Lifetime Financial Security -
No Time to Put Your Head in the Sand!
By Rob Ence, State Director, AARP Utah

We are still experiencing the effects of one of the greatest financial earthquakes in the history of our country. For too many, the wreckage and devastation to savings and pensions were complicated by job loss and the continued aftershock of continually rising medical and insurance costs. In short, the aftermath has left many in turmoil with an uncertain future of financial stability.

Now, more than ever, it is critical for every individual to take account for their fiscal standing, to be clear on what each needs to do, and to address with purpose all phases of building or re-building their savings, learning to manage them prudently, and protecting them to the best of their ability from the forces that would harm their efforts.

While we have no control over what Congress will do to assist and protect consumers, it is clear that we need more supervision over bank risk-taking, increase the pace of government response loose monetary policy, and better regulatory oversight.

Planning for long-term financial security continues to be a lifetime journey. Developing the skills and having the proper tools may not assure a smooth ride but will put the odds in favor of your success. It requires a working knowledge of the key components that include your pension and savings, employment earnings, social security, and ability to pay for medical care, short term and long term.

We are living longer and saving less, our health care costs threaten our accumulated resources, older people are remaining in the workforce, and the government insurance programs of Social Security and Medicare are threatened with future insolvency.  Yet fewer than one in four people have taken the time to calculate their financial needs for the time they expect to live and the lifestyle they hope to maintain.

The financial marketplace is complex, health and long-term care issues are costly and uncertain. The need for individuals to take as much responsibility as possible for their financial futures is paramount. Employers are shifting the risk of pensions and health insurance costs to employees.  And 401(k)-type plans and other savings vehicles are not utilized for maximum benefit. Knowing where to turn for advice and who to trust is equally daunting.

Preparing for a lifetime of financial security demands vigilant effort regardless of your age, income, or wealth status, whether you are building, managing, or protecting what you have. Here are a few tips to assist in that effort:

• Choose a clear, realistic course that is uniquely yours. What is good for someone else may not be good for you. Course corrections will be required; navigate as you go.
• Avoid unnecessary and uninformed risks. Protect against loss that you cannot afford to lose, e.g., life, health, home, etc.
• Be practical and prudent in managing your affairs. Reduce or eliminate consumer debt, spend less than your income and save religiously. Invest in what you know and understand and diversify your holdings.
• There are excellent advisors and professionals who can assist you. Research their credentials, reputation, and performance. Understand how they are paid and what you want them to do for you. Will they put your interests above their own?
• Be responsible for your financial affairs. If you delegate, hold people accountable for their actions and results. Never abdicate your responsibility to others. In case of incapacitation, seek counsel with those who have no financial stake in your estate. Get second opinions. Utilize the Advanced Directives materials for the state of Utah to make sure your choices dictate events in your life should you ever become unable to do so for yourself.
• Protect your efforts diligently. Avoid scams by rejecting sales calls, solicitations for personal information, and limiting access to your credit reports and identity. Resist the temptation to obtain something you haven't earned or worked for. Know who you can trust and why. 

Remember to be proactive in your journey and continue learning as you go. Putting your head in the sand and hiding from reality is not an option. The outcomes are often influenced by outside forces, but don't underestimate your role and your ability to make a difference. If you have prepared well, you have a higher chance of success when unforeseen events derail your journey. With effort and discipline, you have a good chance of arriving safely.

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Created in 2007 as a joint project with AARP Utah and the Utah Commission on Aging, Utah's Resource Guide for Lifetime Financial Security ─ Take Charge of Your Future Now, provides planning fundamentals without product bias or solicitation. Free copies are available at the AARP Utah state office. To order a copy of the guide, email us at: utaarp@aarp.org .  Please put "Requesting Financial Security Resource Guide" in the subject line of your email.

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Consider hosting a Lifetime Financial Security workshop for your business, civic, religious, or social group. To schedule a workshop, please contact Kate Fielder at the AARP Utah state office at 1-801-567-2649 or via email: kfielder@aarp.org with subject heading, "Requesting A Financial Security Workshop."