Long-Term Care Pro’s and Con’s

November is Long-Term Care (LTC) awareness month and this is another nod to that important issue.

LTC is often thought of late in life and many advisors suggest that you start looking at this after the age of 50 or later. Many never look at it until they are in need of it - and that is too late.

For me, this is something to be considered much earlier in life than your golden years since most financial tools work best if they have a lot of time. Plus, they often require less financial effort in terms of dollar commitment when starting earlier. The reason this has become a priority for me in planning is from looking at the financial future from the lens of The Future Poor and seeing medical cost at the end of life skyrocket.

Like all financial tools, Long-Term Care is great at some financial jobs and the right tool, but it is not good at other financial jobs. This is why it is important to know the pro’s and con’s and have the right tool built for you and to compliment what you already have.

The shorthand number for LTC expenses a year is $100,000 and that is expected to double by the year 2051.

With 70% of people ending up needing this type of care in the senior years, the question is simple.

Which asset do you plan to use to pay for this future expense?

401(k)?

Home Equity?

Roth IRA?

Savings?

Reverse Mortgage?

Long-term Care Insurance?

The part II to the question then always becomes will it be enough to cover the expense.

There is a cost to waiting to consider this aspect to your financial life so take the time this month to look into LTC. I am available to answer questions about it and explain how the different types work.

Here is a link to a helpful article about LTC from SmartAsset.

https://smartasset.com/retirement/long-term-care-insurance-pros-and-cons

As always, if you come across a financially related article you’d like to send my way please do! 

Best place to send them is to me.

More next time!

Jonathan