How do you afford long-term care? Strategies for funding LTC needs

Join us for the final installment of our series on long-term care! In this video, we explore various funding options for long-term care needs. Before diving in, be sure to check out our previous videos for essential information on the subject.

We address hypothetical client situations, such as single individuals or widows/widowers who wish to age at home and may require extensive care. While some may face a high risk, statistically, only about 15% of those turning 65 will need two or more years of nursing home care.

One prominent funding option discussed is long-term care insurance. We delve into the pros and cons, highlighting factors like insurability, benefit periods, daily benefit amounts, and elimination periods. It's crucial to carefully read and compare policy details to make informed decisions.

Another strategy is self-funding, utilizing personal savings, Social Security, and retirement resources. Annuities with long-term care riders are also explored, providing additional income if long-term care is needed.

Tax implications are considered, as some long-term care expenses may be tax-deductible. Additionally, the video touches on the topic of Medicaid trusts, though it's essential to consult legal and tax professionals for personalized advice.

As always, we're not attorneys or CPAs, and the information provided is for informational purposes. For personalized guidance, consult with your legal and tax advisors. We hope this video helps you navigate long-term care funding options effectively. Have a great week, and we look forward to seeing you next time!

This content was written by Spencer S. Hall CFP®, RLP ®, CKA ®, MBA, MDiv

Spencer is a Certified Financial Planner™ with 14 years in the field of retirement and financial planning. As a second-generation financial advisor at Retirement Planning Services, Spencer brings a wealth of experience and passion to help clients align their wealth with their core values.

Advisory services offered through Retirement Planning Services, LLC.

The information in this article is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.