Death, it isn’t a favorite topic of conversation for most people. But it is an event all must face someday, some sooner than later. And what about your retirement? Have you taken the time to prepare for retirement? Are your affairs in order for those who must go on without you? What if you were to lose your independence? Have you made your wishes known, written them down, so your loved ones can handle your affairs as you want? Sadly, many people don’t or haven’t.

Why Should You Prepare for Retirement, Loss of Independence, or Death?

Before the housing market crash of 2008, paying off the mortgage was what Americans did as they reached retirement. And being debt-free or largely debt-free was part of that plan.

But nowadays, people aren’t prepared for retirement, the possibility of their loss of physical independence, or even death. And it causes a lot of unnecessary trouble for their families who are left behind.

Interest.com says, “Today, more of us are carrying home loans into our golden years, or even taking on new mortgage debt by tapping our home equity to pay the bills.

Data from the U.S. Bureau of Labor Statistics indicates 30% of Americans ages 65-74 still hold a mortgage, and even 14% of us who are 75 and older are saddled with home debt.

Those numbers have risen dramatically since 2001, according to an earlier study by the Consumer Financial Protection Bureau, as has the average mortgage balance older Americans are carrying.”

And they’re only talking about home debt.

Prepare for Retirement

Save. That’s pretty simple, huh? Start saving money to prepare for retirement and pay off debt now. When it comes to saving money for retirement, the sooner you start the better off you’ll be in retirement.

Okay, so save for retirement. But how much? And when should I start?

The question, “How much should I save,” is typically answered with “As much as you can.” But many financial planners recommend saving ten percent to fifteen percent of your income for retirement. And when should you start? In your twenties.

But let’s get real and little more specific. I mean, how many of you reading this post are already past your twenties? And how many of you started saving ten to fifteen percent of your income in your twenties?

You need to establish a savings goal that shows you how much to set aside now in order to reach your retirement goals. Use an awesome online calculator to help you determine a realistic savings goal for your retirement at your age now.

CNN Money also states: “As a general rule, you’ll need at least $15 to $20 in savings to cover each dollar of the annual shortfall between your income and your expenses. So for example if your projected retirement expenses exceed Social Security and pensions by $20,000 a year, you might need a nest egg of $300,000 to $400,000 to bridge the gap.”

Fisher Investments offers a FREE downloadable 15-Minute Retirement Plan™. This pdf will help you develop a retirement investment strategy for your goals and your financial situation.

Prepare for Loss of Independence

Just like saving your money for retirement, preparing now for the loss of independence is best. No, loss of your independence may not happen. But what if it does? Shouldn’t you be prepared for your own sake and the sakes of your family members as well?

Planning early for the loss of independence is important because disability can happen at any age, even before you hit 70. Believe it or not, this includes conditions such as dementia or Alzheimer’s. And yes, before the age of 70.

Also, establishing a plan for care involving dementia or Alzheimer’s differs greatly from establishing a plan for care due to physical limitations or disabilities. This is another important reason to prepare for retirement early.

Both mental disability and physical disability must be considered and planned for early for the sakes of those who will care for you. Many times assistance and care are needed for a long time. If this kind of care becomes necessary, your family could struggle greatly financially to pay for your care. And why would anyone want to do that to their family? Early preparation is vital.

Think about it. If you become mentally disabled, how will you make your desires for your care known to your family? How will they make decisions on your behalf if they don’t know what you want? They need your plan to guide them.

Prepare for Death

This hard to type and read, let alone think about. But are you prepared for death? I’m not talking about a diagnosis. I’m talking about estate planning. I’ve interacted with many families whose parent(s) has died, unprepared. Their affairs were not in order. Homes are going into probate or their heirs must deal with reverse mortgages. There are so many issues between family members created because of a lack of planning.

Investopedia has put together a 16-point checklist of things you need to do before you die. Why? Because “You must implement your plan and make sure others know about it and understand your wishes. As Benjamin Franklin’s famous quote goes, ‘By failing to prepare, you are preparing to fail.’”

Help is Available

Planning your estate is difficult. But you don’t need to plan alone. You have two very good options available to help you prepare for retirement, loss of independence, or death. Consider hiring a mediator and/or an elder law attorney.

