The “average life expectancy has increased by almost 30 years over the past century”, according to a report produced by the Gerontological Society of America.* This means there are 30 more years to maintain a home, pay for medical costs, and hopefully, live a happy, fulfilling retirement.
“At Chelsea Groton, we care about the whole person, not just the financial part,” said John Uyeki, SVP, Director of Financial Services at Chelsea Groton; Financial Advisor, Infinex Investments, Inc. “If you prioritize travel, or philanthropy, or have specific medical or health needs, all of those items are factored into the personalized, holistic financial plan we work together to develop. This approach will help to ensure people can live the retirement lifestyle they’ve always wanted, though they need to do their part in keeping up with their physical wellness too, to ensure they can do all they’ve planned in their long retirement.”
Enjoying a healthy lifestyle
According to a recent study, people who are financially secure have less stress, fewer health risks and an overall higher quality of life.** As people age, health risks and medical costs rise incrementally, so people need to prepare their finances in advance so they feel ready to take on those potential costs if needed. There is also plenty that individuals of all ages can do to make their physical health a priority, which can help keep future medical costs at bay.
Harvard Health shares these guidelines for people of all ages to follow, which can increase potential for a longer, healthier life:
1. Don't smoke.
2. Enjoy physical and mental activities every day.
3. Eat a healthy diet rich in whole grains, vegetables, and fruits, and substitute healthier monounsaturated and polyunsaturated fats for unhealthy saturated fats and trans fats.
4. Take a daily multivitamin, and be sure to get enough calcium and vitamin D.
5. Maintain a healthy weight and body shape.
6. Challenge your mind. Keep learning and trying new activities.
7. Build a strong social network.
8. Follow preventive care and screening guidelines.
9. Floss, brush, and see a dentist regularly.
10. Ask your doctor if medication can help you control the potential long-term side effects of chronic conditions such as high blood pressure, osteoporosis, or high cholesterol. ***
Why making a plan matters
The team at Chelsea Groton Financial Services understands the challenges people face as they balance a number of ongoing personal and financial obligations with their goals for the future. They are prepared to help people think about how to make their hard-earned money work harder for them. They look at all sources of savings, income and spending holistically, and will put portions of earnings into different vehicles in order to help you get the outcome you’re striving for.
As part of this discussion, the advisory team will discuss when you want to retire, where you would like to live, and how you plan to spend your time in retirement. These goals will help the team better determine your expected essential expenses (housing, health care, groceries), discretionary expenses (travel, dining out, hobbies, purchasing a 2nd home, boat or dream vehicle) and emergency expenses (unforeseen health issues, home maintenance) in retirement.
Knowing your anticipated expenses is key to the other part of the conversation,which is income stream generation. More than 20% of the population will be 65 or older by 2030, so the need for income generation in retirement is paramount for a significant portion of our population.**** The advisors at Chelsea Groton Financial Services will discuss your plans for having an income stream in retirement, and advise on how to make up for any gaps in income or savings.
Based on the information provided about spending, savings, and anticipated retirement income, the team of Financial Advisors will use risk and financial planning tools, along with decades of combined experience, to develop a customized plan that will help clients meet their goals for retirement. There is an emphasis during these planning conversations on how income could be generated in retirement with the options a client currently has, along with other vehicles worth considering. It’s also important that couples attend these meetings together so both people have an understanding of the financial decisions being made.
According to Uyeki: “At Chelsea Groton Financial Services, we take a holistic approach to planning. We listen intently to our clients, get to know their risk tolerance and are committed to helping them develop a mixed-asset portfolio that can meet a client’s goals and risk tolerance as they grow older and more dependent on that income. Healthy clients tend to live long, active lives in retirement, and we want to help our clients to prepare financially to do just that.”
Revisiting the plan
In the same way annual check-ups with your physicians are important to ensuring your physical health is in check, it’s important to schedule a follow up at least once a year with your financial advisor to review any changes that may have occurred in your life since your last meeting. Divorces, marriages, taking care of grandchildren or elderly parents, or a spouse falling ill can all affect income and savings in preparation for retirement. Asking questions, including “where” documents are stored, “why” an approach or investment has been selected, and “how” things could change if a spouse passes away, will all help to alleviate possible challenges and stress in the future. As income rises and retirement dates get closer, savings behaviors and ensuring your financial plan is set up to maximize growth in retirement become more and more important.
“We try to educate clients on the importance of not only making a plan, but sticking with a plan. Once we learn about a client’s financial situation, we take a strategic approach to optimizing the assets a client has. We think about how much income a client will be able to generate based off the assets he or she has now, and in the future, as well as where and how they plan to spend their hard-earned savings. Our goal is to ensure clients are comfortable with the plan moving forward, and are properly allocated to potentially have the long-term income they will need to have the retirement they’ve always wanted,” continued Uyeki.
If you’re interested in learning more about the ways the team at Chelsea Groton Financial Services can help you develop a custom financial plan to suit your needs, please visit chelseagroton.com or call 860-572-4040.
About Chelsea Groton Financial Services
Investment and insurance products and services are offered through INFINEX INVESTMENTS, INC. Member FINRA / SIPC. Chelsea Groton Financial Services is a trade name of Chelsea Groton Bank. Infinex and the Bank are not affiliated. Products and services made available through Infinex are not insured by the FDIC or any other agency of the United States and are not deposits or obligations of nor guaranteed or insured by any bank or bank affiliate. These products are subject to investment risk, including the possible loss of value.
*Gerontological Society of America, “Optimizing Health in Aging Societies,” 2015.
** Stanford Center on Longevity, “The Sightlines Project,” 2016
***Harvard Health Publishing, “Tips for a longer life,” https://www.health.harvard.edu/healthbeat/tips-for-a-longer-life, 2010-2019.
**** U.S. Census Bureau, “Projections of the Size and Composition of the U.S. Population: 2014 to 2060,” March 2015.