Money for the Second Half


Financial planning makes senior years a little more golden

Utah Valley Magazine: What are the primary financial concerns of seniors?

Jason Payne, Payne Financial Management: The seniors I’ve worked with face three main concerns:

1) Taxation on retirement and social security income. 2) Nursing home confinement for themselves or a spouse. 3) Running out of money before they run out of time


UV: What do people need to know about planning for retirement?

Jason: We are often told during our working years that taxes will be lower in retirement. However, the opposite is true in many cases. For those seniors who have their homes paid for and no children to claim as dependents, deductions are minimized, which exposes more income to taxation.


UV: Is it true retirees can live comfortably on 70 percent of pre-retirement income?

Jason: People in the workforce have an inflation rate of 3 percent to 5 percent. Seniors face an inflation rate of 10 percent to 15 percent because of the increase in medical care and prescription costs. Seniors in good health often travel and recreate, which can take more money than expected. So the cost of living generally doesn’t change  — seniors just have different costs.


UV: What do we need to understand about preparing for long-term care?

Jason: Long-term care is the most ignored issue in seniors’ lives — ignored by seniors, their children, their community, and most of the planning community. It’s not a fun topic to discuss. The average cost in Utah is $50,000 per year. Nursing and home health care have a high inflation rate, so in 10 to 15 years the cost could double.


UV: What do you tell seniors who worry about outliving their retirement money?

Jason: Our working years are similar to the first half of a football or basketball game. Some have a better gameplan. But the game changes at retirement, the second half. If people played well and prepared for the first half, they can enjoy the second half more. They have more freedom and can manage the clock, so to speak.

If seniors find themselves behind in the second half, they tend to take higher risks to make up the difference, and in most cases that spells disaster. Believe it or not, there are some things that can be done. When people get good information, they can make smart money choices that will improve the situation and the outcome of their game.  u

For more information on these and other financial issues, contact Jason Payne at Payne Financial Management at (801) 226-6036. Securities offered through Sammons Securities Company, LLC Member NADS/SIPC.


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