Posts Tagged ‘Healthcare’

We’re pleased to be included in the Carnival of Personal Finance #267 at Beating Broke this week. Check it out!

This is not financial, legal or tax advice. Our goal is your financial success, but all investments involve risk including the possible loss of principal and results will vary. If you are interested in the Snider Investment Method, please read the Owner's Manual for a complete discussion of risks and benefits. More information can be found on our website or by calling 1-888-6SNIDER. Past performance is not indicative of future results.

Reading: Carnival of Personal Finance

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An article, published on the New York Times blog on January 1, 2010, titled Overlooking the Frail Years, highlights an interesting psychological phenomenon that may be causing you to put your future financial security at risk, as well as that of your spouse and family members.

The following vignette, from the story, outlines the issue:

“I have something I want to talk to you about,” Jonelle Patrick’s father said partway through a visit to her home in San Francisco. He put a box on the kitchen table.

Ms. Patrick wasn’t completely startled when he took out a manila envelope containing his updated will, trust documents, lists of lawyers and accountants — “lots of stuff having to do with disposition of his property.” Though her father was in good health at 75, she knew he had given some thought to his estate.

“Then he put all that aside and said, ‘Now here’s what I’d like for my memorial service,’” Ms. Patrick recalled. Out came photos and memorabilia to be displayed, a list of hymns to be sung, his written thoughts about a reception and a menu. He had assembled a sample obituary and the addresses of professional organizations and alumni publications that should receive it — “a level of detail I was really surprised by.” She assured him that of course she would implement his wishes.

It was only later Ms. Patrick realized that her father hadn’t said anything much about the time between his current vitality and his death. She didn’t know if he had ever signed a health care proxy or a power of attorney, documents that would allow someone to make decisions and take actions on his behalf if he became incapacitated. He had turned aside her questions about whether he would want to sell his house and move into assisted living if he were unable to care for himself at home.

“He can think, ‘Someday I’ll be dead,’” his daughter mused after their conversation. “But he can’t think, ‘Someday, I’ll be sick.’”

The interesting psychological phenomenon is a kind of binary thinking – either I am healthy or I am dead. But we know, for the majority of people, including you, that is not likely to be the case.

What is happening, according to healthcare policy experts, is that medical advances are keeping us alive longer but are not pushing back the onset of disease and the effects of aging. As a result, more and more of us will require some form of long-term care as we get older. And that long-term care is expensive.

In fact, researchers predict that if you make it to age 65, there is a 69% chance you will need some sort of long term care before you die.1 And here is another fact I bet will surprise you. According to an article written for Georgetown University Long-Term Care Financing Project,
nearly 40 percent of those who need long-term care are age 40 or younger.2

In my own experience, in over a decade of working with clients, I find very few people understand the need for long-term care, including what all it encompasses, how expensive it is, why and how to plan for it and how to fund it. Experts agree.

Many of you will simply deny that you will need long-term care. Others of you probably believe, incorrectly, that Social Security, Medicare, or your existing health insurance will cover the costs. Unless you are the exception in America today, you may not see long-term care as something one needs to plan for in advance in the same way you plan for retirement. But it is.

How to fund healthcare, including especially long-term care, is one of the most important financial planning  considerations. Failure to do so, in advance, can wipe out years of hard work in a heartbeat. And while, if you ignore long-term care, you will most certainly be affected by the consequences, it is truly those around you who will be affected most.

At the end of the day, making provisions, in advance, for adequately funding your healthcare costs, isn’t really about you. By hook or by crook, you will probably get at least a basic level of care. You may not like it, but you will get it. Really, advance planning is for everyone else you love and everyone who loves you.

  • Advance planning for future care will allow for more options and more independence as to how and when care is delivered.
  • Advance planning protects the financial future of everyone in your family, especially your spouse and beneficiaries.
  • Advance planning removes or at least reduces the financial and emotional burden on family members who, without it, may be forced to make no-win decisions about your care.
  • Advance planning will go a long way toward maintaining quality of life, both for you and those who love you, in the event you need long term care.

