Girl Power

Answer: It’s wonderful that you and your gal pals are discussing future living arrangements before the need arises. Most weeks, I get together with a group of women, and we joke about moving into the biggest house and hiring help to include a caregiver, cook, driver, and personal trainer.

Today’s independent and assisted living continuous care retirement communities (CCRCs) are the equivalent of being on a cruise ship with all the amenities with offerings at various price points. A personal experience with this topic is one of the reasons I chose this profession. When my grandfather passed, my grandmother was quite vulnerable. My parents and I lived across the country, and Grandma chose an assisted living facility in Minnesota. Her nephew volunteered to oversee her finances and help navigate the changes. Sadly, her finances were mismanaged, and she had to leave the facility sooner than expected.

Fortunately, everything worked out for the best; she moved in with a girlfriend a few years younger, and they pooled their resources. The friend was an angel; they had a wonderful time together and this partnership likely added years to her life.

However, watching this shaped my career path by creating a desire to help people plan for financial security. This showed me that constructing a sound plan and working with the right team of professionals could help provide choices and options, rather than running out of money before running out of life. The goal is to age with dignity and peace of mind.

It was the late ‘80s and The Golden Girls was a popular sitcom when Grandma began enjoying her new lifestyle. Dorothy, Blanche, Sophia, and Rose pooled their resources to make ends meet in Miami. Although Grandma was in Minneapolis, she too flourished and benefited from not living alone.

Having regular meals, activities including entertainment and exercise, and interaction with others all add to the quality of life. Social connections, according to The Mayo Clinic, are often more important than physical health or genetics in determining how well we will age. In 2022, as reported by the US Census Bureau, nearly three in 10 women aged 65 or older lived alone. CCRCs or independent living communities, co-housing, or roommate situations are increasingly popular for women, especially if they are single, divorced, or widowed.

Reduced isolation, safety, and social connections help in staying active while enjoying a built-in support system. Shared lifestyles may reduce chronic illnesses found in those who are isolated and inactive.

As we age, physical health is closely linked to financial health. Many continuous care retirement communities (CCRCs) are an affordable way to live. US Census Bureau data from 2023 shows that the median retirement income in Collier County is $74,313 per year, significantly higher than the average for the state of Florida at $30,158 per year.

Whether you prefer to live alone, in a CCRC, with family or friends, having a solid financial plan in place will help with lifestyle decisions. If you’re single, it is essential to have a health care directive and health care power of attorney in place if you ever need someone to speak on your behalf if you’re not able. This will ensure that your wishes are carried out regarding medical decisions.

When planning retirement, estimate annual withdrawals to sustain your lifestyle. Unlike past generations, today’s retirees face longer lifespans, inflation, and lower interest rates, making strategic investment allocation and withdrawal sequencing essential. A deliberate process should include three principles that are anything but random.

1. Allocating across stocks, bonds, and cash.
2. Diversify for income and growth.
3. Rebalancing as life and markets change.

A general rule for withdrawals if you are under age 73 is to consider withdrawing from your taxable accounts first. Taking money from non-retirement accounts first may allow you to continue to defer taxes on traditional retirement accounts until required minimum distributions are necessary.

Like Dorothy, Blanche, Sophia, and Rose, my Grandma found joy and companionship in shared living; proof that aging doesn’t have to mean going it alone. If you need a thinking partner, consider discussing living situations with professionals, leaning on your CERTIFIED FINANCIAL PLANNER® Professional to help optimize the financial aspect of the quality of your life. Stay focused and plan accordingly.