By Kim Hilsenbeck.

Financial health is just as important as physical, especially for those in or near retirement age. With many Americans living longer, combined with a still-recovering economy and unpredictable stock market, planning for financial fitness can seem a little daunting.

But Janet Ross of Edward Jones in Buda offered a glimmer of hope for seniors. We talked with her to get the lowdown on the most common questions seniors have about financial planning.

Ross, a licensed financial advisor with a 20-plus-year career, has clients throughout Central Texas including Buda, Kyle, south Austin and New Braunfels, but she is licensed in 25 states across the country.

“Over the years, I’ve helped many of the children of my clients, and they often live outside Texas,” she said.

Ross said many seniors come to her for advice on a range of topic. Some of the more common questions they have are:

Am I going to outlive my retirement?

What do I need to know about long-term care?

How do I plan for efficient wealth transfer?

How much should I spend this year?

How much should I withdraw from my investment portfolio?

When should I take social security?

Which investments provide a stable income?

She meets with those clients to discuss financial options. And since each person and situation is different, there is no one-size-fits-all answer.

“Each client has a different risk tolerance,” Ross said. “We work together to review all the factors in their lives to develop the best investment plan.”

Long-term care is a significant concern for many of Ross’s clients.

“It can cost $4,000 a month at a long-term care facility,” she said.

That’s enough for approximately two years of care.

Long-term care insurance can help defray that cost, according to Ross. 

Another option is to sign up for Medicaid, a government-funded healthcare program that often covers long-term care, but those who opt to use that benefit may be required to have no other cash or investment assets.

It can be a tricky balancing act. For example, someone with $100,000 may not have enough to support someone in a long-term care facility and may want to leave that money to a child or other heirs.

“In that situation, someone may have to do what’s called ‘spend down’ to qualify for Medicaid,” Ross said.

They essentially have to spend down their assets to be eligible for Medicaid.

For those folks who started early, planned ahead and have investments, Ross said the initial conversation may be different from that of soon-to-be retirees who are probably relying on social security.

She discussed three basic investment options: fixed-income, annuities and dividend-paying.

Having an investment portfolio with a mix of options is probably a good strategy, for anyone, but in particular seniors who have different needs and goals than, for example, someone younger and still in the workforce.

Considerations such as new tax laws, changes in life status or health, as well as economic conditions will all play a part in a retirement strategy. Ross also suggested creating a list of documents and talking with spouses and family members about them, such as a will, a living will, a living trust. 

Of course, she recommends having expert help preparing such documents.

Ross prefers to build and work with a team of experts, such as Valerie Snyder, a CPA in Buda, to help her clients. Other professionals she teams with include estate-planning attorneys.

By bringing together experts from various disciplines, Ross believes her clients get the most pragmatic, well-rounded and useful advice.

Talking with a financial expert such as Ross or, at minimum, doing some research on your own, will offer some perspective and insight to guide how you proceed.

One big piece of advice from Ross is to begin early. Waiting until you’re close to retirement age, while often typical, may not be the most prudent course of action.

Ross said her goal is to get people thinking about their financial future well before it becomes a reality. She likes to think of her job as educating people early and preparing them for retirement while they’re still young.

“There is really not too early an age to start thinking about retirement,” Ross said.

Five key financial decisions for retirees to consider:

How much you spend each year

Estimate costs for housing, utilities, food, travel, entertainment, insurance, gifts – list all expenses known and anticipated.

Balancing an investment portfolio to provide sufficient income and outpace inflation

Seniors will need a mix of income-and-growth-oriented investments based on risk tolerance and lifestyle.

The amount of withdraw from an investment portfolio

This depends on lifestyle, performance of investments, inflation, life expectancy and the size of the estate you want to leave behind.

The accounts from which to begin taking withdraws

Edward Jones recommends taking withdraws from taxable accounts first, but again, every person’s situation is unique.

When to take Social Security

While Americans can legally begin at age 62, waiting longer, say 65 or 66 years old, will increase the size of the checks

– provided by Edward Jones Financial Services