Poor Health and Financial Planning

Planning for retirement should start in one’s early twenties, if not before. Why? Because good health habits are developed early and health governs the quality of life long before retirement, and certainly, after.

 A January 2013 report from the Institute of Medicine (IOM) entitled U.S. Health in International Perspective: Shorter Lives, Poorer Health gives reason for concern. Think about your goals and aspirations. Your future visions depend on good health, for you, and the people you love and care for. In that context, both personally, and as a citizen concerned about the sustainability of Medicare and other tax payer funded government support programs, the report is alarming.

 The IOM examined life expectancy and other health data for the U.S. compared to 16 other high-income democracies in Western Europe, plus Canada, Australia, and Japan. Compared to the average of peer countries, Americans as a group fare worse in infant mortality and low birth weight, injuries and homicides, HIV and AIDS, drug-related deaths, obesity and diabetes, heart disease, chronic lung disease, and disability.

Many of these conditions are of concern to parents due to the impact of risky behaviors on young people, reducing the odds that they will live to age 50. Though Americans currently do not smoke as heavily or consume as much alcohol as those in peer countries, we are more likely to drive drunk with more alcohol-related accidents, less likely to use seat belts, consume more calories, drive rather than walk, have higher rates of drug abuse, and more likely to use firearms in perpetrating violent acts. For those who do survive to age 50, risky and unhealthy behaviors lead to poorer health, impeding job advancement and the accumulation of financial assets that lead to independence. Relative to the 17 countries studied, the U.S. was dead last in life expectancy at birth as of 2007, pun intended.

Is there any good news in the IOM report? We do have lower cancer deaths and greater control of blood pressure and cholesterol levels compared to peer nations. Those who do reach age 75 can expect to live longer than those in the other countries. “Healthy at 75” should be your new retirement mantra!

We cannot write all of this off to socio-economic conditions, although that is a factor in the macro-statistics. Studies show that the “more fortunate”—white, college-educated, insured, or upper income Americans—are in worse health than similar individuals in other countries.

Investments in health and healthy living may be as important to financial independence as investment strategies. Joining a gym and showing up on a regular basis, engaging a personal trainer, moderation in eating and drinking, health screenings and yearly physicals, wearing seat belts and keeping your car in top mechanical condition, avoiding distractions like texting and phone conversations while driving, and setting a good example for your kids, may make a difference in your quest to make it to 75 and beyond, fit and financially secure. Certainly, an adequate insurance program is part of the equation. Life, health, disability, liability and umbrella liability insurance is de rigueur to asset protection and the well-being of loved ones and potential survivors.

If the worst happens someone should have a Durable Power of  Attorney for Health Care covering you, and all family members, including children age 18 or older. Without such documents with adequate HIPAA (Health Insurance Portability and Accountability Act of 1996) disclosures, medical information cannot be shared.

What good is wealth without health?

Lewis Walker is President of Walker Capital Management LLC. and Walker Capital Advisory Services, Inc., a Registered Investment Advisor (R.I.A.) Securities and certain advisory services offered through The Strategic Financial Alliance, Inc. (SFA).  Lewis Walker is a registered representative of SFA which is otherwise unaffiliated with the Walker Capital Companies. ▪  3930 East Jones Bridge Road ▪ Suite 150 ▪ Peachtree Corners, GA 30092 ▪ 770-441-2603 ▪ lewisw@theinvestmentcoach.com