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Money Matters for Seniors
A Lasting Legacy
Why Planning for Long-Term Care is Necessary in
Today’s World
By Robert Valentine,
Certified Senior Advisor
Feb. 11, 2006 - James and Irene Norris spent their
lives surviving. The two owned and operated a small business together
for over 60 years, surviving the stock market crash, the Great
Depression, seventeen U.S. Presidencies, and two World-Wars. All while
raising two sons. But there was one thing they didn’t plan on: long-term
care.
Once they closed their small business and became
too frail to care for each other, they became trapped in an unfortunate
financial situation that is becoming all too common today.
After several
medical problems, they were forced to choose some sort of custodial care
and they moved into a nursing home. Even though they had savings, it
quickly disappeared when faced with the monthly nursing home costs.
Medicare offered little support, because it does not cover stays in
nursing homes for extended periods of time.
The bills continued to come and they soon realized
they no longer had adequate financial resources to survive. They reached
a turning-point and, after working their whole lives, they were forced
to make the most painful decision of their lives.
In order to qualify
for Medicaid, they would not be able to hold onto all of their
resources. They had to sell everything they worked so hard to earn, in
order to receive Medicaid. Their prized possessions that had been so
carefully collected through the years were gone in an instant, sold to
pay the medical bills that had piled up.
Part of the reason they had to sell was because of
Medicaid requirements, but much of their selling was due to a lack of
planning. The Norris family had never consulted a financial planner or
worried about saving for retirement. Had they even spent a small amount
of time earlier in life with a financial planner, they would have
probably learned a few techniques which would have allowed them to hold
on to more assets and still legally qualify for Medicaid.
Once on Medicaid, they were limited in their
options. They were forced to choose only the care that Medicaid would
cover, rather than what would truly make them comfortable in their
finals years. Finally, when they passed away, the family was left with
thousands of dollars worth of debt from medical expenses and funeral
arrangements.
This lack of preparation is common. It happens
every day to hundreds of middle and upper-income families across the
United States, and it can easily be prevented with some basic planning.
Rather than watch your life’s work slip away because of costly medical
expenses, with just a little planning, you’ll you be able to leave a
legacy behind that will make your family proud and secure. Rather than
seeing your memories sold, you can hold on to the things you worked so
hard to attain.
Long-term care planning doesn’t mean the end of
your livelihood. It means taking a small amount of time to decide what
options you and your family will have in the future. It means making
sure you have something left to pass on to the next generation.
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Related News Story |
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Long-Term Crisis
Only 1 in 4 U.S. Adults Think They
Can Pay for Long-Term Care
41% Confident they do not have
enough money, 33% Unsure
Feb. 1, 2006 - Only a quarter (26%) of U.S. adults
think they have or will have saved enough money to finance their own
potential long-term care needs as they age. Fully 41 percent do not
think they will have enough money to cover their expenses as they age
and 33 percent are not sure. These findings are in a new Wall Street
Journal Online/Harris Interactive Personal Finance Poll.
Read more...
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When is long-term care needed?
Long-term care is generally something to consider
when someone can no longer perform basic functions themselves.
Generally, it means they need a medical professional to assist them with
various tasks. This can be as simple as getting out of a chair or as
complex as cooking a meal or bathing.
Both mental and physical ailments
can bring about a need for long-term care including strokes and car
accidents. Alzheimer’s disease is just one of the many mental conditions
that requires extensive long-term care. According to the Center for
Disease Control, 14.2% of all nursing home residents suffer from
Alzheimer’s disease. This can be extremely costly and can destroy your
financial security quicker than you think.
What long-term care options will I have?
Most people automatically think of nursing homes as
the only long-term care options. While it is true that nursing homes
account for a large percentage of long-term care, it’s certainly not the
only option available and depending on your ability to perform tasks you
may have a wide-range of options to choose from if you plan ahead.
Insurance that helps cover costs of nursing homes, assisted living
facilities and even in home health care are all options that can be
considered.
What’s the next step?
When deciding what type of long-term care planning
you should do, it’s always best to consult with your closest family
members. Once you have decided to pursue long-term care planning, there
are various options available to you through the help of a trusted
financial advisor.
With just a small amount of financial planning, you
may be able to spend your final years in comfort and stability, without
all the added financial stress and anxiety. Your family members will be
able to spend time around you sharing their love and support, instead of
dealing with debt and foreclosure. You will be filled with pride knowing
that all you worked for is still intact. Just a small amount of
long-term care planning could ensure that the dreams you achieved in
life don’t disappear overnight.
And you may find that you are able to leave this
world a little bit better than you found it.
Robert Valentine is a Certified Senior Advisor in
Huntington Beach, CA. He can be reached at (877) 732-2637.
About author
This article was submitted by Robert
Valentine of Financial and Retirement Management. Robert (CA Insurance
Lic #0C23496) is a Registered Representative of and offers securities
through Securities America, Inc., a Registered Broker/Dealer, Member
NASD/SIPC. Advisory services offered through Financial and Retirement
Management, a Registered Investment Advisory firm. Robert is a Certified
Senior Advisor in Huntington Beach, CA. Several of his articles on
financial planning matters that concern investors have been published by
SeniorJournal.com. Robert
can be reached at (877) 732-2637.
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