Many investors were glad to see the end of 2022. But what’s ahead this year? And what moves can you make in response to last year’s results? To begin with, here’s what happened: 2022 was the worst year for the financial markets since 2008, with the Dow Jones Industrial Average dropping nearly 9%, the S&P 500 losing more than 19% and the technology-heavy Nasdaq falling 33%. Several factors contributed to these results, including the moves by the Federal Reserve to aggressively hike interest rates to combat inflation, the Russia-Ukraine war, recession fears and increased concern over COVID-19 cases in China.
However, 2023 may be different. Many experts believe that inflation may moderate considerably, especially during the second half of the year. If that happens, the Fed may well pause its interest rate hikes and perhaps even consider cutting rates — a move that is often positive for the financial markets. Also, if a recession emerges, but it’s relatively short and mild, as expected, the rebounding economy may be favorable for the investment outlook.
Regardless of what transpires this year, though, you can help move toward your financial goals by following some basic steps that make sense in all investment environments. Here are a few to consider:
• Focus on the long term. It can be
disconcerting to look at investment statements containing negative results, as was the case for many people throughout 2022. But it’s important to view a single year’s outcome in the larger context — and historically, the stock market has had many more positive years than negative ones, though, of course, past performance is not a guarantee of what will happen in the future. In any case, it’s generally not a good idea to overreact to short-term downturns and make moves that could work against your long-term strategy.
• Keep adequate cash in your portfolio. The
value of your investments may have gone down in 2022 — but you didn’t really sustain any actual losses unless you sold those investments for less than what you paid for them. To avoid having to sell investments to supplement your income or to
pay for unforeseen costs, such as a major home or car repair, try to build the “cash” portion of your portfolio, so it covers a few months’ worth of living expenses.
When you’re retired, and it becomes even more imperative to avoid selling investments when their price is down, you may need an even bigger pool of available cash.
• Look for opportunities. Although 2022 was certainly a down year for the financial markets, some developments have presented new opportunities for investors. For one thing, the contribution limits have increased for IRAs, 401(k)s, and Health Savings Accounts (HSAs), all of which are pegged to inflation. Also, with interest rates considerably higher than they were a year ago, fixed-income investments may offer more income and provide added stability in portfolios during times of economic weakness.
When you’ve been investing for a long time, you will experience down years in the market, such as the one in 2022. These years are an inevitable part of the investment process. But since you can’t control what happens in the financial markets, you need to concentrate on what you can control — and that may be a lot more than you think.
Chad Choate III, AAMS Edward Jones
828 3rd Ave W. Bradenton, FL 34205
Will Long-Term Care Insurance Cover Assisted Living?March 24, 2023Will long-term care insurance cover assisted living? Yes. A good long-term care policy will help pay for assisted living and include coverages in other settings. But the real question is whether or not you currently have a long-term care policy.Most seniors do not. And by the time you need one, you might not qualify due to age or pre-existing conditions.More than 70% of American seniors over 65 will likely need long-term care at some point. But only 10% of Americans have any long-term care coverage.Without long-term care insurance, you or your family will most likely pay for your long-term care costs from savings, retirement accounts, equity loans against your house, or other private sources.And depending on if you decide to age in place at home or choose an assisted living community, these costs are challenging for most families. Using Sarasota, Florida as an example, according to Genworth Financial, the 2023 monthly costs average about $6,700 for Home Health services, $4,570 for assisted living, and $10,500 for a semi-private room at a nursing home.What is Long-Term Care Insurance?Long-term care insurance provides many services not covered by regular health insurance. Every policy is different and has specific coverage. But most long-term care policies include assistance with routine daily activities, like dressing, bathing, or getting in and out of bed.Where Does Long-Term Care Apply?Long-term care insurance helps seniors pay for the services and support they need as they age. And long-term care is for more than just assisted living communities. These policies often cover long-term care provided at:Your homeAn assisted living residenceA nursing homeAn adult day care centerWhat Is Covered Under Long-Term Care Insurance?Long-term care policies help with areas often ignored by other health insurance policies. A long-term care policy can help cover the costs of chronic medical conditions, a disability, or a condition like Alzheimer's. This includes:Assistance with your activities of daily living (ADLs)Certain homemaker services that are in conjunction with personal careSkilled nursing carePhysical, speech, and rehabilitation therapyRespite CareWhat Is Not Covered Under Long-Term Care