Three Words with Four Letters That No One Dares to Utter
“It is a good thing that now we live longer and the bad news is that now we live longer,” according to Michael Aun, author, entrepreneur and motivational speaker recognized by the state. You did everything right. You lived within your means and saved diligently. Through all the highs and lows of the market, you have maintained a very diversified portfolio, have maintained the observed cost of investment and used different strategies to lower taxes on your profits. For this reason, you have saved up a good amount of funds to finance your retirement and provide a sound legacy for your kids.
Unfortunately, you could lose everything if you do not take the right steps to protect your assets. I am not speaking about the possibility of continuous volatility of the market or recession that generally dominates the news and the opinion of everyone. I’m talking about the three four-letter words that almost nobody dares to comment on. Long-term care that includes the cost of a stay in nursing home, assisted living or home nursing.
Why should it be a problem?
According to the Department of Health and Welfare of the United States, 70% of people over 65 need home care at some time in their lives. Of those who need care, more than 75% of them need more than a year. The current life expectancy after 65 years is 17.9 years, which means that their chances of obtaining help from chronic diseases are greater than 10 or 20 years ago.The cost of care is not cheap. The average cost of care according to the American Long Term Insurance Association is US $ 73,000 per year. The cost of home care can be significantly lower or higher, depending on what services are needed and how often the patient needs to be cared for.
The cost of care increased an average of 6% per year a few years ago. At that rate, the average cost of care in twelve years will be double that of today, which would be US $ 146 thousand per year. Assuming that the cost of care continues to increase in the same proportion for another 12 years, in 24 years, the cost of care will be US $ 292,000 per year.Medicare covers only the cost of the first 20 days of qualified care that follows at least three days after hospitalization. Medicare and its 2020 Medicare Supplement Plans can pay for another 80 days of treatment, but only if a health professional says that you need proper care and again after a three-day inpatient stay so sign up https://www.medicaresupplementplans2020.com/
- So, what should or can he do now?
- Would you like your child or spouse to take care of you? If so, how will it affect their lives?
- What you are going to do about it depends on what you want to do if you need some kind of long-term care.
- What assets would be liquidated?
- If you prefer to have professional care, how would you pay for your services?
- How much more taxes would have to be paid?You will have to answer all these questions before an action plan can be drawn up, so that you are not forced to make difficult decisions under duress.