Financial Opinion and Insights

Give Your Children A Big Gift!!!

Jim Lorenzen, CFP®

Jim Lorenzen, CFP®

Get your own `financial house’ in order. 

What does that mean?   Let’s start with this:  Do you know how much money it will take for you to retire, with cost of living increases, for the rest of your life?   How much will you need in financial assets – not your house, cars, boats, etc. – so that you can have a rising stream of income for the rest of your life in order to preserve your independence and lifestyle.

  • Some experts believe 50% of the population is now at risk for Alzheimer’s, simply because we’re all living longer.   Alzheimer’s care is not covered by Medicare.  Full-time care can easily cost $4,500 per month – that’s $54,000 a year, after taxes.  And it’s not tax deductible!   It’s not uncommon for people to live five to ten years with Alzheimer’s!  $54,000 a year times ? years… you do the math.   Don’t think it will happen to you?  Talk to your friends!  I’ll bet virtually everyone you know has been touched by Alzheimer’s. 

  • People are living longer.  Living into our 90s is common and you should expect it!  If you think you’re going to retire in your mid-60s and you are married, you should plan on two lives over three decades!

  • Every year, the things you need will cost more.  In the early 80s (three decades ago) you could buy a first-class postage stamp for 15-cents.  If 10-cents bought everything you needed to live, you might think you’d be sitting pretty with a 5-cent (33%) cushion; but, today the entire 15-cents won’t even buy the stamp!  In fact, you’d be draining savings!  It would take virtually 3 stamps to buy what 2/3 of a stamp used to buy!

If you don’t have a plan, start now.

If you don’t have your financial house in order, have a talk with your kids now.  

NOW!  Not this weekend; not during summer vacation;  not in the fall.   NOW.

If you’re not prepared, they should know it; because they could be the ones living with the financial results.  You’re all in it together.


Jim Lorenzen is a CERTIFIED FINANCIAL PLANNER™ and in his 20th year of private practice as Founding Principal of The Independent Financial Group, a fee-only registered investment advisor with clients located in New York, Florida, and California.  He’s been a headline speaker at conventions throughout the United States, Canada, and the U.K. and has appeared in `The Journal of Compensation and Benefits’, as well as in The Profit Sharing Council of America’s `Insights’.    Jim has also appeared on American Airlines’ `Sky Radio’, heard on more than 19,000 flights.  IFG does not sell products, earn commissions, or accept any third-party compensation or incentives of any description.  Nothing contained herein should be regarded as tax or legal advice and the reader is urged to seek competent counsel to address those issues.   The above represents the author’s opinion and should not be regarded as investment advice which is provided only to IFG clients upon completion of a formal financial and investment plan.   For questions or comments, you can reach Jim at 805.265.5416 or through the IFG website, http://www.indfin.com.