Americans are focused on the wrong retirement risks

Center for Retirement Research at Boston College
Center for Retirement Research at Boston College

Center for Retirement Research at Boston College

A study from the Center for Retirement Research at Boston College found that Americans cite market volatility as the top retirement risk, while longevity and health care costs actually present bigger risks. The study concluded that Americans need more education about retirement risks, as well as a source of secure income and long-term care planning.  To view the article, click on the link below and then on “take me to the story”.

Research: Americans focused on wrong retirement risks

Has your planner addressed the risk of spending an extra $50,000 to $90,000 every year for 3-5 years when your health changes?  If not, or even if your planner did, remember that they specialize in investing money.  I am an expert in planning for and dealing with Long-Term Care.  Investigate with an expert and get the best advice and solutions available.  Visit my website at www.TheLongTermCareGuy.com or call (920) 884-3030 to schedule your time to investigate

Family-Provided Care Can Work–Sometimes

Family-Provided Care Can Work--Sometimes
Family-Provided Care Can Work--Sometimes

Family-Provided Care Can Work–Sometimes

The September, 2021 issue of the journal Health Affairs features a study that family-provided care (spouse or adult children) for dementia greatly diminishes the chances that the individual will need to enter a nursing home. However, full time caregiving will burn out the support team. Family simply cannot be expected to provide 24-7 care without help.

That is why I offer several home care policies that will pay for caregivers to come into the home to provide that care, while giving family members some relief. These home care policies are much less expensive and far more easily obtained – despite health problems already on record – than traditional long term care insurance policies.  However, they must still be obtained before the care becomes necessary.

You can easily burn out your loved ones with family Family-Provided Care

Don’t burn out your family or other loved ones by becoming a total burden on them.  They will surely help, but give them a break and provide a helping hand.  Investigate now, while this help is available.

Contact Romeo Raabe www.TheLongTermCareGuy.com at 920-884-3030 to investigate options.

Don’t get caught in this long term care trap! Many people are.

Don't get caught in this long term care trap! Many people are.
Don't get caught in this long term care trap! Many people are.

Often agents sell policies for a cheaper price because they didn’t include the all-important automatic inflation on benefits. Don’t get caught in this long term care trap!

I am being approached by many people who purchased long-term care (LTC) insurance many years ago.  They bought the LTC insurance from their life insurance agent, their financial planner, or their home insurance agent – not a specialist in LTC. These agents knew life or home owners insurance, but often just “dabbled” in long term care sales.  Maybe they had just one company’s product to sell. Often, they sold the policies for a cheaper price because they didn’t include the all- important automatic inflation on benefits.

Long term care costs have been increasing more quickly than inflation, doubling almost every 15 years.

For example, a nursing home that charged $4500 a month 18 years ago, now charges over $10,000 a month. Costs may increase even more quickly in the future because labor costs are likely to increase.  Since we have nearly full employment, employers may need to offer higher wages to attract the needed workers. We also hear talk about increasing the minimum wage to as much as $15 per hour, so costs could increase even faster.

If you have an older LTC insurance policy that doesn’t include inflation coverage, there still may be something that you can do.  If you are considering investigating LTC insurance – do so with an expert. You need an expert who knows the costs, understands inflation and knows what the options are for people with these kinds of policies, so that the expert can help you determine how much of the bills you can pay yourself. That way, you don’t buy too much insurance.

I am an expert in long term care financing.  I have been doing nothing but LTC planning and financing for over 25 years.  I am happy to review your policy.  I can help you if there are problems with your policy.  I can help protect some of the money if LTC is needed and you have not prepared in advance.  Many of my clients have been referred to me by their financial planner or their attorney.  Learn more about me at www.thelongtermcareguy.com.

If you want to investigate how to deal with LTC, call (920) 884-3030. Let’s plan a time to investigate together.

What Can I Do About Long Term Care?

Long term care is very expensive!
Long term care is very expensive!

Long term care is very expensive. Few people are prepared for the cost when they determine they need care. 

Long term care is very expensive. Few people are prepared for the cost when they determine they need care.  Fortunately, there are ways to deal with the bills even if you do not have much money.

