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Retirement Dilemma: Dealing with Long-Term Care Costs
As our last article discussed,
potential retirees and current retirees are increasingly concerned about the
cost of long-term care and dealing with the cost.
Recall that we discussed three options:
Option One: To not worry about the potential cost of long-term
care or simply say, "It won't happen to me."
But remember, facts show nearly one of two seniors will need some form of
care before death.
Option Two: Divest one's assets and trust federal and
state assistance under Medicaid programs.
Although our clients are not willing to do so before the actual event occurs,
option two is a possibility. Increasingly, when we suggest this as an option in
the early stages of retirement, no one seems interested. But, when potential
long-term care is clearly evident, more folks are interested in how Medicaid
A few thoughts about Medicaid planning might be appropriate:
- A personal residence is an exempt asset when applying for Medicaid. Some
states apply a value of $525,000 to the maximum that would be exempt and
still be eligible for assistance.
- In many states a married couple can hold one-half of their other assets up
to approximately $113,000 and still be eligible for Medicaid (some states don't
apply the "one-half" and just use $113.00).
- There are other exemptions and caveats which are best to discuss with an
attorney who specializes in elder care.
Federal Retirement Seminars
Since 1980, Personal Benefit Financial (PBF) has conducted more than 750
federal government retirement seminars in nearly all 50 states.
PBF seminars are taught by qualified instructors with:
- combined federal government seminar experience of more than 52 years
- experience in almost every government agency
PBF Seminars not only cover the most important information on federal
retirement benefits -- such as CSRS/FERS, Social Security and the Thrift Savings
Plan -- but more importantly they provide:
- clear instruction of what to do, and what not to do
- risk protection plans to protect retirement assets
To learn more about holding a retirement seminar
at your office,
Option Three: Insure to protect when long-term care is
Many of our clients are reluctant to do so because of the monthly cost and
because of the possibility of not needing the coverage after paying premiums for
We'd suggest an insurance possibility for the following reasons:
- A few insurers' premium is a lump sum payment up front. The insurer requires
a life insurance policy. If the insured requires some form of care, the policy
pays a monthly benefit of a certain percentage of the face value of the policy
for that care.
- If the insured doesn't want to continue protection, the contract allows the
individual to have his or her lump sum returned; and after a few years, interest
is added to the lump sum.
- Therefore, if long-term care is needed, the plan pays towards that cost. If
the insured dies, the contract pays as life insurance. If the individual quits
the plan, the premium is returned with interest in later years.
Option three seems to cover most objections our clients have to acquiring
long-term care protection.
Please note that individual situations can vary. Therefore, the information
presented here should only be relied upon when coordinated with individual
About the Author
L. Ronald Blair is a Certified Financial Planner, Chartered Property Casualty
Underwriter, Accredited Asset Management Specialist, Certified Senior Advisor,
Registered Financial Consultant and owner of Personal Benefit
Seminars located at 870 Kipling St #A Lakewood, CO 80215 -
Tel: 303-238-5123. He is also a registered representative with Royal
Alliance Associates Inc., member FINRA/SIPC.
Sharla Rountree, CFP® and L. Ron Blair, CFP®,
AAMS,offer Securities and Advisory Services through Royal Alliance Associates,
Inc., Member FINRA/SIPC . In this regard, this communication is strictly
intended for individuals residing in the states of AK, AR, AZ, CA, CO, CT, FL,
GA, HI, IA, ID, IL, IN, KS, MD, MN, MO, NC, NH, NM, NV, NY, OH, OK, OR, PA, SD,
TX, UT, VA, VT, WA, WY. No offers may be made or accepted from any resident
outside the specific state(s) referenced.