section 9 retirement life cycle - the wpi · will have enough money to live comfortably in...

OnPointe’s Financial Literacy Course

_________________________________________________________________

1 Copyright-The WPI

Section 9

Retirement Life Cycle

INTRODUCTION

In order to be in a position to prepare for retirement, you have to have a

baseline knowledge on many different items. Most of this course is designed to

teach readers about these items (life insurance, annuities, investment risk, how to

identify and avoid bad advisors, etc.).

While I could create more secular modules to teach more topics, there

comes a point in a course like this where you have to draw the line and say that

the topics covered are the vast majority of what you need to know in order to start

putting together a real financial/retirement plan in place.

This module will briefly go through the life cycle of different ages of

people and will point out what needs to be thought of or dealt with when putting a

financial/retirement plan together.

In this module, I will deal with health issues, Medicare, and Medicaid.

Health care alone could be its own stand-alone educational module, and I may

create one at some point in time; but for now, I’ll do my best to cover the basics

of what you need to know and how that may factor into designing a

financial/retirement plan.

I will also cover reverse mortgages which are constantly being pitched in

the senior community.

After reading this module and after going through other parts of the course

first, it is my hope that you will be ready to sit down and be able to design a

financial/retirement plan for the short term as well as the long.

AMAZING STATISTICS

In the first part of this module, I’m going to go over several different

statistics from the Employee Benefit Research Institute (EBRI). They do a

Retirement Confidence Survey every year that illustrates how ready most

employees think they are for retirement.

The statistics illustrate how ill prepared most people are for retirement.

The goal of putting them into this educational module is to try to wake up many

readers to the realization that they are NOT anywhere near ready to retire and that

they need to take steps NOW to start getting ready (this goes for readers of all

ages).

Many of the statistics contradict each other. On one hand, many

employees in the survey are confident that they will be able to retire as they want;

but when asked specifically about the money they’ve saved, will need to save, and

expect to spend in retirement, it’s clear most are not and will not be ready.

I’m going to list several Q&As from the survey, will throw in some charts,

and then I’ll give my thoughts along the way and a summary at the end. As you

go through the questions, think about how you would answer them and then about

how prepared you are or will be for retirement.


______________________________________________________

2 Copyright-The WPI

1) Overall, how confident are you that you (and your spouse) will have

enough money to live comfortably throughout your retirement years?

Confident = 67%

Very Confident = 23%

2) How confident are you (and your spouse) about the following aspects

related to retirement?

You will have enough money to take care of your basic expenses during

your retirement? Very confident 27% = Somewhat Confident 45%

You will have enough money to take care of your medical expenses during

your retirement? Very confident 20% = Somewhat Confident 40%

You will have enough money to pay for long-term care, such as nursing

home or home care, should you need it during your retirement? Very confident

15% = Somewhat Confident 37%

Right out of the gate, the first two questions are contradictory. 67% (Sixty-

seven percent) say they are confident they can “live comfortably” in retirement;

but when asked about specifics about taking care of basic, medical, and long-term

care expenses, less than 50% say they are even somewhat confident in being able

to cover these expenses.

What does that mean? It means that most who took this survey are NOT

preparing properly for their retirement.

3) Preparing for retirement makes you feel stressed? 59% agreed

Why? Because people know they are not nor have no idea if they are

prepared. This is exactly why I wanted to create this course. Once armed with the

knowledge, your level of stress will go down dramatically.

4) Have you (or your spouse) tried to figure out how much money you will

need to have saved by the time you retire so that you can live comfortably in

retirement? 58% said NO!

This is a huge problem. If you don’t try to figure this out, what are the

chances you’ll be prepared? Not good!

5) How much did you (or your spouse) calculate you would need to

accumulate in total so that you can live comfortably in retirement?

Less than $100k 8%

$100k-$250k 13%

$250k-500k 16%

$500k-750k 15%

$750k-$1 million 14%

$1-$1.5 million 17%

$1.5 million to $2 million 8%

More than $2 million 9%

One in 3 surveyed said they would need to save $1 million or more before

they retire. The problem is that the average savings for Americans is nowhere

near these values.


_________________________________________________________________

3 Copyright-The WPI

For people ages 55-64, the following are the average and median

retirement account values:

Average: $374,000

Median: $120,000

The average can be skewed up by those who have millions saved. The

median is a better indicator of what most people have.

So, the employee survey said that 79% thought they would need more than

$250,000 to retire comfortably and 63% of those surveyed said they would need

$500,000 or more to be able to retire and live comfortably. The reality is that most

people do NOT amass this much prior to retirement.

6) To prepare for retirement, have/did you (or your spouse) calculate how

much money you (and your spouse) would likely need to cover health expenses in

retirement?

57% of employees said NO (14% said don’t know which is awful).

Health costs are a HUGE issue. It is estimated that a retiring couple can

expect to spend $285,000 in health care and medical expenses throughout

retirement ($150,000 for a single male and $135,000 for a single female). The

cost will increase over time as the cost of health care goes up quicker than the rate

of inflation (so those who are not retiring now will have larger expenses).

Think again about the Q&As from earlier.

67% of those surveyed said they were very or somewhat confident they

will have enough money to live comfortably in retirement.

37% say they will need between $250,000-$500,000 to retire comfortably.

57% said they have not tried to calculate the amount of money they will

need to pay their health care expenses in retirement.

The average retirement savings for those ages 55-65 is less than $375,000

($120,000 is the median).

And the average health care costs in today’s dollars for a couple retiring is

$285,000.

Do you think most people are prepared for retirement? Are you prepared

or are you preparing well enough?

Let’s get back to the questions starting with another head-in-the-sand

answer.

7) Overall, how confident are you that you (and your spouse) will have

enough money to live comfortably throughout your retirement years?

82% said somewhat or very confident.

This answer as well as a few to follow fly in the face of the other answers

which say they have no business being confident.


______________________________________________________

4 Copyright-The WPI

8) How confident are you (and your spouse) about the following aspects

related to retirement?

-You will be able to afford the lifestyle you are accustomed to living

throughout retirement. 77% said somewhat or very confident.

-You will have enough money to last your entire life. 76% said somewhat

or very confident.

-You will have enough money to take care of your medical expenses

during your retirement. 80% said somewhat or very confident.

-You will have enough money to pay for long-term care, such as nursing

home or home care, should you need it during your retirement. 59% said

somewhat or very confident.

10) How much do you think you will need in total for health care costs in

retirement?

