Retire With Style Wade Pfau & Alex Murguia

In this conversation, Alex, Wade, and Jason discuss the importance of incorporating long-term care into financial planning. They share a real-life example of a client who unexpectedly needed long-term care earlier than anticipated and how having a long-term care policy helped preserve their assets. They also discuss the different types of long-term care insurance policies, such as hybrid policies, and the factors to consider when deciding whether to self-insure or purchase insurance. The conversation highlights the need to stress test financial plans for long-term care events and the value of care coordinator benefits in insurance policies. In this conversation, Jason Rizkallah discusses the process of obtaining long-term care insurance. He explains that the decision between insurance and self-insurance varies and is often influenced by factors such as cost, eligibility, and pre-existing conditions. Rizkallah also outlines the steps involved in signing up for a long-term care policy, including determining coverage amounts, obtaining quotes from providers, and going through the underwriting process. He emphasizes the importance of working with a knowledgeable long-term care specialist to navigate the complexities of the insurance market. The conversation concludes with a discussion on the need for early planning and the availability of options for long-term care coverage.

Takeaways

Incorporating long-term care into financial planning is crucial due to the high probability and cost of long-term care events.
Stress testing financial plans for long-term care events helps clients understand the potential impact on their financial situation.
Hybrid policies, which combine life insurance and long-term care coverage, can provide both a death benefit and long-term care benefits.
The cost of long-term care insurance should be compared to the potential out-of-pocket expenses to determine the value of the coverage.
Care coordinator benefits in insurance policies can be valuable for individuals who may have difficulty finding appropriate care on their own. The decision between long-term care insurance and self-insurance depends on factors such as cost, eligibility, and pre-existing conditions.
The process of obtaining long-term care insurance involves determining coverage amounts, obtaining quotes from providers, and going through the underwriting process.
Working with a knowledgeable long-term care specialist can help navigate the complexities of the insurance market and increase the chances of approval.
Early planning is crucial for long-term care, as the probability of needing care increases with age.
There are options available for long-term care coverage, including hybrid policies that offer flexibility and known benefits.

Chapters

00:00 Introduction and Guest Introduction
07:26 Benefits of Hybrid Policies
23:02 Factors to Consider in Long-Term Care Planning
32:16 Options for Long-Term Care Coverage





Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this episode, Wade Pfau and Alex Murguia are joined by Rob Cordeau to discuss Continuing Care Retirement Communities (CCRCs). They provide an overview of what CCRCs are and how they relate to long-term care planning. They also explore how CCRCs can be an alternative to long-term care insurance and the different financing models for CCRCs. The conversation covers topics such as the large upfront costs of CCRCs, the benefits of living in a CCRC, and the options for refundable entrance fees. Rob Cordeau provides insights into continuing care retirement communities (CCRCs). He clarifies that purchasing a CCRC is not a real estate purchase but rather a contract to live in the community throughout one’s life. The entrance fee varies based on the size and features of the apartment, and there are different types of contracts, including non-refundable and refundable options. Rob also discusses the financial aspects of CCRCs, such as the relationship between entrance fees and ongoing cash flow, the potential tax deductibility of entrance fees, and the importance of financial due diligence when choosing a CCRC.

Takeaways

CCRCs are retirement communities that offer various levels of care on one campus, including independent living, assisted living, and skilled nursing care.
CCRCs can be an alternative to long-term care insurance, especially for those who want to downsize and plan for their long-term care needs.
There are different financing models for CCRCs, including large upfront costs with lower ongoing monthly costs or lower upfront costs with higher ongoing monthly costs.
Some CCRCs offer refundable entrance fees, where a portion of the fee is returned to the resident or their heirs upon moving out or passing away.
CCRCs are not real estate purchases but contracts to live in a community throughout one’s life.
The entrance fee varies based on the size and features of the apartment.
CCRCs offer different types of contracts, including non-refundable and refundable options.
Financial planning is crucial when considering a CCRC, including modeling the affordability of entrance fees and monthly service fees.
Some entrance fees may be tax deductible, depending on the contract.
Due diligence is essential to assess the financial stability and reputation of a CCRC.
CCRCs may not be suitable for individuals who prefer independent living in their own homes.
Buyer’s remorse is rare among individuals who have thoroughly considered and chosen a CCRC.

Chapters

1. Introduction and Overview of CCRCs
2. Exploring Different Financing Models for CCRCs
3. Understanding Refundable Entrance Fees in CCRCs

4. Understanding the Dynamics of CCRCs
5. Financial Underwriting and Considerations for CCRCs
6. Different Types of Contracts Offered by CCRCs
7. Financial Planning for CCRCs
8. CCRCs vs. Independent Living: Choosing the Right Option

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”

In this conversation, Alex, Wade, and Neal discuss the importance of long-term care planning in retirement. They highlight the emotional aspect of planning for long-term care and the challenges of getting people to think about and prepare for it. They also discuss the demographic changes that will impact long-term care, such as the decreasing ratio of family members available to provide care and the potential shortage of caregivers in the future. The conversation touches on the different types of long-term care insurance policies and the need for open and meaningful discussions about healthcare and planning for the future. Neal shares examples of clients who have had personal experiences with long-term care and emphasizes the need for estate planning and power of attorney documents. The conversation then transitions to a discussion about long-term care insurance, with Neal explaining the challenges of traditional policies and the availability of guaranteed policies with reputable insurance companies. These policies address the issues of premium hikes and the ’use it or lose it’ nature of traditional policies. The conversation explores different types of hybrid policies, including those built on a whole life or universal life chassis. The benefits of these policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer. The decision-making process for choosing a policy involves considering the individual’s needs, net worth, and risk tolerance. Listen now to learn more!