Medicaid requires beneficiaries to spend all savings and other assets down to impoverishment before they will pay for care. This includes a requirement that any life insurance with a value over $1,500 be cashed in—some people have life insurance so that there is money to pay for their funeral. If someone needs Medicaid to pay for their care, this insurance will need to be cashed in, leaving no money for final expenses as planned.  Medicaid does, however, let you set aside up to $15,000 to pay for final funeral expenses if this is done in an irrevocable burial trust.  I set these up for people at no cost.

Medicaid also allows you to set these irrevocable trusts up for the final funeral expenses for each of your children and their spouses in addition to the one set up for you.  This allows you to leave funds to family instead of spending it all on the costs of long-term care.

Few people know of these Medicaid rules and then leave nothing but the funeral bill for their children.

You have some savings in the bank, earning very little interest.  The irrevocable trusts also earn interest, cost nothing to open, and protect money from the Medicaid “spend down”.  No need to spend money to open these, other than the amount you want to place in the trust.

At TheLongTermCareGuy.com, we help people deal with the costs of long-term care.  We also offer alternatives to help those planning ahead to pay for long term so they don’t have to spend their assets down to impoverishment.  There is no charge to meet and explore options.  Call us at (920) 884-3030 to schedule a free consultation.

 

 

What’s it Really Like Paying for Long-Term Care

What’s it Really Like Paying for Long-Term Care?
What’s it Really Like Paying for Long-Term Care?

Annual cost range is $18,720 for adult day-care services to $100,375 for a private room in a nursing home!

As written by Michelle Singletary and published in the Washington Post on November 26, 2018

One of my favorite Spock quotes from the Star Trek television series is, “Live long and prosper.” Who doesn’t want a long life, right?

But what if the longevity means spending down your money for long-term care? And that’s if you’ve been prosperous and have the funds to pay a facility or home health aide to care for you.

Genworth Financial recently released its 2018 Annual Cost of Care survey and found that the annual median cost of care now ranges from $18,720 for adult day-care services to $100,375 for a private room in a nursing home.

I asked readers to share their long-term care experiences, and here’s what they had to say:

“My mother had Alzheimer’s and was in a memory unit for two years,” wrote Chris Gonzales from California. “My dad has been in assisted living for two and half years and for the last two years has needed round-the-clock care. The cost, when my mother was alive, totaled $230,000 a year. The cost to care for dad is now $170,000 a year. This is in Fort Smith, Ark. My brother and I are very lucky that our parents lived below their means, saved, and did extremely well investing their money in the market, so money has not been an issue. We are also grateful for the ladies that watch over our father and consider ourselves extremely lucky to have people we can depend on as we both live out of state.”

“I managed the care of my mother (who had Alzheimer’s disease) from 1998 through 2006,” wrote Debbie Trice of Sarasota, Fla. “Even that long ago, the cost of her care approached $100,000 annually once she had to move from an assisted-living facility to a skilled nursing facility. The actual cost of long-term care goes way beyond the monthly or daily facility charges. Personal expenses (e.g., adult diapers, toiletries, laundry, haircuts) can be significant. I saved some money by purchasing diapers from a wholesaler and toiletries from a discount store and doing mother’s laundry myself. Medications cost more for residents in long-term care, too. Some states require that all medication, including over-the-counter items like aspirin and vitamins, be specially packaged by a pharmacist in blister packs — at extra cost, of course. Staffing is a critical issue. To keep their rates competitive, many facilities limit their staffing levels to the minimum required by law. But then some patients’ needs can’t be adequately addressed. I found it necessary to hire private duty aides to supplement facility staff for a few hours each day.”

Lane Beckham of New Jersey wrote, “Four years ago my wife (then 71) suffered a fall which led to numerous complications over the next year. She has since been bedridden going from a home hospital bed to a wheelchair. She can feed herself, converse, watch television and read catalogues, but that’s about it. We’ve had a 24/7 home health care aide since April 2015 at a current cost of $215 a day or $78,475 a year. A long-term care policy kicks in $100 a day but only for 5 years of benefit days.”
“My mother died two years ago and for the last two years of her life, she had progressively worsening dementia,”

One reader wrote. “We (mainly my sister) arranged for her to be cared for at her home. The cost was running at about $85,000 a year and that was two years ago! Why? At times, she was simply too much for one person to handle, so we often needed two people to stay with her. And while we went with the better-rated agencies, we still had problems with sitters stealing, using drugs, having friends over and even taking my mother out when they needed to run errands. What a nightmare.”