Insurance?Like most insurance policies, long-term care policies have limitations and exclusions. It is essential to read and understand the policy to know what is covered and what is not.Many long-term care policies do not cover:Pre-existing conditions for a certain period of time. Understanding this clause is crucial. A pre-existing condition is typically defined as receiving medical advice or treatment or having symptoms within a certain period before applying for the policy. Some companies look further back than others, and some do not have restrictions for pre-existing conditions at all.Self-Inflicted InjuriesCertain nervous disorders or mental conditionsDrug and alcohol abuseWhy buy long-term care insurance?The reason to buy long-term care insurance is the same reason you purchase other insurance, like car, home, and health insurance: peace of mind. You pay a little each year or month, so you don't have to worry about paying a large amount of money should the unexpected happen.But long-term care is different, because needing it is expected and a normal part of aging in the US. More than 70% of the population will need long-term care help not covered by regular health insurance.Suppose you are fortunate enough to be wealthy and can easily cover all long-term care expenses out of pocket. In that case, long-term care insurance may not be for you. But for most Americans, long-term care insurance can be a valuable part of their financial planning.Do Medicare and Medicaid Cover Long-Term Care?Long-term care insurance policies are specifically designed to help with most long-term care costs. Medicare does not pay for long-term care. Medicaid is a state-run program designed for those whose assets and income are under the states low threshold. Even then, the program is complex, the benefits are limited and minimal, and the waitlist can take years. Medicare Does Not Pay for Long-Term CareMedicare is of little help with long-term care costs. The Medicare website is pretty blunt about this subject, stating, "Medicare and most health insurance, including Medicare Supplement Insurance (Medigap), don't pay for long-term care." The site goes on to explain it is important to plan for long-term care to maintain your independence and get the care you need in the future.Medicare does pay for limited stays in rehabilitation facilities, like in-patient physical therapy for a hip replacement. But, the limit is 100 days. And suppose after that you must move to assisted living or a nursing home. In that case, Medicare does not cover your custodial costs.Medicaid Is Very Limited and Can Take YearsFor seniors over 65, Florida Medicaid is a minimal program. You must require nursing-facility-level care, and your assets must be below Florida's low threshold. The program was designed to help the frail and neediest first, and you can be on the waitlist for years. Medicaid recipients typically have a low income and have exhausted most of their savings. Because of the complexity, uncertainty, and length of time required to access any benefits, expecting Medicaid to help with long-term care needs may not be the best option.When Should You Buy Long-Term Care Insurance?The time to buy long-term insurance is before you need it. And the premiums are less when you are younger. Typically, most long-term care insurance buyers are between 50 and 65. It is becoming challenging to buy long-term care coverage over 70 due to health conditions, insurance company policies, expensive premiums, and pre-existing conditions.And even if you are age-qualified, the insurance company might reject your application if any of the following are true:You currently need help with daily activities (ADLs).You are already receiving long-term care.You have been diagnosed with dementia or another cognitive impairment.You have a progressing neurological condition like Parkinson's or ALS.You have had a stroke.You have specific cancer diagnoses. However, a diagnosis of cancer does not automatically get you declined. It depends on the type of cancer, how long ago you were diagnosed, and the individual insurance companies' underwriting guidelines.The best advice is to buy long-term care insurance before you need it and while you are younger and healthy.Summary: Should You Get Long-Term Care Insurance?Everyone ages and almost everyone will need help with senior care expenses, whether they age in place at home or choose an assisted living community.But paying for that care can be overwhelming and severely impact a family's budget and savings. Many families are forced into difficult financial challenges with an additional and unexpected $5,000 to $10,000 monthly expense for care.Long-term care insurance can help you plan for the future and give you and your family peace of mind.Whether your senior loved one is deciding to age at home or considering an assisted living community, Florida Senior Consulting can help.And if they don't have long-term care insurance, we can help you navigate all the other options.We are a Florida-based company with expert knowledge of the Florida senior market. While senior options can seem confusing, this is all we do. Florida Senior Consulting helps seniors decide their next best steps and the easiest way to afford the transition.We have certified staff, licensed nurse advocates, and decades of experience in the field.Senior living should be on your terms, and the choice should always be yours.Call us, and we will answer all your questions and help you decide what is best for you or your senior loved one.For peace of mind, call us at (800) 969-7176 or visit FloridaSeniorConsulting.com.
