{"id":2969,"date":"2022-07-25T20:14:45","date_gmt":"2022-07-25T20:14:45","guid":{"rendered":"https:\/\/fusionwm.com\/?p=2969"},"modified":"2022-09-01T23:00:40","modified_gmt":"2022-09-01T23:00:40","slug":"wealth-planning-for-age-90-100-and-beyond","status":"publish","type":"post","link":"https:\/\/fusionwm.com\/wealth-planning-for-age-90-100-and-beyond\/","title":{"rendered":"Wealth Planning for Age 90, 100\u2014and Beyond"},"content":{"rendered":"\n
\"Wealth<\/figure>\n\n\n\n
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\u201cHere\u2019s to a long life, and a merry one\u2026\u201d<\/p>\n\n\n\n

So begins a well-known Irish toast\u2014and it\u2019s one that\u2019s becoming more relevant than ever. In general, we\u2019re living longer than ever and\u2014thanks to medical technology advances\u2014in better health than our ancestors. <\/p>\n\n\n\n

Some experts\u2014like Harvard University Professor of Genetics David Sinclair, author of Lifespan: Why We Age\u2014And Why We Don\u2019t Have To<\/em>, even proffer that \u201cthere is no biological limit, no law that says we must die at a certain age\u201d and that \u201cwe\u2019re probably still a long way off from a world in which death is a rarity, but we\u2019re not far from pushing it ever farther into the future.\u201d<\/p>\n\n\n\n

On one hand, that\u2019s great news. After all, why wouldn\u2019t you want to stick around for as long as you can\u2014especially if you\u2019re feeling fit and active? <\/p>\n\n\n\n

But it also presents a challenge: planning financially for golden years that might extend to age 90, 100\u2014or even longer. If you tack on an additional ten or 15 years to your life, you could face the very real and dangerous risk of running out of money while you\u2019re still alive\u2014or having so little left that your lifestyle becomes seriously compromised. <\/p>\n\n\n\n

Why? For one, major medical bills and rising health care costs could eat away at your savings. Also, your financial plan could fail to take into account golden years that last for 35 or 40 years. <\/p>\n\n\n\n

The good news: <\/em>Longevity planning<\/strong> is becoming an increasingly important part of successful families\u2019 wealth management efforts to combat the risks inherent in living much longer than previous generations did. Essentially, longevity planning is about taking action to live longer. But those actions lead to other issues, including financial ones\u2014which is where wealth management comes into play.<\/p>\n\n\n\n

Here\u2019s a look at two ways wealth management is being used by the affluent to help ensure their wealth is well-positioned to go the distance.<\/p>\n\n\n\n

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Concierge and specialized medical care<\/h1>\n\n\n\n

Any discussion of funding a longer life should involve the topic of paying for medical care, so that you and loved ones can continue to have lives that are not just extended but also healthy.<\/p>\n\n\n\n

Of course, the medical care landscape is changing at a rapid pace. The traditional health care system is very unlikely to be able to keep up with demand, and there is great potential for people to fall between the cracks. <\/p>\n\n\n\n

For those who are concerned, and who can afford it, concierge medicine<\/em> can be a viable solution. <\/p>\n\n\n\n

Essentially a broad term covering a wide variety of health care delivery models, concierge medicine is at its core a membership model: For a fee, you get access to \u201cboutique\u201d medical practices with relatively small ratios of patients to physicians\u2014enabling shorter wait times, longer visits and significantly more personalized care given (in many cases) by physicians with greater expertise than the typical provider has.<\/p>\n\n\n

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\"Wealth<\/figure><\/div>\n\n\n

The problem: High-quality concierge medicine can be extremely costly, depending on the care needed and the providers. <\/p>\n\n\n\n

Therefore, the ability to use wealth management solutions to address the potential costs of concierge health care and specialized medical care can be extremely valuable\u2014even to those of us with significant wealth. Consequently, some of the foremost wealth managers, accountants and attorneys are working with families to make certain that their financial and legal world is set up to benefit from high-quality longevity planning.<\/p>\n\n\n\n

Consider the following examples of health care issues and how wealth management solutions can help support the use of concierge medicine to address those issues.<\/p>\n\n\n\n

Scenario 1:<\/strong> Consider a wealthy family with more than $30 million in net worth, most of which is tied up in their family business and illiquid. A family member requires costly, state-of-the-art treatments that are available only in a foreign country, as well as significant post-treatment rehabilitation. Being able to financially prepare for such a situation through genomic testing can be instrumental in preserving the family business and ensuring the family member gets the best medical care possible. In that case, advanced use of certain forms of insurance can potentially address the health care needs in tax-efficient ways.<\/p>\n\n\n\n

Scenario 2:<\/strong> Because people are living longer and more active lives, individuals can run out of money. With medical costs likely to continue to rise and age working against you, you need to manage financial assets in a way that accounts for much longer life spans and ensures a long and well-lived life. As an investor, it\u2019s all about how much you walk away with\u2014not necessarily how much you earn. A great-performing investment can become mediocre after taxes. There are, however, ways to mitigate the tax bite from a variety of investments\u2014for example, by using certain types of life insurance to reduce taxes. <\/p>\n\n\n\n

\"Wealth<\/figure>\n\n\n\n
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Estate planning<\/h1>\n\n\n\n

Estate planning is another key aspect of longevity planning. Due to longer life spans, people and families may need to rethink their existing estate plans and even their entire mindset about wealth transfer. Indeed, the potential to live much longer can create an estate planning minefield for wealthy families as well as their wealth managers and tax experts. <\/p>\n\n\n\n

Specifically, we\u2019re seeing significant issues develop for high-net-worth families in terms of how <\/em>and when<\/em> to transfer assets to subsequent generations.<\/p>\n\n\n\n

For example, among many wealthy families, a critical longevity-related question must now be asked: \u201cWhen does the next generation get to benefit from and control the assets they are intended to have?\u201d <\/p>\n\n\n\n

If a successful business owner, for instance, expects to live past 100 thanks to medical advances, when do the inheritors take control of the family-owned and -managed company? Is it in their 70s? 80s? 90s? Potentially disastrous family confrontations could arise from not thinking through the possibilities and being proactive. Consider one example of a family business where the son was in his early 50s and his father (the founder) was in his early 80s. The son had expected to take over the business years ago\u2014but his father, who was in good health, had no intention of stepping down. Fed up, the son left to start a competing firm. Ultimately, this led to threats of physical harm, lawsuits and a split within the family that negatively impacted the owner\u2019s relationship with his grandchildren. <\/p>\n\n\n\n

Controlling wealth until death is a common practice among self-made millionaires. But this philosophy can lead to poor estate plans, especially when the people involved live a long time. In cases where the wealth holders are living a very long time, it is their responsibility to construct estate plans that clearly spell out what is to happen.<\/p>\n\n\n\n

Best practice:<\/strong> Often, it can be wise to transfer assets before death, which can head off lots of possible problems\u2014such as family disputes, lawsuits and assets strangely disappearing. Shifting some wealth before death can also prevent problems if the wealth holder suffers dementia and is exploited by staff or even family members. <\/p>\n\n\n\n

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Finding your longevity planning lifeline<\/h1>\n\n\n\n

As you move forward, consider the following questions:<\/p>\n\n\n\n