Image provided by: University of Oregon Libraries; Eugene, OR
About The Columbia press. (Astoria, Or.) 1949-current | View Entire Issue (July 2, 2021)
The Columbia Press July 2, 2021 Senior Moments 7 Financial Focus with Adam Miller with Emma Edwards Set your mind on healthy things Declaring your financial independence The epoch of “old” is barely setting into my life, no matter how old I get. I wonder what will define my demise. There are many theories out there. Do I fol- low the maternal or paternal side of my family? Maybe you genealogists can tell me. I have asked the Lord to keep me here until I’m 103. Do you think I’ll get my way? I know, there are charts I could look at, but I try to stay away from them. In doing a bit of research, I learned the average life expectancy was about 35 from the 1500s to the 1800s. Life was a lot harder for our ancestors. We are traveling on the lon- ger life pathway much faster than we did back then. I’m convinced that having more to think about helps. Think about all the virtual visits we’ve been privileged to take part in this past year or more. I’ve heard of more than one family reunion that took place via the current media available. Many have become ac- quainted with Zoom and Skype and then, of course, there is FaceTime and Face- book and so many others. And we can still keep in contact with handwritten let- ters, of course. An 80-year-old woman I know wouldn’t dream of quitting their job. Those who volunteer and act as caregivers remain healthier, I am told. And those who continue to be involved, even if it’s a weekly Bridge or Pinochle game, are far less apt to give in to loneliness, which could have negative impacts both physically and emotionally. Another way to fight loneli- ness is to live in households with or near one or more grandchildren, according to the American Psychological Association. As many as half a million grandparents 65 and older have primary responsibility for their grandchildren, an- other “kicker” of loneliness. “One out of every four 65-year-olds today will live past age 90, and one out of 10 will live past age 95,” accord- ing to the APA. “The number of Americans over age 85 is increasing faster than for any other age group.” There is a verse in the Bi- ble that reminds me of our thought patterns. Many of us need to remember to feed our thoughts positively. The Apostle Paul reminds us in Philippians 4:8 to set our thoughts on those things that are true, noble, right, pure, lovely, admirable, and praiseworthy. That reminds me of one distraught senior citizen who let her thoughts go elsewhere when she phoned her doc- tor’s office. “Is it true that the medica- tion you prescribed has to be taken for the rest of my life?” she wondered. “Yes, I’m afraid so,” the doctor told her. There was a moment of si- lence before the lady replied, “I’m wondering then, just how serious is my condition because this prescription is marked ‘No refills.’ ” Independence Day is al- most here. And as we make progress in moving past the COVID-19 pandemic, more of us will be able to enjoy Fourth of July activities. However you observe the holiday, it’s important to rec- ognize all the liberties we en- joy in this country. But you may still need to work at one particular type of freedom – financial freedom. How can you achieve it? There’s no one instant solu- tion. But you can work to- ward financial independence by addressing these areas: • Retirement savings: Approximately 45 percent of Americans think the ideal re- tirement involves “enjoying my well-earned freedom,” according to the March 2021 Edward Jones/Age Wave Four Pillars of the New Re- tirement study. But when you’re retired, the risk to this freedom is obvious – paychecks have stopped but the bills haven’t. Further- more, you could spend two or three decades in retirement. That’s why it’s important to contribute as much as you can afford to your tax-advan- taged retirement accounts, such as your IRA and your 401(k) or another employ- er-sponsored plan. At a minimum, put in enough to earn your employ- er’s matching contribution, if one is offered. Whenever your salary goes up, try to increase the annu- al amount you put in your 401(k) or similar plan. And if appropriate, make sure you have a reasonable percentage of growth-orient- ed investments within your 401(k) and IRA. Most people don’t “max out” on their IRA and 401(k) each year. But, if you can consistently afford to do so, and you still have mon- ey you could invest, you may want to explore other retire- ment savings vehicles. • Illness or injury: If you were to become seriously ill or sustain a significant injury and you couldn’t work for an extended period, the loss of income could jeopardize your ability to achieve financial in- dependence. Your employer may offer disability insurance as an employee benefit, but this coverage is typically quite limited, both in duration and in the amount of income be- ing replaced. Consequently, you may want to consider purchasing private disability insurance. Keep in mind that this cov- erage has an end date and it probably won’t replace all the income lost while you’re out of work, but it will likely be more expansive and gener- ous than the plan provided by your employer. • Long-term care: In- dividuals turning 65 have about a 70 percent chance of eventually needing some type of long-term care, such as a nursing home stay or the assistance of a home health aide, according to the U.S. Department of Health and Human Services. These services are quite ex- pensive – the average annu- al cost for a private room in a nursing home is more than $100,000, according to Gen- worth, an insurance compa- ny. Medicare typically covers only a small part of these ex- penses, so, to avoid depleting your savings and investments (and possibly subjecting your grown children to a financial burden), you may want to consider long-term care in- surance or life insurance with a long-term care component. A financial adviser can help you choose a plan that’s ap- propriate for your needs. By addressing these areas, you can go a long way toward attaining your financial inde- pendence. It will be a long-term pur- suit, but the end goal is worth it. This article was written by Edward Jones and submit- ted by Adam Miller, financial adviser at the Astoria office, 632A W. Marine Drive. To reach him, call 503-325-7991. Special columns in The Columbia Press Every week: Senior Moments with Emma Edwards Week 1: Financial Focus with Adam Miller Week 2: Here’s to Your Health from CMH Week 3: Off the Shelf by Kelly Knudsen Final week: Mayor’s Message by Henry Balensifer
