[vc_row css_animation=”” row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” angled_section=”no” text_align=”left” background_image_as_pattern=”without_pattern”][vc_column][vc_column_text]The answer…probably won’t surprise you.
Nearly seven in ten Americans who are 65 or older will need some form of extended care, whether at home or in a facility. The average length of that care is three years.[i] And with the elderly population growing, coupled with the increasing trend of families being geographically scattered, it’s never been more prudent to prepare for the possibility that you or one of your loved ones will need to take advantage of long-term care services.
Compared to planning for the RV trip of our dreams, long-term care is a downer. It’s never a fun topic of discussion, nor is it anywhere near as fun to plan for. But temper this with the financial impact that LTC can : a one-bedroom unit in an assisted living facility cost an average of $3,293 in 2010—per month![ii] That’s an expense you don’t want creeping up on you and your retirement savings.
Here is a simple short-list of ways to prepare for the costs of LTC:
Talk it Out—If you and/or your spouse are at the age where LTC is becoming a possibility, make sure you have a game plan so that your wishes can be respected and that you know where the funds are coming from. If your parents are at that age, it’s a responsible move to ask them what their plan is, as your money may well factor into that plan. Talking is good—A little awkwardness now may prevent a catastrophic surprise later on.
To help facilitate meaningful discussion, a good resource of terms and services can be found here: CAHF
Consider Long-Term Care Insurance—As with most insurance, you pay a premium, and if LTC becomes necessary, you are paid a certain amount that will greatly reduce your out-of-pocket expenses. An average premium price is around $2,200 per year, and the benefits come to about $160 per day, making LTC insurance a pretty sound investment[iii].
Look at your Annuity Options—The annuities that some insurance companies offer are tailor-made to help with LTC. You invest a one-time sum and are repaid over time with a specified monthly income. This is a good option if you are denied LTC insurance due to age or poor health.
Retirement planning is about factoring in the variables. For those of you in Irvine and Orange County, we are here to make sure not only long-term care, but every other variable is there in the plan you have for your meaningful life. Contact Miramontes Capital today.
[i] “How Much Care Will You Need?” Longtermcare.gov. U.S. Department of Health and Human Services. Web. 28 Sept., 2015.
[ii] “Costs of Care.” Ibid.
[iii] “Long-Term Care Insurance Costs.” Ibid.[/vc_column_text][/vc_column][/vc_row]