Sandra D. Adams, CFP®

Planning Ahead for Later Retirement Living

Sandy Adams Contributed by: Sandra Adams, CFP®

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Clients often find their adventurous side once they retire. It is not uncommon for them to find themselves living in a different part of the country (or the world) from their family for at least part of the year to enjoy the benefits of a warmer climate and a more active lifestyle with others who share the same interests.

Planning conversations with these clients often make their way around to the topics of long-term care and the specifics of where they will want to live when they are older and potentially need care and who they want to take care of them. For most clients, they want to be at least living close to family later in life when they might need care, whether that means that family is providing care or they are receiving care from professionals and their family is just close enough to be able to see them frequently. That is usually the plan. We encourage clients to make those plans become reality well before they need care, but most people do not want to think about those things, so they put off acting on their plans.

Recently, though, I have had several clients starting to plan ahead (Yes! People are hearing the message!). They are taking the time to look at where they might want to live near their family in advance. For some, this might be an independent condo. For others, this is an apartment in a retirement community, a Continuing Care Retirement Community, or an Assisted Living Facility (if they are already experiencing care needs). The point is that they are thinking ahead and finding their “right fit” and finding the place they want to be before it is critical that they move. For some, they may have two places for a while and transition over time. For others, they determine it is time to move back “home” near family and give up the active retirement lifestyle with peers. Because they are planning in advance, they can determine what works best and take their time to make it work for them.

Planning ahead for where you will live in each of the distinct phases of retirement can be critical. Getting caught in a situation where you need to change your living situation or move to a care facility when you have not planned for it can be disruptive and challenging, at best, especially if you have yet to give it any thought. Plan ahead for your future long-term care and retirement living situation so that you and your family have the best overall experience possible in your later retirement years.

If you or someone you know needs assistance with these types of planning conversations, please reach out, we are always happy to help. Sandy.Adams@CenterFinPlan.com

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Don’t Be a Victim! Financial Abuse of Seniors – How to Spot Scams & Protect Yourself

Sandy Adams Contributed by: Sandra Adams, CFP®

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As a financial adviser in an almost 40-year-long practice, I work very hard to keep my aging client base educated on anything that might be a risk to them or their financial plan. Financial exploitation, including current fraud and scams, rises to the top of this list when it comes to the older adult population.

With technological advances, including artificial intelligence and access to computers, cell phones, and other devices, it is hard to keep up with how we can be attacked, who we can trust, and what is safe. According to the American Bankers Association, senior financial abuse is estimated to have cost victims at least $2.9 billion last year alone.

What is Senior Financial Exploitation?

This is a crime that strips older adults of their resources and independence. You should be on alert if you see signs of theft, fraud, misuse of another person’s assets or credit, or use of undue influence to gain control of an older person’s money or property. Those are signs of possible exploitation. Older adults who may have disabilities, including cognitive impairment, or may rely on others for help can be especially susceptible to scams and other fraud.

Dr. Peter Lichtenberg of Wayne State University’s Institute of Gerontology has done intensive research on financial exploitation in the senior population. He recommends avoiding scams by being aware of PRESSURE:

Phone: Phishing or text solicitations to start a scam.

Requests: That you send money by gift card, wire transfer, or cryptocurrency.

Ex tracking: Your personal information (Social Security number, date of birth, account numbers) to verify your identity.

Secrecy: Scammers insist that you keep their contact with you a secret!

Spamming: Multiple emails or texts, hoping one will catch you off guard.

Urgency: Scammers insist you act quickly before you become suspicious.

Repetitive: Requests to provide money or information (to wear you down).

Emotional: Scammers appeal to your emotions to make you panic (“your grandson is in jail”) or become excited (“you won the lottery”), so you act without thinking.

What are actions you should take to protect yourself against exploitation?

  • Make sure your estate planning documents are updated and that you have someone prepared to make decisions for you in the case that you are unable to make those decisions for yourself.

  • Shred receipts, bank statements, and unused credit card offers before throwing them away.

  • Lock up your checkbook, account statements, and other sensitive information when others will be in your home.

  • Check your credit report at least once a year (www.annualcreditreport.com) to ensure accuracy and ensure there are no unauthorized credit openings.

  • Never give personal information, including your Social Security number, account number, address, or other financial information, to anyone over the phone or computer unless you initiated the call and the other party is trusted.

