Hello once again fellow travelers day we reached module one, lesson three. For some reason I chose an image for this lesson that suggests were wandering up into the Himalayas. Not sure it's anything you aspire to. But since we're talking about roadmaps, it seemed appropriate. Anyway, in lesson two, we spent all our time talking about strategic planning, and the tactical choices that follow thinking about strategic goals. In this lesson, we deal with an uncomfortable topic death.

As someone who has already retired once, longevity is perhaps more relevant for me than it is for you. But in terms of making good decisions as you follow your retirement roadmap, knowing where you might end up is something that needs some thinking about justice. None of us have true knowledge of what the weather is going to be like next week, or what we will eat for lunch tomorrow. None of us know in advance when we will die, just that we will. during most of my years. As a financial planner, I've talked with clients about their financial future.

And what they think is likely to happen to them over the next 20 years. At best, it's a guess. But will you be here 20 years from now, not long ago, life expectancy for men used to be somewhere around age 73. And for women about 78. There's a consistent four to five year difference between men and women. My conversations with clients over the years, was asked about making sure there was enough money to keep them going to life expectancy.

In retrospect, that was probably poor judgment. Since people routinely live into their 90s. Today, I don't have fear of heights, but this is a little extreme. average life expectancy means just that average, by average, this means half of us will survive and the other half won't follow me on this please. If you are now let's say 50 years old and your life expectancy is 78. There's a 5050 chance of you living another 28 years.

So which 50% are you in and if you are in the Alliance, Group, how are you going to pay your bills, the default age for retirement planning purposes have moved from roughly 80 to 85. to age 100, many of you will be shaking your heads, it's hard to get your arms around this and see ourselves as that old. However, I've never had a client in their 90s, who still had full control of their faculties who was ready to hang it up. You have to assume for planning purposes that you will live well into your 90s. For every living being, it's a binary experience. You're either alive, or you're not. Here's a calculator where you can enter your age and sex etc.

And it'll tell you the probability of living to a certain age, or if you're a couple the probability of one of you surviving to a given age. Keep in mind again, that women outlive men by about four to five years, which has significant implications for both Social Security survivor benefits and a spouse's use of accounts from which bills will be paid. I tried to make this image an active link, but could Make it work. So you can find a link in the resource vault to this site on the ASRS website. Despite all this, how long will you live stuff, I encourage you to focus more on the quality of life rather than the quantity of life. If you're relatively young, it's not something you need to spend much time on.

But if you're less than 10 years away from your expected retirement date, it's more critical since you can find yourself at that point in discover you've never even thought about it. You've already figured out that you only get one journey. And the map I'm helping you prepare is only good so long as you follow it. If you are a dedicated single person, the calculations and decisions you make will be very different from the ones you make if you have family members who share your life. These may be people with whom you share your planning decisions, or they may be strangers today. One of these decisions involves whether to own life insurance or not.

Over the years, I found that most people are very reluctant to talk about it. having a conversation about your death is not easy. It's fraught with emotion and other bad thoughts. So the simplest solution for many people is to pretend it's not there or it simply won't happen. But again, life and death sometimes gets in the way when you're making other plans. Some 40 years ago, I was talking with a young man who was a new father.

He was employed by a business owner client who said I should talk with him. We met and he agreed he should probably buy a policy. $100,000 term life insurance policy back then for him was about $10 a month. He asked me to come back next month, however, as right then he didn't have that extra $10. So I showed up three weeks later, only to discover he had died. He'd been riding a horse in the woods, the horse decided to go left around a tree, but instead he went right hit the tree broke his neck and died for the lack of $10.

The money his family depended on to pay bills every month just disappeared. 100,000 would not have brought him back, but it made me understand things happen, and they're not always good things. You've decided to listen to me. So I'm going to give you my best thinking on this subject. Many times Over the years I've been asked this question, when is the best time to buy life insurance? And the best answer I've ever heard is about three months before you die.

When would you like me to come by and take your application? Let that sink in for a moment. But just like car insurance, you have to own a policy before you wreck your car. And like the homes I referenced earlier in Houston that are now flooded, you must have had our pot flood insurance before the flood happened. The strategic decision is to either own life insurance or not own life insurance? If the answer is no, then there's no tactical decision to make.

But if the answer is yes, then the tactical choices are in the thousands. In a later video, we're going to talk about how to find someone to help you that you can trust so keep that in mind as we move along. Right now you simply need to know there is temporary life insurance and there is permanent life insurance. The temporary kind is cheap, since it's designed to disappear before you die, which means the insurance company doesn't have to pay a claim, they follow statistics to the max. And so it can price their products appropriately. permanent insurance however, means it's designed to last past the point where you are likely to die.

If you buy a policy at age 45, and die at age 90, and the policy is still enforced, in other words, you've paid the premiums 45 years someone is going to collect, it won't be you. But then you already know that young people don't die at the same rate as old people. So the premiums you pay are smaller, but then you have to decide what is temporary? Is it for one year? Is it for 10 years? Is it for 20 years, the scope of tactical decisions possible are way beyond the scope of this course on retirement planning.

But if you send me an email, I'll do my best to put you in touch with someone trustworthy to talk with. The original question for this segment is how long will you live? Obviously, there's no way to know none of us have a contract with God to be here tomorrow, much less 30 to 50 years from now, but in terms of setting the stage for a successful retirement, the roadmap you're building for yourself has to assume you're going to live a long time. My challenge to you is to not assume anything other than a long and prosperous life. your quality of life will be much better if you wake up every morning after retirement. And know that you set the proper things in motion years ago and paid attention as life passed you by.

For the record, the first years of retirement are typically the GO GO years. This is when you suddenly have more time on your hands, money in the bank, and a bucket list of things to do and places to go. Later, you may move into the slow go years. And if you're lucky, you may never have any no go years, as they're not very pretty. Moving right along in module one lesson. For our next session.

We're going to explore options about choosing the optimum age to retire. Now that you have a better understanding of life expectancy