Exiting Long-Term Care Insurers Means Retirees Must Examine Their Retirement Income Plans Says Investments Management Specialist Jeff Voudrie of Common Sense Advisors

Jeff Voudrie, president of Common Sense Advisors and financial planner in Johnson City, TN, says that the pullback by insurance companies reveals that not even they can afford to pay astronomical health costs as retirees live longer, so how can retirees hope to foot the bill with a standard retirement plan? Voudrie commented on the topic with the news of Genworth Financial mulling a shutdown of its long-term care policies if it can’t win rate hikes for its 650,000 existing clients.

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Jeff Voudrie, CFP® Professional Financial Planner in Johnson City, TN

Jeff Voudrie, CFP® Professional Financial Planner in Johnson City, TN

'If insurance companies can't afford to pay astronomical health costs, how can retirees hope to foot the bill with a standard retirement income plan?' says investments management specialist Jeff Voudrie

Johnson City, Tennessee (PRWEB) October 28, 2013

The exit of Prudential, MetLife and other insurance giants from the business of long-term care should sound alarm bells for all retirees who hope to ease future health costs, according to Jeff Voudrie, in investments management specialist and financial planner in Johnson City, Tennessee. In light of this, he recommends people re-assess their retirement income plans to verify they will cover these expanding costs.

“All of this puts added financial pressure on the retirement income plans of today’s retirees. It is likely that when these added costs are factored in, the probability of their portfolio sustaining them the rest of their life diminishes quickly,” Jeff Voudrie said. The companies are abandoning long-term care policies because they underestimated how quickly nursing home costs would rise, among other factors, according to Jeff Voudrie.

How can a retiree determine if s/he has enough funds to live off during the “Golden Years?” “The only way to know with any certainty,” the financial planner in Tennessee pointed out, “is to statistically test various scenarios to find the probable outcome.” He has pioneered a Retirement Income Stress Test that allows retirees to see how their income plan will hold up under a variety of scenarios. “You can’t improve what you have until you first identify the weak spots and that’s what this simple, but comprehensive test does.”

The need for stress testing a retirement income plan is further emphasize by two trends that do not bode well for today’s retirees: 1) Americans are living longer, and, 2) health care costs continue to soar. Jeff Voudrie points out that the Centers for Medicare and Medicaid Services figures a single senior in ill health, even if s/he has a comprehensive Medigap policy, can still expect to pay $10,000 in health care costs per year, not counting long-term care, vision care and over-the-counter medications. Fidelity Investments estimates a couple retiring today at 65 will need an average of $220,000 (in today’s dollars) to cover Medicare premiums and co-pays. That number also excludes long-term care, vision care and OTC drugs.

“These developments should be a wake-up call to all those currently retired or nearing retirement because, when combined with the low interest rates available today, many plans that seemed sufficient just 5 years ago may now fail. Keep time on your side and verify now that your retirement income plan is sufficient based on this new information,” says investments management specialist Jeff Voudrie of Common Sense Advisors, a financial planner in Johnson City, Tennessee.

A financial services industry veteran with 20 years’ money management experience, Jeff Voudrie, CFP® Professional, is a new breed of private money manager. Using sophisticated electronic monitoring and software, Jeff works with you to create a personal investments management portfolio that reflects your lifestyle goals and risk tolerance. He specializes in stable growth and prudent profits while applying robust, patented risk management processes. When you work with Jeff, you have the security of knowing that your life savings is getting the attention it deserves.

Jeff Voudrie, a financial planner in Johnson City, TN has been interviewed by The Wall Street Journal, CBS MarketWatch, The London Financial Times and the Christian Science Monitor. He is a former syndicated newspaper columnist and the author of two ground-breaking books: How Successful Investors Tripled the Return of the S&P 500 and Why Variable Annuities Don’t Work the Way You Think They Work. He accepts a limited number of new clients in his personal investments management practice. He and his wife Julie live with their seven children in Johnson City, TN. He is heavily involved in his local church and has done missionary work in Hungary and Cambodia.

Contact Information:
Common Sense Advisors
105 Keeview Court
Johnson City, TN 37615