How Women can Age Well and Not Outlive their Money
I just turned 55, and as I look around the landscape of my peers, I realize I take my health for granted. In the last six months, three of my friends have experienced unforeseen health events. First, one of my friends had a freak head injury and is now in rehab. Then, the hospital admitted another friend with auto-immune liver failure. Finally, and tragically, just a few weeks ago, my friend suddenly died at the top of her hike. Aging is scary. I've never said that before, and I've hardly given aging a thought until now.
67% of women would rather die than live in a nursing home.
As a woman in my mid-fifties, my long-term health and care are looming over me, and I am not alone in this way of thinking. Many women are concerned about having enough money to save for their healthcare expenses, and according to one study, 67% would rather die than live in a nursing home! Others are afraid to become a healthcare responsibility for their families. In light of this, 40% of women said they do not expect to retire.
So how do we:
#1 Stay healthy for as long as we can?
#2 Protect ourselves from running out of money due to health care expenses?
I decided to reach out to two experts. Dianne Cumberland, Senior fitness specialist, and Kevin Kepler, an expert in long-term care insurance.
Dianne Cumberland has been coaching women for over thirty years on nutrition and exercise. She currently specializes in older adult fitness working one-on-one with her clients in their homes or over zoom. Dianne's philosophy on aging is summed up with her quote, "Growing old is inevitable; feeling old is optional!" She has strong feelings about being proactive with our health and gave me eight great tips to follow.
Dianne's Eight Tips for Aging Well:
1. Be proactive and take charge of your own health.
2. Include exercise in your daily routine, including strength training 2-3 times per week and 150-300 minutes of moderate cardio per week.
3. Eat close to the source, i.e., choose natural whole foods over processed foods, become a label reader.
4. Have a purpose, something that excites you about your life.
5. Stay socially active and form strong relationships with friends and family.
6. Be open to learning new things and new experiences.
7. Be your own cheerleader and feel good about your accomplishments.
8. Have a "can-do" attitude, and don't let anyone tell you that you can't do something. JUST because of your age!
Dianne walks her talk. In fact, at age 70, she competed in Canada's Physique Competition, wowing the judges. Take a look.
How to Avoid Outliving Your Money.
So, if I stay healthy by employing Dianne's tips, how do I avoid outliving my money and becoming a burden to my family? I turned to Kevin for ideas, and here's what he shared:
Women in their fifties should seriously consider investing in long-term care (LTC) policy for two main reasons:
1. Women live longer than men, and the average cost for a skilled nursing facility in the State of Washington is over $9,000 a month. The average long-term care need is three years. Sadly, Kevin has seen women's savings be depleted by these exorbitant costs, forcing them to rely on their families.
2. The sooner someone applies for a policy, the more likely they will receive a better medical rating. So don't wait.
Preparing for the Washington State Long Term Care Program.
For those of us who live and work in the State of Washington, beginning January 2022, we will be assessed a wage tax to fund the State-Run Long-Term Care Insurance program. (click here for more info) A BIG issue with this plan is that none of the money you pay in goes with you; therefore, if I decide to retire to Hawaii-bye bye money! The only way around this tax and not losing your LTC benefit is to buy a private policy.
How much does a LTC Policy cost?
If I buy a policy, what will it cost? According to Kevin, purchasing a private policy can be cheaper than paying into the State policy if you are young. For example, A W-2 employee, 34 yr. Male, earning $250,000 annually, would be paying $1450 annually through the State plan. But, on the other hand, if he purchases his policy, it is $14.37 a month, $172.44 a year![1] Big difference.
That's great for the young ones, but what about 55-year-old me? Kevin's answer: The State policy and a private policy would cost the same-around $40-$50 a month.[2] So, no savings there. But remember, the money you pay into the State plan stays with the State, and if they cost the same, I would buy the private policy versus paying the tax. Last, according to Kevin, a good comprehensive LTC policy for a woman my age would cost around $130-$150[3] a month.
As women in our fifties, we must be proactive with our physical and mental health. I will examine my lifestyle and employ Dianne's tips and review my current savings and policies to ensure I can pay my medical costs and not be a burden to my family in my later years. If you would like to learn more about what financial steps to put into place to avoid outliving your money, don't hesitate to get in touch with me for a free 30-minute consultation.
[1] the premium for a married male, applying with a spouse, all riders and features reduced to the lowest setting, and still producing a benefit of $36,500 (comparable to state plan)
[2] Contact Kevin Kepler
[3] Contact Kevin Kepler
Marathon Wealth Management, LLC is an Investment Advisor registered with the State of Washington. All views, expressions, and opinions included in this communication are subject to change. This communication is not intended as an offer or solicitation to buy, hold or sell any financial instrument or investment advisory services. Any information provided has been obtained from sources considered reliable, but we do not guarantee the accuracy, or the completeness of, any description of securities, markets or developments mentioned. We may, from time to time, have a position in the securities mentioned and may execute transactions that may not be consistent with this communication's conclusions.