The first thing a Baby Boomer needs to remember is that he or she is no longer approaching retirement. A Baby Boomer is defined as a person between age 65 and 73. Even though they may still be working, retirement age has arrived for the Boomer and long-term retirement planning is, in most cases, no longer an option. 

Contrary to the liberal IRA required minimum distribution tables, the Social Security Life Expectancy Tables state that, on average, a male age 73 has a life expectancy of 12.43 years. A female, age 73 has a life expectancy of 14.37 years. A male age 65 has a life expectancy of 17.92 years. A female, age 65 has a life expectancy of 20.49 years.

In light of these figures, a Baby Boomer should consider revising his or her retirement checklist annually to ensure the following are occurring:

  1. The Boomer’s principal is being invested safely with a financial advisor who is demonstrating that his or her investment track-record is proving to be sound and conservative. Consider a portfolio of mixed fixed-income and growth assets that is structured to earn sufficient returns to meet a conservative disbursement of annual retirement income while preserving the necessary principal for the future year’s income needs. 
  2. The Boomer’s Advanced Directives, such as the durable power of attorney, are reviewed annually to document that the agent named in those documents is still physically and mentally able to effectively serve as the manager of assets and health care should the Boomer suffer a catastrophic illness,  
  3. The annual changes in the Boomer’s supplemental health insurance plan and prescription plan deductibles should be studied to ensure the coverages are adequate as new health needs arise, 
  4. A state certified contractor should be consulted annually to be sure the coverages allowed by the Baby Boomer’s homeowner’s insurance are sufficient to pay the current cost to rebuild the primary residence in the event of disaster,
  5. A monthly escrow for unexpected automobile repairs and for the replacement of the Boomer’s automobile is essential,
  6. An adequate reserve for the deductibles not paid by long-term care insurance, if necessary. Most policies have a ninety day elimination period,
  7. Escrow a sufficient sum for the Boomer’s children’s expenses incurred in traveling to and attending to him or her should he or she become disabled. 

We know this article may raise more questions than it answers for you. There is never a wrong time to think through your retirement planning and long-term care planning needs. Do not wait to contact our office to schedule a meeting with attorney Alan Hougum.