David Treece, an investment adviser and financial planner based in Miami Shores, Fla., has a client with Alzheimer’s who has a Genworth long-term care insurance policy, which so far has paid out about $323,000.

“I have learned nothing will ruin a retirement plan faster than long-term care expenses,” Treece wrote. “Try having to come up with nearly a third of a million dollars like my client if you don’t have coverage. It’s just unimaginable for most people. My biggest concerns for my clients are a group I call ‘the alones.’ These are people who have no spouse, no children, no close siblings and really nobody else. They can’t even name a beneficiary let alone someone to serve as a power of attorney or health-care surrogate. This group seems to be increasing as so many people never had children, are divorced or never married, or are estranged from family. Who is even going to help them? Our society isn’t really set up for this, and I don’t see any easy solutions.”

*****

How comfortable do you feel paying for care out of pocket when your health changes?

  • Have you thought that Long-Term Care insurance would not be needed?
  • Do you plan on spending down to Medicaid, a welfare program and then search for a place that will accept it – and you?

If you are concerned, contact www.TheLongTermCareGuy.com at (920) 884-3030 and schedule a time to investigate with someone who understands and can help you find a way to handle this!

Study: Elderly’s Family Caregivers Need Help Too

Nearly 18 million people care for a relative older than 65 who needs help, yet “the need to recognize and support caregivers is among the most significant challenges” facing the nation’s swelling elderly population, their families and society, according to the report from the National Academies of Science, Engineering, and Medicine. Describing family caregiving as “a critical issue of public policy,” a committee of experts in health care and aging said the next presidential administration in 2017 should direct a national strategy to develop ways to support caregivers.

According to the report, people who help elderly family members with three or more personal tasks a day devote 253 hours a month to caregiving — almost the equivalent of two full-time jobs.

Five years is the median duration that family members care for older adults with high needs, the report said.

For some Americans who accept that responsibility, that can mean taking a less demanding job, foregoing promotions or dropping out of the workforce.

Lost wages and benefits average $303,880 over the lifetimes of people 50 and older who stop working to care for a parent, according to a study cited in the report. That’s not all: A lower earnings history also means reduced Social Security payments for caregivers when they become eligible.

The federal Family and Medical Leave Act doesn’t cover 40 percent of the workforce. It allows eligible employees to take 12 weeks of unpaid time off to care for certain family members, but the law only applies to those who work federal, state and local governments and private companies with more than 50 employees. But ineligible family relationships for leave include sons- and daughters-in-law, stepchildren, grandchildren, siblings, nieces and nephews. Many workers can’t afford to give up their incomes for 12 weeks.
In 2011, 17 percent of caregivers didn’t take leave because they feared losing their jobs, according to a national survey cited in the report.

Beyond the economic costs of caregiving, the report notes that the social and physical toll of caregiving should get more attention than it does.
“If their needs are not recognized and addressed, family caregivers risk burnout from the prolonged distress and physical demands of caregiving, and the nation will bear the costs,” the report said.

Instead of delivering “patient-centered” care, health care providers should adopt “family-centered” models that include checking with caregivers to ensure they are healthy and capable of filling the role. The report also recommended wellness visits, counseling sessions and better training for caregivers who must understand increasingly complicated medical instructions.

Dealing with feeding and drainage tubes, catheters and other complicated medical devices causes stress, and the study’s authors noted that caregivers report “learning by trial and error and fearing that they will make a life-threatening mistake.”

The study was funded by 13 private foundations, the Department of Veterans Affairs, and an anonymous donor that requested the National Academies undertake the research in 2014.

Don’t let this happen in your family. Investigate Long-Term Care insurance NOW, while you are still (hopefully) healthy enough to qualify for it. Just like car insurance you must buy it when you do not need it so you will have it when you do need it.
Contact the professionals at TheLongTermCareGuy.com and let us help you investigate this together. Most people do not need as much insurance as they first imagine and thus the cost are less than you fear. Call us at (920) 884 3030 or (800) 219-9203

Think You Are Too Young To Worry About LTC? Think Again!

