06 May 2006
By Karen E. Klein
The problem: We're a middle-aged couple nearing retirement. We never had children, and now we're wondering who will care for us as we get older. How do we prepare?
The expert: Raymond Mignone, independent, fee-only certified financial planner, Little Neck.
The rules: Your retirement and health-care planning issues are different than those faced by people who have children. You will need more money in order to pay for services that a child could otherwise provide, and you will need a good support network as you age.
The strategy: Prior to retirement, save as much as possible. You will need a larger nest egg than other couples. Form loyal support alliances that will help carry you through your senior years, and don't forget to cultivate younger friends.
How it works: Create two "teams": A money team to ensure good financial and legal decisions, and an emotional team that consists of friends and relatives who are young enough to be able to help and comfort you in retirement.
If you have close friends or relatives, they can form your emotional team. This should be a network of people who check up on you as you get older and assist you with coordinating health care and other needs. If you don't have such people in your lives, you will need to eventually hire a geriatric care manager.
Sound financial and legal advice should come from your money team. This group will consist of a trusted independent financial adviser and an elder law attorney. They can help you decide things such as how to invest your retirement nest egg in a tax-efficient manner and whether or not you need long-term care insurance. They also can help you create proper estate documents. Unlike people with children, your retirement planning will focus more on taking care of you while you are alive than on saving taxes on your estate after you are gone.
The results: With good planning and loyal support teams, you will be able to enjoy your golden years with independence and dignity