Presented by Mark K. Lund, Financial Advisor
America has roughly 5 million people age 65 to 74 who are single and childless.1 While these solo retirees report that they enjoy their independence and added freedom, they are also worried about the downsides of being alone, such as loneliness and not having someone to rely on when they need help.
These possible negatives are reflected in a recent AARP survey of solo agers who were 50+. Researchers found that 78% were concerned about losing their independence and having to rely on others, and 61% were concerned about being alone without family and friends.
Compared to a similar survey conducted in 2020, solo agers are increasingly worried about financial and estate planning matters. Specifically, they are concerned about needing money, managing their bills, and having their possessions distributed according to their wishes.
Sara Zeff Geber, author of Essential Planning for Solo Agers, says that the only people morally obligated to take care of you are your family. “If you’re a solo ager and don’t have them waiting in the wings, it’s important to figure out who you can count on.”
Usually it’s adult children who can help with things like medication management, getting to appointments, and overseeing legal matters like real estate transactions. But if you don’t have children to help you with these things, then you need to plan to get help from other sources—and have them in place before the need arises.
Geber says the two most critical questions solo agers must answer are: Where am I going to live, and who are my financial and medical proxies?
If you don’t have immediate family to assist in these roles, she suggests looking to extended family, your religious organization, people you trust in your community, and maybe even former work colleagues.
In AARP’s survey, they found that solo agers often turned to siblings, nieces, and nephews for assistance.
Jackson Rainer, a psychologist and solo ager himself, suggests enlisting the help of professionals such as a financial advisor, lawyer, or patient advocate.
The first step to thriving as a solo ager is admitting that you will one day need this extra help. It’s not a sign of failure to rely on others even when you value your independence. The second step is to asses those areas where you will require the assistance of others. And then third, establish who will be helping you and what you need them to do.
If you or someone you know might be helped with insight into maintaining their financial health and navigating the challenges of solo aging, be sure to get in touch with your trusted financial advisor.
If you ever have any questions about your investments or retirement plans, please feel free to give me a call at 801-545-0696.
Regards,
Mark Lund
Stonecreek Wealth Advisors, Inc.
11576 S State Street, Bldg. 1002
Draper, UT 84020
Sources:
1. http://go.pardot.com/e/91522/lo-ager-in-retirement-51d295cf/94pjkz/2209911743/h/YAk3b4b9reK-UozWOVZkK0_qGqhabDbYwP74Khogwao
Disclosure: This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. All information is believed to be from reliable sources; however we make no representation as to its completeness or accuracy. All economic and performance data is historical and not indicative of future results. Market indices discussed are unmanaged. Investors cannot invest in unmanaged indices. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This material was prepared by Efficient Advisors, LLC (“EA’) for Mark Lund, Mark is a Financial Advisor in Utah. He is known as a Wealth Advisor, The 401k Advisor, Investor Coach, Financial Planner, Investment Advisor and author of The Effective Investor. Mark offers investment advisory services through Stonecreek Wealth Advisors, Inc. a fiduciary, independent, fee-only, Registered Investment Advisor firm providing investment management and retirement planning for individuals and 401k consulting for small businesses. Mark’s newsletter is called The Effective Investor Newsletter. Cities served in Utah are: Salt Lake City, Salt Lake County, Utah County, Park City, Murray City, West Jordan City, Sandy City, Draper City, South Jordan City, Provo City, Orem City, Lehi City, Highland City, Alpine City, American Fork City. The views expressed herein are exclusively those of Efficient Advisors, LLC (‘EA’), and are not meant as investment advice and are subject to change. All charts and graphs are presented for informational and analytical purposes only. No chart or graph is intended to be used as a guide to investing. EA portfolios may contain specific securities that have been mentioned herein. EA makes no claim as to the suitability of these securities. Past performance is not a guarantee of future performance. Information contained herein is derived from sources we believe to be reliable, however, we do not represent that this information is complete or accurate and it should not be relied upon as such. All opinions expressed herein are subject to change without notice. This information is prepared for general information only. It does not have regard to the specific investment objectives, financial situation and the particular needs of any specific person who may receive this report. You should seek financial advice regarding the appropriateness of investing in any security or investment strategy discussed or recommended in this report and should understand that statements regarding future prospects may not be realized. You should note that security values may fluctuate and that each security’s price or value may rise or fall. Accordingly, investors may receive back less than originally invested. Investing in any security involves certain systematic risks including, but not limited to, market risk, interest-rate risk, inflation risk, and event risk. These risks are in addition to any unsystematic risks associated with particular investment styles or strategies.