I just read that the Centers For Disease Control and Prevention (CDC) says “The percentage of adults aged 45 to 64 years who reported needing help with activities of daily living such as eating, bathing, dressing, or getting around inside their residences has increased nearly 50% from 2000 to 2015.  This was published in their weekly Morbidity and Mortality Weekly Report on August 26th.

For years it has been known that 40% of the people needing Long Term Care (LTC) services in this country are between the ages of 18 and 64.  LTC is not something that people can ignore until age 85.  Just like car insurance, LTC insurance must be purchased while you are healthy – so you have it when you need it.

By 60 years of age, 25% of us cannot qualify healthwise to purchase LTC insurance.  The great majority of people cannot afford to pay for such care out of pocket or savings for very long.  This leaves them no alternative but to apply for a welfare program called Medicaid.

Medicaid will only pay for LTC when you can prove that you are completely impoverished.  In most states that means you have less than $2000 left to your name and have cashed in your life insurance as well.  A married spouse can retain use of the home and car but this goes back to the state – not your heirs – after last death.

LTC needs can last for many years.  Alzheimer’s is only one of 68 different types of dementia.  By age 65, one in eight have it.  By age 75 it is one in four and by age 85 it is half of us.

This brings up another study published in the Journals of Gerontology: Medical Sciences that says “Older adults who do not exercise often – or do not exercise at all – have a 50% greater risk of developing dementia as they age”.  Anyone with diabetes also faces a significantly higher risk of developing Alzheimer’s.

Will you wait until it is too late to plan for your LTC when your health changes?  Or will you proactively investigate solutions while they are still available?  The ability to pay for care not only prevents impoverishment, but gives you choices as to how and where your care will be delivered.

Give TheLongTermCareGuy.com a call to meet and see what you can do for yourself.  We are experts who have done nothing but work with LTC financing for 23 years now.  There are solutions for almost any budget.  (920) 884-3030 or (800) 219-9203

Alzheimer’s Is Expensive

Alzheimer’s Disease is the 6th leading cause of death in America.

By age 65, one in eight has it.  By age 75 it’s down to one in four, and by 85 fully half of us already have it.  If you live long enough, its almost inevitable.  Alzheimer’s is not preventable, and not curable.  At first you will know that you have it, and are trapped in its progression.

At some point you will need help.  Sometimes the children can retire early and move in to care for us 24-7.  Most of us do not have that luxury – we will have to pay for home care or assisted living facility care.  Most LTC, even for dementia, is not done in nursing homes anymore.  Costs for dementia care are the highest range of assisted living billings, often up to $6500 per month.

How long can your budget last with this kind of an extra bill each month?  Many other physical ailments can bring about a need for care too.  Its all expensive, like a car accident with car insurance.  Surely you insure that risk, so why not insure for LTC costs since 70% of us will need some (per HHS)?

I have seen some very inappropriate proposals given to consumers on Long-Term Care insurance.  For most agents or financial planners this topic is a once in a while, also have product.  They typically do not research all the options, and tend to suggest more insurance than will be needed, making the premiums far too high.

Before you think it is out of reach for your budget, contact a professional who can help you decide how much is appropriate for your situation, taking into account the lifestyle changes that occur when care is needed.  We constantly hear “Oh, that is much better than we anticipated” once we meet with clients.

Consult with the experts.  We have 23 years experience in the financing of Long-Term Care.  We have solutions for anyone, regardless of finances or health.  The best options are for those who are still healthy, but we can help everyone in some way.  Give us a call at (920) 884-3030 in Green Bay or from anywhere at (800) 219-9203

Childless Couples Need To Do This Retirement Planning

This logic is based on the simple fact that kids are expensive. A child costs over $245,000 to raise until age 17, according to the U.S. Department of Agriculture, a sum of money the childless, in theory, could use to fund retirement.

