Longevity Risk – Why You Should Be Concerned About It?

Longevity Risk – Why you should be concerned about it?

Longevity Risk is another big risk aside from the Tax Risk. It also magnifies all the other risks.

People don’t go from being healthy to passing away. We go through the aging process. That’s why we want to make sure that our money and assets last at least as long as we do.

Attorney and Financial Advisor Chris Berry discusses Longevity Risk in this episode of Daily Wisdom

Estate Attorney and Advisor Chris Berry of Castle Wealth Group answers questions on retirement and estate planning every Wednesday at 1pm. Register via thisĀ linkĀ or give our office a call at 844-885-4200.

Castle Wealth Group and Christopher Berry help families with estate planning, elder law, retirement planning, and tax planning from their offices in Brighton, Ann Arbor, Livonia, Bloomfield Hills, and Novi.

Castle Wealth Group helps families with their legal, financial, and tax planning for their retirement and legacy.

With the use of legal structures like revocable living trusts, Castle Trusts (asset protection trusts), Chris Berry and Castle Wealth Group can help your family plan, protect, and preserve what is important through their Retirement and Legacy Blueprint Process.


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Episode Transcript

Longevity Risk

Hey, this is Chris Berry with Castle Wealth Group and today we’re going to talk about longevity risk and why it’s something you should be concerned for in retirement and legacy planning. If you like this information, please make sure to subscribe to our YouTube channel and make sure to comment down below.

Christopher Berry is a leading estate attorney and advisor in the area of retirement and legacy planning. He has been featured in publications, such as Ford’s, Kiplinger’s, Crain’s Detroit and more. He’s the host of the weekly radio show and podcast, The Chris Berry Show, he’s a national thought leader as it relates to retirement and legacy planning and has authored the Amazon best selling book, The Caregiver’s Legal Guide.

So longevity risk it’s one of the biggest risks out there. I would say taxes are a big risk and then longevity risk is another big risk because what we found, and this is something as a certified elder law attorney, we really focus on this idea that people don’t just go from healthy to passing away these days, they go through an aging process, meaning people are living longer than ever. We have more longevity than ever and so how do we make sure that our money and assets lasts at least as long as we do? So that’s a big concern and there’s different things we need to take into account and so first of all we need to have an income plan. How are we going to cover our income in retirement? Is it going to be social security? Do we have a pension coming in? How are we going to draw on our assets to make sure our assets last as long as we do?


Investment Plan

Then second is an investment plan. So how do we invest our assets in such a way to make sure they last as long as we do? Maybe we should not invest the way that we did when we were 20 or 30 accumulating wealth, when we had a long time horizon before we had to start using this money, maybe we need to invest understanding that we’re in a different phase of the money cycle. It’s not all about accumulation anymore, now it’s about preservation and distribution. So the tools we use during accumulation may be different than the tools we use during preservation and distribution. Then tax risk, understand that if you’ve accumulated a lot of wealth, especially in free-tax accounts, then we need to have a plan to minimize taxes for your retirement and what we leave as a legacy. Then healthcare planning.

How do we protect against healthcare costs eroding everything that we’ve worked so hard for? From which medicare plan makes the most sense, to what do we do to protect ourselves from the devastating longterm care costs? Which a nursing home these days could easily run 8 to 12, 13, 14, $15,000 a month. What have you done to protect yourself and I’m not just saying pure traditional long-term care insurance, there’s other strategies out there. So longevity risk really takes all these things and magnifies them, because if we don’t think we’re going to live long, then maybe long-term care isn’t a big issue. We don’t have to invest our assets for the longterm long haul, income plan becomes less of an issue. So really the longevity risk is fuel, that creates more fire in these different other potential risks, where the longer you live, the more stress we’re going to put on the plan, where now we need to protect against long-term care costs, protect against market volatility, protect against taxes, going up, protect against inflation as well.

So longevity risk is a risk that really magnifies all the other risks out there and it’s something that we don’t talk about enough. We spend a lot of time talking about tax risk and long-term care risk and probate and avoiding probate but really one of the biggest things is longevity risk. It’s kind of a blanket risk because like I said, it magnifies every other risk. So hopefully this has been helpful helping you uncover one of the hidden risks out there, which is really one of the biggest ones, longevity risk. This has been Chris Berry with Castle Wealth Group, please make sure to subscribe and let us know what you thought about the video in the comments. Thank you so much.

Castle Wealth Group has clients across the nation and helps them at least plan with tech to preserve what is important by creating a retirement legacy blueprint.



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