Alex and Ryan continue to discuss McLean’s ADV Part 2. It is the SEC-mandated document that an advisor provides to prospects and to existing clients at least once a year. The ADV Part 2 serves as your user manual for working with your advisor. We use McLean’s ADV to serve as a baseline for these episodes. In this episode, we discuss: 

An advisor’s code of ethics and how that translates into best practices for the business and client relationship.  
The role of the custodian and trading relationships with other institutional partners.
How often and how do advisors review your investment accounts? What are they holding themselves accountable to?
Referral fees. Do advisors receive fees for recommending other services or for referrals to other professionals? Conversely, do advisors pay fees for receiving referrals?
The difference between investment discretion and non-discretion in the management of your assets.
Assessing an advisor’s financial well-being.

Listen now to learn more!


Links 

To download McLean’s ADV Part 2, click here: https://www.mcleanam.com/adv2a 

You can reach our guest Ryan Walters by visiting: https://rialawyers.com/ 

Join the waitlist for our next round of the Retirement Income Challenge at risaprofile.com/podcast 

If you are an individual consumer and would like to be directed to our sister firm McLean Asset Management you can get in touch at: https://www.mcleanam.com/start/


This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, ”Is a Roth Conversion Right For You?”

Episode 94: Understanding an Advisor’s ADV Part 2 brochure to evaluate how an advisor may work with you - Part3.

The purpose of Retire With Style is to help you discover the retirement income plan that is right for you. The first step is to discover your retirement income personality. Your hosts Wade Pfau, PhD, CFA, RICP and Alex Murguia, PhD walk you through creating and implementing a retirement plan that will help you reach your goals, and that you’ll be able to stick with.
Start by going to risaprofile.com/style and sign up to take the industry’s first financial personality tool for retirement planning.

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In this episode, Wade and Alex discuss Medicaid as a funding source for long-term care. They touch on the importance of Medicaid planning and the different rules and qualifications that vary from state to state. They also highlight the need for specialized elder law attorneys to navigate the complexities of Medicaid. Wade shares his personal experience with his parents’ Medicaid coverage and the benefits it provides. The episode concludes with a reminder to consider Medicaid as an option for parents who may not have sufficient savings for long-term care. Listen now to learn more!




Takeaways

Medicaid is a state-based funding source for long-term care that is generally considered a last resort option.
Medicaid planning involves shifting assets from countable to non-countable categories to qualify for Medicaid benefits.
Every state has different rules and qualifications for Medicaid, so it’s important to consult with a specialized elder law attorney.
Medicaid reimbursements may be less than the actual cost of care, so it’s beneficial to enter long-term care facilities before needing Medicaid.
Consider Medicaid as an option for parents who may not have sufficient savings for long-term care.

Chapters

00:00 Introduction and Personal Updates
10:56 Discussing Films and Personal Interests
13:33 Transition to Discussing Medicaid
19:14 Qualifications and Asset Limits for Medicaid
23:01 Medicaid Planning and Non-Countable Assets
26:55 Personal Experiences with Medicaid Coverage
28:25 Importance of Medicaid Transition and Considerations
29:22 Conclusion and Preview of Future Episodes





Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”

Episode 126: Long- Term Care Planning (Part 10): Medicaid as A Funding Source

In this conversation, Alex, Wade, and Jason discuss the importance of incorporating long-term care into financial planning. They share a real-life example of a client who unexpectedly needed long-term care earlier than anticipated and how having a long-term care policy helped preserve their assets. They also discuss the different types of long-term care insurance policies, such as hybrid policies, and the factors to consider when deciding whether to self-insure or purchase insurance. The conversation highlights the need to stress test financial plans for long-term care events and the value of care coordinator benefits in insurance policies. In this conversation, Jason Rizkallah discusses the process of obtaining long-term care insurance. He explains that the decision between insurance and self-insurance varies and is often influenced by factors such as cost, eligibility, and pre-existing conditions. Rizkallah also outlines the steps involved in signing up for a long-term care policy, including determining coverage amounts, obtaining quotes from providers, and going through the underwriting process. He emphasizes the importance of working with a knowledgeable long-term care specialist to navigate the complexities of the insurance market. The conversation concludes with a discussion on the need for early planning and the availability of options for long-term care coverage.

