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Living Longer and Planning Wiser

Living Longer and Planning Wiser

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 This week on the show, Steve and Elizabeth Holland, along with MJ, discuss the crucial and evolving challenge of planning for a much longer and costlier retirement. They emphasize that retirement is no longer a finish line, but a complex, full-time financial strategy where planning wiser is essential to ensure your money lasts as long as you do.Key Discussion Points:
  • The New Longevity Reality: One in three 65-year-olds today is projected to live past age 90, significantly stretching retirement savings beyond the traditional 20-year plan.
  • The Two-Legged Stool: The traditional "three-legged stool" (pension, Social Security, and savings) is gone due to the lack of pensions, making personal savings carry a much heavier load.
  • Controlling Healthcare and Inflation Risks: Healthcare inflation (averaging over 5% per year) and general inflation pose massive threats to purchasing power, demanding growth in the portfolio to keep pace.
  • Social Security Strategy: Delaying Social Security benefits until age 70 can result in up to a 76% higher benefit compared to claiming at age 62, essentially acting as longevity insurance.
  • The Three-Strategy Approach: To balance risk and opportunity, the Hollands use a system (or "buckets") to manage assets: Immediate Income (1-3 years of cash/stable assets), Intermediate Income (predictable income tools like certain annuities/MIGAs), and Growth (long-term investments to beat inflation).
  • Preparing for the Unknowns: Flexibility is key, and a proper financial plan must be "stress-tested" against major unknowns like long-term care needs, which can quickly deplete assets if not planned for.
  • Financial Question of the Day: The team discussed what to do with old whole life insurance policies, noting that selling the policy to a life settlement firm may yield a significantly higher payout than cashing it out with the insurance company.
The bottom line is that living longer is a gift, but it requires a disciplined, professional strategy covering income, taxes, and healthcare to ensure financial freedom.

Contact The Holland Group Retirement Wealth Advisors for a complimentary, no-obligation review by calling (727) 295-3451, or visit AskTheHollands.com to schedule a discovery call at your convenience.
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