What Will Be The Most Expensive Years Of Your Retirement (and how will you pay for them)?
That is a pretty loaded question. At first glance, you might conclude that the first few years of your retirement will be the costliest. That may be true, as the newfound freedom of retirement allows you to establish hobbies, travel, and pursue other interests, etc. Those expenses are predictable, and hopefully you've planned for them. But, what about those unplanned expenses?
Statistically, those over the age of 65, have a 70% chance of needing some type of care in their lifetime. Care is defined as, "Any cognitive decline or compromising health condition requiring assistance from others for your basic activities of daily living." How long such an illness might last and how much it will cost are all questions no one can answer. However, what you do today can greatly mitigate both the short and long-term effects this will have on you and your loved ones.
Traditionally, there have only been three ways to plan for long-term care;
1. Relying on the government.
2. Buying long term care insurance.
3. Self-insuring for this risk.
The challenge is that most people object to having the government dictate their healthcare to any degree, and purchasing long term care insurance can be a huge expense and a waste of money if you end up being part of the 30% who never need care. Given those choices, it’s no wonder that most people take their chances and self-insure, using their own money to pay for care if and when it's needed. However, with current care costs running $6,000-$8,000 per month, with those costs expected to double about every 12 years....Well, you can do the math. Self-insuring in this way could end up being the biggest financial gamble of your life.
But there is a fourth choice to consider. What if you could plan for long-term care and pay for those “most expensive years” in a way that didn’t prevent you from fully enjoying these years today? What if there was a way you could maintain dignity, choice, and control while still preserving your capital?
We help clients solve the long-term care dilemma with what we call an Asset Based Solution. Think of it as “Self-Insurance Plus!” We start with a reasonable amount of money you might expect to spend on care in the future and set it aside now, locking in your overall cost, to provide an inflation proof guaranteed stream of income to cover both spouses’ care- for life. The "Plus" is that, unlike other solutions, whether you live, die, or need long term care, your money is still available. Anything you put into the plan is not wasted if you never need care.
If you would like to explore how this cost effective solution might work for you, please give our office a call at 760-752-7848, email us here, or click on this calendar link to arrange a 10-15 minute “Get Acquainted” Phone Call so we can learn a little more about your situation and how we might best be of service to you.