Putting Off Long Term Care (LTC) Planning

Are you one of the people worrying about putting off long term care planning?  Sure, it’s no fun to think about, but it’s actually a fairly simple discussion.

First, some good news: Contrary to what you might think, most people do not need to worry about having to live in a nursing home.  These days, the only people who must live in a nursing home are those who have run out of money paying for their care, and then need to apply for a welfare program called Medicaid.

Medicaid pays facilities less than the cost of care.

Because of this, many of the much nicer assisted living facilities won’t accept Medicaid – but federal law says nursing homes have to.  So, if you can afford the assisted living facilities or home care, you are in good shape.

Most assisted living for hands-on care costs between $4000 and $6500 per month, while caring for those with dementia (40% of all LTC) can easily cost $8500 per month.  Home care typically costs less, so this is the planning number I start with.

Your Social Security and pension income continues for your lifetime.  Your savings, including your 401k or IRA, probably earn interest, so we take into account what it can contribute monthly to your available income without using up principal.  Only the shortfall between this total income and the anticipated costs of care needs come from some other source. There are two alternatives for this—either you need to spend down your assets or consider LTC insurance.

Remember, your lifestyle will change drastically when care is needed, so expenses like golf, extra vehicles, boats, motorcycles, campers, trips to Branson, cruises, etc. will diminish significantly when care is needed.  Thus, more of your income is available for care costs than you might imagine, meaning less insurance is needed.

Then, using your age and health, we can choose the best company for your situation and give you prices.  Now it’s your turn to choose – is this worth it or not?  It’s your choice.

See, it’s not difficult, but having someone with 26 years of experience guiding you through this can be very helpful in choosing appropriate coverage and keeping costs low.

If you are ready to stop worrying and start investigate solutions, call an expert.  I’m Romeo Raabe, and I want to be your Long Term Care Planner– it’s all I do.  There is a reason so many financial planners and attorneys send their clients here for good advice.  Call me at (920) 884-3030 or check me out online first at www.TheLongTermCareGuy.com  You’ll be glad you did.  I can help people in almost any situation, even those already in care.