By Glenn Cunningham
There is no denying that finance can be complex. And knowing how to safeguard wealth may feel overwhelming. However, I cannot understand why some people avoid addressing important financial decisions in their lives. Consider the following scenario that proved to be costly.
On the surface, the couple in this situation appears prepared for their retirement years. Can you identify some of the issues they should have addressed? Also, what if they had saved less money for retirement?
In 2005, a man was referred to me for financial advice. I’ll call him Carl. Carl’s problems began during the era of the dot-com bust and the fifty percent market decline. Like many, his investments went down. But the markets weren’t Carl’s biggest problem. The overwhelming issue concerned his wife. I’ll call her Debbie.
Prior to 1997, Carl had retired from running a successful business. He and his wife Debbie had saved over a million dollars and had no debt. They had a beautiful home near the California coast. Carl and Debbie were looking forward to a comfortable retirement. Debbie was the apple of Carl’s eye.
In 1997, Debbie was diagnosed with Alzheimer’s disease. Neither Carl nor Debbie expected such a shock in their lives. They had both come from healthy family backgrounds. They were worried. But, they believed patience and loving care would help them manage the situation. Carl prepared himself to look after Debbie through the rest of their lives.
Unfortunately, Debbie’s Alzheimer’s progressed rapidly. She began experiencing agitation and confusion. She was also losing coordination, motor skills, and the ability to care for herself. Carl was older himself and found it difficult to attend to Debbie’s needs. In 2000, Carl made a difficult decision. He had no choice but to place Debbie into long term care.
Debbie passed away after five years in long term care. Carl was devastated by the loss of his wife. He was also troubled by the financial damage that occurred. His dot-com losses were over three hundred thousand dollars. The long term care cost was five hundred thousand dollars.
Carl was left with his home and less than two hundred thousand dollars. I couldn’t help but wonder if Carl would have accepted advice earlier in life.
Don’t delay your financial decisions. Seek professional advice to address personal finance, investment, insurance and estate planning issues in a timely manner. It could prove valuable.
Glenn A. Cunningham is a CERTIFIED FINANCIAL PLANNER™ professional located in Temecula. He is the owner and President of GC Asset Management, a Registered Investment Advisor that specializes in Wealth and Retirement Strategies. For more information visit www.GCAsset.com or call (619) 356-8810.