As we age, the need for long-term care (LTC) services may arise. These can include assistance with daily living activities like bathing, dressing or medication management. While the need may be unexpected, planning for LTC costs is crucial to protect your retirement savings and ensure you receive the quality care you deserve.
Understanding Today’s Long-Term Care Costs
The cost of LTC can be substantial. National averages show yearly expenses exceeding $100,000 for nursing home care and tens of thousands of dollars for in-home care.1 These costs can quickly deplete your retirement savings if not properly addressed.
Essential Planning Strategies for Long-Term Care Coverage
- Long-Term Care Insurance: Consider LTC insurance to help offset the financial burden of care. Premiums are typically based on your age and health, and benefits can cover nursing home stays, assisted living or home care.
- Retirement Savings: A healthy retirement nest egg can help cover LTC costs without jeopardizing your financial security. Maximize contributions to IRAs or employer-sponsored retirement plans.
- Life Insurance with LTC Riders: Explore life insurance policies with LTC riders that provide benefits if needed. This can be a cost-effective way to access LTC coverage while also providing a death benefit to your loved ones.
- Medicare Coverage: While Medicare itself offers minimal long-term care coverage, some options exist to help manage these costs. Medicare Advantage plans may provide limited benefits, and some Medicare Supplement plans (Medigap) can help with out-of-pocket costs for covered services under Original Medicare. However, true long-term care, which includes custodial care for daily living activities, isn’t covered by Medicare or most Medigap plans.
- Family Communication: Open communication with your family about your LTC wishes and potential financial implications is essential. Discuss potential care options and how they might be funded.
McAdam Financial: Your Partner in Long-Term Care Planning
At McAdam Financial, we understand the importance of comprehensive retirement planning, including LTC considerations. Our advisors can assist you by:
- Assessing your LTC risk based on your age, health and family history.
- Evaluating your long-term care options and associated costs.
- Exploring various funding strategies for LTC, including insurance and retirement savings.
- Integrating LTC planning into your overall financial plan to ensure your security.
Start Your Long-Term Care Planning Today
Don’t let LTC become a financial burden later in life. We’ll work with you to develop a personalized plan that addresses your LTC needs and helps ensure a secure and comfortable retirement. Call 855-MCADAM5 now! Or click to schedule your consultation online.
Written by McAdam Financial as of 6/18/24. This article is provided by McAdam LLC (“McAdam” or the “Firm”) for informational purposes only. Investing involves the risk of loss and investors should be prepared to bear potential losses. Past performance may not be indicative of future results and may have been impacted by events and economic conditions that will not prevail in the future. No portion of this article is to be construed as a solicitation to buy or sell a security or the provision of personalized investment, tax, or legal advice. Certain information contained in this report is derived from sources that McAdam believes to be reliable; however, the Firm does not guarantee the accuracy or timeliness of such information and assumes no liability for any resulting damages.
Securities offered only by duly registered individuals through Madison Avenue Securities, LLC (MAS), member FINRA/SIPC. Investment advisory services offered only by duly registered individuals of McAdam, LLC, a registered investment advisor. Insurance products and services offered through McAdam Financial. McAdam, LLC and McAdam Financial are not affiliated with MAS.