If you are part of the baby boomer generation (born between 1944 and 1964), you already know how important it is to save for your retirement. Little remains of the security our parents once enjoyed through company pensions. Today, the responsibility for retirement saving has shifted from employers to employees, and Social Security provides only a base level of income. Today, it’s up to you to put the “golden” in your “golden years.”
Most likely, you’ve been saving diligently over many years in order to maintain your current lifestyle during retirement. Have you factored long-term care (LTC) into the equation? Many people greatly underestimate what would become of their finances if they became incapable of caring for themselves, even temporarily. Statistics show approximately 70% of those 65 or older will eventually need some form of LTC.
LTC services range from custodial care in the home to medical care in a nursing home, and the majority of LTC services aid with activities of daily living, such as dressing, bathing, eating, transferring, and toileting. You are generally considered to need LTC if you have difficulty performing two or more of these daily activities due to physical limitations, cognitive impairment, or both.
If you have accumulated wealth, such as retirement accounts or savings sufficient to cover LTC expenses, then you’re ahead of the game. But consider this. Both Warren Buffett and Bill Gates have gone on record as saying having LTC insurance provides a ‘pennies on the dollar’ vehicle to preserve and pass their assets to heirs. In other words, even though they could certainly foot the bill from their vast assets, they recognize the value of Long Term Care insurance.
Policies vary, but in general, they provide a set amount of coverage that can be used in a number of ways. Should you need daily assistance, LTCi can help cover the expenses of nursing homes, assisted living facilities, or even home health care. Such coverage allows you to remain independent, while also increasing your options for care.
With LTCi, you can minimize the financial risk associated with extended care and relieve the burden of uncertainty for yourself and your loved ones. Furthermore, if you purchase a qualified policy, premium payments may be tax deductible. Whether you are in your 40s, 50s, or 60s, the time to begin planning is now. Each year you wait can cost you more money. Premiums are based on age and benefits. So as you age, your risk of needing LTC increases, along with the total cost. The good news is there are new asset based policies that allow you to pass the value of the policy onto heirs should the insurance not be used.
No more ‘use it or lose it’.
Most people don’t think about LTC until it becomes a reality for them. While you don’t know what the future holds, proper planning today for an uncertain tomorrow may help preserve your hard-earned assets and enhance your options for care.
Our Custom Retirement Paycheck Plan shows how to protect your retirement from the risks of unexpected market swings, tax changes, and health care expenses using a mathematically tested strategy to create lifetime income allowing you to stop worrying about outliving your money and get on with enjoying the rest of your life.
Let us show you in black and white a custom retirement income plan that is comprehensive, individualized and based on strategies that balance growth with downside protection. Get your Custom Retirement Paycheck Plan now!
Give us a call at our Charlotte office at (704) 248-8549, or our Clemmons office at (336) 391-3409. Or, click here to request a no-cost, no-obligation meeting.
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