Long Term Care Planning

The biggest risk to an individual’s retirement savings is longevity, which is the danger of outliving one’s savings, but the second biggest risk is the potential of a prolonged stay in a nursing home. Recent studies point to the fact that 60% – 70% of people 65 or older will spend some time in a nursing home. After an initial short period this is an expense that Medicare will not cover, thus this cost can become burdensome on the healthy spouse and/or other family members and their finances. Additionally, as the Baby Boomers age they are going to put more and more stress on the limited health care resources available. Those individuals with adequate financial resources and/or insurance will be in a much better position to get the care they require.

When considering Long Term Care one should ask:

• What is my family history of longevity and needing nursing services?
• If I need nursing services who will provide them?
• Do I want to stay in my home to receive care?
• Do I already have benefits that will cover this cost?
• What financial assets will I sell first to pay for Long Term Care?
• Should I purchase insurance to cover all or part of the cost of Long Term Care?

These are just a few of the questions that need to be explored while creating a plan to address this very real risk of longevity/health and extended nursing care.

We are prepared to offer advice and assistance with the Long Term Care planning process. When appropriate we will also bring in other professionals outside of Tradewinds Capital Management with the additional expertise, licenses and capabilities required to address your Long Term Planning questions and insurance needs.