I’m told in the internet world you can get attention with pets, especially dogs. So there you are, here is one of my dogs. His name is “JP”. While we love our dogs the idiom “going to the dogs” means, ” to become worse in quality or character; becoming less successful than it was in the past”.
So as we all work hard and save money for our future retirement the last thing we want is our IRA, 401(k)’s and other assets to “go to the dogs”.
How do your assets ‘go to the dogs’? The biggest risk we face, involuntary risks, is the risk of needing Long Term Health Care. This is help with activities of daily living (bathing, easting dressing, etc.) or supervision due to memory problems. Some people will also require extended skilled care services as well.
Many people think health insurance or Medicare will pay for extended Long Term Health Care. This article addresses this problem: http://longtermcareplanningnews.com/articles/americans-mistakenly-think-medicare-will-cover-ltc-needs.
The fact is health insurance, Medicare and any supplement to Medicare will not pay for these costs except for a limited amount of skilled care. This means the vast majority of LTC costs will come out of our savings. This will have a dramatic impact on our lifestyle creating a huge burden on those we love.
Medicaid will pay for these costs but only if you are poor or become poor in a ‘spend-down’ of savings. In most states a person must spend-down to $2000. States allow a spouse to keep an amount that varies from $22,000 in Kentucky to $119,200 in states like Illinois, Colorado, Maine and Georgia. Many states are between. The point is … unless you plan ahead you pay for your own care or your family become the caregivers.
The financial costs and burdens of aging should be something you include in your retirement plan. This way you can safeguard your estate (IRA, 401(k)) and other assets from these high costs. Plus, you will make sure you get quality caregivers in the setting you desire (at home, assisted living, etc.). This allows family to be family.
Affordable Long Term Care Insurance can address these concerns. Most states have partnership plans which provide additional dollar-for-dollar asset protection.
Learn how easy it is to plan: www.mccannltc.net