The Tsunami Silver

I read an article in the New York State Bar Association Journal by Robert Abrams who discussed our aging population and money from the tsunami. The article included some interesting and disturbing statistics.

• In 2030, one in five Americans will be 65 or older.
• As we age, life expectancy increases. Individuals who are 65 years of age can project they will live into their late 70s or early 80s Some will live well into their 0s, and some will become centenarians.
• Millions of Americans have or will suffer from temporary and / or permanent mental disability.
• More than 5 million Americans have Alzheimer's disease, and that number is expected to increase significantly over the next three decades.
• millions of Americans do not have advance directives such as a power of attorney or health care proxy, or they have documents that are obsolete or have been executed incorrectly.
• because of the absence of advance directives and / or resources (money), many Americans become subject to costly guardianship proceedings and contested creating stress on family members who can not agree on health guidelines or asset allocation.
• millions of Americans have either failed to develop a succession plan and / or have an estate plan that is either incomplete and / or will not be implemented in accordance with their wishes because of the non- compliance and / or lack of familiarity with "the law." This requires the advice of a lawyer.
• families are the centerpiece of American life. Many older Americans have been married two or more times. Many have concerns about other family members, including adult children with special needs and their parents so their parents! How many of you reading this are or will be taking care of your aging parents?

This demographic explosion, the tsunami of money, can forever change the American way of life.

The article also revealed that when it comes to preparing for the elderly years, there are three kinds of people :. Geriatric Gamblers, procrastinators planning and Pragmatic Planners

geriatric Gamblers: are risk takers who choose not to plan for the elderly years, even if they know such inaction increases the likelihood that 'they and their families will needlessly suffer negative consequences when they meet one or more of the vagaries of life

Procrastinators .: planning they recognize the importance of planning, but they believe there is no reason to provide for older years today. Preparation for older years can wait until tomorrow, assuming, of course, there is a future. This may have adverse consequences

Pragmatic Planners :. Although they can not predict or control the future fully, they acknowledge that at least they can prepare for these questions, they are likely to face. The main objective of pragmatic planner is to minimize the strain on themselves and their family members when difficult challenges arise, such as the need for long term care.

Unfortunately, not enough of the Silver Tsunami are or will become proactive and pragmatic planners, but it is clear that the use of family, friends and government programs are not a good option, even if it is the default choice. Perhaps the time has come to take the lead and to reach out to your estate planner, lawyer care to seniors and financial advisor to create a comprehensive plan for you.