Plan for End of life care. EoL care is by far the most expensive medical care there is. Easily, 25% percent of medical expenses are spent in the final year of life. That’s a lot! So plan to have some money set aside for that.
Health insurance is a necessity for everyone older or younger. Not having health insurance is a great way to lose all assets. Seriously, the #1 reason people in the US are foreclosed on is medical bills and lack of health insurance.
General Retirement Investing: I’ve seen all sorts of situations for older guys. In general, older men need upwards of a million dollars in assets and investments for comfortable retirement planning. In some cases, that’s generous and others it’s not enough.
Research low risk bonds and highly rated mutual funds, such as 5-star target date funds.
For older men who own a house but not a lot of other assets or investments, they might want to look in to a reverse mortgage. Careful the fees are very high!
Stay away from buying equities and commodities. They’re way to volatile for anyone over 50. Assume you will lose any money you put in to stocks.
Look in to annuities and Roth IRAs, (IRAs… to different thoughts on this. Roth you pay the taxes going in. IRA you pay withdrawing.)
Consider some more volatile investments but again, assume anything you put in stocks is a loss. That being said there are some really great stocks right now in tech, bio tech, and healthcare. Blue Chip stocks are great for long term investing.
Buying a home is a great way to maintain asset value, but it’s also a great way to tie up all your liquidity. Careful with what you buy.
Tidbit I have an older friend who had a bunch of telecom stocks from 40 years ago and basically forgot about them, and just spent the dividends. When he retired, the dividends were paying his real estate taxes. He didn’t know the value of the stocks, so I calculated it based on the dividend amount. The stock had split so many times over the years, he had thousand of shares. This is the definition of a nest egg. The moral of the story is invest in something great and don’t touch it!
If you are younger and are helping someone invest, be very very careful! You don’t want to be partially responsible for massive financial losses.
In general, if the market drops DO NOT PULL YOUR MONEY OUT! This is how most people get burned.
Marriage has many many benefits when you are an older younger couple. Hospital rights, power of attorney right, will rights, and asset rights. If you aren’t getting married, research the multitude of legal contracts needed to protect the sovereignty of your union. Marriage does have tax implications, and it can be beneficial in certain situations, effectively moving you as a couple to a lower tax bracket. Research this.
Finally, I will leave you with this card for younger to middle age as an investment strategy. It is a cheat sheet and is the best investment advice you will likely ever get.