Takeaways

Incorporating long-term care into financial planning is crucial due to the high probability and cost of long-term care events.
Stress testing financial plans for long-term care events helps clients understand the potential impact on their financial situation.
Hybrid policies, which combine life insurance and long-term care coverage, can provide both a death benefit and long-term care benefits.
The cost of long-term care insurance should be compared to the potential out-of-pocket expenses to determine the value of the coverage.
Care coordinator benefits in insurance policies can be valuable for individuals who may have difficulty finding appropriate care on their own. The decision between long-term care insurance and self-insurance depends on factors such as cost, eligibility, and pre-existing conditions.
The process of obtaining long-term care insurance involves determining coverage amounts, obtaining quotes from providers, and going through the underwriting process.
Working with a knowledgeable long-term care specialist can help navigate the complexities of the insurance market and increase the chances of approval.
Early planning is crucial for long-term care, as the probability of needing care increases with age.
There are options available for long-term care coverage, including hybrid policies that offer flexibility and known benefits.

Chapters

00:00 Introduction and Guest Introduction
07:26 Benefits of Hybrid Policies
23:02 Factors to Consider in Long-Term Care Planning
32:16 Options for Long-Term Care Coverage





Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 125: The Importance of Incorporating Long-Term Care Into Financial Planning with Jason Rizkallah

In this episode, Wade Pfau and Alex Murguia are joined by Rob Cordeau to discuss Continuing Care Retirement Communities (CCRCs). They provide an overview of what CCRCs are and how they relate to long-term care planning. They also explore how CCRCs can be an alternative to long-term care insurance and the different financing models for CCRCs. The conversation covers topics such as the large upfront costs of CCRCs, the benefits of living in a CCRC, and the options for refundable entrance fees. Rob Cordeau provides insights into continuing care retirement communities (CCRCs). He clarifies that purchasing a CCRC is not a real estate purchase but rather a contract to live in the community throughout one’s life. The entrance fee varies based on the size and features of the apartment, and there are different types of contracts, including non-refundable and refundable options. Rob also discusses the financial aspects of CCRCs, such as the relationship between entrance fees and ongoing cash flow, the potential tax deductibility of entrance fees, and the importance of financial due diligence when choosing a CCRC.

Takeaways

CCRCs are retirement communities that offer various levels of care on one campus, including independent living, assisted living, and skilled nursing care.
CCRCs can be an alternative to long-term care insurance, especially for those who want to downsize and plan for their long-term care needs.
There are different financing models for CCRCs, including large upfront costs with lower ongoing monthly costs or lower upfront costs with higher ongoing monthly costs.
Some CCRCs offer refundable entrance fees, where a portion of the fee is returned to the resident or their heirs upon moving out or passing away.
CCRCs are not real estate purchases but contracts to live in a community throughout one’s life.
The entrance fee varies based on the size and features of the apartment.
CCRCs offer different types of contracts, including non-refundable and refundable options.
Financial planning is crucial when considering a CCRC, including modeling the affordability of entrance fees and monthly service fees.
Some entrance fees may be tax deductible, depending on the contract.
Due diligence is essential to assess the financial stability and reputation of a CCRC.
CCRCs may not be suitable for individuals who prefer independent living in their own homes.
Buyer’s remorse is rare among individuals who have thoroughly considered and chosen a CCRC.

Chapters

1. Introduction and Overview of CCRCs
2. Exploring Different Financing Models for CCRCs
3. Understanding Refundable Entrance Fees in CCRCs

4. Understanding the Dynamics of CCRCs
5. Financial Underwriting and Considerations for CCRCs
6. Different Types of Contracts Offered by CCRCs
7. Financial Planning for CCRCs
8. CCRCs vs. Independent Living: Choosing the Right Option

Links

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”

Episode 124: Insights into Continuing Care Retirement Communities with Rob Cordeau

In this conversation, Alex, Wade, and Neal discuss the importance of long-term care planning in retirement. They highlight the emotional aspect of planning for long-term care and the challenges of getting people to think about and prepare for it. They also discuss the demographic changes that will impact long-term care, such as the decreasing ratio of family members available to provide care and the potential shortage of caregivers in the future. The conversation touches on the different types of long-term care insurance policies and the need for open and meaningful discussions about healthcare and planning for the future. Neal shares examples of clients who have had personal experiences with long-term care and emphasizes the need for estate planning and power of attorney documents. The conversation then transitions to a discussion about long-term care insurance, with Neal explaining the challenges of traditional policies and the availability of guaranteed policies with reputable insurance companies. These policies address the issues of premium hikes and the ’use it or lose it’ nature of traditional policies. The conversation explores different types of hybrid policies, including those built on a whole life or universal life chassis. The benefits of these policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer. The decision-making process for choosing a policy involves considering the individual’s needs, net worth, and risk tolerance. Listen now to learn more!

