In this week’s episode, we’re taking a look at a recent study conducted by an expert at MIT that focuses on longevity planning. Our discussion will revolve around the evolving landscape of retirement planning, influenced by longer life spans, and highlight three crucial questions you should contemplate when it comes to retirement planning. Join us and see why having access to simple pleasures, building a strong social network, and considering the hidden costs of maintenance are so important.
Note: This transcript was produced using AI, so please excuse any typos and inaccuracies…
Marc Killian 00:11
Time for another edition of plan wise, retire free with Jude Wilson and myself here to talk about getting older, that’s happening to all of us. So we’re gonna do three ways to rethink old age and retirement. We’re doing this based off a study from an MIT expert that we saw, and we’ll put a link to that in the show notes. So you folks can check out the whole article as well. And we thought we’d have a conversation around this concept with do what’s going on my friend, how are you this week?
Jude Wilson 00:34
I’m doing excellent. I came off of celebrating a birthday. So I took some time off. Nah, I’m energetic and ready to go.
Marc Killian 00:44
Nice. Nice. That was a good one, you’re getting energetic, fun to talk with you as well. And of course, if people need some help, they want to reach out to you make sure that you sit down and have a conversation with a qualified professional like Jude and the team at SunTrust financial strategies to make sure that you are set for anything you hear on our show or any others, you want to see how it relates to your unique situation. And you can find them online at sin trust fs.com, that centrist fs.com, or you can reach out to him at 800-779-4592 i Dude, so longevity planning, I like this concept here. The classic notion, right of retirement planning is just saving money over time, right? If we keep we start early enough, we pump away we probably be okay, right? But we’re all living longer. And they’re trying to get it to where we’re living to be like 130, you know, that they’re, they’re always doing something now. So longevity planning is kind of an interesting term, I like this, we are living longer so and it’s a big, like, it’s the multiplier to all the problems you face as an advisor. And is that we face is, you know, the retiree is the longer we live, the more things we got to deal with, right, the more risks that come our way.
Jude Wilson 01:53
Exactly. I mean, I couldn’t have said it any better. And this study from MIT really highlights it. gentleman by the name of Joseph Coughlin, who is the director of MIT age labs, this study, and you know, when I think about this, I think about my grandmother, okay, and, and simultaneously current events. So my grandmother on my dad’s side lived to be 100. The I remember as a kid, the local news station came out and filmed her her birthday. Oh, very cool. But the reason why I remember it so much, is not that it was this big event. I remember that she did not was not fully there at the time. She was suffering from dementia. And she was not the grandmother that I grew up with. Right, right. But now what we’re seeing is people living well into their 80s 90s. And centenarians are one of the fastest growing age groups in America. I mean, I don’t care what you think about politics, it doesn’t matter to me if you’re Republican, Democrat, Libertarian or vegetarian, it doesn’t matter. But he’s got a win Joe Biden’s end of his term, he will be the oldest living president to have served Ronald Reagan was 77. Joe Biden will be probably 80 At the end of his term, and the leading Republican is not that much younger than him for this next election. So people, the what I’m trying to get across is that people are living longer and good financial planners are planning for that
Marc Killian 03:47
guy. Yeah, you got to take it into account. I love this lie that this guy had. Judy said longevity planning is a better way for society to think about old age, because the future is much grayer than it’s ever been before. And I don’t think he was talking about in terms of color of things are scary out there, which they can be, but just the fact that we’re living longer, we’re getting gray hair. We’re literally you and I got some gray hair going on my friend.
Jude Wilson 04:11
Yeah, thank God. We’re
Marc Killian 04:12
not on camera. That’s right. That’s right.