  • Never pay a fee or taxes to collect sweepstakes or lottery winnings.

  • Never rush into a financial decision. Ask for details in writing and get a second opinion.

  • Consult with a financial adviser or attorney before signing any document you don’t understand.

  • Get to know your financial adviser and build relationships with those who handle your finances. They can look out for any suspicious activity related to your account.

  • Check with your trusted financial adviser before proceeding with transactions if you are not sure.

  • Check references and credentials before hiring anyone. Don’t allow workers to have access to information about your financial accounts.

  • Pay with credit cards instead of cash to keep a paper trail. In the event of fraud, credit cards give you the best recourse for getting your money back.

  • Feel free to say “no.” This is your money. Do not be pressured into making a decision.

  • Trust your instincts.

What should you do if you suspect you have been a victim of financial abuse?

  • Do not keep it to yourself — talk to a trusted family member or professional who has your best interests at heart.

  • Contact your financial adviser, an officer at your bank, or your attorney.

  • Contact Adult Protective Services in your state or your local police for help.

If you are helping older adults, what are the warning signs of financial abuse?

  • Unusual activity in bank accounts, including large, frequent, or unexplained withdrawals.

  • ATM withdrawals by an older person who may have never used a debit or ATM card in the past.

  • Withdrawals from bank accounts or transfers between bank accounts that the older adult cannot explain.

  • New companions accompanying the older person to the bank or financial planning appointments who have never been part of the relationship in the past.

  • Sudden and uncharacteristic non-sufficient funds activity or unpaid bills.

  • Suspicious signatures on checks or other paperwork.

  • Confusion, fear, or lack of awareness on the part of the older adult client.

  • Refusal to make eye contact, shame, or reluctance to discuss an issue or problem with their financial account.

  • Checks written as loans or gifts when this is not typical of the client.

  • Sudden change of address or bank statements that no longer go to the customer’s home.

  • New power of attorney that the older adult does not understand.

  • Altered estate planning documents.

  • Loss of property.

If you suspect financial abuse, what should you do?

  • Have a conversation with the older adult to try to determine what is happening; seek advice for these difficult conversations, if needed.

  • Report the elder abuse to their bank or other financial institutions to help stop it and prevent its recurrences.

  • Contact Adult Protective Services in your town or state for help.

  • Report all instances of elder financial abuse to your local police. If fraud is involved, it should likely be investigated.

It is not uncommon to be vulnerable to fraud and scams. Older adults are even more susceptible than most due to things like social isolation, unfamiliarity with technology, cognitive decline, etc. Romance scams, grandparent scams, Medicare and Social Security scams, and new scams are catching us all by surprise and stealing thousands of dollars from unsuspecting seniors every day. Be educated, alert, and careful to avoid the risk of financial exploitation.

To keep informed of the most current ongoing scams, go to www.ftc.gov.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial adviser about your individual situation.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Leaving a Spirit Legacy

Sandy Adams Contributed by: Sandra Adams, CFP®

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In the normal course of our financial planning reviews and strategy sessions with clients, we review estate planning and the documents that clients should have in place. This ensures that they have protected themselves and their families legally and that their wishes can be carried out during their lifetimes and after their deaths from a healthcare and financial perspective. What we often neglect to discuss are non-legal estate planning documents that are available to help pass on non-financial/non-physical assets to family members.

What am I talking about? In conversations with clients, they often express that they would like to have a way to pass on to their families things like family stories, their most strongly held values, and the wisdom they have spent a lifetime acquiring. As it turns out, there is a document that can be drafted that was designed just for passing on such important family “assets” — it is called a Spiritual Legacy. Again, a Spiritual Legacy is not an actual legal document. However, it is a document that can be left to your family, and for many clients, passing on these important family stories and values is as important as other assets they might be considering leaving behind.

How do you write a Spirit Legacy?

There is no right or wrong way to write your Spirit Legacy. If you would like some guidance on getting started, “Creating a Spirit Legacy” by Daniel Taylor is a great guide that helps you get started and provides exercises on turning your thoughts into good stories to leave to your family. There is also no reason not to start the process early and to review often. While we may believe that we have the best family stories and values in mind to leave behind, we continue to live (and many of us will live long lives), so it is important to continue to edit and revise our Spirit Legacies to always reflect the best of our stories, our current values, and best of our wisdom too. 