44% said $100,000 or more and 24% said they had no idea.

This question is actually from the 2015 version of the study (for some odd

reason they stopped asking this question).

11) To what extent do you agree or disagree with the following statement?

You are NOT able to save for retirement and save for other financial goals

at the same time. 55% agreed

Are you seeing a trend? Answers to general questions get pie-in-the-sky

confident answers. Specific questions do not.

12) Thinking about your financial priorities in retirement, which of these

is more important to you?

Income stability: Ensuring a set amount of income for life. 74% said yes.

Maintaining wealth: Preserving principal amount/balances. 26% said yes.

13) Please consider the following two approaches to managing assets and

generating income in retirement. Which approach are you most likely to take?

Option 1: Manage your savings/investments on your own. 34%.

Option 2: Purchase a product that provides a guaranteed income for life. 20%.

Some combination of both. 30%.

14) Before or after retirement, how interested would you be in a financial

product that would guarantee you monthly income for life?

Very or somewhat interested. 73%

The previous three questions are really interesting because, as you learned

in the bad advisors education module, many advisors don’t, won’t, or are

forbidden from selling my favorite type of annuity that comes with a guaranteed

income for life option.


_________________________________________________________________

5 Copyright-The WPI

15) Do you think you will do any work for pay after you retire? Have you

worked for pay since you retired?

Current workers. 80% said yes.

Current retirees. 28% said yes

This is also a very interesting question. Workers think they will work in

retirement when, in reality, most do not. That has a major impact on a

financial/retirement plan (budgeting to work in retirement and earn extra income

when the reality is that doesn’t happen most of the time).

16) Asking retired employees…when did you retire?

Earlier than planned. 43%

Later than planned. 9%

About when planned 49%

Another very interesting question. 43% (forty-three percent0retired earlier

than expected. That will have a major impact on a retirement plan (retiring early

means most will not have saved enough to live the lifestyle they want).

17) 3 in 10 workers say they provide medical care for another family

member.

Question: has caregiving had any of the following impacts on your

financial life?

26% said it prevented them from saving or investing for retirement.

23% said it led to an increase in their own personal debt.

22% said it caused them to stop contributing to their retirement plan at

work.

This is an interesting question because it brings up a topic almost no one

thinks about or plans for and the significant effect it can have on someone trying

to save for retirement.

Conclusion from the EBRI employee retirement survey? Most surveyed

think they are going to have enough money to retire on when in reality most will

not. Why is that? Lack of education and poor planning (as well as waiting too

long to plan).

THREE PHASES OF YOUR FINANCIAL LIFE CYCLE

Many people work better when they can set goals and accomplish during

certain time frames. Retirement planning is no different. Retirement planning can

be broken down into three sections (cycles).

1) Accumulation phase

This makes up most of your working life. This is where the majority of

errors or omissions come into play when trying to build wealth for retirement.

The list of items that can go wrong are plentiful.

-I didn’t start saving early enough (voluntary choice).

-I took on too much bad debt that prevented me from saving.


______________________________________________________

6 Copyright-The WPI

-I didn’t know what I was doing so I did nothing.

-I didn’t know what I was doing and didn’t save enough (bad budgeting).

-I invested poorly and my nest egg didn’t grow enough (see the DALBAR

Study).

-I got divorced and had to start over.

-I had a health issue that cost a lot of money (medical costs and lost

wages).

What are the keys to accomplishing your goals in the accumulation phase?

-Create a budget and review it a few times a year. A budget helps with

setting, assessing, and meeting goals. It also helps create some personal financial

discipline.

-Don’t take on bad debt. Bad debt can significantly hinder your ability to

save and grow wealth for retirement.

-Know your investment risk tolerance and risk capacity and invest

accordingly.

-Work with a “good” financial planner who has a proven plan to help you

reach your investment goals with the least amount of risk. Part of the plan should

be to be diversified in the assets you use to grow wealth which should include the

market investments but also potentially fixed indexed annuities and/or cash value

life.

-Stick with your financial plan. Do not panic sell.

2) Preservation phase

This is the phase just before retirement. It’s not a short period of time but

poor planning in this phase can wipe out 10+ years of good planning in a matter

of months.

If you were doing things correctly in the accumulation phase, you would

be doing an annual review of your situation and reassessing your investment risk

tolerance and capacity. If you do this, the common errors that befall people in the

preservation phase can be kept to a minimum.

The biggest error in the preservation phase is, well…., not positioning

your assets to be preserved. By that I mean the investment mix of assets in the

accumulation phase can be riskier or even much riskier the younger you are.

But risk is not a luxury you can afford when in the preservation phase.

Think of 2008 when the stock market was down over 38% (and over 50% from

the high so 2007 to the lows of 2009).

If you are managing your assets and have a buy-and-hold mentality or if

you are working with a financial planner who has the same attitude, you will most

likely be taking too much or far too much risk with your investments.


_________________________________________________________________

7 Copyright-The WPI

If you don’t take steps to mitigate risk in the preservation phase, the

consequences can be devastating when it comes to your ability to retire when you

want and in the lifestyle you want.

3) Distribution phase

Hopefully, the distribution phase will be a long and happy phase of your

life. It should be if you took the appropriate steps in the accumulation and

distribution phase.

Like the preservation phase, it is vitally important that you do not take too

much risk with your assets. Doing so for anyone but the affluent can, again, have

devastating consequences on your retirement lifestyle.

If you are retiring soon or are in retirement, you have some good options

to help you generate retirement income without risk. Even in a low interest rate

environment, there are annuities that can generate a guaranteed income for life

that can never be outlived.

Some financial planners will want to use dividend paying stock to create

retirement income. This is more risky but can potentially yield greater income

(albeit not guaranteed). Just like other parts of your financial life cycle, it’s vitally

important to match up your appetite for and financial ability to take such risk.

The Rolling Stones were right…

“you can’t always get what you want”

That’s my favorite Stones song that I used to love to play for my kids as

they were growing up. The reality is that most people can’t have everything they

want.

What do most people want in retirement?

1) They want to not worry about ever running out of money.

2) They want to live the lifestyle they dreamed of before retirement.

What does 2) entail? Things like…

-Not having to sell the house you’ve lived in for years

-Being able to travel the country or even the world.

-Having good health.

-Seeing children or grandchildren whenever you want.

-Help children or grandchildren go to college.

And the list goes on and on.