Jude Wilson 04:16
And the one of the things First of all, I love that line. Yeah, perfect line. One of the other things that came through the study was, if you’re 65 years old today, you have a 50% chance of making it to 85 Yeah. 50. So that’s pretty high. Yeah. And so that all when I first came into the industry, people planned for retirement planning, up until the mid 80s, early 80s. Right. When we do a plan, we our worst case scenario is age 90. We’d like to see that there’s enough money to go well into 100 years of age that that client will receive income and let’s talk a little bit about The study because you opened up with how the study said there’s three tips to thinking about retirement in longevity. Correct, right. The first one I thought was kind of funny. How do I get an ice cream cone?
Marc Killian 05:15
I wonder if they interviewed interview Biden for this one, right? He likes his ice cream cones.
Jude Wilson 05:22
So what you read the tip, it kind of fills you off a little bit, but it’s really about the convenience of things that you like to do right now. And when you’re older, how do you satisfy those, those, those little things that are convenient for you right now, walk down the street, get in your car, go to the ice cream shop. But if you’re 85, and maybe you no longer have a license, or you can’t walk, you know, the couple of blocks to the ice cream store, right? Whatever that convenient thing, you know, how do you plan for that? So most financial planners are really just talking about the money, but you have to consider the quality of life too. Yeah,
Marc Killian 06:06
that’s a great point, dude. Because I know that, you know, things like the World Economic Forum and stuff. They they do a lot of these interesting studies and things where they say we should this that or the other, but they take that into account often based on a larger metropolis, or even a European model where cities are much tighter, right? So like, you might have apartments on top of several shops, for example. So going down to get an ice cream cone is not as complicated as it is in rural Florida, you know, where you’ve got to get in your car and drive 10 miles, right. So you know, it’s just not as easy to do depending on where you live and how you live. So transportation is a high cost in retirement for Americans.
Jude Wilson 06:45
Absolutely, absolutely. That’s why at first, I was a little thrown by this tip. But it made so much sense because of what we just talked about. Yeah, yes.
Marc Killian 06:54
It’s a fun way to look at it. Right?
Jude Wilson 06:56
You’re absolutely right. Yeah. The second tip is Who will you have lunch with? Now, this is another one that kind of threw me off. Because, as someone that’s so analytical, I was looking for more data driven. subject matters. But studies show that the more active of a social life you have, the healthier you are
Marc Killian 07:22
in the longer that you live, how’s your social portfolios,
Jude Wilson 07:25
what he calls it? Exactly. Yeah, exactly. So it’s not just your your money portfolio, but your social portfolio. And that’s one of the things that I truly love about our firm, because we talk about our client, family, our team family and our client family. And so we’re, we’re constantly staying in contact with our clients in between reviews. But that’s not enough. There needs to be a social portfolio for the client. Where do you go to church? Who do you hang out with? What are some of the things that you do to bring joy and peace to your life with other people around you? Yeah, so that was a great tip.
Marc Killian 08:03
Yeah, you know, and you’re we just had a guest on the podcast a couple of weeks ago talking about wine pairings, and you know, you guys doing events, fun events with clients, right? So part of that social portfolio is getting out and doing different things and staying active. And so the cost of you know, juvie can go back to that, that saying that my dad taught me when I was 15, is that, you know, when you’re hit retirement, every day is a Saturday, and I spend the most money on a Saturday, right? So it’s just more costly to be social. And now I no longer have that job. So again, longevity planning, retirement, they kind of hold each other’s hand and work their way through this process, but it’s certainly something you want to do and pay attention to. So yeah, I love the way he’s used. The simple little statements like Who will I have lunch with? Or where can I get an ice cream cone is a way to think about the data portion, or the number portion. What was the third tip?
Jude Wilson 08:57
Now the third tip is how will you change your lightbulbs? I love this one. And it sounds very simple, but today, I have blinds that I can open up with my remote, but I have to climb my ladder every three months or so. To charge that blind Now had I
Marc Killian 09:21
yeah, that’s that’s No, that’s no fun.
