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Presentation 5 oct 2016
The document discusses the realities and challenges of paying for long-term care. It notes that long-term care is expensive and can financially ruin families if not planned for. It provides statistics on common health conditions and average lengths of long-term care needed. It then outlines various options for paying for care such as long-term care insurance, Medicaid, reverse mortgages, annuities, and protecting versus spending down assets. The document stresses planning early to avoid being forced into difficult financial situations during a care crisis.
Presentation 5 oct 2016
- 1. Texas Longterm CareAcademy A Lou Talk - "Many ways to pay for LTC" A Practical Realist and Advocate Caretaker in Chief and Consultant
- 2. The Purpose ofLouTalks To Help you early enough to: Seek to understand Eldercare Quicksand risk Discuss the long term future of your Family Explore actions to help preserve Family Money Seek Comfort and Dignity as you age
- 4. The Eldercare Predicamentis a Reality Show No One Wants to Watch or Face Complicated - Many moving parts and details Troubling - Rules and regulations hard to navigate Expensive - Costs can ruin the Future of your Family Now What ? Parents Daughter
- 7. Home Care- AssistedLiving - Nursing Home Hospitals and Doctors What and Where of Eldercare They are about Trying to Cure and Stabilize with "Medically Necessary" Treatment Medicare Pays for it This is Care without "Medical Necessity" It is Custodial Care often progressing to greater need for assistance with Daily Living needs You or Welfare Pay for it unless you plan Financial Risk of CARE A Potential Disaster for your Family
- 8. What are theRISKS and Reality People over 65 will have: Arthritis 50 % -Heart Disease 30 % Top 5 reasons for Care : Stroke, Dementias, Arthritis, Injury, Vascular How long will care be needed ? Average is 2.5 years - 58% need longer 42% need 1 year or less (each time). Progressive Alzheimers average is 6 years Why are stats confused?
- 9. Who Pays ? NotMedicare- Not Disability You Pay unless you Plan Meals on wheels, rides Spend down, self fund State, Federal program
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- 15. The Reality ofPaying for Care at Crisis Time Your Resources, Family and Friends CDs - Penalty for unscheduled withdrawal Reverse Mortgage - Expensive, spouse to live there Bridge Loan- 12% until your house sells... or not Sell Your House - Millennials don't want or afford it Life Insurance - use cash value or sell it at a loss Reality ... Crisis means - Desperate The big $$ losers will be your Heirs Investment Accounts - Down market selling
- 16. Welfare Medicaid -The Five year Reality Plan or be forced to Qualify at Crisis time Different ways for Spouse or No Spouse Spouse can live in house and retain $115K plus an Annuity (SPIA)to provide monthly expenses. If No Spouse, forced to spend down assets to Qualify Your savings for Retirement and other Assets will have to be used first before you can Qualify You need to think about Protection from spending not Growth of assets Without a Plan, this snake will bite you bad ! ? Where Assit, NH
- 17. The Reality ofPaying for Care Traditional LTC and Short Term Care LTC - health exam, $2000 per year at age 60, will spend $50K by age 85 $5000 benefit per month for 3 years, 90 day wait STC- health questions, $1000 per year at age 60 Cash for up to 1 year for nurse visits Texas LTC Partnership - same as traditional with protection from Medicaid spend down (8 Companies in TX) The Thud Factor - after paying for years you "thud" the floor and die with a heart attack- Your paid in money is gone ! Reality
- 18. Asset Based LongtermCare Annuity and Life Ins Strategies Reposition some or all of your IRA or other assets Use IRS1035 asset transfer rule to save taxes when spending for LTC expenses Remember ... these are guaranteed contracts that do what they say they will Several "A" rated companies offer these plans Many offer 3 to 5 times multipliers to provide more LTC coverage
- 20. The Time WillNever Come Until it Does Consider : Your ability to understand complex matters will decline rapidly after age 65 Once diagnosed with a chronic condition - coverage is hard to find and costs soar When will the 5 year Medicaid Look Back apply to you ? Have the conversation with Family and decide when and with whom to shield your assets Either protect your money with a Plan or shield it to qualify for Medicaid
- 21. This is whatit will feel like Without a Planning Path
- 22. Why is thatLady pulling her hair out ? C. A. R. E.Can't Always Rely on Expectations When shopping for care facilities consult dads.com the State authority on types and ratings for care. Payingforseniorcare.com Avoid National TV ad sites !!
- 23. Texas Longterm careAcademy Plans and Possibilities Twittter and Facebook are available now web site is being developed Use txlongtermcare for access Non-profit status and advocacy is planned No Charge Consultation to point you right Thanks, Lou