From Social Security benefits to long-term care coverage to incentivizing your children, we answer four questions from the mailbag today. David shares his advice for these listeners navigating different situations in their financial plan.
(Click the featured times below to jump forward in the episode)
Have a question that needs answering? David answers four different and important questions from the mailbag on this week’s podcast.
One listener recently inherited money unexpectedly and wants to share it with his son who could benefit from it. Is there a way to ensure the money is used wisely instead of blown on a fancy car? David talks about the benefits of incentivizing appropriately. Can you set up a dollar-for-dollar match? What about sharing the money slowly over time? How do you feel about rewarding for good grades? Think creatively to present the money as a part of a teaching opportunity.
Sally heard that she could get half of her ex-husband’s Social Security benefit. Is that true? There are a few things that are required before you can do this. Were you married over ten years? Are you currently unmarried? Are you older than 62? Here’s what Social Security says every woman should know. Meet with a financial advisor to work through all of the details to make sure you are getting your full benefits.
Ian wants to know whether or not his long-term care policy is sufficient to cover his future needs. While it’s hard to predict for sure, look at the math to see what people tend to spend in long-term nursing care. Does your policy cover an inflation rate increase? What is the percentage of the increase? Consider different strategies to cover long-term care needs.
Finally, Ralph didn’t worry about the market when he was working but now that he’s retired he is more concerned. Should he move everything to cash to reduce his worries? While we are experiencing an extended period of volatility, what are some other options besides cash? Look at bank deposits like CDs, short-term bonds, and annuities for lower risk options that aren’t completely out of the market.
[1:08] – Mailbag: How do you wisely handle sharing an unexpected inheritance with a child?
[5:14] – Mailbag: Do I get half of my ex-husband’s Social Security benefit?
[10:24] – Mailbag: Does my policy have enough long-term care coverage?
[14:04] – Mailbag: Should I move my investments to cash?
“Goal setting can be really important, even (or maybe especially!) when you’re in your twenties and thirties. If you want to get to where you’re going, start learning to set goals for yourself today.”
– David Dickens