Takeaways

Long-term care planning is a crucial aspect of retirement planning.
Planning for long-term care involves emotional considerations and difficult discussions.
Demographic changes, such as a decreasing ratio of family caregivers and potential caregiver shortages, will impact long-term care.
There are different types of long-term care insurance policies to consider.
Open and meaningful discussions about healthcare and planning for the future are essential.
Estate planning and power of attorney documents are essential for ensuring that clients’ wishes are carried out and that their loved ones are not burdened with difficult decisions.
Traditional long-term care insurance policies have had challenges in the past, but there are now guaranteed policies available from reputable insurance companies.
Inflation riders on long-term care insurance policies are recommended to ensure coverage against future costs.
Hybrid long-term care insurance policies address the issues of premium hikes and the ’use it or lose it’ nature of traditional policies.
Different types of hybrid policies include those built on a whole life or universal life chassis.
Benefits of hybrid policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer.
The decision-making process for choosing a policy involves considering the individual’s needs, net worth, and risk tolerance.


Links

Register for the webinar with Retirement Researcher and Kenneth French! ‘Five Things I Know About Investing’ Wed 4/24 at 2 EST www.risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

In this conversation, Bob French interviews his father, Ken French, a professor of finance, about key concepts in economics and investing. They discuss the concept of marginal cost and marginal revenue, which helps individuals make decisions based on the balance between costs and benefits. They also explore risk aversion and how it affects investment decisions, as well as the winner’s curse, which refers to the tendency to overestimate the value of winning bids or investments. Overall, the conversation provides valuable insights into economic thinking and decision-making. In this conversation, Bob and Ken French discuss the challenges of drawing inferences about the future based on past performance in the financial markets. They highlight the winner’s curse and the noise in securities returns as factors that make it difficult to predict which asset class or active manager will outperform in the future. They also discuss the problem of overconfidence and the importance of accurate market prices. The conversation concludes with a discussion on the benefits of stock buybacks and the option value of investments. Listen now to learn more! 

Takeaways

Understanding the concept of marginal cost and marginal revenue can help individuals make informed decisions based on costs and benefits.
Risk aversion is driven by the decreasing marginal utility of wealth, where the value of each additional dollar decreases as wealth increases.
The winner’s curse refers to the tendency to overestimate the value of winning bids or investments, and it can be observed in various contexts, such as oil lease auctions and hiring decisions.
Considering these concepts can enhance economic thinking and decision-making in investing and other areas of life. Drawing inferences about the future based on past performance is challenging due to the winner’s curse and the noise in securities returns.
Overconfidence is a common problem in investing, and people often overestimate their ability to pick winning investments or active managers.
Accurate market prices are important for allocating resources efficiently and signaling the value of different activities.
Stock buybacks can be beneficial for companies and society, as they can signal undervaluation and allow companies to allocate resources more effectively.
The option value of investments should be considered, as companies may choose to buy back stock when they don’t have better investment opportunities.

Chapters

00:00 Introduction and Setting the Stage
09:19 Navigating Risk Aversion in Investing
31:46 Enhancing Economic Thinking and Decision-Making
45:39 The Importance of Accurate Market Prices
51:42 The Benefits of Stock Buybacks

Links: 

Register for the webinar with Retirement Researcher and Kenneth French! ’Five Things I Know About Investing’ Wed 4/24 at 2 eastern www.risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, ”Is a Roth Conversion Right For You?”

Jackie Smiertka, the owner of Quality of Life Adult Daycare Health Care Center, shares her journey of opening an adult daycare center and the importance of providing purpose and meaning to individuals as they age. She emphasizes the need for a medical model daycare that offers both medical care and engaging activities. Jackie also discusses the challenges faced by caregivers and the importance of providing them with a break and social interaction. She provides insights for individuals looking for a daycare center, highlighting the importance of finding a center that offers meaningful activities and individualized care. The conversation explores the benefits and unique aspects of the Birdhouse Project, a daycare center for individuals with dementia. The social model of the center emphasizes group activities and giving individuals a sense of purpose. The center provides choices and autonomy to its participants, allowing them to make decisions and engage in enjoyable activities. The center also focuses on holistic care, advocating for the physical and mental well-being of its participants. The conversation touches on the importance of early intervention and the positive impact the center has on the longevity and mental sharpness of individuals with dementia. The conversation concludes with a discussion on the challenges of finding quality daycare centers and the importance of having conversations with loved ones about the need for respite care. Listen now to learn more!

