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Tag: Long-term care

Understanding Long-Term Care

 

Addressing the potential threat of long-term care expenses may be one of the biggest financial challenges for individuals who are developing a retirement strategy.

 

The U.S. Department of Health and Human Services estimates that 69% of people over age 65 can expect to need extended care services at some point in their lives. So, understanding the various types of long-term care services – and what those services may cost – is critical as you consider your retirement approach.[i]

 

What Is Long-Term Care? Long-term care is not a single activity. It refers to a variety of medical and non-medical services needed by those who have a chronic illness or disability that is most commonly associated with aging.

 

Long-term care can include everything from assistance with activities of daily living – help dressing, bathing, using the bathroom, or even driving to the store – to more intensive therapeutic and medical care requiring the services of skilled medical personnel.

 

Long-term care may be provided at home, at a community center, in an assisted living facility, or in a skilled nursing home. And long-term care is not exclusively for the elderly; it is possible to need long-term care at any age.

 

How Much Does Long-Term Care Cost? Long-term care costs vary state by state and region by region. The national average for care in a skilled care facility (semi-private in a nursing home) is $85,775 a year. The national average for care in an assisted living center is $45,000 a year. Home health aides cost a median $18,200 per year, but that rate may increase when a licensed nurse is required.1

 

Individuals who would rather not burden their family and friends have two main options for covering the cost of long-term care: they can choose to self-insure or they can purchase long-term care insurance.

 

Many self-insure by default – simply because they haven’t made other arrangements. Those who self-insure may depend on personal savings and investments to fund any long-term care needs. The other approach is to consider purchasing long-term care insurance, which can cover all levels of care, from skilled care to custodial care to in-home assistance.

 

When it comes to addressing your long-term care needs, many look to select a strategy that may help them protect assets, preserve dignity, and maintain independence. If those concepts are important to you, consider your approach for long-term care.  To discuss long-term care with a CapSouth advisor, contact our office at 800.929.1001 or visit our website at www.capsouthwm.com to request a meeting.

 

To talk to a CapSouth advisor about a strategy for long-term care, please call 800.929.1001 or visit our website at www.capsouthwm.com

 

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable.  CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

 

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.fool.com/retirement/2018/09/02/5-long-term-care-stats-that-will-blow-you-away.aspx

Need Life Insurance in Retirement?

Why do you get life insurance? It may be because you understand that tragedy can strike in a moment. Or perhaps you may want to make sure your family is taken care of after you’re gone. Does one need life insurance in retirement?

Life insurance helps provide you and your family with peace of mind for your future needs.

Insurance payouts may cover mortgage, car payments, and other ongoing debts so that your family can sustain a comfortable standard of living.

Here are six reasons to consider for buying life insurance:[i]

  1. To pay funeral and burial costs
  2. To cover children’s ongoing expenses
  3. To replace lost income
  4. To pay off debts
  5. To buy a business partner’s share
  6. To pay taxes

Reexamining your insurance needs.

Is there a time in your life when you no longer need life insurance? For example, your children are grown, your debts are paid, you’re retired, your savings are adequate, and retirement income levels are sustainable.

How do you determine your life insurance needs at different stages in life?[ii]

If you’ve achieved your retirement goals and built robust savings, you may not need life insurance coverage, or you may want to reduce it. However, before you make changes, review your finances closely to see what options are best for you.

Examine pension and other retirement funds to make sure proper survivor designations are in place and sufficient benefits will be available. A minor income reduction, for example, can significantly hamper a survivor’s lifestyle and ability to keep pace with ongoing expenses.

You may need life insurance to cover peripheral financial expenses, such as estate taxes, retirement distribution fees, or charities. Owners of larger farms or businesses may need additional coverage to pay unanticipated taxes or other fees to avoid losing the properties.