If you are looking at that list and thinking that’s what you would like, it’s

not that it’s impossible to have all these wonderful items (although health issues

are sometimes unavoidable). It’s that most people DO NOT plan well enough in

any of the three phases of their financial life cycle to accomplish these goals.


______________________________________________________

8 Copyright-The WPI

Again, that’s one reason I decided to create this financial literacy course.

The more educated you are, the higher the likelihood of reaching your retirement

planning goals.

The rest of this module will focus on sort of a potpourri of a few items I

didn’t address or fully address in other modules and ones that, for now, I decided

not to create full blow modules to explain.

The items to follow are for people mainly 62 or 65 and older.

The first two items deal with the biggest expense many people will have

in retirement, i.e., health care costs (especially drug costs)

MEDICARE

Let me preface this part of the course material a bit. If you are 25, 35, 45,

55, up to 64 years old, you most likely don’t need to know the following material

(unless you want to know it so you can help a loved one).

If you are 65 or older or are about to turn 65, this information is very

important and will be something you’ll deal with for years to come.

Much of the following material came from the website Boomer

Benefits™. It was well done and for an educational course like this, there didn’t

seem to be a need to reinvent the wheel on such a structured topic.

#1 –UNDERSTANDING THE BASICS

Who can get Medicare? Anyone who is 65 in America and even

permanent residents who have lived here at least 5 years. People who have

qualified for 24 months of Social Security disability also become eligible. For

people aging into Medicare at 65, it doesn’t matter if you are taking Social

Security benefits yet.

People get confused when jumping right into figuring out Medigap plans

and Medicare Advantage plans before they even understand how their Original

Medicare benefits work.

Your Original Medicare consists of Part A and Part B. These are provided

to you by the federal government… in fact, you will enroll in these two parts (and

only these two parts) through the Social Security office. Anything in your

mailbox that comes from the Social Security office or the Centers for Medicare &

Medicaid Services is mail you want to keep.

The Parts of Medicare

Medicare itself has PARTS (not plans).

Part A is your Hospital Coverage. This coverage pays for your room and

board in the hospital or in a skilled nursing facility.

Part B is your Outpatient Coverage. This includes pretty much everything

else: doctor visits, equipment, lab-work, surgeries, durable medical equipment,

diagnostic tests, etc.


_________________________________________________________________

9 Copyright-The WPI

Part D is your drug coverage. This is a pharmacy card which will allow

you to purchase your prescriptions at a much lower price than retail. It is

insurance you buy for present AND future medication needs. It’s pretty important

to have unless you can afford to pay for all your medications out of pocket.

You are eligible for these three parts of Medicare on the first day of the

month in which you turn 65 (or earlier if you have qualified for Medicare due to

disability).

There is also Part C optional coverage that will be discussed towards the end of

this section.

#2 –UNDERSTANDING MEDICARE COSTS FOR THESE PARTS

Once you become eligible for the three parts of Medicare at age 65, you’ll

need to know what you can expect to pay for each of these parts. This is

especially important if you are deciding whether to stay working past age 65 for

an employer who offers health benefits or whether you will retire and go onto

Medicare as your primary insurance.

Medicare Part A is FREE for most people as long as you or a spouse has

worked at least 10 years in the United States.

Costs for Part B

Medicare Part B depends on your income. People new to Medicare in

2020 will have to pay as a base rate of $144.60/month (if you make less than

$87,000 a year if single and $174,000 if married). However, people in higher

income brackets will pay an “Income Adjustment” (they pay more).

The Medicare Part B deductible for 2020 is $198.

Understanding Medicare Costs: Your Part B premium is based on your

income from two years prior.

Social Security bases your income adjustment on your income as reported

on your tax returns. They are usually looking at your income tax return from two

years prior to now.

If your income has decreased since then, you can file a reconsideration

request. You’ll present proof of your lower income and ask Social Security to

lower your Part B premium. They will reconsider your premium and notify you if

it can be lowered.

Once Social Security has determined what you’ll pay based on your

income, they will deduct your Part B premiums from your monthly income SS

benefits. If you have delayed enrollment into your Social Security income

benefits, then they will invoice you for Part B on a quarterly basis.

Later on, when you file to start your income benefits, they’ll switch over

to the monthly deduction from your SS check.


______________________________________________________

10 Copyright-The WPI

Is Part B Necessary?

Medicare Part B is an absolute must if Medicare will be your primary

insurance at age 65. In fact, you can’t buy any supplemental insurance unless you

first have both A & B.

However, if you actively work for a large employer (20+ employees), that

will continue to be your primary insurance. Medicare will be secondary, so you

can consider delaying Part B since your group insurance probably includes

outpatient benefits already.

Costs for Part D (drug coverage)

Understanding Medicare Part D costs is a bit tricky because plans have

varying premiums. Beneficiaries also might pay more due to their income just as

mentioned above in the Part B costs section.

Most states have more than 20 different Part D plans to choose from. The

national average Part D premium is currently around $35/month.

Part D plans have different drug formularies, so you’ll choose one that

offers your medications at decent prices.

Like Part B, if you earn more, you pay more for this coverage. If you

make less than $87,000 a year if single and $174,000 if married, you pay the base

rate. From $87,000 to $109,000 if single or $174,000-$218,000, you pay an

additional $12.20 a month (and it keeps increasing from there depending on your

income).

Part D premiums get paid directly to the insurance carrier. However, you

can request that Social Security deducts that monthly premium from your SS

income check. If you owe an income adjustment for having a high income, this

surcharge will be added to the monthly premium of your chosen Part D drug plan.

#3–UNDERSTANDING MEDICARE PARTS–WHAT’S COVERED AND

WHAT’S NOT

Medicare covers most of your health care costs, but you are still

responsible for your share. This includes things like deductibles and copays. In

essence, Medicare coverage is sim ilar to coverage you’ve had in the past. You

pay a monthly premium, and you cost share in the form of deductibles and

copays.

You need to know what is covered and what’s not so you can choose to

buy supplemental insurance to cover or not.

What Medicare Pays For:

Part A pays for your first 60 days in the hospital. Your share of that cost is

a hospital deductible, which will be $1,408 in 2020. After 60 days consecutive

days in the hospital, you begin paying a larger share in the form of a daily hospital

copay. This can be hundreds of dollars per day, so you need supplemental

coverage to protect you from those expenses on Part A services.