The next time you review your estate planning documents to make sure they are up to date, be sure to make sure that a Spirit Legacy is on your list. Your kids, grandkids, and great grandkids will be glad you did! 

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Facing the Challenges of Only Child Caregivers

Sandy Adams Contributed by: Sandra Adams, CFP®

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According to AARP, one in five adults (equating to more than fifty million Americans), is providing unpaid health care or support to a loved one, such as an aging parent or a spouse with an illness or disability. Increasingly, there are more only-child caregivers attempting to provide care for aging parents. This trend is not likely to end anytime soon. An APM Research Lab analysis of Census Bureau data found that, among U.S. households with children, approximately 3 in 10 had just one child in 2017 compared with 2 in 10 in 1960.

It may seem counterintuitive, but caregivers without siblings can benefit in several ways:

  • They can step up and make decisions to get things done without having to get consensus from siblings.

  • They develop resilience and the ability to adapt to adverse situations and adjust to meet the demands; they are flexible.

  • If things go wrong, there is no one to complain or put blame on the caregiver (except themselves).

  • Caregiving in this way can create quite a strong bond between a child and their parent due to the amount of time spent together.

However, caregivers with siblings have more advantages:

  • They have the support to help make difficult decisions; they don’t have to make those decisions alone and have to feel guilty that they may or may not have made a bad decision.

  • They can share in the caregiving duties and obligations with their siblings so that there is less chance of burnout.

  • Many times, pulling together for caregiving for an elderly parent(s) can create an even stronger family bond.

  • Having multiple siblings with many eyes on elderly parents can often ensure that things are not missed (i.e., signs of diminishing mental capacity, other health issues that might be missed if only one child were trying to cover it all).

  • If parents do not live near their one child, having multiple children means there is more likely to be at least one child that lives near the parents to provide more hands-on care while other siblings can take on other caregiving duties to pitch in.

  • Having multiple siblings prevents the caregiver isolation that occurs with only child caregivers.

For only child caregivers, planning ahead is the key to having a successful caregiving experience. Here are some suggested actions: 

  1. Have an Advanced Longevity Plan. This begins with having conversations with your parent in advance of the aging process about their future aging: about their future challenges, the alternatives they wish to consider, the resources they have to use, and the experience they hope they have. It might include having difficult conversations, but those conversations will lead to proactive planning that will help prevent making decisions in a time of chaos later.

  2. Get Organized. From a financial and medical standpoint, this means working with your parents to collect their information and data and get it organized and in one place. In addition, it means working with financial and legal professionals to make sure their documents and financial accounts are in the best possible position to serve them for the long term.

  3. Find Others to Help. When the time comes to provide actual assistance and care, realize that you cannot do it alone. Without siblings to help, look for other family members, friends, community resources and paid caregiver resources (if financial resources allow) to help. Make sure to set boundaries on how much care you can personally provide. If you are still working, you may need to protect your financial future; in any case, preventing burnout is important for personal well-being.

  4. Take Care of Yourself. This means periodically getting some respite, taking time for self-care, and making sure that you are doing what is best for your future, as well as what is best for your parents. According to a 2015 AARP survey, about 60% of Americans caring for adult family members also work. For working caregivers, especially only child caregivers, it is particularly important to look into the time that you might be able to take off from work if that relieves stress (Family and Medical Leave Time, vacation time, unpaid/paid personal leave, etc.). Most family caregivers do need to make some changes to their work to be there for their family members. The financial burden, both current and future, for an only-child caregiver can be huge since it cannot be shared with multiple siblings. Most family caregivers — 78% in one AARP study — incur out-of-pocket expenses related to their caregiving role, with the average caregiver spending about $7,000 per year on things like rent, mortgage, medical bills, etc.). The average long-distance caregiver spends about $12,000 per year. In addition, seek caregiver support or counseling, if you need someone to talk to.

  5. Build a Team. This may be the most important step for an only-child caregiver. Realizing that you cannot do everything alone is a big “Aha” for many caregivers. Feeling like it is an obligation to do everything yourself is something you must shake or risk emotional, psychological, and physical (health/stress) burnout. Building a well-rounded team to delegate the things that you do not want to do, cannot do or that you find stressful is crucial. This likely means adding an Estate Planning/Elder Law attorney, a financial adviser, a CPA/tax preparer, perhaps a Geriatric Care Manager, an assisted care team, and/or other team members that can help in providing the care and services needed to help you manage your parent's needs while you also manage your own life. These team members should all talk to each other and be on the same page so that the plan works well for the benefit of your parent’s plan.

