New Annuity Crediting Trends — Fixed Index Annuities are constantly evolving. As we watch this industry change, we are also seeing it grow. Three out of the five newest indices being tracked at indexalyzer.com come with brand new annuity crediting methods.

INDEX: SG Columbia Adaptive Risk Allocation
NEW METHOD: Fusion
This method fuses together a Trigger method and a 5yr Point-To-Point method.

INDEX: SG Smart Passage
NEW METHOD: Sunrise
This method takes a new approach to Monthly Sum. It calculates the monthly gain and then omits the highest two months.

INDEX: Barclays Atlas 5
NEW METHOD: Boost
This method is a new spin on Spread. Instead of reducing the index return in a positive year by the declared rate, it increases it.

As you can see in the chart above, all three of these new methods are performing very well compared to one of the best performing S&P 500 options. These are important to us since retirement planning is an important part of our financial services.

When you receive a diagnosis of Alzheimer’s disease, many questions and concerns come to mind, not the least of which is covering the cost of care. However, now is a time to prioritize other things, like self-care, family, and friends. To make it easier to focus on those more important aspects of life, here’s what you need to know about your finances so you can spend time tending to yourself and less time worried about costs.

 

Get the Bigger Financial Picture

Care for Alzheimer’s isn’t cheap. In fact, NextAvenue indicates care costs most families in the neighborhood of $60,000 per year. If you should move to assisted living, you could expect to pay around $55,000 annually, while a year in a nursing home would cost $82,000 or more. 

Unfortunately, while Traditional Medicare will help with things like hospital stays, Medicare won’t pick up the tab for the type of daily care most people require, like help with dressing, grooming, and taking medications. You could hire unskilled in-home assistance for around $21 per hour, which obviously could add up fast. While these are daunting figures, don’t get discouraged—you do have options. 

 

Dip Into Insurances

If you have an existing long-term care insurance policy, that can help with the cost of daily care, but if you are older or have a pre-existing condition (like Alzheimer’s or dementia), you won’t be able to apply and qualify for coverage through a brand new policy. U.S.News notes you might be able to use HSA funds for long-term care, depending on the circumstances, but that can be tricky as those funds can only be applied to qualifying expenses.

Families are typically burdened with covering care as well as expenses both during and after your passing, which adds to the stress for everyone involved. The last thing you want is to leave behind a legacy of economic strife. While it’s wise to invest in insurance plans like burial insurance to help with the financial obligations you leave behind, like your funeral, medical expenses, and other debts, with expenses like that, it’s clear a more extensive financial plan is necessary. 

 

Adjust Your Insurance Coverage

Even though Medicare won’t pay for daily Alzheimer’s assistance, Medicare Advantage plans are improving coverage for those with Alzheimer’s and dementia diseases. Non-medical in-home care, home modifications, adult daycare, and assisted living are all on the Medicare Advantage radar, so if you don’t currently have coverage, explore your options. Medicare Open Enrollment runs from October 15 and ends December 7 every year, and you can change plans without penalty during this time.

Keep in mind that even if you don’t currently require assistance, your needs are likely to change over time. An adjustment in coverage now ensures you’re ready for the coming year, come what may. 

 

Think Outside the Box

The natural inclination is to look to insurance first for help with health-related expenses, but there are other ways you can pay for your care as well. For instance, veterans are eligible for assistance through the VA and other military-oriented organizations. Similarly, Daily Caring points out that there are a number of programs that help with home accessibility modifications. You and your loved ones might also be able to qualify for grants designed specifically for those coping with Alzheimer’s and dementia. 

You also might have other untapped resources. For instance, homeowners can consider a reverse mortgage to help cover their care costs. Bear in mind these mortgages are best for those who do not have anyone else residing at the home because of how the loans are structured. Just like it sounds, lenders pay borrowers for the property and the debt increases over time. The loan is settled when the borrower moves out, sells the property, or passes away. While not perfect for everyone, in some circumstances, it’s an ideal solution.