Jude Wilson 09:24
Exactly. Had I known that before we purchased it I probably would not have purchased it. Well, okay. That’s
Marc Killian 09:29
a great point. That link Sorry to cut you off. But what are you gonna do about that? June when you’re 75. And you got to climb that ladder? Yeah,
Jude Wilson 09:37
exactly. Well, for me, we’re getting rid of that well, before
Marc Killian 09:42
Are you that are you got somebody you got one of the nephews Kevin over to help. Right.
Jude Wilson 09:46
Exactly, exactly. So we have to think, for our clients and have conversations around. Here’s the little things that you normally take care of yourself. But at the time you When you’re physically unable to or just don’t want to anymore, what does that cost? How does those things covered? How do you make plans for that? Yeah. And I thought that the title of that was just so apropos when you change your
Marc Killian 10:17
life? Yeah, I mean, it’s the big and the little right. And so we talked about transportation being number two, cause for a lot of for a lot of retirees. Well, number one is the home. Right? So typically, the number one cost is that number two is transportation. Number three, if we’re talking about expenses is have some form of health care, right? And so if you’re changing that light bulb, or in your case, dude, if you’re up on this, this ladder, and you happen to miss judge something, and you fall off, guess what your health care costs are going up, because now you’re going to the doctor, and paying bills, right? So there’s a lot of little factors that roll into this. So kind of a fun, simple way to break down the conversation of us ageing longer. And what are we doing about it? Are we planning and just saying, Hey, do I have enough money to get through retirement? Or do I have enough money to get, you know, through a longer lifespan, but also maintaining the style of life that I hope to have? Because it’s one thing if you made a plan for somebody to 80 or 85, for example, to use your numbers earlier, but they lived to be 95. So the last 10 years, they have to reduce their quality of life because there’s not enough money. That’s not what we want. Right?
Jude Wilson 11:25
Exactly. Exactly. And to round this, this topic up, I think you hit it on the head. It’s about quality of life. And that’s why I started with talking about my grandmother. Yes, he lived to 100 years old, but what was her quality of life? Yeah. And for us, as a firm, we want to build bucket plans so that clients know that they can afford a quality of life that they’ve always dreamed about. And they can live a very successful retirement without having to get on the ladder and uncharged.
Marc Killian 12:01
Exactly. Yeah, I’m with you there. Man. We rebuilt our deck a couple of years ago, and I told the builder, I was like, I don’t like these stairs, this is going to be problematic. My mom’s 82 It’s gonna be a problem for her. But it’s gonna be a problem for me and my wife when I’m 80. And he’s like, Well, let’s, you know, let’s get it done this way. Because it’s already been approved to pass code and all that kind of stuff. And we can change it later. And I allowed myself to let this happened versus making the right decision and changing it because now I’ve got to deal with just kind of like with you and these blinds, I’ve got to change the steps at some point, because they’re just too steep. And I’m not going to want to take these at 65 or 70. Right. So thinking ahead, and that’s part of the home conversation as part of the planning for the home and planning. Are you staying in the house that you raise the children? And are you downsizing? Are you going someplace where they take care of that? Will you have smaller transportation costs, because maybe now you are in a retirement community or whatever, and there could be little shops or whatnot. So so many things that go into this conversation, but longevity should certainly be on your radar, because we are all living longer. And that’s where Jude and his team come into play. They can help you with that conversation. So reach out to them. Don’t forget to subscribe to us on Apple, Google or Spotify or whatever podcasting platform app you’d like to use, and you can find it all at centrist fs.com That’s where you can get a hold of the team. And you can also again, subscribe to the podcast or check out the tools tips and resources at the website at centrist fs.com Jude my friend thanks for hanging out.
Jude Wilson 13:30
It love it always enjoy talking to you. And I hope we really informed our audience today.
Marc Killian 13:35
I hope so too. And be careful on the ladder. I’ll see you next time right here on the podcast. It’s playing wise retire free.
The preceding program is sponsored by Jude Wilson who is solely responsible for its content