GAME OF DRONES

y a. marie velthuizen
VALUING PROFES
With an increase in the number of older Americans either
remaining in or returning to the workplace, financial
advisers such as Herb White of Life Certain Wealth
Strategies are actively seeking solutions for balancing
the implications that working will have on each client’s
Social Security and Medicare benefits.
According to the
National Council
on Aging, 27.1
million Americans
ages 55 and over were
employed, with another
1.9 million actively seeking
work. In 2009, this was
19 percent of the American
workforce – a 7 percent
jump from 1999, when older
workers accounted for only
12 percent. Older workers
represent a significant shift
that must be accounted for
in retirement planning.
“One of the biggest issues
we look at for our older clients
is the role Medicare
plays in their financial situations,”
White said. “Lots of
people rely on it for health
care in retirement.”
Yet, if they’ve gone back
to or remain at work during
Medicare-eligible years, the
program’s rate policies can
complicate what might already
be a tight financial
situation for those living
on fixed incomes. Medicare
uses the income from the
previous two years to determine
the rate structure
for those eligible. If older
Americans work for a year
or so, the additional income
could alter their ability to
secure less expensive health
coverage.
According to White, it’s
just one among many financial
pitfalls that retirement-age
Americans need
to avoid to ensure adequate
resources for their golden
years. Unfortunately, one
of the most common trouble
spots comes from within
his own industry. There
are over-simplified financial
products on the market
touted as “be all/end all”
tools for securing future income.
“Some of the information
out there leads people to believe
their problems can be
solved by some product,”
White cautions. “They oversimplify
retirement planning
and cause a person to
believe they do not need to
come in to see an adviser.
They end up believing they
can just purchase this product
… and it will address all
of their needs.”
White's caution is not
without merit. He knows
how difficult it can be to
assess opportunities in a
quickly-changing market
overloaded with choices.
That’s why he himself opts
to outsource the task of evaluating
the investment opportunities
he puts in front
of his clients.
“It is a full-time job to
do proper due diligence on
the funds and investments
that are out there – and
we would be kidding ourselves
if thought there was
enough time during the day
for those of us who interact
with clients all throughout
the day to then, in our spare
time, be able to do all that
is necessary to perform due
diligence,” White said.
That doesn’t mean White
isn’t thorough. He carefully
vets the firms he chooses for
outsourcing.
“We have to make the
right decisions – including
the decision as to outsourcing.
Even though we delegate
this due diligence to
them, at the end of the day,
it still falls upon us,” he explained.
White noted that this
sense of confidence in the
investment opportunities
he presents to clients is a
crucial element for Life Certain
clients – most of whom
come to White and his firm
within five years of retirement.
“We find smart ways for
them to continue the lifestyle
they have become accustomed
to. We are doing
THE SUIT MAGAZINE - DEC / JAN 2014