As our demographics shift and there are more only children caring for aging parents, advanced longevity planning becomes more and more important. Only child caregivers, especially single children, need the support of other family members, community resources and professionals to provide a team to support their loved ones. Realizing that this job of caring for parents alone is a balancing act of providing care and ensuring that they have a secure future for themselves is crucial, as is taking steps to draw the proper lines as a caregiver must. Planning ahead is the best way to make sure that the best lives for all involved can be protected.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Are Fair and Equal the Same When It Comes to Gifting Children?

Sandy Adams Contributed by: Sandra Adams, CFP®

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I have had several client conversations in recent months about gifting to children. Parents are always concerned about making sure that they are being fair to all their children as they gift. As these discussions evolve, the definition of “fair” in the minds of parents often means “equal.” But do gifts to our children always need to be—and should they always be—equal?

Think back to when your children were younger. For some reason, many of us drive ourselves crazy making sure each of our children had the same number of pictures taken, received the same number of holiday gifts each year, got offered the same number of extra-curricular activities, got the same amount for each tooth from the Tooth Fairy...the list goes on and on. Why do we do this?

Our children are individuals, and their situations and needs are different. As our children reach adulthood and we are ready to gift them from our accumulated wealth (or plan to give to them in the future through inheritance), we should consider each of their situations and needs when gifting. For instance, providing more to a child who struggles to support their family on a modest income than one who is financially successful and has no children. Or to offer more to a child who has decided to give more of their time and career to help with a parent’s care versus one who is more focused on their career. There are families with special needs children that must devote more time and resources to that child than the others. Or simply taking into consideration the types of gifts given based on need, such as helping to pay off student loans for one versus contributing to the purchase of a home for another.

Getting out of the mindset that gifts to our children must be monetarily “equal” to be “fair” is one we should all consider. It allows us to give better thought and intent to the gifts we give to our children based on their actual needs, and it takes the stress off us to ensure that every cent is accounted for to monetarily make things equal. When the gifts are meaningful, there are few of your children that will be counting!

If you or someone you know are working on your gifting or legacy plan and have questions, please reach out. We are always happy to help Sandy.Adams@centerfinplan.com

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Opinions expressed in the attached article are those of the author and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

The Trend Towards Later Retirement

Sandy Adams Contributed by: Sandra Adams, CFP®

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According to The Pew Research Center, over the next decade, workers over age 55 will grow 4 percent per year — 4 times faster than the entire workforce. Older workers are not only a larger percentage of the overall workforce but also an important part of the workforce with their knowledge and experience base.

So, what are the reasons why people are working later in life?

  • Some may need additional income after “first” retirement.

  • Some indicated they thought they needed to supplement what they had already saved to keep up with inflation.

  • Some may want something of value and purpose to do with their time and to feel that they are contributing to something meaningful.

  • Some (especially women) are returning to work and starting their careers later in life after raising their families, and their children are out on their own.

  • Some return to work after serving for some time as a caregiver to a spouse or parent and feel like they need to make up for lost time in their career and save for future financial security.

No matter what the reason(s), adults remaining longer in the workforce benefit from:

  • Continuing to challenge themselves cognitively.

  • Continuing to learn new things on the job.

  • Continuing to socialize with coworkers and others in a work environment regularly.

With life expectancies anticipated to continue to grow in the coming decades, living to one hundred and beyond will be the norm in the not-too-distant future. And when it is, most of us will be working longer, either out of necessity to support ourselves financially and/or to keep ourselves cognitively challenged for the years we are living. So, if a longer life is in your future, a longer working life may also be in your future. It may not be only your first career that you retire from, but a second or third career. There is a lot to look forward to in a 100-year life!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc. Center for Financial Planning, Inc., is not a registered broker/dealer and is independent of Raymond James Financial Services.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

Raymond James and its advisors do not offer tax or legal advice. You should discuss any tax or legal matters with the appropriate professional.

Any opinions are those of Sandra D. Adams, and not necessarily those of Raymond James.

Preparing an Emergency Action Plan

Sandy Adams Contributed by: Sandra Adams, CFP®

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Unknowns are a part of all of our lives, and the potential for the big "unknowns" becomes more significant as we age.

