The Village of Baytowne Wharf on February 27th at 2pm at our Baytowne Mardi Gras Parade. “Laissez les bon temps rouler” (let the good times roll) with unique, colorful floats, golf carts, and trucks as well as costumed dogs and owners filling the streets with Mardi Gras cheer. Marchers are dressed up in all their Mardi Gras best and shower parade-goers with a barrage of beads, moon pies, and other trinkets! Baytowne is looking for Krewes to join in the Mardi Gras festivities. Interested in participating? Email kensley@ baytownewharf.com or click here. Prepare to let your hair down on what many call the most festive day of the year, Fat Tuesday, March 1st at the Baytowne Mardi Street Pardi! Starting at 6pm join us for a Village Street party complete with music, street performers, entertainers and more! The post-pardi celebration continues into the night with parties at various Baytowne establishments. So break out the beads and get ready for a night to remember!

www.baytownewharf.com

New Heartwarming Book Shares Special Pancakes Created by a Grandfather and His Grandchildren

The bond between grandparents and grandchildren is a bond like no other, and this is no different for author David Slade. His new book “Puppy’s Pancakes” shares the sweet story of how he uses his artistic cooking skills to make fun character pancakes with his grandchildren. The book introduces each of the creations with a captivating picture and poem, and then includes the recipes so readers can re-create the pancakes at home.

Slade is a grandfather to five grandchildren who affectionately call him Puppy. When he was a little boy, a day at his grandparent’s house always started with Slade and his grandfather making pancakes. They would come up with names for each of their pancakes and a detailed backstory. Those memories stuck with Slade for a lifetime. He couldn’t wait for the day that he could pass this tradition onto his own grandchildren.

As soon as his grandkids could talk, Slade began asking them to help him make pancakes. The kids would help mix up the batter and then flip through their favorite comic books or fairytales and pick out a character to create. Slade would use candy, fruit and even marshmallows to make each detailed pancake creation. He cherishes the memories he has created with his grandchildren and hopes that “Puppy’s Pancakes” will “I hope that ‘Puppy’s Pancakes’ will facilitate the growth of a special bond between grandfathers and their grandchildren,” Slade said. “The highly interactive process of creating these special pancakes not only leads to something delicious but also feeds directly into the wildest of childhood imaginations.”

“Puppy’s Pancakes” gives grandfathers a new and exciting way to connect with their grandchildren and allows kids a new way to express their creativity. This book is sure to help create a lifetime of special memories.

“Puppy’s Pancakes”By David Slade Available wherever you buy books

WIN THIS BOOK

Text "I Make Pancakes" to 334.324.3472 then you'll be entered to win a copy of “Puppy's Pancakes”

Maximizing Your Social Security Benefits

More than 95% of Social Security recipients don’t maximize their benefits, according to a study by the Center for Retirement Research at Boston College. Over 40% of Americans file at age 62, minimizing their benefits if they live into their eighties. By minimizing their benefits, Americans are missing out on tens of thousands of dollars of benefits, if not more, according to Larry Kotlikoff, author of a best-selling book on maximizing social security benefits that was published in 2015.

The problem with maximizing Social Security benefits is how complicated it has become and is likely to remain so for the next several years. On Wednesday, February 23, 2022, from noon to 1:30 p.m., Susan Moore of Moore Wealth Management, Inc. (MWM) will conduct a complimentary and without obligation “Maximizing Social Security” webinar. The workshop will review how Social Security works and will include a discussion on President Biden’s proposals to reform Social Security. There will be both a live and recorded version. If you would like to be included in the webinar, please call the Moore Wealth Management office for further information or reservations at 334.270.1672, or email sarah@ moorewealthmanagement.com . If you miss the webinar, we also offer free consultations that are without obligation.

The workshop will cover how the Social Security system works in general. Specifically, the workshop will discuss different techniques to maximize Social Security including when and how to file, how to lessen taxes on Social Security, and special rules that impact widows and widowers, divorcees and spousal benefits. For example, rule changes went into effect in 2016 that result in different options for people born before versus after January 1, 1954. There is no “one size fits all” when it comes to maximizing Social Security. It pays to learn how the rules apply to you.

It will also discuss how the cost of living adjustments are figured and how those adjustments impact Medicare premiums as well as potential reforms to Social Security resulting from the solvency issues confronting Social Security and Medicare. We conduct a variety of workshops and seminars at MWM. The mission statement of MWM is very simple: “and then some.” We attempt to do what is expected, what is required and then some. The Social Security workshop is part of our monthly “and then some” workshops. In addition, MWM conducts monthly current events market updates that attempt to explain what is going on in the financial world. If you would like to be on the mailing list or receive email notifications of upcoming webinars, please call 334.270.1672.

Financial Thoughts with Susan Moore

By Susan Clayton Moore, J.D.

Principal of Moore Wealth Management, Inc. Susan Clayton Moore, J.D., is a financial advisor and wealth manager of Moore Wealth Management, Inc., with offices in Auburn, Montgomery, and Alexander City, AL. Susan has under advisement assets over $170 million (as of 1.21.2022) in brokerage and advisory assets through Kestra Financial and has been a financial planner for over 37 years. Contact Susan at 334.270.1672. Email contact is susan@moorewealthmanagement.com.

The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney or tax advisor regarding your individual situation.

Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS or Kestra AS are not affiliated with Moore Wealth Management, Inc.

https://bit.ly/KF-Disclosures

“Maximizing Social Security” webinar February 23rd, Noon, Register today 334.270.1672

The workshop will discuss different techniques to maximize Social Security including when and how to file, how to lessen taxes on Social Security, and special rules that impact widows and widowers, divorcees and spousal benefits.

Make Friends and Become Part of a Community at AUM OLLI

AUM OLLI offers an excellent array of courses (discussion/study, Do It Yourself, and active), lunch presentations on a variety of subjects, bonus opportunities, and field trips. In advertising all these opportunities for OLLI members, one thing is sometimes overlooked: the possibility for making friends and becoming part of a community. One class, Brain Bowl, is an excellent example of a class becoming a community.

Brain Bowl is a form of a trivia contest like Jeopardy that has, over time, developed into a weekly course offered every term. AUM OLLI member Lynda Smitherman, coach of the group, writes 50 questions for each session – questions not too hard and not too easy. This friendly competition leads to many correct answers and learning from the incorrect answers. Obviously, the members have been successful as evidenced by the team they formed a few years ago to compete in a city-wide trivia contest. The AUM OLLI team, “OLLI by Golly,” finished second (by just one question!) in a competition with over 40 teams from all over the city. The team selected Peter Crump Elementary School to receive the team’s $1000 prize.

Brain Bowl not only shares knowledge and learning, but the group has created a community that shares meals. At the end of one term, someone suggested that everyone should go to lunch together after class, now a weekly tradition. The lunch location is chosen based on its popularity with the group. Brain Bowl participant Ginny Anderson made up a list of restaurants within two miles of OLLI, and everyone voted. The group goes to a different restaurant each week, and no restaurant is visited twice. Anyone who enjoys being with some of the best new friends ever, dusting off the brain’s cobwebs, and breaking bread together should join Brain Bowl. There are enough questions for everyone, and we can always put another chair at the table.

To register for Brain Bowl or any of the other AUM OLLI offerings, go to the AUM OLLI website, www.aum.edu/OLLI to see the full schedule. Winter term classes begin January 31, 2022, and registration is currently open.

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