Long-term care later in retirement may cost thousands of dollars per month. Life insurance may help offset or cover potential medical expenses or maintain care insurance payments.[iii]

You have several options that are worth exploring that may help you streamline your insurance needs.[ii]

If you would like to discuss your current financial needs or review your current policy, we’re happy to talk. Please contact us at 800.929.1001.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.moneycrashers.com/reasons-buy-life-insurance/

[ii] https://www.usatoday.com/story/money/columnist/powell/2018/05/02/how-determine-if-need-life-insurance-retirement/563375002/

[iii] https://longtermcare.acl.gov/costs-how-to-pay/costs-of-care.html

Important Topics for Older Parents to Discuss with Adult Children

Important Topics for Older Parents to Discuss with Adult Children

How do you talk to your adult children about your financial plans and future health-care needs? Both you and your children may view this type of discussion as uncomfortable, awkward, or even confusing. It can be difficult, but putting it off only makes matters more complicated later.

Having these types of financial and end-of-life discussions, ironically, instills a sense of confidence and comfort in everyone involved. Parents who talked with their adult children about their concerns about aging were pleased with the discussions: 95% reported experiencing peace of mind, compared to 63% of parents who didn’t discuss their concerns with their children.[I]

Here are some topics to help get you started.

Caregiving Wishes

 

Making preparations for health-care needs during later years in life is important.

Preparing for future health problems that may affect your independence is a good topic to discuss with your adult children. Most seniors—7 in 10—will require some form of long-term care as they age.[ii] Elderly people generally need some form of assistance with basic daily tasks, such as bathing and dressing. Some 90% of people over 65 prefer to stay at home as long as possible.[iii]

Here are some talking points:

  • Do you intend to stay in your home with a caregiver?
  • Do you prefer to move to a retirement community or nursing home?
  • Do you have long-term care coverage to help your caregiving costs?

End of Life Discussions

Despite the challenges, many families still haven’t taken the opportunity to talk about end-of-life issues. More than half of adult children say they haven’t discussed wills or their parents’ estates.[iv]

Here are some questions to begin the conversation:

  • Do you prefer hospice care, and if so, at a hospice facility or at home?
  • What do you intend to do with your estate?
  • How do you want your family to remember or celebrate your life?

Important Document Locations

It’s important to let your adult children know where you store important documents. Without knowing where documents are, your adult children will have a difficult time upholding your wishes without court interference.

Here are some questions:

  • Where do you keep your will?
  • What passwords do you have for protected accounts?
  • Where can your children find information on the power of attorney?
  • Click here to learn more about estate planning

Ultimately, you should address these and other topics with your adult children soon to help ensure they’re able to carry out your wishes. Your unique life and goals will determine what topics you need to address. Feel free to contact CapSouth Wealth Management at 800.929.1001 for more information. It’s our goal to help you make the most of your financial life.

Investment advisory services are offered through CapSouth Partners, Inc., dba CapSouth Wealth Management, an independent registered Investment Advisory firm. Information provided by sources deemed to be reliable. CapSouth does not guarantee the accuracy or completeness of the information.  This material has been prepared for planning purposes only and is not intended as specific tax or legal advice.  Tax and legal laws are often complex and frequently change.  Please consult your tax or legal advisor to discuss your specific situation before making any decisions that may have tax or legal consequences.

This article contains external links to third party content (content hosted on sites unaffiliated with CapSouth Partners). The policies and procedures governing these third-party sites may differ from those effective on the CapSouth company website, as outlined in these Disclaimers. As such, CapSouth makes no representations whatsoever regarding any third-party content/sites that may be accessible directly or indirectly from the CapSouth website. Linking to these third-party sites in no way implies an endorsement or affiliation of any kind between CapSouth and any third party, including legal authorization to use any trademark, trade name, logo, or copyrighted materials belonging to either entity.

[i] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Family-Finance-Study-Executive-Summary.pdf

[ii] https://www.phca.org/for-consumers/research-data/long-term-and-post-acute-care-trends-and-statistics

[iii] https://assets.aarp.org/rgcenter/ppi/liv-com/aging-in-place-2011-full.pdf

[iv] https://www.fidelity.com/bin-public/060_www_fidelity_com/documents/Family-Finance-Study-Executive-Summary.pdf

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