It is a best practice to have a full aging plan in place as we go into our retirement years. This includes:

  • Where we might consider living as we age;

  • Where, how, and whom we would consider having care for us as we age if we need care;

  • How we will use our money, and whom it will go to once we are gone; and

  • Who will help us with all of this if we cannot manage things as we age

An aging plan should also include an Emergency Action Plan. What is this, you may ask? It is the minimum provisions you should have in place in case an unexpected event occurs. Even if you don't have a full aging plan in place, an Emergency Action Plan is crucial. So, what should be part of an Emergency Action Plan?

  • Name Advocates. By this, we mean having your Durable Power of Attorney in place for your financial affairs and your Patient Advocate Designation. If you have no one to name or if your family/friends' advocates need assistance, there are ways to have professional advocates in place to serve or assist (talk to your financial planner to discuss these options).

  • Document Your Important Information in Advance. This includes your financial and health information so that your advocates are prepared to serve on your behalf without missing a beat. Our Personal Record Keeping Document is an excellent place to start this process.

  • Communicate to Your Advocates that they have been named and verbally communicate your wishes. Your advocates can only make the best decisions for you and carry out your wishes if they (1) know they have been named your advocate and (2) are aware of the decisions you'd like to have made on your behalf.

Planning ahead is the best gift you can give yourself and your family. Having a full aging plan in place, but at a minimum, an Emergency Action Plan can put the pieces in place to allow for decisions to be made on your behalf in the way that you want them to. It can also provide resources for your best interests in your most critical time of need. If you need to put an Emergency Action Plan in place, ask your planner for assistance!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Opinions expressed in the attached article are those of Sandra D. Adams and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

Another Way to Make Retirement Purposeful for You

Sandy Adams Contributed by: Sandra Adams, CFP®

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One of our Center values is Education and Personal Growth. Continuously learning and growing in our personal and professional lives is core to what we are and what we do. It is also something we incorporate into conversations with clients as they think about what might make their retirements meaningful to them. 

Beyond knowing that clients are financially prepared for their retirement, we want to help make the next stage of their lives as purposeful and satisfying as possible. Part of that is helping clients explore hobbies, volunteer activities, travel, and learning that will fulfill them and make their lives full.  

Locally, there are several universities that can help fulfill the need of those looking to continue to learn and grow personally in retirement. We have three universities in Michigan that have been named Age-Friendly Universities – Michigan State University, Eastern Michigan University, and Wayne State University. In particular, Wayne State University offers a 75% tuition reduction to students 60 or older and sponsors the Society of Active Retirees, a 1,200-member lifelong learning community. Its volunteer force includes 300 persons 50 and up, and more than half of its faculty and 40% of staff are 50 or older. The WSU Institute of Gerontology also has an extensive research portfolio on aging, having received $54 million in funding for aging issues since 2015.

If you are interested in learning more about Wayne State University’s Age-Friendly University benefits, click here. And if you are interested in learning more about the Society for Active Retirees, click hereIf you are interested in having a conversation about exploring other options for developing your own purposeful retirement, please reach out to one of our planners at The Center to start that conversation today.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Opinions expressed in the attached article are those of Sandra D. Adams, CFP® and are not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc.® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

The Dangers of Ignoring Financial Planning When You're in a Couple

Sandy Adams Contributed by: Sandra Adams, CFP®

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In an ideal world, a committed couple would be on the same page about most of the important things in life, especially about their financial future. Not only would they be on the same page, but they would equally participate in the planning process — all the way through the process. So, what happens when one partner is not engaged in the planning process — whether it be lack of interest in the process at all, or lack of engagement and/or follow-through once a plan has been completed? And what can be done, if anything, to make sure the couple and their plan are successful?

If both partners have been involved in going through at least an initial planning process, this is a good first step. This means that the couple has worked through the steps of establishing common goals, gathered their common financial information, and worked with a financial planner to review the analysis regarding how the assets and income they have may work to fulfill their specific goals, both now and in the future. These couples likely worked with the planner to establish at least an initial set of action steps to start working towards meeting their short- and long-term goals in the key areas of their financial plan.