Takeaways

Long-term care planning is a crucial aspect of retirement planning.
Planning for long-term care involves emotional considerations and difficult discussions.
Demographic changes, such as a decreasing ratio of family caregivers and potential caregiver shortages, will impact long-term care.
There are different types of long-term care insurance policies to consider.
Open and meaningful discussions about healthcare and planning for the future are essential.
Estate planning and power of attorney documents are essential for ensuring that clients’ wishes are carried out and that their loved ones are not burdened with difficult decisions.
Traditional long-term care insurance policies have had challenges in the past, but there are now guaranteed policies available from reputable insurance companies.
Inflation riders on long-term care insurance policies are recommended to ensure coverage against future costs.
Hybrid long-term care insurance policies address the issues of premium hikes and the ’use it or lose it’ nature of traditional policies.
Different types of hybrid policies include those built on a whole life or universal life chassis.
Benefits of hybrid policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer.
The decision-making process for choosing a policy involves considering the individual’s needs, net worth, and risk tolerance.


Links

Register for the webinar with Retirement Researcher and Kenneth French! ‘Five Things I Know About Investing’ Wed 4/24 at 2 EST www.risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 123: The Importance of Long-Term Care Planning in Retirement with Neal Gordon

In this conversation, Bob French interviews his father, Ken French, a professor of finance, about key concepts in economics and investing. They discuss the concept of marginal cost and marginal revenue, which helps individuals make decisions based on the balance between costs and benefits. They also explore risk aversion and how it affects investment decisions, as well as the winner’s curse, which refers to the tendency to overestimate the value of winning bids or investments. Overall, the conversation provides valuable insights into economic thinking and decision-making. In this conversation, Bob and Ken French discuss the challenges of drawing inferences about the future based on past performance in the financial markets. They highlight the winner’s curse and the noise in securities returns as factors that make it difficult to predict which asset class or active manager will outperform in the future. They also discuss the problem of overconfidence and the importance of accurate market prices. The conversation concludes with a discussion on the benefits of stock buybacks and the option value of investments. Listen now to learn more! 

Takeaways

Understanding the concept of marginal cost and marginal revenue can help individuals make informed decisions based on costs and benefits.
Risk aversion is driven by the decreasing marginal utility of wealth, where the value of each additional dollar decreases as wealth increases.
The winner’s curse refers to the tendency to overestimate the value of winning bids or investments, and it can be observed in various contexts, such as oil lease auctions and hiring decisions.
Considering these concepts can enhance economic thinking and decision-making in investing and other areas of life. Drawing inferences about the future based on past performance is challenging due to the winner’s curse and the noise in securities returns.
Overconfidence is a common problem in investing, and people often overestimate their ability to pick winning investments or active managers.
Accurate market prices are important for allocating resources efficiently and signaling the value of different activities.
Stock buybacks can be beneficial for companies and society, as they can signal undervaluation and allow companies to allocate resources more effectively.
The option value of investments should be considered, as companies may choose to buy back stock when they don’t have better investment opportunities.

Chapters

00:00 Introduction and Setting the Stage
09:19 Navigating Risk Aversion in Investing
31:46 Enhancing Economic Thinking and Decision-Making
45:39 The Importance of Accurate Market Prices
51:42 The Benefits of Stock Buybacks

Links: 

Register for the webinar with Retirement Researcher and Kenneth French! ’Five Things I Know About Investing’ Wed 4/24 at 2 eastern www.risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, ”Is a Roth Conversion Right For You?”

Episode 94: Understanding an Advisor’s ADV Part 2 brochure to evaluate how an advisor may work with you - Part3.

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