_________________________________________________________________


Part B pays for your outpatient care. This includes things like doctor visits,

lab work, imaging tests, surgeries, durable medical equipment, and even things

like chemotherapy, radiation, and dialysis. After a small deductible that you pay

once per year ($198 in 2020), Part B will cover 80% of all of these services for

you.

Your share is the other 20% of all of these services, with no cap. That can

be quite a bit of money for some of the bigger ticket items like surgeries or cancer

treatments. You can choose to buy supplemental coverage to protect you from

high Part B expenses.

Part D helps to pay for retail prescription medications (medications you

yourself pick up at a local pharmacy or via the plan’s mail order).

You do NOT need any supplemental insurance for Part D. It has built-in

copays for medications so you don’t have to pay 100% for necessary medications.

#4—UNDERSTANDING YOUR SUPPLEMENTAL COVERAGE

OPTIONS

One of the great things about the Medicare insurance options is that there

are plans available for any budget on the spectrum.

Some people will not need supplemental coverage yet because they have

other coverage. Some will still have employer coverage and others may have

Veteran’s coverage.

Medigap Plans (also called Medicare supplements)

Medigap plans pay AFTER Medicare. They pay for the things that are

normally your share. For example, all Medigap plans cover the 20% mentioned

earlier. So, Medicare will pay 80%, and your Medigap plan will then pay the

other 20% of your Part B outpatient expenses. Some Medigap plans also cover

your Part A and B deductibles. You can choose your own Part D drug plan to go

alongside this coverage.

Medigap plans also allow you freedom of choice in your medical care.

You can see any physician or healthcare provider that participates in Medicare

(nearly 900,000 providers across the nation). These plans cost more than

Advantage plans because they are more comprehensive. They also give you more

freedom in choosing your providers.

Medicare Advantage Plans (also called Part C)

Understanding Medicare Advantage plans can be a bit confusing because

the Medicare Advantage program is also called Part C of Medicare.

Medicare Advantage plans pay INSTEAD OF Medicare. These plans are

optional. They were created to give a low-cost alternative to Medigap.

Advantage plans are private insurance plans with their own local network

of providers, generally an HMO or PPO style plan. When you join an Advantage

plan, you’ll see these providers in order to get the lowest copays.


______________________________________________________


You will pay copays for doctor visits, hospital stays, and any other

Medicare-approved services. Medicare Advantage plans generally have lower

premiums than Medigap plans. That’s because you agree to share in the costs by

paying copays for services as you obtain them. (Whereas with a Medigap plan,

you often will have NO copay, depending on the plan you choose.)

Most Medicare Advantage plans also include a rolled-in Part D drug

benefit. This can be a benefit or a hindrance, depending on whether that rolled-in

benefit includes the specific medications you need. Each type of plan has its

advantages and disadvantages. You’ll want to be thinking about what things are

most important to you.

What’s the takeaway from this section of the course material?

It’s vitally important to enroll in Medicare when you turn 65; and because

your medical expenses in retirement can be your biggest expense, making sure

you have the right Medigap or Advantage plan in place is key.

Again, if you are not age 65 or turning 65, you don’t need to know this

material, but it’s still good to know should you want to provide help to a family

member or friend who is 65 or older.

Finally, this material was just an overview. It’s best to talk with an advisor

who specializes in Medigap and Advantage plans when trying to decide which is

best for your particular situation.

MEDICAID PLANNING

What is one of the greatest fears of many older adults?─that they will end

up in a nursing home someday. Why is this a fear? Because, when someone thinks

of nursing homes, they think about having to spend all their money on expensive

care that they typically perceive as providing marginal care.

I covered long-term care planning in the estate planning part of this

course, but I’ll restate some of the important statistics here.

-On average, 69% of people age 65 or older will need some form of long-

term care (according to www.longtermcare.gov).

-The average daily cost of a private nursing home room in 2018 was $275

a day or $100,375 annually (private room).*

-The average daily cost of an assisted living care facility in 2018 was $132

a day or $48,180 annually (private room).*

*Genworth Cost of Care Survey 2018

If you had LTC insurance, what would it pay for (assuming you qualified

for the insurance to kick in)?

Home health care consists of services received in your home and can

include skilled nursing care, speech, physical or occupational therapy, or home

health aide services.

Home care (personal care) consists of assistance with personal hygiene,

dressing or feeding, nutritional or support functions, and health-related tasks.

http://www.longtermcare.gov/


_________________________________________________________________


Adult day care is for persons living at home and provides supervision for

elderly persons during the day when family members are not at home. It is a

method of delivering a variety and range of services including social and

recreational, and in some cases, health services, in a group setting.

Assisted living facilities provide ongoing care and related services to

support those needs resulting from a person's inability to perform activities of

daily living or a cognitive impairment.

An alternate level of care in a hospital is care received as a hospital

inpatient when there is no medical necessity for being in the hospital and is for

those persons waiting to be placed in a nursing home or while arrangements are

being made for home care.

Respite care includes services that can provide family members a rest or

vacation from their care-giving responsibilities. It can be provided in a variety of

settings including an individual's home or a nursing home.

Hospice care is a program of care and treatment, either in a hospice care

facility or in the home, for persons who are terminally ill and have a life

expectancy of six months or less.

The fact of the matter is that most people do NOT have LTC insurance to

pay for assisted living or nursing home care.

If that is the case, how do people pay for LTC expenses?

Won’t Medicaid pay for Long-Term Care Expenses? Medicaid, except for

some minor exceptions, does NOT pay for “home care” or “assisted living.”

The problem with Medicaid is that, in order to qualify, you MUST meet

certain income and asset tests (which will be discussed in a bit).

Won’t Medicare or Some Other Insurance Cover a Client’s Long-

Term Care Costs?

Medicare is an entitlement-based Federal program that provides medical

insurance for the aged or disabled. Medicare does NOT pay for most long-term

care services. Medicare does NOT pay for custodial care when that is the only

kind of care needed. Even skilled nursing facility care is covered by Medicare

only on a very limited basis.

Medicare supplemental insurance is designed to fill in some of the

major gaps in Medicare coverage, but it does NOT cover most LTC services.

There are three primary ways to pay for nursing home care

1) Out of your own pocket (because you have no insurance and you do not

qualify for Medicaid)

2) LTC insurance

3) Medicaid


______________________________________________________


Medicaid (or MediCal if you live in California) is a Federal program

authorized in 1965 by Title XIX of the Social Security Act. This Federal program

provides Federal resources to the states as a state/Federal co-partnership towards

providing medical services to the poor and nursing-home patients. The program

requires the individual states to organize, manage, and distribute resources with

various limitations and with some degree of latitude.