Mediator or care manager – Mediators are experienced professionals who help families work through their decisions for the care of a parent or loved one. They also help families work through emotions they may be struggling with any issues that arise with different individual “agendas.”

Elder law attorney – Elder law attorneys are equipped to handle a wide range of legal matters. They can handle issues related to your health care, long-term care planning, guardianship, retirement, Social Security, Medicare/Medicaid, and more. You can hire them to help you write your will, trust, advance medical directive, or financial power of attorney so that your documents are legally valid. State laws are very specific about what can and cannot be included in a will, trust, advance medical directive, or financial power of attorney.

Hiring an elder law attorney is good for establishing some form of checks and balances for your family in the handling of your money. And in the case of elder abuse, because it does happen, they are able to handle such challenging situations.

Don’t Delay

Are your important documents in order? Do you still need to prepare for retirement, loss of your independence, or even death? I cannot overemphasize the importance of early planning.

Don’t delay. Have these unpleasant conversations with your heirs about your care of you as you age. Consider your financial situation and your range of care options if assistance becomes necessary. Then, execute those plans.

I have helped a lot of clients deal with homes that are going into probate and reverse mortgages lately. There are so many issues between family members because the elderly were not prepared. They didn’t have things in order.

Speak to an accountant or elder care lawyer. We all work so hard to get to a certain point in life. We must learn how to protect everything, especially our families after we’re gone.

I will continue to help people through issues with their families. It is important to me to focus on the whole family, not just the sale.

Contact me, Charles D’Alessandro, your Brooklyn Real Estate Agent with Fillmore Real Estate. Call (718) 253-9600 ext.206 or email [email protected] with your questions about how important it is to get prepared for retirement, loss of independence, or death today.

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 Charles D’Alessandro

Your Brooklyn Real Estate Agent

718-253-9600 ext. 206

[email protected]

My mom lives alone now. While we were visiting her the other day, she told us she had forgotten where she put her keys and locked herself out of her house. Then, while we were making dinner, I noticed she was having trouble following a recipe for a dish we make every time we get together. My husband helps her with her bills. On our way home from Mom’s house, he mentioned that she hasn’t been keeping track of her monthly bills very well at all. We’re wondering if these are typical age-related changes or early warning signs of dementia.

Dementia Statistics

Alzheimer’s disease is the most common type of dementia. Sixty to eighty percent of dementia cases are suffering from Alzheimer’s disease.

• Alzheimer’s is the 6^th leading cause of death in the United States
• Every 66 seconds someone develops the disease
• One in three seniors dies with Alzheimer’s or another dementia
• Since the year 2000, deaths from heart disease have decreased by 14% while deaths from Alzheimer’s disease have increased by 89%
• It kills more than breast cancer and prostate cancer combined

This year there are an estimated 5.5 million Americans living with Alzheimer’s dementia.

• Ten percent of people age 65 and older have Alzheimer’s dementia.
• Almost two-thirds of Americans with Alzheimer’s are women.
• African-Americans are about twice as likely to have Alzheimer’s or other dementias as older whites.
• Hispanics are about one and one-half times as likely to have Alzheimer’s or other dementias as older whites.

And the onset of Alzheimer’s disease is growing fast. Because the number of people age 65 and older in the United States is growing, the number of new cases of Alzheimer’s and other dementias is projected to soar. Today, every 66 seconds someone in the United States develops Alzheimer’s dementia. But by mid-century, this is expected to increase to someone developing the disease every 33 seconds.

What are the Warning Signs of Dementia?

Alzheimer’s is a brain disease that causes a slow decline in memory, thinking and reasoning skills so memory loss that disrupts daily life may be the first warning sign. There are ten warning signs and symptoms to look for and be aware of. Since everyone is different, individuals may experience one or more of these signs in different degrees. If you think you’re seeing any of them in a loved one or in yourself, visit your doctor right away.

1. Memory loss disrupts daily life

Memory loss is the most common sign of Alzheimer’s.

• Forgetting recently learned information, important dates or events
• Asking for the same information over and over
• Needing to rely on reminder notes or electronic devices or family members for things they used to handle on their own

Forgetting names or appointments, but remembering them later is not a warning sign.

