There are too many comments above on age 53, but very few on talking about which annunities, or how to go about doing the trust (complex), also how to manage the partial assets (outside of annuities) and finally, the type of annuity that is best for us (there are so many types with the numerous riders).

KKP

You know, this is a lot more positive spin on it than the later discussion of it. PEAKING at 53 means that you were less smart/cognitively with it at 52, and even less so at 51, etc.

Imagine it as a lovely curve on a graph — you’re not dropping off a cliff, you’re only slowly declining to where you were in your forties and thirties…

This was written in a more fear-mongering way than was necessary. The point is valid — get things in order, have people you trust to run decisions by, etc.

I think the recent stories on the site that have told how checkbooks of elderly should be checked as a sign of dementia is one of the best tips from this site.

Basically, if you don’t make plans specific to the later stages of retirement – i.e. the stages of mental and physical decline – you aren’t likely to HAVE an estate.

Retirement planning has to include the stage of “just quit working, time to go play golf” as well as the stage of “can’t walk, hear or see anymore.”

The point is that there is more to estate planning than writing up a will.

And also that I am a schmuck because I haven’t even done that.

Not that everyone will go senile at 53 of course– that’s just a statistical figure of some theoretical inflection point.

On the individual level, there are ways to keep your mind sharp, from the usual “exercise and good nutrition” prescription to avoiding routine and seeking new challenges.

Regardless, everyone gets sick and dies in the end. So this is a post I’ll keep in mind– at least until my mind goes :/

@Adam P – I think the post title is a bit misleading in that buying annuities or planning for your mental decline in old age isn’t really estate planning, which has to do with death.

It probably should have been called “Later Stage Retirement Planning” or something like that.

It also doesn’t mean dealing with drool – you may get to a point where you just don’t care enough about managing an investment portfolio and would rather have the simplicity of annuities. Then you can have more fun on your cruises without worrying about what the markets are doing.

And I can’t blame them. What’s the point of any of this if we’re just going to die anyway? It’s pretty depressing to contemplate the nothingness after death.

When I think of retirement planning, I just want to think of not having to work anymore and what cruise line is en vogue that year on my trip to exotic destination #18.

I don’t want to think about preparing for diapers, drooling, and durable power of attorney.

(Which isn’t to say this isn’t a superbly written blog post!)

Then again, maybe I’m just overly sensitive because I’m just a couple of years under the age of decline.

They both said annuities are not for everyone while at the same time saying it’s something many people don’t consider – but should.

Do you *want* financial planning information that leaves out important options? I sure don’t.

Also: its, not it’s
rein, not reign

Plus we were concerned about extremely expensive illnesses — my parents’ medical bills were running around $120k a year for the last five years before they died, and thank God they were good savers — and we wanted our capital available if/when this happens to us.

Keeping an eye on a parent’s checkbook is a useful thing. One of the things that tipped us off that Mom had dementia was that she was sending $2000 a month to an acquaintance. None of us had any idea. We wouldn’t have known if I hadn’t had a look at the checkbook.

This might, MIGHT have been okay (it’s Mom’s money, after all) except the acquaintance had a son at home with a significant drug problem, and it turned out he was pressuring his mom into begging for the cash. Ugh.

She died last month…at the ripe old age of 96. If she had NOT had the annuity, we would have had difficulty providing the level of care she received as her health declined over the years.

I say an annuity is a great bet…and if you lose it, who cares? You’re dead!

I think annuities are a great product, but I suspect one of the big reasons people don’t buy them is because they are afraid of “losing the bet” if they don’t live that long after purchasing.

Ironically, a lot of those same people are probably jealous of government workers with good pensions, but a good defined benefit pension is really just an annuity.