480. Financial Strategies for Age-Gap Relationships with Jay Zigmont

How can couples with significant age differences navigate the complex financial planning conversations to ensure a secure future together?

 

In this insightful episode, Suja welcomes back Jay Zygmunt, PhD, CFP, and CEO of Child Free Wealth, to discuss the unique financial planning challenges faced by couples with significant age differences. As a certified financial planner specializing in helping child-free individuals, Jay shares his expertise on the essential conversations these couples need to have, from long-term care planning to estate management. He emphasizes the importance of seeking professional guidance to facilitate these sensitive discussions and offers practical advice on how to approach the topic of mortality and its impact on financial decision-making.

 

Jay Zigmont, PhD, MBA, CFP® is the Founder and CEO of Childfree Wealth®, a life and financial planning firm dedicated to helping Childfree and Permanently Childless people. Childfree Wealth is the first life and financial planning firm dedicated to serving Childfree people.

 

[00:00:00] Introduction: Suja welcomes Jay Zygmunt back to discuss financial planning for couples with significant age differences.

• 25% of adults are child-free, and the financial planning world is primarily built around the idea of having children.

•  Couples with age gaps face unique challenges in financial planning conversations.

•  Jay specializes in helping child-free individuals with their financial planning needs.

 

[00:01:00] Starting with the Uncomfortable Conversation

•  Discussing mortality and the likelihood of one partner outliving the other is a difficult but necessary conversation.

•  The conversation involves long-term care, estate planning, and investment decisions.

•  Couples often avoid this conversation due to its uncomfortable nature.

 

[00:03:00] The Importance of Long-Term Care Planning

•  Women spend an average of 3.7 years in care, while men spend 2.2 years, costing around $115,000 per year.

•  Couples with age differences need to plan for long-term care to protect the surviving partner.

•  Estate planning is crucial, especially for child-free couples, to ensure assets are distributed according to their wishes.

 

[00:05:00] Seeking Professional Guidance

•  Involving a third party, such as a financial planner, can help facilitate sensitive conversations about mortality and financial planning.

•  Professionals can guide couples in discussing priorities, such as caring for aging parents, inheritance, and power of attorney.

•  Lack of proper planning can lead to severe consequences, such as being kicked out of one's own house due to joint ownership with in-laws.

 

[00:07:00] Self-Insuring for Long-Term Care and Conclusion

 

•  Self-insuring for long-term care requires setting aside approximately $500,000 and ensuring a 5% annual growth rate to keep up with rising costs.

•  Purchasing long-term care insurance in mid-40s can be more cost-effective.

•  These conversations are essential for all couples, regardless of whether they have children, to ensure they make the most of their lives and pass on their desired legacy.

 

Quote:

 

"When it comes to couples with significant age differences, having a plan for the inevitable is crucial. It's not just about the numbers; it's about facing mortality head-on and ensuring that both partners are protected and secure in their future together." - Jay Zygmunt, PhD, CFP

 

"Couples often avoid discussing the uncomfortable reality of one partner outliving the other, but it's a conversation that must be had. Bringing in a third party, like a financial planner, can help facilitate these sensitive discussions." - Jay Zygmunt, PhD, CFP

 

Connect with Jay: 

 

Website: https://childfreewealth.com 

Free copy of the book "Portraits of Childfree Wealth":  https://childfreewealth.com/book

Podcast: https://childfreewealth.buzzsprout.com

 

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