In other news, a new Charles Schwab report states that nearly half (44%) of retirees claim to be supporting at least another individual financially.  While this exhibits the generosity of retirees it is also evidence that retirees are not practicing proper retirement planning.  Everyone, of course wants to help their family in whatever way they can, but it is paramount to worry about your own finances instead of your family’s.  Helping them in the short term is fine, but imagine once you are gone then how are they going to figure out their finances in the future.  Setting the right example through debt consolidation and reducing expenses, is the most prudent decision to ensure your family’s financial future. 

And finally, to add to the launching of the socialsecurity.gov site to which I mentioned in the post “Apply For Social Security Benefits Online.” It appears that Patty Duke has brought back her role as Cathy Lane from the 1960’s sitcom The Patty Duke Show to get baby boomers online to apply for Social Security benefits. While the characters she plays in the Public Service Announcements are signing up for social security, Patty, aged 62, says she will be waiting a few more years to start receiving benefits.  This is especially a good call if you are healthy and believe you will live a long life.  In fact there is s great article from the Center for retirement Research at Boston college entitled, “How Much Do Households Really Lose By Claiming Social Security at Age 62?”  Don’t fret if you have started collecting Social Security at 62 and have since changer your mind because you have the ability to restart your Social Security benefits. Here is a nifty little Social Security calculator that will help you decide when the best time to start receiving benefits.  Oh and if you would like to see the ads please visit socialsecurity.gov/pattyduke

  Add to this problem the fact that life expectancy at birth is about 76 years old and life expectancy at 65 is now 17 years and there is something economically uneasy about the situation. As boomers are living longer, their medical expenses are increasing, so where are all the workers to cover these increasing costs? Well we don’t have enough workers to cover these expenses, so serious debate, as is happening now, must take place as to the next steps.  Someone, or rather a particular demographic, is going to have to cover the cost, so what is the best way to settle this without causing a generational debate. It seems boomers’ children are going to have to carry the weight of their parents but as Garver states in his article “Social Security Sets the Stage for Generational Warfare,” “Because boomers’ kids neither created the Social Security problem not let it fester more than 40 years, the problem is potentially one of generational warfare.  And boomers’ kids would hold the moral high ground by reminding their boomer parents about being taught to take responsibility for one’s own mistakes.

  There are many plans in the works about ensuring the future of Social Security and Medicare, and in a recent New York Times article, “A Basis is Seen for Some Health Plan Fears Among the Elderly” the boomers have some reason to fear about the future of Medicare as they have known it under the Obama administration.  In a Kaiser Family Foundation poll this month, only 23 percent of respondents over the age of 65 felt they would be better off if health reform passed. Younger respondents were more optimistic To many boomers Obama’s cutting of healthcare costs, and combined emphasis on effectiveness of certain programs has lead them to see that he wants to curb some of Medicare’s services.  Many are even going so far as to say that Obama is implementing so called “death squads” that will decide people’s medical fates in the last parts of their lives.  While these death squads are one extreme viewpoint and takeaway from a lengthy and constantly expanding (1,017 pages) reform bill, it still reflects as one Gallup poll released last month shows that by a 3-to-1 margin, seniors believe that reform will reduce their access to healthcare.  But as one article in the “Christian Science Monitor” points out “Why GOP sees Seniors as Crucial to Health Reform Battle” seniors are the ones with the time to attend town meetings, and they pay close attention to the details of their benefits. 

  Its going to be interesting to see if we will be able to find a common ground, where maybe if you are a senior who has enough money for private insurance you can wave benefits knowing that you will be benefiting from your children’s hard work.  As it seems right now, both sides are taking the extremes of the debate, but hopefully we find a middle ground because if we don’t it’s surely going to be an uphill battle.

So, my Mom met with her accountant last week. She is getting a life insurance policy to cover her business partner’s expenses if something were to happen. Her accountant suggested putting a Long Term Care Insurance rider on the life insurance policy.

Great idea, right?

Yes, the Long Term Care rider might be a great idea. The costs of Long Term Care are an expense that most retirees have not planned for and not having long term care insurance can completely devastate your finances. Please review information on the need for long term care insurance here

http://www.newretirement.com/Planning101/Serious_Medical_Crisis.aspx .

But, here comes the shocking part of the recommendation: The accountant suggested that that my mother ask my brother and I (her children) to fund the monthly premium on the rider since we would end up paying for Long Term Care expenses if she hadn’t taken care of them herself.

Indeed, Long Term Care insurance payments are likely less expensive than the ultimate cost of Long Term Care, but why should we, her children, pay for either. We would of course fund her needs — or make arrangements for her to move in with us — if necessary, but why is the general population and a financial expert recommending that it is indeed our responsibility to fund these things?

Social Security, Medicare, Long Term Care Insurance and More — Who Should Pay for It All? Boomers? Children of Boomers? Grandchildren of Boomers?

We children of boomers are already going to have to fund Social Security and Medicare. The baby boomers are retiring with these programs being unfunded. We will be paying our taxes to fund our parents (and grandparents) retirement.

What’s worse, the under- or un-funding of these programs is not even factored into the known and mounting deficit that we are inheriting.

We children of Boomers have an incredible financial burden to bear.

Retiring Boomers Should Consider Who Should Fund These Costs

Please boomers and those advising boomers, please think about the sanity of putting these costs on your children and grandchildren. Is this what you want your legacy to be?

Retirement should be earned. Barring severe health issues, there is no logical reason to retire before you have saved enough money to cover your costs.

Seniors have successfully expressed their outrage at being excluded from benefiting from the Economic Stimulus package proposed by the House.

Congratulations! Congratulations?

Senate Democrats announced today that they will add $150 billion in rebates for senior citizens living off Social Security. This move will likely cause a clash with the White House and House leaders who sponsored the narrower package that excluded seniors from receiving funds in the stimulus package.

Whether or not the plan will save the economy from a recession is still in question. However, including seniors in the stimulus plan insures that financial help could be delivered to those most arguably in need — our nations retired who live on a fixed income.

Although, adding senior benefits would likely mean shrinking the size of payments to those earmarked earlier.

• Who do you think most “deserves” stimulus package benefits?
• Will the stimulus package save economy from recession?
• Does anyone actually need these benefits?