To learn more about Jackie, view the information below: 

Jacquelyn K. Smiertka, RN, Center Director

The Quality of Life Adult Day Health Care Services Center
3252 University Drive, Ste. 140
Auburn Hills, MI 48326

Phone: 248-364-4064

website:  http://www.qualityoflifecenter.net/index.html

Facebook page: https://www.facebook.com/p/Quality-of-Life-Adult-Day-Healthcare-Center-100063594492637/

Takeaways

Adult daycare centers can provide purpose and meaning to individuals as they age.
A medical model daycare that offers medical care and engaging activities is important for the well-being of the participants.
Caregivers also need a break and social interaction to prevent burnout.
When choosing a daycare center, look for one that offers meaningful activities and individualized care. The Birdhouse Project is a unique daycare center for individuals with dementia that focuses on providing a sense of purpose and autonomy through group activities and choices.
The center emphasizes holistic care, advocating for the physical and mental well-being of its participants.
Early intervention and engagement in enjoyable activities can have a positive impact on the longevity and mental sharpness of individuals with dementia.
Finding quality daycare centers for individuals with dementia can be challenging, but it is important to have conversations with loved ones about the need for respite care.

Chapters

00:00 Introduction and Background of Jackie Smiertka
01:38 Inspiration for Opening an Adult Daycare Center
06:12 Projects and Activities in the Daycare Center
08:58 Supporting Caregivers: The Need for Breaks and Social Interaction
11:54 The Impact of Isolation and Keeping Participants Busy
16:04 The Medical Model and In-Home Healthcare
23:35 The Birdhouse Project: Providing Purpose and Autonomy
29:14 Holistic Care and the Importance of Early Intervention
31:14 The Positive Impact of Engaging Activities
33:39 Challenges in Finding Quality Daycare Centers


Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 



This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tip

In this episode, Wade Pfau and Alex Murguia interview Dennis Mattern from Creative One about the role of Independent Marketing Organizations (IMOs) in the financial industry. They discuss the difference between captive and independent advisors, the services provided by IMOs, and the importance of infrastructure for advisors. They also explore the marketing support and business partnership that IMOs offer to help advisors engage new prospects and expand their businesses. In this conversation, Dennis Mattern discusses various marketing approaches and strategies for financial advisors. He emphasizes the importance of understanding social media preferences and recognizing the different generations. Dennis explains how Creative One helps advisors grow their business through strategy sessions and the development of 30-60-90 day plans. He also highlights the significance of setting realistic expectations and finding marketing tools that align with an advisor’s strengths. Dennis discusses the effectiveness of dinner seminars, educational events, and virtual webinars. He concludes by discussing the role of compliance and the importance of authenticity in marketing. Listen now to learn more!

Takeaways

IMOs provide support and resources for financial advisors, including marketing, product selection, and case design.
Choosing the right IMO is crucial for advisors, and they should ask the right questions to ensure the IMO can meet their needs.
IMOs can help advisors engage new prospects and expand their businesses through marketing strategies and advertising support.
IMOs serve as a business partner for advisors, offering guidance, expertise, and access to a wide range of insurance products and solutions. Understanding social media preferences and recognizing the different generations can help advisors tailor their marketing strategies.
Setting realistic expectations is crucial for both advisors and clients.
Different marketing approaches, such as dinner seminars, educational events, and virtual webinars, can be effective in reaching and engaging potential clients.
Working with an IMO that has a broker dealer or an RIA can streamline the marketing and compliance process.
Authenticity and finding marketing strategies that align with an advisor’s strengths are key to success.

Chapters

00:00 Introduction and Background
01:49 Understanding IMO and FMO
03:42 The Role of IMOs in the Financial Industry
05:13 Captive vs. Independent Advisors
06:39 The Importance of Infrastructure for Advisors
08:59 The Evolution of IMOs
12:19 Choosing an IMO and Asking the Right Questions
14:03 Services Provided by IMOs
16:13 The Role of IMOs in Product Selection
22:48 Marketing Support from IMOs
24:01 The Importance of Business Partnership with IMOs
28:46 Engaging New Prospects and Marketing Strategies
31:25 Social Media Preferences
32:09 Recognizing Generation X
32:29 Cutting Through the Noise
33:19 Helping Advisors Grow Their Business
34:10 Setting Up a Strategy Session
34:37 Creating a 30-60-90 Day Plan
35:08 Realistic Expectations
36:17 Marketing Tools and Strategies
37:26 Different Approaches to Marketing
38:43 The Effectiveness of Dinner Seminars
39:23 Educational Events and Seminars
40:07 Virtual Events and Webinars
41:12 Considerations for Marketing Approaches
42:40 Benefits of Classroom Events
43:11 Leading with Value in Education
44:25 Virtual Events and Expanding Footprint
45:50 The Role of Compliance in Marketing
48:11 Consolidation and Differentiation in the Industry
49:25 Setting Realistic Expectations
51:09 The Role of an IMO
51:39 Facilitating the Fulfillment Process
52:09 Setting Up a Flywheel for Bringing in New Clients
55:07 Authenticity in Marketing
56:12 Considerations for Evaluating an IMO
57:11 How to Start