Weekly financial tip with Steve Sexton: Long Term Care
Planning ahead for long term care can be overwhelming, but it doesn’t have to be. Having a solid long term care plan in place is important because your health and wellbeing will affect your friends and family.
Did you know that AARP estimates that 50-65% of people over 65 will need long term care some time in their lifetime? They say that the average person requires $6,000 per month or $70,000 per year to take care of long term care needs. With such a high price tag, it’s important to approach the planning process correctly. Instead of just asking companies for quotes and picking what you think sounds the best, Steve Sexton from the Sexton Advisory Group suggests that you ask the right questions, go through a thorough review process, and allocate funds correctly to pay for your long term care plan.
In this week’s financial tip, Steve explains what questions to ask so you can plan more effectively.
- What is my potential need for care now and in the future?
- What is my ability to pay for that care?
- Can I get government assistance?
- Can I get veterans benefits?
- What assets do I have at risk? And what assets will be at risk with the Medical spend down?
You should also realize that long term care is not the only way to go. Asset based insurance programs are available to cover expenses. You can also utilize legal remedies through trusts and wills.
To determine what long term care options are best for you, you should do a thorough review of your finances. You may find that you can redirect your current assets to pay for your long term care needs in the future. Often times money falls through the cracks in terms of taxes. Thoroughly reviewing your tax returns to save money can help you avoid the “Tax Time Bomb.” To learn more about saving money on taxes and avoiding the tax time bomb, click the links above to see Steve’s other financial tips.
Photo from Ed Yourdon via Flickr
The Entertainer & Lifestyles Magazine has partnered with a top local financial expert to provide ongoing financial advisories. As part of the Entertainer’s continued commitment to San Diego’s financial wellbeing, Steve Sexton will continue to contribute and provide financial advice to our readers. Learn more about Steve Sexton on the Entertainer or tune in next week for another tip.