Why One Partner May Be Unengaged:

Here is where there is usually a disconnect — where the less engaged spouse likely becomes unengaged. Once the initial financial plan is complete and the action steps are in place, the less engaged spouse may check out for various reasons:

  • They may decide they don’t see the full value of the financial plan;

  • They may get too busy with “life” and not make the financial plan a priority; or

  • They may not see themselves in the “financial” lead role in the relationship and be simply delegating the action items to their more financially savvy spouse (whether or not this makes sense remains to be seen.)

If one of the partners is not involved in the planning process at all, this can be an even harder situation to address. When one partner is not engaged in the process at all, it is hard to discuss, set, and include common goals in the planning process. If one partner goes ahead with a plan, it can be one-sided or incomplete if done without the unengaged partner. The plan will lack input from one partner and may, in fact, be missing important information about assets, employment benefits, and/or future income resources if the participating spouse isn’t privy to all of the couple’s collective financial resources. Not having a financial plan that both partners have participated in putting together will be one that is lacking in some way — whether it be a lack of information or resources or a lack of input or agreement on current or future goals.

Why You Should Move Ahead Anyway:

Why might someone decide to move ahead with the financial planning process even if their partner is hesitant to participate in the process? In my experience, there are clients who have wanted to do planning for years and haven’t been able to get their partner on board. They may finally decide that they need to move forward, with or without their partner, for fear that they will end up without a plan and completely unprepared for the future. In addition, they may have had an experience as a caregiver for an older adult parent or watched someone they are close to go through the process of becoming a widow or widower and decide they want to be prepared if either of these major life transitions ever happens to them. For these clients, the personal experience of seeing others go through major life transitions without proper planning may compel them to want to plan more urgently than their partner.

What are some actions that a couple can take if one is more engaged than the other in the financial planning process so that their plan can be successful?

  1. Come to a base agreement that a financial plan is needed. If you can come to a common agreement that a financial plan is needed, even if one of you is more enthusiastic about it than the other, that can be okay. If you can come to an agreement about who will take charge of scheduling a meeting with an advisor, collecting and organizing the information, scheduling appointments, etc., that is the first step. It is best if both partners will agree to participate in the full process, even if one takes the lead. This is the best way to ensure that you agree to and set common goals.

  2. Set a regular “date” with your partner to discuss and review your finances. This blocks out time on your common schedules to concentrate on just your plan when you are working on preparing for the initial financial plan, and then can be helpful when you are working on the action items following your plan. This helps with the issues related to partners who get busy with life and can’t seem to make finances a priority.

  3. Find a financial advisor that you feel you can trust and can delegate to. For those who have trouble with follow-through, or again, for those who have trouble carving out time, having a trusted professional to whom they can delegate to make sure that the plan gets carried out fully can be valuable and worth the cost.

As with many things in a relationship, partners aren’t always 100% on the same page or always rowing in the same direction all of the time. Finances are one of the most important issues a couple faces, and being in lock-step as much as possible is important. If a couple can find a way to work together in some way to complete and follow through on the financial planning process, even if one of the two takes the lead, but both participate, the process can still be a successful one.

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

The foregoing information has been obtained from sources considered to be reliable, but we do not guarantee that it is accurate or complete. It is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Sandra D. Adams and not necessarily those of Raymond James.

Prior to making an investment decision, please consult with your financial advisor about your individual situation.

Securities offered through Raymond James Financial Services, Inc. Member FINRA/SIPC. Investment advisory services offered through Center for Financial Planning, Inc® Center for Financial Planning, Inc.® is not a registered broker/dealer and is independent of Raymond James Financial Services.

When to Use Your Emergency Fund

Sandy Adams Contributed by: Sandra Adams, CFP®

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Who actually has an emergency fund? “For those age 50 and up, it’s typically those who work with a financial advisor”, says Sandy Adams, CFP®. “The general population is bad at this. It’s particularly important to have an emergency fund as you get closer to retirement”, she says.

Read the full AARP article HERE!

Sandra Adams, CFP®, is a Partner and CERTIFIED FINANCIAL PLANNER™ professional at Center for Financial Planning, Inc.® and holds a CeFT™ designation. She specializes in Elder Care Financial Planning and serves as a trusted source for national publications, including The Wall Street Journal, Research Magazine, and Journal of Financial Planning.

Any opinions are those of Sandy Adams, CFP® and not necessarily those of Raymond James. Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment advisory services are offered through Raymond James Financial Services Advisors, Inc.

Raymond James is not affiliated with AARP.