For most of us, retirement is a goal we hope will allow us to enjoy the fruits of previous sacrifices. While advance preparation clearly increases the likelihood that we can enjoy our “golden years,” there are many circumstances that dictate whether retirement is an opportunity or a burden.
Most of us would also like to leave a legacy to those who follow. We hope what remains at our passing will make our beneficiaries’ lives better. But again, many uncertainties can impact the estate we leave.
Those who need to pay attention to such things say that every day an average of 8,000 baby boomers will turn age 65, a rate which will continue for the next several years! This reality highlights another sobering issue that seniors must consider: the costs and consequences of long-term care.
According to government statistics, 70 percent of seniors will need some form of long-term care. The typical health care insurance plan will not pay these costs, nor will Medicare, Medicare supplement policies, or the Affordable Care Act.
With potential monthly costs of $10,000 or more, the effects of long-term care can be devastating on retirement and estate plans. How does a senior couple absorb the cost of assisted living or skilled nursing care for one spouse and provide for the other spouse to remain at home?
Your estate plan can no longer simply address what happens to your assets when you die. It must work in lockstep with your retirement plan and account for health issues, including long-term care.
Fortunately, creating a cohesive plan likely will not require a major change in your approach. But failure to account for these risks can have a crippling effect on your estate.
Fortunately, there are options, some of which did not exist even five years ago. Come and learn the options available to you!