I am determined that my clients will not be among those who wake up one day and find out that failure to plan for healthcare has wiped out all the years of scrimping, saving, planning and investing to build a reasonable nest-egg.

I do not want my clients having to choose between having enough money to live and providing the best possible care for their sick or aging spouse.

I will not see my clients forced to quit their job and try to care for a loved one because they do not have the financial resources to get help.

I have seen first hand, with my grandmothers, the financial devastation that can be wrought by a long-term care need such as Alzheimer’s, Parkinson’s, MS, a stroke, etc.

As a result, I have created a half-day course, as part of the KiM-B-A Program, called Funding Healthcare: The Retirement X Factor. The cost of the course is $247, a mere pittance compared to the possible benefits – not to mention the money it will save you by avoiding costly mistakes.

The course is a half-day and the next scheduled date is February 5, 2010, a Friday afternoon so it is easy to take off from work if you need to. At the end of the course, you will know how to:

  • Make sense of Medicare, Medigap, Medicare Advantage and long-term care policies
  • Determine what coverage you need and what you don’t
  • Avoid some of the horror stories you have heard about when buying retiree healthcare insurance
  • Plus, you will have a list of additional resources should you need additional information, an insurance review or to purchase a policy.

Register today for Funding Healthcare: The Retirement X Factor.

The next class is February 5, 2010. At the moment, it is only offered as a live course in Dallas. However, I would consider doing a live, online version if there is enough interest.

If you absolutely, positively cannot take the live version for logistical reasons, but are seriously interested in an online version of the course (meaning you would commit to signing up if I offered it on a date you could make), then please let me know that by going to the course overview page and clicking the orange “I Am Interested, But …” button. You will find it in the middle of the page, just under the registration button.

SOURCES:

Paula Span, Overlooking the Frail Years, The New Old Age Blog, NYTimes.com http://bit.ly/4nUhSw

Peter Kemper et al, Long-Term Care over the Uncertain Future: What Can Current Retirees Expect? Inquiry, Volume 42, Number 4, Winter 2005/2006, pp. 335-350

“Faces of Long-Term Care: A Look in the Mirror,” Robert B. Friedland, Long-Term Care Financing Project, Georgetown University, July 2007.

This is not financial, legal or tax advice. Our goal is your financial success, but all investments involve risk including the possible loss of principal and results will vary. If you are interested in the Snider Investment Method, please read the Owner's Manual for a complete discussion of risks and benefits. More information can be found on our website or by calling 1-888-6SNIDER. Past performance is not indicative of future results.

Reading: Overlooking the Frail Years

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Kim talks with long-term care expert, Bobby Whisnand, of National Long Term Care

MP3 Download: Hi (~23MB ) | Lo (~6MB )

Length: approximately 25 minutes

0:01 What is Long-term care?
2:07 LTC insurance vs. health or disability
3:20 Does Medicare cover any LTC?
5:00 Kim talks about what LTC insurance as to do with financial success
5:43 Who needs long-term care insurance
7:29 Misconceptions about cost and benefits of LTC
13:58 Who should I buy LTC insurance from?
15:41 Should you buy LTC through work?
20:25 Does your insurance agent go this far for you?
22:18 Bobby’s contact information
23:41 What does LTC insurance cost?

Contact information for Bobby Whisnand:

National Long Term Care
6601 West Plano Pkwy, #1216
Plano, TX 75093

(214) 926-2639
bwhisnand1@gmail.com

http://www.center4ltc.com

This is not financial, legal or tax advice. Our goal is your financial success, but all investments involve risk including the possible loss of principal and results will vary. If you are interested in the Snider Investment Method, please read the Owner's Manual for a complete discussion of risks and benefits. More information can be found on our website or by calling 1-888-6SNIDER. Past performance is not indicative of future results.

Reading: Audio: Long Term Care Insurance with Bobby Whisnand

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