Long-Term Care
It’s now more important than ever to prepare for the possibility of long-term care. We’re living longer, enjoying more retirement years than our parents. But while longevity can be a blessing for those of us who remain healthy, 70% of people turning 65 today will face chronic conditions or other challenges that increase health care and nursing care expenses.
Our Philosophy & Approach to Long-Term Care Planning
1. We encourage you to view long-term care planning as an essential piece of your overall financial plan
In our opinion, a long-term care plan shouldn’t exist in isolation. We make it an integral part of retirement income planning and view it in the context of your existing savings and projected income and expenses.
2. We’ll help you review your long-term care options realistically in light of your family situation and personal finances
It’s important to consider the impact of a long-term care event on the finances and emotions of your entire family. We suggest you involve them in the planning process so that they know what role, if any, they’ll play in providing hands-on care or helping you pay for services.
3. We’ll point out the drawbacks of procrastinating and motivate you to start planning now
The longer you wait, the fewer your options will be. We want to provide essential information and streamline the planning process so you’re comfortable making the necessary decisions about your future care.
Long-term care involves non-medical assistance with basic daily activities, including dressing, eating, and toileting. Whether at home or in a facility, long-term care can be expensive. Since private health plans and Medicare typically don’t cover it, you’ll be personally responsible for the costs unless your income level qualifies you for Medicaid.
To prepare, you can set aside funds specifically for these expenses, create an irrevocable trust (with a five-year establishment period), or consider long-term care insurance, either a standalone or hybrid policy. Applying when you’re younger can improve your chances of qualifying for coverage.
How We Can Help You Make Long-Term Care Decisions
Freedom First Retirement Design can help you develop a long-term care planning strategy tailored to your financial situation. We’ll discuss your potential care needs including your preferred locations and caregivers. We might also suggest having open conversations with your spouse or family members about the financial and emotional implications at play.
Our recommendations can include self-funding your care, purchasing insurance coverage, or establishing a trust to protect your assets. We’ll be there to advise you throughout the next steps as we navigate your various investment and insurance coverage options.
No one wants to think about it, but planning for long-term care is crucial to protecting your assets, legacy, and your spouse’s financial security and lifestyle. Acting now can expand your planning options and help you address potential financial challenges proactively.
