This past Mother’s Day served as a beautiful, poignant reminder of what a privilege it is to walk alongside my husband John’s parents as they age. Now in their upper 80s, they continue to live independently—a feat that isn’t just due to luck, but to the power of intentional planning. Through a blend of foresight and gradually increasing support, we are working to ensure they can enjoy the comfort of their own home for many years to come.
As a financial planner, I see families navigating these waters every day. The challenges of health, finance, and independence are universal, but they don’t have to be overwhelming. Here are three stories from my own life that highlight why we do what we do.
- Facing the Unthinkable: The Alzheimer’s Contingency
While John’s parents are doing well, my own parents weren’t as fortunate. We are frequently asked to build “contingency plans” for cognitive decline, a fear that weighs heavily on those nearing retirement.
In our practice, the conversation starts with a reality check: Do you have the resources to self-insure? A general rule of thumb for those wishing to fund their own institutional or nursing care is a nest egg of approximately $3.5 million. For those without those specific funds, we explore modern long-term care solutions or insurance products with LTC riders. Planning for the “what if” isn’t being pessimistic; it’s being prepared, ensuring that if a spouse falls ill, the quality of care—and the survivor’s quality of life—remains intact.
- The Invisible Thief: Protecting Your Purchasing Power
Inflation is a quiet erosion of independence. My father-in-law was fortunate to retire with an inflation-protected state pension, but we still had to do significant work to ensure my mother-in-law secured her own Social Security benefits from her years as a self-employed stylist. Recent legislative changes have made it easier to maximize these benefits without the heavy penalties often associated with non-Social Security pensions.
For those without “built-in” inflation protection, the math is vital. While we are working, our wages generally rise with the cost of living. Once we retire, it is up to us to ensure our savings are positioned to do the same. We calculate exactly how much it takes to protect your buying power decades into the future, so you never have to choose between a meal and a light bill.
- The Medicare Gap: Beyond the Basics
Many retirees are shocked by the rising cost of Medicare supplements. Even with the excellent coverage provided to Tier 1 State of Alaska retirees, the premiums and the inflation of those costs can take a surprising bite out of a monthly budget.
When we sit down with clients, we love talking about the fun stuff—travel budgets and helping the grandkids with college. But we also have the hard conversations. We talk about shifting priorities from “traveling the world” to “maintaining an independent lifestyle.” Personal savings provide the ultimate luxury: options. Whether it’s traveling to see a specialist or seeking a medical treatment not covered by Medicare, having a plan in place means your health isn’t dictated by a policy manual.
Planning is an Act of Love
At its core, financial planning isn’t about spreadsheets; it’s about making longevity less stressful. It allows you to spend your time enjoying your parents’ company rather than worrying about their accounts.
To all the mothers out there, I hope you had a wonderful day. And to those who are currently guiding their loved ones through the journey of aging: We see you. Your dedication is remarkable, and we are here to help make that path a little smoother.
Happy Belated Mother’s Day,
Laura Bruce
CEO
This material is not intended to be investment, tax, or legal advice and is provided for illustrative purposes only. Alaska Wealth Advisors is an investment adviser registered with the U.S. Securities and Exchange Commission. Registration does not imply a certain level of skill or training. More information about Alaska Wealth Advisors’ investment advisory services can be found in its Form ADV Part 2 and/or Form CRS, which is available upon request.
