Financial Advisors

[robav8r]

I realize many have experience with different levels of financial advisors based on your stage in life. Anyone have any good recommendations for an advisor in/near the Northern Virginia area that can entertain a financial "wellness" check. A lot of financial advisors seen to want to give you a complete financial colonoscopy when the only thing needed is a basic status check without trying to sell you on a "if you just let me manage your money, you'll be the next Elon Musk in 5 years" plan.

Thanks . . . .

 

[Sonog]

Do you have any retirement accounts/brokerages with the major retail investment banks? I was able to get what you described from Fidelity ~6 years ago as a complimentary service to having a Roth IRA with them. It entailed some email correspondence and then 1-2 significant conversations over the phone. It was legit, they weren't trying to sell any additional products. Not sure if they still do that, but its worth checking to see what they have to offer wherever you hold your accounts.

 

[robav8r]

Yeah, I have a brokerage account and Roth IRA through Fidelity, and I have a work Roth 401K. I "think" I'm in a good place, but I think it's also good to get a few different sets of eyes on the target solution before pulling the trigger. Lots of savings/emergency funds, cars paid off, no debt (except for the house ~ $500K in equity). Just trying to navigate the upcoming Medicare tidal wave and SS decision timeline. Haven't considered the Fidelity advisor service - but I will certainly check them out - thanks for the 411.

 

[TimeBomb]

One item I found frequently neglected was planning for assisted living. Medicare does not cover assisted living expenses, and income after retirement often falls short of meeting costs. Basic assisted living (not memory care, or services other than basic hotel level support) averages between $4 and $5K/month. Even if you decide to stay in your home and opt for home care, the expenses are 100% out of pocket. Those kind of bills can up your nest egg in short order.

 

[Griz882]

One item I found frequently neglected was planning for assisted living. Medicare does not cover assisted living expenses, and income after retirement often falls short of meeting costs. Basic assisted living (not memory care, or services other than basic hotel level support) averages between $4 and $5K/month. Even if you decide to stay in your home and opt for home care, the expenses are 100% out of pocket. Those kind of bills can up your nest egg in short order.

This is why I told my wife that if I get too hard to care for she has two options…(1) take me to the Soldiers and Sailors Home every state has them) and make me the governments burden, or…(2) drop me in the Rocky Mountains with two days of supplies, a light weight sleeping bag, and a map of Disney World after kissing my forehead and saying, “I’ll see you at our home in San Francisco.” (Hint, we don’t live in SF, but I won’t remember that).

She hasn’t told me which option she prefers.

 

[robav8r]

One item I found frequently neglected was planning for assisted living. Medicare does not cover assisted living expenses, and income after retirement often falls short of meeting costs. Basic assisted living (not memory care, or services other than basic hotel level support) averages between $4 and $5K/month. Even if you decide to stay in your home and opt for home care, the expenses are 100% out of pocket. Those kind of bills can up your nest egg in short order.

Yeah, in terms of retirement, I think the one thing that needs a LOT more attention (when you’re young(er)), is long term care. I’m as guilty as anyone. For the younger folks, take heed and plan accordingly.

 

[TimeBomb]

Some long-term care insurance policies feature a waiver of premiums after paying in for a specified number of years. If you get a policy when you're young, the premiums are low, and you can get into the waived premium period before the premiums increase too much. Once you get to the point where you realize that you're getting old and might need long-term care, the annual premiums for decent coverage are ruinous.

 

[JTS11]

I'm curious now how VA coverage (40/% disability rating) along with Tricare covers long-term care needs. It's probably something I should know, but I don't.

 

[ChuckMK23]

I agree with this approach - I recently went down this route. 2 x 1 hour discussions and reviews that were virtual. I have the advisor all docs and statements of my portfolio and I received a detailed 5 page report and recommendations that was truly useful. The practice probably spent 3-4 man hours on the report.This engagement was with a CFP and the engagement cost me $750.

I found the experience very worthwhile - left me smarter and more engaged and confident. I learned a lot.

I came away feeling this is the way to go vs passively paying someone 1% annually to "just do it"

👍

 

[CommodoreMid]

 

[Griz882]

I'm curious now how VA coverage (40/% disability rating) along with Tricare covers long-term care needs. It's probably something I should know, but I don't.

Most importantly, enroll in VA healthcare now. Between tricare, Medicare, and 9/11 I have excellent coverage - but I still see a VA doctor once a year. They typically give me free stuff like a blood pressure monitor, shoe inserts, or whatever. The reason…it sets me up for VA long term care.

 

[TimeBomb]

Tricare does not cover any long-term care costs.
The VA has some long-term care options. I suppose there are some hoops that must be traversed, but you might be able to suss that out before you need it.

I can't tell you how many times families would bring Grandpa into the ER saying "We can't do it anymore". The expectation was that I would admit him to give them a break, find him an amazing assisted living facility, and after all the family was consulted, visited the facility and concurred with the choice, he would be transferred into that facility where he could live out his life at no cost to them, and all would be wonderful. Sadly, unless an acute medical condition was present, he probably wouldn't even be admitted, and he'd be back at home that night. Even if I could get him admitted to treat something acute, the "length-of-stay" clock starts ticking as soon as he gets admitted, and I was expected to get him out the door as soon as that problem was addressed. When they found out that the only assisted care facility with available memory care beds was going to cost them $8000/month, and Medicare paid exactly nothing, things got quiet fast.

Figuring this out before it becomes a crisis is key.

 

[ChuckMK23]

Most importantly, enroll in VA healthcare now. Between tricare, Medicare, and 9/11 I have excellent coverage - but I still see a VA doctor once a year. They typically give me free stuff like a blood pressure monitor, shoe inserts, or whatever. The reason…it sets me up for VA long term care.

I do the same with VA doc. Amazing services. Highly recomnmended.

 

[JTS11]

Most importantly, enroll in VA healthcare now. Between tricare, Medicare, and 9/11 I have excellent coverage - but I still see a VA doctor once a year. They typically give me free stuff like a blood pressure monitor, shoe inserts, or whatever. The reason…it sets me up for VA long term care.

Post-retirement I started off using the Tricare system (my dumbass didn't know I could use the VA healthcare system for free, just a small co-pay on non-service connected meds) Since switching over to the VA, I've had nothing but positive reviews. Not sure if that is location dependent, or not.

My financial situation is fairly basic/straightforward, so I'll avail myself of talking to a Vanguard CFP every few years. Probably the biggest thing I need to figure out and have a plan of converting TSP investments into a civilian Roth account annually, based on my current and future anticipated tax situations.

 

[ChuckMK23]

Figuring this out before it becomes a crisis is key.

My father had long decided that as he aged he wanted nothing to do with any residential long care options and wanted to age and ultimately pass away in his own home. He owned a relatively large 4 bedroom home with a basement. He had a series of boarders that, in exchange for helping maintain the house and property and doing shopping and errands, they would live rent free. It worked out fairly well. When my father, who had COPD, would suffer a crisis (e.g.O2 sats declining) he would simply call 911. EMS would respond, the ER would stabilize and discharge him and send him home in an Uber - which medicaid paid for. He did this for years up until his death - when the hospital refused to discharge without in home hospice. He died peacefully at home thanks to a wonderful hospice care team in his own home. It was exactly what he wanted.