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Planning for Long Term Care

While it certainly can be a difficult topic to broach, long term care and its cost is something that all Americans must consider. When we build comprehensive financial plans for our clients, planning for healthcare and the potential need of long term care are crucial apects of the planning process. 

Over 42% of those over 65 report signs of limited function. The overall possibility of requiring long term care at some point for those 65 & older is 68%. It is estimated that by 2050 the number of people in long term care facilities will double.  

The Cost of Long Term Care

Contrary to what so many people think, Medicare does not cover the costs of long term care. This means that we are solely responsible for paying what is often the most expensive period of our life.

The costs can vary greatly depending on your location and the level of care needed - making planning that much more difficult. Recent studies have shown that the average monthly cost of assisted living is $3,750 while a private room in a nursing home will cost an average of $8,121 per month.2  That is a daunting number, particularly when we see that cost inflation is nearly 5% per year. But rather than let it overwhelm us, let's see what steps we can take to proactively plan for affording long term care so that our retirement assets don't have to suffer.

The Long Term Care Stress Test 

The first step is see how the potential cost of long term care fits into your existing retirement plan.  The cost of care eats away not just at retirement income, but also the capital base that you've worked for years to cultivate. A long term care stress test can help us see to what degree the cost of care could affect your retirement savings.

From there we can see what steps we need to take.

1) Setting Savings Targets

2) Discovering if Long Term Care Insurance makes sense for you

3) Leveraging existing assets for Long Term Care

If you would like for us to help you plan for the potential cost of care and receive a complimentary Long Term Care & Retirement Stress Test, fill out the form below. We look forward to working with you. 

1. American Association for Long Term Care Insurance, 2018. (

2 Genworth Cost Study, 2017 (