By Larry Swedroe
April 25, 2018

Financial Perils Of Old Age

In planning for retirement, most people—and their advisors—consider issues such as:

How much savings will be needed to maintain a desired lifestyle (in other words, what’s your “number”?)

Current assets and what rate of return will be needed to achieve the stated retirement goal

What allocation to risky assets, such as equities, is required to achieve the needed rate of return

What lifestyle adjustments can be made if risks appear?

While addressing these issues is important and necessary, the all-too-common unwillingness of the elderly to even discuss the possibility of losing their independence, and the awkwardness of the subject for other family members, unfortunately can lead to a lack of planning for the financial burdens that long-term care can impose. More…