But while Gregory Hammer of Hammer Financial Group acknowledged being childless can make a time horizon for retirement more predictable, he was quick to add that people without kids often have other things that are costly in their day-to-day lives — more travel, for instance —   while other retirement planning differences are negligible.

One difference he did emphasize is that childless couples must be sure to prepare for the death of a spouse, since they don’t have children to rely upon.

“When the first spouse passes away, income usually goes down, more times than not tax liabilities increase, and expenses either stay the same or increase,” he explained. Childless couples especially should crunch the numbers on such a scenario to see what gaps in income would exist. From there, either be prepared to return to work, or take out a life insurance policy to cover the difference.

Along the same lines, long-term care insurance is a smart bet for childless couples. Policies aren’t cheap, costing $2,000 to $4,000 annually for a couple in their mid-50s. Buying coverage earlier rather than later means lower premiums, though. And while it may be hard to imagine eventually being frail or dependent enough to need it, it’s smart to have the policy in place for a worst-case scenario.

Really, though, this kind of planning should take place even when children are in the picture, especially if parents don’t want to burden their kids down the line. As Sally Brandon of Rebalance IRA put it: “Everybody needs to plan for themselves and care for themselves whether they have children or not. Who knows if your kids will have the wherewithal to take care of you anyway?”

Unfortunately, one similarity between DINKs and their DEWK (double earners with kids) counterparts is that such planning is often neglected. “A lot of people have this sense that it’s all going to work out (but) have never gone through the exercise of really understanding what the numbers look like,” she added.

So for DINKs and DEWKs alike, the importance of foresight can’t be understated. Take the time, crunch the numbers and put plans in place for everything from retirement income to long-term care. As Brandon summed it up: “Being aware, as with anything, is half the battle.”

You would surely not go without health insurance, so do not skip planning for Long-Term Care, which 70% 0f us will need.  For more information contact www.TheLongTermCareGuy.com

Is Motel 6 WhereYou Plan To Retire?

Tom Bodette will leave the light on for you, but do you really want to stay there?

I surely do not! And I do not want to end up in a welfare nursing home either. Many people think that you get the same care on Medicaid as you would by paying for your care. The problem is the Medicaid reimbursement is so far below market rates only the Motel 6’s of nursing homes or assisted living homes will accept you.

You’ve planned to have a comfortable retirement, and unless you can afford 6 figures a year for a nursing home, or over $50,000 for a nice assisted living facility or home care, you should be looking into LTC insurance while still healthy enough to get it. Every year it is tougher to get this coverage, the benefits are shorter, and the costs are higher. Get it while the getting is good.

But you’ve heard that this insurance is very expensive.  From proposals my clients have shown me, it is – when it is not appropriately chosen.

How does over $850,000 of benefits for a 65 year old (male of female) for less than $2000 per year premium sound?  Say you pay this premium for 20 years until you are 85 years old.  You spent less than $40,000 for over $850,000 of coverage, is that expensive?  Is it affordable for you?

Today, less than 15% of Long-Term Care is done in nursing homes.  Thus, just like flood or earthquake endorsement on your homeowners insurance, many people choose not to cover the nursing home, but purchase just enough LTC insurance to cover home care, assisted living facilities, or adult day care.

Then bear in mind that when someone needs care, their lifestyle changes drastically.  No need for the second (or third) vehicle, vacation travel drops, less golf, boats, campers, motorcycles, etc. to support when they can’t be played with.  Most people can cover a good part of the cost of LTC by simply repositioning the dollars from things they can’t do anymore.  Interest on your life savings can help as well without depleting the balance.

OK – here is the fine print.  65 year old, male or female, buys a $70/day benefit.  This plus available income and interest may be sufficient.  It will give you 10 years of collecting when you need care and INCLUDES an automatic 5% compound increase on your benefits every year.

You pay $1980.94 per year for 20 years.  On the 21st year you need care and file a claim which starts at $185/day (remember the automatic inflation included) and will increase over the 10 years you collect until it reaches $288 per day for a total of $852,603 paid out to you.  If your care costs less, you get all the money for every day of care regardless.

If you can’t find a deal this good with an A+ rated company, no matter where in the USA you live, call (800) 219-9203 and talk to us at www.TheLongTermCareGuy.com