November 2024 ┃Long-Term Care Awareness Month
As we recognize Long Term Care Awareness Month, it’s an ideal time to reflect on how we can prepare for the future in a way that ensures comfort, stability, and security—both for ourselves and our loved ones. While the subject of long-term care can feel distant or challenging to address, planning for it today can help a sense of security for the years ahead.
Why Long-Term Care Planning Matters
Statistics show that nearly 70% of people over 65 will need some form of long-term care in their lives. And with that being said, 63% of families end up having to pay for Long-term care needs for a loved one out of their retirement savings.
LTC isn’t just about nursing homes—it includes a variety of services that support daily living needs, whether at home, in an assisted living facility, or in specialized settings.
As much as we hate to think about the “might ifs” there are many reasons why a loved one might need care ranging from dementia to advanced arthritis, and neurological or cardiac issues.
As part of our FSG philosophy, we believe that planning for long-term care (LTC) should be a proactive part of every comprehensive financial plan. Ideally, we start discussing and educating clients about their LTC options when they reach their 50s, allowing ample time to explore choices that align with their long-term goals and needs.
This early approach ensures that clients are well-informed and prepared.
The cost of long-term care can quickly add up, impacting retirement savings and, potentially, your family’s financial security. However, by planning ahead, you can:
- Preserve assets for yourself and your loved ones: A well-thought-out plan can help reduce financial stress on family members.
- Ensure quality of care: Planning enables you to choose the kind of care you want, from in-home assistance to community-based services.
- Feel Reassured: Knowing you have a plan in place allows you to focus on what truly matters—living fully in the present.
Options to Consider
As your financial advisors, we are always here to discuss options that align with your specific goals and overall financial plan. These might include:
- Long-term care insurance: Tailored policies can help cover the cost of care, protect your assets, and offer flexibility.
- Hybrid life insurance with long-term care riders: These policies provide life insurance benefits and funds for long-term care if needed.
- Health savings accounts (HSAs): For those with high-deductible health plans, HSAs allow for tax-advantaged savings that can help fund future care needs.
Wishing you and your loved ones health and financial independence today and always.