November is Long Term Care Awareness Month, a month dedicated to educating others on the importance of preparing for long-term care needs. Many retirees put long-term care preparedness on the back-burner of their retirement plan because they believe it’s unnecessary or overly cautious. However, according to (acl.gov), those currently over 65 have a 70% chance of requiring long-term care services in their remaining years (para. 2).
There are several different strategies to consider when looking at covering your Long Term Care needs. These include self-funding, traditional Long Term Care policies, asset-based strategies, or life insurance-based strategies. The strategy you use is dependent upon your financial state and expectations for long-term care.
Many clients ask, “what type of Long Term Care should I expect?” It’s challenging to predict what services you will need in the future. To help you prepare, we listed the personal care services you may need to consider as a part of your long-term care plan.
Understandably so, many of us want to be independent and reside within the comfort and familiarity of our homes during our old age. Home-based care allows you to receive the attention and care you need without doing away with your comfort. Therefore, you should have a few years of home-based care accounted for in your long-term care plan.
Many of us want to live in our homes for as long as possible during our old age. However, you never know when the time will come where you’ll require 24/7 care. Therefore, you must plan for the cost of a nursing home by calling your local facilities and asking for a quote. Then, add the cost of a few years of nursing home care to your long-term care plan.
Your mental well-being during your old age should be a priority. Your children and family may visit regularly, but sometimes you need someone to check up on you a few hours in the day to talk and listen to your concerns. If you plan to live alone during your retirement, you may need to take companion services or therapy sessions into consideration.
If your condition prevents you from driving, you may need to invest in transportation service or account for taxi/uber rides. If you own a vehicle at the moment and you're nearing retirement, you should begin listing your vehicle and receiving quotes from potential buyers. Once you receive these funds, you can allocate them toward your long-term care plan.
Emergency medical alert:
You never know when the day will come where an emergency medical monitor could save your life. Investing in these services is a relatively inexpensive monthly fee that offers priceless peace of mind.
We understand that between saving for retirement, long-term care needs, and your legacy, financial planning can become daunting. Our U-Vest® advisors are here to ensure you’re using your assets wisely. Before you try to tackle this on your own, reach out to one of our Financial Advisors at U-Vest® Financial. Call us today to begin creating a long-term care plan suitable to your needs.
- How much care will you need? How Much Care Will You Need? | ACL Administration for Community Living. (n.d.). Retrieved October 15, 2021, from https://acl.gov/ltc/basic-needs/how-much-care-will-you-need.
This article is meant to be general in nature and is not intended, and should not be construed as personal advice of any kind. Please consult your financial advisor prior to making financial decisions. Michael P. Davino, CFP® is a Financial Advisor with U-Vest Financial®, a separate entity from LPL Financial and can be reached at 850.300.7055. Securities and advisory services offered through LPL Financial, a registered investment advisor, Member FINRA/ SIPC.