Wellness and financial goals…hand in glove

 

Health and Financial Wellness

 

Your financial plan is about your goals and finances.  But is it also about your health?

In a recent blog post on the Forbes.com website, financial planner and medical professional Carolyn McClanahan suggests that your health status may be a crucial input into your overall financial plan.

Why?  Because it helps you know how long your money will need to last—in other words, your longevity.  If you have significant health issues at an early age, then you can probably spend more during retirement, and use up your nest egg faster, than if you’re hale and your family history has close relatives living past age 100.

The default assumption has been that people will live to the age on a standard life expectancy calculator—which would say, for instance, that a person age 49 has a 50% chance of living past age 85.  But people who live a healthy lifestyle probably have a proportionately greater “risk” of outliving their life expectancy, while a chronically overweight smoker might be expected to contribute to the other side of the statistics.  In general, financial planning clients tend to be smarter and wealthier, which suggests that they’ll outlive the statistical averages.

McClanahan routinely estimates that her healthy clients will live to age 100.  For people with health concerns, she asks that they visit livingto100.com, which is an online questionnaire/calculator that asks health-related questions and then tells you how long you can expect to live based on more than just the actuarial statistics.  She tested it out with her “real” (healthy lifestyle) information and the site estimated she would need to financially prepare for living to age 102.  When she gave different information—when she described herself as an overweight, beer-guzzling junk food eater and smoker—her life expectancy shifted to age 63.  What a difference!

And, of course, the lifestyle component is only part of it.  If you have chronic conditions, if you’ve been diagnosed with cancer or have other significant health concerns, you can throw the averages out the window.  The point: your health and lifestyle can greatly affect the assumptions in your financial plan, and should not be ignored.

Source:

https://www.forbes.com/sites/carolynmcclanahan/2014/04/21/why-you-should-discuss-health-with-your-financial-planner/#53b06a2754f9

About Objectively Speaking

Tom Batterman, founder of Vigil Trust & Financial Advocacy and Financial Fiduciaries, LLC is in the business of representing the best financial interests of his clients. Having provided objective, fee-only financial management services for over two decades, he specializes in managing the investment and related financial affairs of individuals and mutual insurance companies who do not have the time, interest or expertise to manage such matters on their own. As an objective, unbiased professional who takes on a fiduciary responsibility to his clients, he guides clients to the financial decisions they would make themselves if they had years of training and experience and the time and expertise to fully research and understand all of their options. Founded in 2010 as an outgrowth of Vigil Trust & Financial Advocacy, Financial Fiduciaries, LLC is a financial management solution for individuals and mutual insurance companies who recognize they do not have the time, interest or expertise to properly attend to their financial matters on their own. While there are many financial “advisors”, most of them have investment products to sell and the “advice” they provide is geared toward getting their clients to engage in a purchase. As one of the rare subset of advisors known as “fiduciary advisors”, Financial Fiduciaries does not sell any investment product so its guidance is not compromised by conflicts of interest which plague ordinary advisors. Prior to his employment in the financial industry in financial advocacy and trust positions, he worked at a private law practice in the Wausau area in the areas of estate planning, tax, retirement planning, corporate organizations and real estate. He is a graduate of the University of Wisconsin-Madison and the UW-Madison Law School and has during his career held Series 7, 24 and 65 securities licenses. A longtime resident of the Wausau, Wisconsin Area, Tom is active in the community. He enjoys golf, curling, skiing, fishing, traveling and spending time with his family.
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