The Federal rules allow for a general framework that each state must

operate within. Certain areas or items are left individually to the states for

clarification or legislation; therefore, each state has different, sometimes

completely separate, rules that apply. When trying to qualify for Medicaid, it is

best to use an attorney or other advisor who fully understands the Federal law and

state nuances.

Medicaid, for those in need of long-term care services or custodial-care

services, is generally limited to skilled nursing home facilities. While the lower

cost of assisted living or home care may be more cost effective, the Medicaid

program is essentially designed only to cover expenses in a skilled nursing facility

and require private funds, with few exceptions, to be used for other, less intrusive,

means of care.

Qualifying for Medicaid

This is where the rubber meets the road. It sounds easy to say, hey, I need

to go into a nursing home and, no problem; I’ll just apply for Medicaid and

receive Federal assistance. Unfortunately, it’s not that easy; and as millions of

Americans have found out, it can be very financially painful to qualify for

Medicaid.

Asset Limits—to receive aid from Medicaid to help pay for nursing home

expenses, a single person MUST spend down their “countable” assets to roughly

$2,000.

Here is a list of countable resources:

-Cash (checking and savings accounts)

-CDs

-Stocks, Bonds, Mutual Funds

-Retirement Accounts: IRAs, 401(k)s, 403(b)s

-Cash Value Life Insurance

-Tax “Deferred” Annuities

-Any Cars beyond the 1st Car

-Farm Equipment/Machinery

-Land and Commercial Real Estate

That means, if you have the above assets, they will have to be spent down

to $2,000 in order to receive aid.

Non-countable assets—the following assets are not counted when

applying for Medicaid.


_________________________________________________________________


Homestead (only if married)–if the spouse or certain dependent relatives

continue to reside in the home, it is excluded. If single, there is a 13-month

unavailability period.

Vehicle–a vehicle of any age or value

Life Insurance–all term life policies are excluded since they have no cash

value. Almost all policies with cash value will be countable.

Irrevocable funeral and burial contracts or insurance policies

These are pre-paid contracts or life insurance policies used to pay for

burial and funeral expenses.

Personal/Household Goods–personal items in the home such as home

furnishings are excluded assets.

Medicaid rules apply differently for married couples than if they were

single, recognizing the need to keep the “at-home” or “healthy” spouse (known

more formally as the “community spouse”) from going completely broke. Under

the “Spousal Impoverishment Act” (which was actually enacted to avoid the

impoverishment of a community spouse), a formula is established to determine

how many of the “available resources” must be spent before a spouse can receive

aid.

The Community Spouse Resource Allowance (CSRA) allows the non-

applicant spouse to retain, as of 2020 in most states, up to $128,620 in assets. This

spousal allowance is in addition to the $2,000 the applicant spouse is able to

retain.

Income limits—In addition to asset limits ($2,000 of countable assets if

single), there are income limits that preclude you from qualifying for Medicaid. In

2020, the majority of states allow a single applicant up to $2,349 / month in

income.

Generally, married couples’ incomes are counted separately. Therefore,

the income of a non-applicant spouse is not used in determining income eligibility

of his/her applicant spouse.

Also, if the “well spouse” (the one NOT applying for care) has income of

less than what is called the Minimum Monthly Maintenance Need Allowance

(MMMNA) (the monthly income limit of the spouse applying for aid ($2,349

listed a two paragraphs above)), income can be shifted from the person applying

for aid to the well spouse.

What is “Medicaid Planning?”

Medicaid planning, also known as divestment planning, is a way of getting

rid of your “countable” assets before you go into a nursing home. While it would

be nice to be able to give all of your assets away the week before you went into a

nursing home, that doesn’t work. There is a five-year lookback in most states.

Penalty period—if you give assets away within five years of applying for

aid, you will be assessed a penalty period which you have to wait out before

qualifying for aid. There is no time limit to the penalty period.


______________________________________________________


For example, a patient has a $100,000 asset and gifts that asset within five

years of applying for aid to someone other than a spouse or disabled child. When

divided by a divestment penalty divisor of $6,799 (the monthly private-rate for

care received from a nursing home which will vary per state), it causes a 15-

month ineligibility period which begins to toll from the date the divestment is

made.

Transfers that are exempt from the lookback penalty

Medicaid planning can be as simple as shifting assets from countable ones

to ones that are not countable.

1) Medicaid qualified annuity—this is a special type of annuity that starts

paying immediately in monthly installments whichis irrevocable (payments can’t

be changed), and has no cash value. For example, say your only countable asset is

$50,000 in your bank. Because of this asset, you can’t qualify for Medicaid.

However, if you paid a $50,000 premium into a Medicaid compliant annuity, you

could then immediately apply for aid and not worry about a penalty period.

You do have to be careful when using a Medicaid compliant annuity. You

can create too much income that will then make you ineligible for aid.

2) Paying off debt—paying off debt does not create a penalty period when

applying for Medicaid. Paying off debt can be useful in the Medicaid planning

process in order to try and pass the maximum amount of wealth to heirs at death.

3) Home improvements—a primary residence can be improved without

penalty. If it’s a spousal situation, this would allow the well spouse to make a lot

of improvements that may have been delayed because of the costs associated with

caring for a sick spouse. What’s most important is that the well spouse stays in a

home with no debt with improvements made.

4) Buying a car—it may sound funny, but you can buy a new $50,000 car

and that is exempt from the lookback penalty.

Other Medicaid planning techniques—there are sophisticated plans that

can be implemented to immediately get someone qualified for aid. Those

sophisticated planning techniques are outside the scope of this material. The goal

with this material is to give readers a general understanding of the difficulties of

qualifying for aid and to motivate those who need it to act before (five years

before is preferable) you go into a nursing home.

Estate recovery

It’s one thing to qualify for Medicaid; it’s another to pass all your assets to

your heirs after you pass away. The government gave you aid while living and

will be looking for payback of that aid from your estate when you pass.

The good news is that estate recovery does NOT create a debt owed by the

heirs but rather creates a claim or lien only against the assets in the recipient’s

estate. The state Medicaid agency files a claim against the estate and can enforce

it in the same manner as any other creditor of the estate.


_________________________________________________________________


Personal residence

This is the big one. The personal residence can be a protected asset while

living, but is not protected after death.