While there are no simple fixes for covering the costs of Alzheimer’s, thankfully, there are several avenues to explore. Look into various insurance policies and get familiar with your other options. Once you have a financial plan configured, you can set that concern aside and focus on the more important things in life—like your loved ones and yourself.

 

Guest post by Karen Weeks: Karen created Elder Wellness as a resource for seniors who wish to keep their minds, bodies, and spirits well. 

Photo by JORGE LOPEZ on Unsplash

Enjoying a good life at any age requires some financial planning. Sadly, studies show that more than half of all Americans don’t know how much money they’ll need during retirement. Financial planning ensures you’re able to afford the lifestyle you enjoy throughout your senior years. As a senior, that will mean being realistic about potential healthcare costs, inflation rates, and your budget.

Here are some ways you can manage your money so you can enjoy your golden years.

 

Healthcare Concerns

One of the most significant costs during retirement is healthcare, according to US News. Even if you feel healthy today, it’s wise to plan for whatever the future might hold. 

Spending a few extra dollars on healthcare can save you money by reducing your medical costs in the long run. For instance, an alternative Medicare Advantage plan like those offered by UnitedHealthcare can supplement your healthcare. Medicare Advantage plans provide coverage you can’t get through Medicare Parts A or B. That includes medications, vision, hearing, and some senior-friendly gym memberships or wellness programs. You can also save money on preventative services with a $0 copay through your primary care doctor.

Another important aspect of healthcare is treating your body right. Regardless of age, it’s essential to eat a balanced, nutritious diet. Mayo Clinic reports that malnutrition is a common problem among aging adults. By eating the right foods and caring for your body, you’ll reduce your chances of developing debilitating conditions like compromised immunity and muscle weakness, and be less prone to increased risks of injury, hospitalization, or death.

 

Downsizing

Another way many seniors save money during retirement is through downsizing. If your home is bigger than needed, moving into a smaller space can be helpful. By carefully researching your desired housing market, you may be able to find a home that’s more affordable and easier for you to manage. 

Downsizing can make it easier for you to age in place. As with any move, however, planning is required. How much can you afford to spend, and what’s desired location? Will you move closer to loved ones? Do you need a home closer to public transportation?

According to Forbes, some of the best parts of the country for seniors include Sarasota and Savannah. In addition to having a warmer climate, these areas are surprisingly affordable with a low cost of living and more affordable property values.

After deciding where you’d like to move, you’ll need to declutter and pack your belongings. You’ll also want to determine how you’ll safely transport your furniture and possessions to your new home. To avoid injuries or broken items, it’s usually wise to ask for or hire help for your move. If you don’t have loved ones who can assist, hiring movers can be less expensive than the costs of repairing anything damaged during the move.

 

Living on a Fixed Income

With proper budgeting, you can master the art of living on a fixed income. By tweaking your monthly finances, you can stretch each dollar and still live life to the fullest. Stick to a monthly budget and cut unnecessary spending or nonessential expenses. It also pays to look into senior discounts on housing, insurance, and utilities.

You might also consider hiring an accountant to help prepare your taxes. Seniors who don’t itemize deductions often save money with the highest possible standardized deduction, notes the AARP. You’ll pay a little extra each April for your accountant’s services. Luckily, the potential money you’ll earn back on your tax return could be well worth the cost.

Although many seniors spend less money during retirement, two in five still spend more than they’d anticipated. That’s why it’s essential to have a plan in place. Inflation is expected to rise in the coming years, so account for higher costs in your budget. Budgeting and financial planning are crucial at any age and can better prepare you for the future as a senior. By carefully planning, you can maintain a high quality of life and still participate in many of your favorite activities.

 

Guest post by Karen Weeks: Karen created Elder Wellness as a resource for seniors who wish to keep their minds, bodies, and spirits well. 

Photo courtesy of Pixabay