2. Planning or solving problems is challenging

Working with numbers or developing and following a plan may be challenging with Alzheimer’s. Following a familiar recipe or keeping track of monthly bills is difficult now when it didn’t use to be. Making occasional errors when balancing a checkbook is an age-related change and not one of the warning signs of dementia.

3. Familiar tasks at home, work or leisure are difficult to complete
   

This warning sign is somewhat similar to number 2. But people with Alzheimer’s often find it hard to complete daily tasks such as driving to a familiar location, managing a budget at work or remembering the rules of a favorite game. Needing help to use the settings on a cell phone or recording a program on the TV is not a warning sign.

4. Dates, seasons and the passing of time are confusing

Someone who suffers from Alzheimer’s may have trouble understanding something if it isn’t happening right then. They can forget where they are or how they got there. An age-related change is getting confused about which day of the week it is but figuring it out later.

5. Reading, judging distance, and determining color or contrast is difficult

Vision problems are a sign of Alzheimer’s for some people and may cause problems with driving. Vision problems caused by cataracts, for example, are age-related, not a warning sign for Alzheimer’s.

6. Following or joining a conversation is troublesome

Someone with Alzheimer’s may stop in the middle of a conversation and have no idea how to continue. They may also repeat themselves and struggle with finding the right word. For example, they may call a watch a hand-clock. Many of us have trouble finding the right word sometimes, but if these symptoms happen often, it could be a warning sign of Alzheimer’s.

7. Misplacing things and being unable to retrace steps

Putting things in unusual places is common for someone who has Alzheimer’s. They may accuse others of stealing when they lose something and cannot retrace their steps to find it again. If this happens more frequently over time, check with your doctor for the possibility of Alzheimer’s. Again, everyone loses things from time to time, but since they are able to retrace their steps to find them, they aren’t displaying one of the warning signs of dementia.

8. Poor judgment and a lack of self-care is a regular occurrence

Those who have Alzheimer’s are less attentive to proper grooming and cleanliness. They may show poor judgment with money by giving large sums to telemarketers or falling prey to scams. Making a bad decision every once in a while is an age-related change, but when this happens repeatedly, it could be a warning sign.

9. Avoiding social activities

When someone has Alzheimer’s, they may withdraw from hobbies, social activities, work projects or sports. Because they are having trouble keeping up with their favorite team or remembering how to actually do a favorite hobby, they may avoid being social. With age-related changes, we grow weary of work, family, and social obligations at times. But if we withdraw for a short time, we’re usually ready to socialize once again. Taking a break from obligations for a short time is not a warning sign.

10. Changing moods and personalities

When a loved one with Alzheimer’s is out of their comfort zone, they can become confused, suspicious, depressed, fearful, anxious, or easily upset. As we age, we develop routines and enjoy our specific ways of doing things. When a routine is disrupted, we can become irritated, but this doesn’t mean we have Alzheimer’s.

If You Notice Warning Signs

Early detection matters! If you notice any of the warning signs mentioned above in yourself or someone you know and love, schedule an appointment with your doctor as soon as possible. Early detection allows you to:

• Get the most benefit from the treatments available for Alzheimer’s patients
• Explore treatments that provide relief of symptoms
• Help you maintain your independence longer
• Increase your chances of participating in drug trials that help advance research

Be Prepared for the Changes Alzheimer’s Brings

We need to be more proactive, make ourselves aware of the warning signs of dementia, and pay attention. Don’t brush it aside when your loved one tells you they lost their car keys or locked themselves out of their house. Dementia is progressive and our seniors need us. What if your loved one lives alone or in another state? It is best to know and understand what dementia is and what the warning signs of dementia are before your loved one is clearly in trouble.

Charles’ family like so many others has been affected by this terrible disease, and it is very difficult on all dealing with loved ones who have Alzheimer’s. The book “The 36-Hour Day” will help with understanding and dealing with this disease. If you think you may be seeing the warning signs of dementia, talk with an elder care lawyer, attorney, or broker about dementia and how you can help your loved one if and when dementia strikes.

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Charles D’Alessandro

Your Brooklyn Real Estate Agent with Fillmore Real Estate

718-253-9600 ext 206

[email protected]