In the circumstances listed below, the Medicaid agency will waive its

claim against the estate:

-An adult child has lived in the home and provided care to the parent for at

least two years prior to the date that the parent became a Medicaid recipient and

continued to reside in the home until the parent’s death;

-An adult sibling of the Medicaid recipient has lived in the recipient’s

home for at least one year prior to the date that the recipient was institutionalized,

continued to reside in the home until the recipient’s death, and had a right to

remain there after the recipient’s death.

-The property in the estate is essential to a family business in which one or

more heirs has been continuously employed for at least one year before the

recipient first received Medicaid-funded services.

Beneficiaries may also apply for a hardship waiver by showing that a

recovery from the estate will "jeopardize the survival of the family unit or

severely disrupt the family’s income or business."

The home may be transferred without penalty while living only if

transferred to:

-A spouse;

-A child who is blind or disabled or under age 21;

-An adult child who has lived in the home for at least two years prior to

the applicant’s institutionalization and who provided care to the applicant.

-A sibling who has resided in the home for at least one year prior to the

applicant’s institutionalization and who has an "equity interest" in the home.

After a married client has entered a nursing facility and Medicaid

eligibility has been determined, the client’s spouse may transfer his or her interest

in the home to others without affecting the client’s eligibility. Therefore, the client

can simply transfer his/her share of the home to the spouse, who can then give it

to the heirs.

Probate

ONLY assets that pass through probate will be subject to estate recovery

(another reason to make sure your assets are owned by your revocable living trust

before you pass away).

Summary on Medicaid planning

For the most part, this material applies to someone who is 65 and older

who are candidates for skilled nursing home care (not assisted living).


______________________________________________________


Most people and even most estate planning attorneys do not know this

subject well. If they did, there would be far fewer people who seek help from a

Medicaid planner on the way to or when they are already in a nursing home.

It is best to plan five years in advance if your goal is to preserve assets for

the heirs and receive aid from the government for your nursing home care.

If you don’t plan ahead of time, there are things you can do to mitigate the

financial damage while living and upon death.

While this subject matter may not apply to the majority of people taking

this financial literacy course, the chances are high that everyone taking this course

will have a friend or family member in the near future who could benefit by

knowing this material. So, feel free to pay it forward to help those you know who

can benefit from your new knowledge (and use it yourself when the time is right).

Certified Medicaid Planner™

I thought this topic was so important that I created, with the help of some

of the country’s best experts, the Certified Medicaid Planner™ (CMP)

certification. It is the only certification of its kind and attorneys,

CPAs/accountants, and insurance agents/financial planners typically are the ones

who go through the certification process.

If you or a friend or loved one needs help with Medicaid planning, I

highly recommend you reach out to a CMP for help.

REVERSE MORTGAGES (RMs)

A financial literacy course would not be complete if it did not cover RMs.

I decided to cover RMs in this course for two reasons.

1) They could potentially be a useful tool in a retirement plan.

2) There are a lot of scammers in the RM space that you can avoid if you

are educated on the subject matter.

What is a RM?

It’s a special type of mortgage available if you are 62-years old or older.

It’s a mortgage you take out on your house where you have NO payments while

living in the house.

In essence, you are converting a portion of the equity in your home to cash

or into a payment stream; and the debt incurred, hopefully, will be paid back upon

death (more to come).

For many, an RM is a cash-flow tool for those who want or need the

money but also want to stay in their home (vs. selling their home to raise the

needed cash).

Why not just get a conventional mortgage instead of an RM?

Because many retired people do not have enough income to qualify for a

conventional mortgage and don’t want to or can’t afford the new monthly

payment that would be created with a new mortgage. Also, the borrower might


_________________________________________________________________


not need a lump sum of money and is more interested in a monthly payment from

the RM lender.

Reasons people take out RMs?

1) Pay for medical expenses (remember the #1 reason people file

bankruptcy is medical bills).

2) Improve the home—you plan on living in the home another 5, 10+

years, you don’t have the money to fix up the home, and don’t want to take or

can’t qualify for a HELOC (home equity line of credit) or conventional mortgage.

3) Take a trip or spend the money any way you’d like—there are no

restrictions to how you spend the money from an RM.

Taking a flamethrower to the equity of your home

I’m personally not a big fan of RMs. In my mind, they are for people who

just have to stay in the home and understand that by taking out the RM they will

be eating up the equity of their home.

I’d prefer to see someone who needs money sell their home and downsize

into a condo. It’s a much better financial decision for the overall welfare of the

estate.

But, I’ve heard the story many times, if we move grandma out of the

home, she will either have an absolute fit or will get depressed and die

prematurely. If that’s the case, then I suppose it’s nice to have an RM as an

option.

Specifics about RMs

With an RM, you keep the title to your home; and the money you get

usually is tax free.

Generally, you don’t have to pay back the money for as long as you live in

your home. When you die, sell your home, or move out, you, your spouse, or your

estate would repay the loan. Sometimes that means selling the home to get money

to repay the loan.

There are three kinds of reverse mortgages: single purpose reverse

mortgages – offered by some state and local government agencies, as well as non-

profits; proprietary reverse mortgages – private loans; and federally-insured

reverse mortgages, also known as Home Equity Conversion Mortgages (HECMs).

There are fees and other costs. Reverse mortgage lenders generally charge

an origination fee and other closing costs, as well as servicing fees over the life of

the mortgage. Some also charge mortgage insurance premiums (for federally-

insured HECMs).

As you get money through your reverse mortgage, interest is added onto

the balance you owe each month. That means the amount you owe grows as the

interest on your loan adds up over time.


______________________________________________________


Interest rates may change over time. Most reverse mortgages have variable

rates, which are tied to a financial index and change with the market. Variable rate

loans tend to give you more options on how you get your money through the

reverse mortgage.

Some reverse mortgages – mostly HECMs – offer fixed rates, but they

tend to require you to take your loan as a lump sum at closing. Often, the total

amount you can borrow is less than you could get with a variable rate loan.

You have to pay other costs related to your home. In a reverse mortgage,

you keep the title to your home. That means you are responsible for property

taxes, insurance, utilities, fuel, maintenance, and other expenses. And, if you

don’t pay your property taxes, keep homeowner’s insurance, or maintain your

home, the lender might require you to repay your loan.

A financial assessment is required when you apply for the mortgage. As a

result, your lender may require a “set-aside” amount to pay your taxes and

insurance during the loan. The “set-aside” reduces the amount of funds you can

get in payments. You are still responsible for maintaining your home.