When it comes to retirement planning, many Americans find themselves underprepared. A majority of baby boomers (born between 1946 and 1964) and Generation Xers (born between 1965 and 1978) often end up without retirement savings or dont have realistic expectations about post-retirement costs. According to the Insured Retirement Institute, only 25 percent of boomers are confident of having sufficient savings in retirement. If you're in your 50s and nearing retirement without substantial savings or a plan, dont despair -- it's never too late to start planning.Although every working professional should contribute towards retirement from their early days, for various reasons they often delay the process. If you're nearing your 50s without a post-retirement plan and see yourself working for another 10 to 15 years, this is an opportunity to plan judiciously and save for your retirement right away.Here are five strategic steps for achieving the best retirement plan:1. Set Specific and Practical GoalsProper retirement planning begins with setting specific goals. Calculate your current income, total savings, and ongoing investments to understand how much you could save, and be sure to set realistic goals.While providing for emergency expenses and paying off a mortgage can be your short-term and intermediate goals, saving up for retirement should be your long-term goal. An annual financial review is helpful in evaluating your past goals and understanding your earnings as well as liabilities.2. Plan a Realistic Budget Focusing on RetirementReview your monthly and yearly expenses and list the factors that are likely to remain constant for the next few years. Now allocate funds to each category in a way that will allow you to save more for your retirement.According to financial experts, if you're saving for retirement after 50, it's best to contribute 30 percent of your salary towards this end. If you find that goal difficult to meet, look at your budget list and reduce optional expenses.3. Pay Off DebtsPaying off debts early will help you meet your retirement budgets and ease the financial burden. According to an AARP report, 44 percent of Americans continue to pay for their home after they retire.Clearing off outstanding debts, credit card bills, loans, and mortgages will make it much easier to prioritize retirement funds.4. Invest in Retirement Plans401(k)s, 403(b)s and IRAs are some of the retirement plans available in the U.S. While 401(k)s are one of the most popular plans, not all companies offer them and those that do have their own, often restrictive, investment rules. Then there are two types of IRAs: traditional and Roth IRAs.To make the best choice among the many retirement plan options, it's essential to have a thorough understanding of IRA vs. 401 (k), Roth IRA vs 401(k) and other investment alternatives, as well as contribution limits.5. Diversify Your InvestmentsInvestment diversification will help keep you on a firm financial footing. Don't stash all your money in banks; instead, create an investment portfolio and explore your options.It's important to diversify and distribute your money among multiple sectors. Considering the volatility of markets, diversification of your investment portfolio safeguards your capital and helps it grow.Its Time to Step Up a GearA concrete retirement plan with emphasis on savings is essential to ensure a comfortable and healthy post-retirement life. Saving for your retirement is the first priority and the sooner you start, the better your chances of achieving your retirement goals.
Preparing to move to a senior living community? Congratulations! Youre headed for a truly fulfilling adventure. But the adventure starts with packing and moving. Youll have some decisions to make, and its best to outline your moving plan in advance. This an opportunity to begin your new life with a streamlined footprint that frees you to enjoy each day and come and go as you please. Use these packing and moving tips to simplify your move. Remember, the process of moving only involves a few weeks. Feeling safe, comfortable, and happy in your new home will last for years to come.
Experience and Background I am a financial advisor in Bradenton, FL, and began my career with Edward Jones in 2017. As a financial advisor, I want to find out what's important to you and help you build personalized strategies to achieve your goals. As a lifelong Manatee County resident, I graduated from the University of South Florida and was a teacher in Manatee County before joining Edward Jones. My driving force is to change people's lives in a positive way, and what better place than my home to do that .Whether you're planning for retirement, saving for college for children or grandchildren, or just trying to protect the financial future of the ones you care for the most, we can work together to develop specific strategies to help you achieve your goals. We will also monitor your progress to help make sure you stay on track or determine if any adjustments need to be made. Throughout it all, we're dedicated to providing you with top-notch client service .But we're not alone. Thousands of people and advanced technology support our office so that we can help ensure you receive the most current and comprehensive guidance. In addition, we welcome the opportunity to work with your attorney, accountant and other trusted professionals to deliver a comprehensive strategy that leverages everyone's expertise. Working together, we can help you develop a complete, tailored strategy to help you achieve your financial goals .I currently volunteer with the Manatee Hurricane football Broadcast and Booster Club, serve on my church's trustees council and have previously served as a leader in Young Life. I am a member of the Manatee Chamber of Commerce and an alumnus of their Leadership Manatee program. I have been married to my childhood sweetheart, Ashley, for 15 years and we have a son, Wesley, and daughter, Camryn. We enjoy watching our children play their sports and traveling as a family.