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The S-Word

By Kim Kelly, CLTC, guest blogger

When some of us were growing up in the 60’s, life for the middle class was good. No, more than that, it was idyllic. After school, Mom would take me to the 7-11 to get a 15 cent drink called an Icee; tiny little hamburgers called White Castle were 10 cents each or 10 for a buck. A really nice house cost about $30,000.

Fast forward 50 years. Yes, we all expect inflation to continue (hold onto your wallet the next few years) but what we didn’t expect is the whittling away at the middle class. The “Mids” are now so busy putting food on the table in the midst of this latest economic disaster that we don’t see the majority of us sliding toward the lower part of the middle. You know what I am talking about.

Security is no longer– those of us working must chop, change, go back to school, learn new trades– just to stay even. We can smile and say to each other “Gotta be Flexible!” but we dread having to do it every few years.

The older Americans, whom I see nearly everyday in my line of work, rely heavily on Medicare, Social Security and yes, even Medicaid. There are PLENTY of seniors making less than $12,000 a year. You can see the extreme fear in their eyes when they need a non-generic drug and can’t afford it. Some take jobs they cannot physically handle– If they can find a job. They are living in trailers and their kids help out when they can.

Young people already intuitively know that they will not participate in these government benefits: the money is running out and fast. Just look back through Kiplinger's or the Journal, if you dare, to get the facts.

The only way the security will exist is if we create it ourselves. How? Get thee forthwith to a capable and recommended financial adviser– one who is a member of a professional organization like NAIFA and subscribes to a code of ethics. Ask him/her to tell you the truth and then follow their advice. Start with life insurance– for someone under 65 it’s cheap and the only way to create a legacy and care for your family when you die– otherwise, they could be thrown into poverty. It happens every day. Without a big cushion, your spouse and kids could be living on $1200/month. I just wrote a 20-year term policy on a 45-year-old for a payment to his wife and kids of $1,250,000 when he dies. The monthly premium is $125/month.

Living the “good life” requires planning from an early age. Start from where you are and do what you need to do. Pretend the government will not be there to help at all– because it very well may not.

"Protecting your Independence, Lifestyle and Assets Through Long Term Care Insurance"

Merrie M. (Kim) Kelly, CLTC, Principal
Phone: (541) 222-9020

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