What can you leave to your heirs? Reverse mortgages can use up the

equity in your home, which means fewer assets for you and your heirs. Most

reverse mortgages have something called a “non-recourse” clause. This means

that you, or your estate, can’t owe more than the value of your home when the

loan becomes due and the home is sold. With a HECM, generally, if you or your

heirs want to pay off the loan and keep the home rather than sell it, you would not

have to pay more than the appraised value of the home.

Types of Reverse Mortgages

There are three main types of RMs

Single-purpose reverse mortgages are the least expensive option. They’re

offered by some state and local government agencies, as well as non-profit

organizations, but they’re not available everywhere. These loans may be used for

only one purpose, which the lender specifies. For example, the lender might say

the loan may be used only to pay for home repairs, improvements, or property

taxes. Most homeowners with low or moderate income can qualify for these

loans.

Proprietary reverse mortgages are private loans that are backed by the

companies that develop them. If you own a higher-valued home, you may get a

bigger loan advance from a proprietary reverse mortgage. So if your home has a

higher appraised value and you have a small mortgage, you might qualify for

more funds.

Home Equity Conversion Mortgages (HECMs) are federally-insured

reverse mortgages and are backed by the U. S. Department of Housing and Urban

Development (HUD). HECM loans can be used for any purpose.


_________________________________________________________________


HECMs and proprietary reverse mortgages may be more expensive than

traditional home loans, and the upfront costs can be high. That’s important to

consider, especially if you plan to stay in your home for just a short time or

borrow a small amount. How much you can borrow with a HECM or proprietary

reverse mortgage depends on several factors:

-your age

-the type of reverse mortgage you select

-the appraised value of your home

-current interest rates, and

-a financial assessment of your willingness and ability to pay property

taxes and homeowner’s insurance.

In general, the older you are, the more equity you have in your home, and

the less you owe on it, the more money you can get.

Before applying for a HECM, you must meet with a counselor from an

independent government-approved housing counseling agency. Some lenders

offering proprietary reverse mortgages also require counseling.

With a HECM, there generally is no specific income requirement.

However, lenders must conduct a financial assessment when deciding whether to

approve and close your loan.

The HECM lets you choose among several payment options:

-a single disbursement option – this is only available with a fixed rate

loan, and typically offers less money than other HECM options.

-a “term” option – fixed monthly cash advances for a specific time.

-a “tenure” option – fixed monthly cash advances for as long as you live in

your home.

-a line of credit – this lets you draw down the loan proceeds at any time, in

amounts you choose, until you have used up the line of credit. This option limits

the amount of interest imposed on your loan, because you owe interest on the

credit that you are using.

-a combination of monthly payments and a line of credit.

You may be able to change your payment option for a small fee.

HECMs generally give you bigger loan advances at a lower total cost than

proprietary loans do. In the HECM program, a borrower generally can live in a

nursing home or other medical facility for up to 12 consecutive months before the

loan must be repaid. Taxes and insurance still must be paid on the loan, and your

home must be maintained.

With HECMs, there is a limit on how much you can take out the first year.

Your lender will calculate how much you can borrow, based on your age, the

interest rate, the value of your home, and your financial assessment. This amount

is called your “initial principal limit.”

Generally, you can take out up to 60 percent of your initial principal limit

in the first year. There are exceptions though.


______________________________________________________


Costs associated with an RM

This is the biggest problem with an RM. The costs to close and the

ongoing costs can be significant. Let me just list the fees, and you’ll see for

yourself.

Let’s look at an example of the closing costs of an RM for a house that is

worth only $215,000. I think you’ll be surprised at what you see.

Financed Charges Estimated Amount

Appraisal fee $550

Credit Report $48

Flood Certification (if needed) $12

Document preparation $175

MERS registration $11.95

Mortgage Insurance Premium $4,300 (2% of appraised value)

Lender’s title insurance $1,556

Title Search Fee $75

Notary / Signing $200

Closing Protection Letter $125

Endorsements $245.60

Recording charges mortgage $444

HECM counseling fee $125

Total costs $7,867.55

What is missing from the above expense list is the origination fee. Some

lenders will charge such a fee, and it could be upwards of 2% of the first $200,000

in value and 1% on the value above $200,000.

For HECM loans, the origination fee is capped at $6,000.

Again, the fees associated with RMs is why I’m not a fan and why there

needs to be a very compelling reason to take out an RM (the main one being that

the costs are worth it for someone who just has to stay in the home but can’t

manage financially without the RM).

The next two and final sections of this part of the material will be a bit

contradictory. In the first part, I’ll lay out the reasons you might hear from an RM

salesperson as to why you should consider getting one. The second part to follow

will be actual cautionary language from a Federal Government website warning

consumers about scammers in the RMs space

The following came directly from a website of a company that promotes

RMs.


_________________________________________________________________


7-ways to use an RM loan as a financial tool

1) You can delay Social Security and pension payouts

Some seniors may financially need to use payouts from Social Security

and pensions as soon as they are available. However, with the cash from your

reverse mortgage, you may be financially sound enough to wait on receiving

those payouts, thus increasing how much you receive. View an example of this

strategy and the corresponding monthly benefit.

I personally ran the math on this; and if the sole goal is increasing cash

flow without regard to equity in the home and what will pass to the heirs, this

could work but the closing costs and annual costs of the loan are difficult to

overcome. Additionally, you have to live long enough for the math to even have a

chance to work. If you die early, it’s a financial disaster.

2) You can postpone drawing down retirement assets, giving assets time to

grow

This idea follows the same formula as your Social Security and pension

payouts. The longer you can delay receiving your benefits, the longer they have to

grow. With a reverse mortgage, you may be able to afford to wait.

Same comment as 1).

3) You can increase your cash flow by eliminating monthly mortgage

payments

Every month, a monthly mortgage payment takes a chunk from your

income. But with a reverse mortgage, your existing mortgage is paid off. This

leaves you with extra money in your pocket that would have normally gone to

paying your existing mortgage. Monthly payments are contingent on maintaining

the home as the principal residence, paying all property taxes, and homeowner’s

insurance, home maintenance and otherwise complying with loan terms.

This one is true but is something I’d only recommend to people who

understand the closing costs are not insignificant and that the equity in the home

is going to be eaten up by the interest of the RM. I’d prefer to see someone sell the

house and downsize into a condo.

