Episode #2: Beware Of Long-Term Care

The Principle:

Long-term care will play a crucial role in your retirement. While most of us assume Medicare will cover our healthcare costs, that’s not necessarily the case. Learn how to incorporate long-term care, or as we’ll call it LTC, planning into your comprehensive financial plan.

Honest Takes:

[00:22] – Don’t Assume Medicare Will Meet Your Healthcare Needs.

  • Medicare is a valuable resource for supplementing your healthcare needs. However, it will not meet all of your needs, especially if you need LTC.

[00:36] – What Is Long-Term Care, Anyway?

  • We often refer to LTC as extended-care needs. That includes nursing home facilities, assisted living homes, and in-home care. Medicare won’t cover all of those costs.

[1:00] – What Can We Do To Cover Our Long-Term Care Needs?

  • Your financial plan should incorporate your LTC needs. Nursing homes are expensive. We’re not saying you need to purchase long-term care insurance, but you do need to make sure your assets will cover these expenses.
  • LTC insurance is one solution for covering healthcare needs. However, your insurance premiums aren’t guaranteed to stay the same. It could become increasingly more expensive to purchase insurance you may or may not need.

[6:02] – How Are You Paying For Your Insurance?

  • If you’re no longer working, your IRA, 401k, and other brokerage accounts are most likely being used to cover your LTC and LTC insurance expenses. You’re withdrawing money that could be otherwise accumulating interest and other gains in the market. Furthermore, those investments are no longer being used to pay the bills. You’re left without consistent, monthly income.

Today’s Truth:

Other Virtues:

The host: Brian Bowen – Contact

Brian Bowen of Integrity Financial Planning discusses long-term care and why you need to include it as part of your retirement plan.

Subscribe To The “Retire With Integrity” Podcast: