[imageframe lightbox=”no” style_type=”none” bordercolor=”” bordersize=”0px” borderradius=”0″ stylecolor=”” align=”none” link=”” linktarget=”_self” animation_type=”0″ animation_direction=”down” animation_speed=”0.1″ class=”” id=””] [/imageframe][fusion_text]
Your Long-Term Care Plan
[/fusion_text][fusion_text]I hope you enjoyed the fireworks on Tuesday, celebrating our country’s independence. Achieving financial independence (the ability to retire and not have to worry about money) is also worth celebrating. It takes a lot of saving and a good investment plan. Maintaining financial independence also requires hard work. You need to think about what risks can ruin a rock solid plan.
One such example is the need for long-term care. Nursing home care in the Twin Cities is approaching $100k per year. It is easy to see that an extended stay there can eat away at your nest egg in no time. What can you do about it?
- You can self-insure. This could be setting aside money to pay for your care or knowing that it will likely come out of your portfolio someday. This is an expensive option if you want it to be “fully funded.”
- You can hope the government pays for your care. That plan won’t get beyond the “hope” phase. Medicare does not cover ongoing long-term care, only recovery from a health event (think rehab from a heart attack). The government only steps in to pay for things once you have run out of money. For many people this is still the best option, but not for everyone.
- You can rely on your family to take care of you. Think carefully about this option. Is there someone who is physically able to help and doesn’t need the money (s)he could be earning at a job? Being a caregiver takes an emotional, physical, and financial toll. Again, this is a good option, but requires more than a passing thought. •
- You can look at long-term care insurance. It’s not a perfect solution. It’s expensive because the care it is insuring is expensive. It is worth at least looking at and having a conversation about. If you have something to protect, but not enough money to self-insure for long-term care costs, this can bridge the gap.
Now that you know the basics, have a conversation with your family (and your investment advisor) about your situation and what works best for you. It might be a combination of a few of those ideas.
Oh, and, I’m honestly not much of a fireworks guy myself. My wife and my dog aren’t either. We hope you enjoyed them though.[/fusion_text][separator style_type=”single” top_margin=”” bottom_margin=”” sep_color=”” icon=”” width=”” class=”” id=””][fusion_text]
Legal Disclaimer: These posts do not constitute an offer or recommendation to buy or sell any securities or instruments or to participate in any particular investment or trading strategy. They are for informational purposes only. ASA gathers its data from sources it considers reliable. However, ASA makes no express or implied warranties regarding the accuracy of this information or any opinions expressed by the author and may update or change them without prior notification.
[/fusion_text]