4) You have access to a low cost growing line of credit

With a reverse mortgage, you have a growing line of credit available to

you. It grows with time. This means that the line of credit available to you years

from now may be larger than the line of credit available to you now.

This is probably the most interesting bullet point if the closing costs and

ongoing costs of the RM were not so high. But for the costs, there is a good

argument to be made as to why everyone who has a house with no debt should

take out an RM line of credit when they turn 62. Unfortunately, the costs

associated with just getting a line of credit that you may not use are cost

prohibitive.


______________________________________________________


5) You can protect your portfolio performance in a down market

In a down market, your portfolio and cash flow may not be at its peak

performance. With a reverse mortgage, the incoming funds are able to protect you

until the market picks back up again.

This one is very interesting, and I think would have merit if the closing

costs and ongoing costs of the loan were not so high.

6) You can have annuity-style payments using your home’s equity

With a reverse mortgage, you are able to choose the option of receiving

your funds in annuity-style payments. This is perfect for some types of people

who would rather plan their income as a steady flow.

Again, I don’t care for this use of an RM. I’d prefer to see the person

downsize to a condo and use the money from the sale to improve cash flow vs.

taking a flamethrower to the equity of the home to increase cash flow.

Space

7) You can replace cash reserves

Some people have less cash in reserve than they would like. A reverse

mortgage gives you the chance to catch up and replace your cash reserves, getting

you up to speed financially.

This one is utter nonsense.

Items to consider (cautionary from the government’s website)

Compare fees and costs. This bears repeating:Sshop around and compare

the costs of the loans available to you. While the mortgage insurance premium is

usually the same from lender to lender, most loan costs – including origination

fees, interest rates, closing costs, and servicing fees – vary among lenders.

Understand total costs and loan repayment. Ask a counselor or lender to

explain the Total Annual Loan Cost (TALC) rates: They show the projected

annual average cost of a reverse mortgage, including all the itemized costs. And,

no matter what type of reverse mortgage you’re considering, understand all the

reasons why your loan might have to be repaid before you were planning on it.

Be Wary of Sales Pitches for a Reverse Mortgage

Is a reverse mortgage right for you? Only you can decide what works for

your situation. A counselor from an independent government-approved housing

counseling agency can help. But a salesperson isn’t likely to be the best guide for

what works for you. This is especially true if he or she acts like a reverse

mortgage is a solution for all your problems, pushes you to take out a loan, or has

ideas on how you can spend the money from a reverse mortgage.

For example, some sellers may try to sell you things like home

improvement services – but then suggest a reverse mortgage as an easy way to

pay for them. If you decide you need home improvements, and you think a

reverse mortgage is the way to pay for them, shop around before deciding on a

particular seller. Your home improvement costs include not only the price of the


_________________________________________________________________


work being done – but also the costs and fees you’ll pay to get the reverse

mortgage.

Some reverse mortgage sales people might suggest ways to invest the

money from your reverse mortgage – even pressuring you to buy other financial

products, like an annuity or long-term care insurance. Resist that pressure. If you

buy those kinds of financial products, you could lose the money you get from

your reverse mortgage. You don’t have to buy any financial products, services, or

investments to get a reverse mortgage. In fact, in some situations, it’s illegal to

require you to buy other products to get a reverse mortgage.

Some sales people try to rush you through the process. Stop and check

with a counselor or someone you trust before you sign anything. A reverse

mortgage can be complicated and isn’t something to rush into.

The bottom line: If you don’t understand the cost or features of a reverse

mortgage, walk away. If you feel pressure or urgency to complete the deal – walk

away. Do some research and find a counselor or company you feel comfortable

with.

Your Right to Cancel?

With most reverse mortgages, you have at least three business days after

closing to cancel the deal for any reason, without penalty. This is known as your

right of “rescission.” To cancel, you must notify the lender in writing. Send your

letter by certified mail, and ask for a return receipt. That will let you document

what the lender got and when. Keep copies of your correspondence and any

enclosures. After you cancel, the lender has 20 days to return any money you’ve

paid for the financing.

Summary on reverse mortgages

Generally speaking, I think they are over marketed and oversold. It pains

me to see celebrities pitching RMs in ads on TV.

There is one truity with RMs; if you take one out and use it, you will eat

up the equity in your home.

That’s a choice homeowners can make.

When I think of RMs, I think of the story I tell in another part of the

course about the scorpion and the frog. RM sales people remind me of the

scorpion in that they think everyone who is 62 or older should have an RM.I

don’t.

I think RMs mortgages should be used by people who put a premium price

on staying in a home and who need extra money. It’s financially a better decision

to sell the home and downsize thereby freeing up money to be used instead of

immediately starting a negative amortization loan on the home that will eat away

at its equity.


______________________________________________________


SUMMARY ON PREPARING FOR RETIREMENT

The first part of this educational module was mainly to help motivate

readers to fight complacency and the inertia of doing nothing.

Most people have no idea how much they should be saving, where they

should be saving, or how much they need to save in order to live the lifestyle they

would like in retirement. A nearly completely overlooked item when preparing for

retirement are the healthcare costs that await you. Keep in mind that, if you retired

as a couple today, the expected cost of healthcare related expenses is $235,000.

The average increase in healthcare related expenses is supposed to increase by

5.5% over the next decade.

If you are 55 years old now, using a 5.5% per year increase in the total

costs, a couple in retirement could expect to spend $423,492 in retirement just on

healthcare costs.

It’s even more depressing for someone who is younger.

The question I already know the answer to is that people are NOT saving

enough for retirement both to live the lifestyle they want and pay for necessary

expenses like healthcare costs.

space

The second part of this module covered three important topics all retirees

or soon- to-be retiree should know.

-Medicare

-Medicaid

-Reverse Mortgages

Medicare is something everyone should apply for when they turn 65, and

it’s important to know your options when it comes to the various Parts of the

program.

Medicaid is something that many people find out they do NOT qualify for

because they need to spend down their countable assets to $2,000 before receiving

aid. It’s vitally important for seniors who are candidates for Medicaid to plan for

it five years ahead of time if possible (and, if not, to know your available options

to shift assets so you can qualify).

Reverse mortgages might be overhyped and oversold; but unless you

know how they work and the pros and cons, you won’t be able to choose to use

them or not when the time comes.

Hopefully, this module was both educational and motivational and will

help readers take action to create a budget and to seriously think about what they

need to do to prepare for retirement.

section 9 retirement life cycle - the wpi · will have enough money to live comfortably in...

Documents