Balancing Comfort With Long-Term Care Costs

“I’ve just dealt with my aging parents and I’m afraid of being a burden on my children.”

How can I cover the high costs of future care while still living comfortably in retirement?

Mature Couple Enjoying Vacation

JoAnn & Gabriel

Ages: 60 & 63

Professions: Lead Developer & School Administrator

JoAnn and Gabriel have been primary caregivers for both sets of elderly parents so they got a front-row seat to the expense and challenges of arranging care.

They’re eager to retire but are worried their savings won’t be enough to fund their lifestyle as well as the cost of long-term care if and when they need it.

The Issues

They’re worried about how much long-term care will cost in the future.

After going through the process with their parents, Gabriel and JoAnn learned that in-home care and assisted living already cost nearly $100k a year *. They’re worried about how much care they might need in the future and what it could cost.

They’re worried that they will run out of money if both of them need care.

There are three major risks in retirement income planning: market volatility, inflation, and longevity risk (the risk of outliving your savings). Having navigated eldercare with their parents, they’re acutely aware that many of the most costly services aren’t covered by Medicare.

They don’t want to burden their children with their care.

As Gabriel puts it: “We were shocked by how much our parents’ care cost and how little Medicare covered. We ended up having to cover expenses ourselves to keep our parents in a comfortable facility. We don’t ever want to put our children through that.”

They don’t want to burden their children with their care.

Though they’ve worked hard and saved diligently, the fear of unknown healthcare expenses is holding them back from retiring. They aren’t sure what to do next or how to give themselves permission to retire.

That’s where we stepped in.

* Source: https://www.genworth.com/aging-and-you/finances/cost-of-care.html/

The Plan

Create a retirement growth and income plan that accounts for future care while funding a comfortable lifestyle.

We took a look at their goals, family history, and likely expenses and created a simple asset-based long-term care strategy that delivers lifetime benefits for any needed long-term care while also providing a potential inheritance for their kids if JoAnn and Gabriel don’t end up needing care.

Longevity is a major risk factor in retirement planning, which is why we created the Lifetime Wealth BlueprintSM process, a simple one-page income blueprint that’s easy to understand and is designed to create reliable income and mitigate as much risk as possible in retirement—including longevity.

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The Results

JoAnn and Gabriel have made their retirement transition happen and are happily traveling in their RV and planning vacations with their grown kids.

Gabriel and JoAnn check in with Michael a few times a year (often from the road) when they have questions or there are decisions to be made about their investments.

They love having the confidence of a reliable “paycheck” and knowing that they’ve taken care of their future care needs.

Would you like to learn more about how the Lifetime Wealth BlueprintSM process creates your long-term care strategy?

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Note: the above case study is hypothetical and does not involve an actual client. No portion of the content should be construed by a client or prospective client as a guarantee that they will experience the same or certain level of results or satisfaction if Ginsberg Financial Strategies is engaged to provide investment advisory services.