Retire With Style

Episode 125: The Importance of Incorporating Long-Term Care Into Financial Planning with Jason Rizkallah

In this conversation, Alex, Wade, and Jason discuss the importance of incorporating long-term care into financial planning. They share a real-life example of a client who unexpectedly needed long-term care earlier than anticipated and how having a long-term care policy helped preserve their assets. They also discuss the different types of long-term care insurance policies, such as hybrid policies, and the factors to consider when deciding whether to self-insure or purchase insurance. The conversation highlights the need to stress test financial plans for long-term care events and the value of care coordinator benefits in insurance policies. In this conversation, Jason Rizkallah discusses the process of obtaining long-term care insurance. He explains that the decision between insurance and self-insurance varies and is often influenced by factors such as cost, eligibility, and pre-existing conditions. Rizkallah also outlines the steps involved in signing up for a long-term care policy, including determining coverage amounts, obtaining quotes from providers, and going through the underwriting process. He emphasizes the importance of working with a knowledgeable long-term care specialist to navigate the complexities of the insurance market. The conversation concludes with a discussion on the need for early planning and the availability of options for long-term care coverage.
Takeaways
Incorporating long-term care into financial planning is crucial due to the high probability and cost of long-term care events.
Stress testing financial plans for long-term care events helps clients understand the potential impact on their financial situation.
Hybrid policies, which combine life insurance and long-term care coverage, can provide both a death benefit and long-term care benefits.
The cost of long-term care insurance should be compared to the potential out-of-pocket expenses to determine the value of the coverage.
Care coordinator benefits in insurance policies can be valuable for individuals who may have difficulty finding appropriate care on their own. The decision between long-term care insurance and self-insurance depends on factors such as cost, eligibility, and pre-existing conditions.
The process of obtaining long-term care insurance involves determining coverage amounts, obtaining quotes from providers, and going through the underwriting process.
Working with a knowledgeable long-term care specialist can help navigate the complexities of the insurance market and increase the chances of approval.
Early planning is crucial for long-term care, as the probability of needing care increases with age.
There are options available for long-term care coverage, including hybrid policies that offer flexibility and known benefits.
Chapters
00:00 Introduction and Guest Introduction07:26 Benefits of Hybrid Policies23:02 Factors to Consider in Long-Term Care Planning32:16 Options for Long-Term Care Coverage
 
Links
We're hosting another YouTube LIVE Q&A episode for RWS! Attend live on the Retire With Style YouTube channel on 5/13 at 1:00 PM ET. Can't make it live? Click here to submit your questions: https://www.surveymonkey.com/r/7JMMPRM
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
 

Episode 124: Insights into Continuing Care Retirement Communities with Rob Cordeau

In this episode, Wade Pfau and Alex Murguia are joined by Rob Cordeau to discuss Continuing Care Retirement Communities (CCRCs). They provide an overview of what CCRCs are and how they relate to long-term care planning. They also explore how CCRCs can be an alternative to long-term care insurance and the different financing models for CCRCs. The conversation covers topics such as the large upfront costs of CCRCs, the benefits of living in a CCRC, and the options for refundable entrance fees. Rob Cordeau provides insights into continuing care retirement communities (CCRCs). He clarifies that purchasing a CCRC is not a real estate purchase but rather a contract to live in the community throughout one's life. The entrance fee varies based on the size and features of the apartment, and there are different types of contracts, including non-refundable and refundable options. Rob also discusses the financial aspects of CCRCs, such as the relationship between entrance fees and ongoing cash flow, the potential tax deductibility of entrance fees, and the importance of financial due diligence when choosing a CCRC.
Takeaways
CCRCs are retirement communities that offer various levels of care on one campus, including independent living, assisted living, and skilled nursing care.
CCRCs can be an alternative to long-term care insurance, especially for those who want to downsize and plan for their long-term care needs.
There are different financing models for CCRCs, including large upfront costs with lower ongoing monthly costs or lower upfront costs with higher ongoing monthly costs.
Some CCRCs offer refundable entrance fees, where a portion of the fee is returned to the resident or their heirs upon moving out or passing away.
CCRCs are not real estate purchases but contracts to live in a community throughout one's life.
The entrance fee varies based on the size and features of the apartment.
CCRCs offer different types of contracts, including non-refundable and refundable options.
Financial planning is crucial when considering a CCRC, including modeling the affordability of entrance fees and monthly service fees.
Some entrance fees may be tax deductible, depending on the contract.
Due diligence is essential to assess the financial stability and reputation of a CCRC.
CCRCs may not be suitable for individuals who prefer independent living in their own homes.
Buyer's remorse is rare among individuals who have thoroughly considered and chosen a CCRC.
Chapters
1. Introduction and Overview of CCRCs2. Exploring Different Financing Models for CCRCs3. Understanding Refundable Entrance Fees in CCRCs
4. Understanding the Dynamics of CCRCs5. Financial Underwriting and Considerations for CCRCs6. Different Types of Contracts Offered by CCRCs7. Financial Planning for CCRCs8. CCRCs vs. Independent Living: Choosing the Right Option
 
Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean’s free eBook, “Is a Roth Conversion Right For You?”
 

Episode 123: The Importance of Long-Term Care Planning in Retirement with Neal Gordon

In this conversation, Alex, Wade, and Neal discuss the importance of long-term care planning in retirement. They highlight the emotional aspect of planning for long-term care and the challenges of getting people to think about and prepare for it. They also discuss the demographic changes that will impact long-term care, such as the decreasing ratio of family members available to provide care and the potential shortage of caregivers in the future. The conversation touches on the different types of long-term care insurance policies and the need for open and meaningful discussions about healthcare and planning for the future. Neal shares examples of clients who have had personal experiences with long-term care and emphasizes the need for estate planning and power of attorney documents. The conversation then transitions to a discussion about long-term care insurance, with Neal explaining the challenges of traditional policies and the availability of guaranteed policies with reputable insurance companies. These policies address the issues of premium hikes and the 'use it or lose it' nature of traditional policies. The conversation explores different types of hybrid policies, including those built on a whole life or universal life chassis. The benefits of these policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer. The decision-making process for choosing a policy involves considering the individual's needs, net worth, and risk tolerance. Listen now to learn more!
 
Takeaways
Long-term care planning is a crucial aspect of retirement planning.
Planning for long-term care involves emotional considerations and difficult discussions.
Demographic changes, such as a decreasing ratio of family caregivers and potential caregiver shortages, will impact long-term care.
There are different types of long-term care insurance policies to consider.
Open and meaningful discussions about healthcare and planning for the future are essential.
Estate planning and power of attorney documents are essential for ensuring that clients' wishes are carried out and that their loved ones are not burdened with difficult decisions.
Traditional long-term care insurance policies have had challenges in the past, but there are now guaranteed policies available from reputable insurance companies.
Inflation riders on long-term care insurance policies are recommended to ensure coverage against future costs.
Hybrid long-term care insurance policies address the issues of premium hikes and the 'use it or lose it' nature of traditional policies.
Different types of hybrid policies include those built on a whole life or universal life chassis.
Benefits of hybrid policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer.
The decision-making process for choosing a policy involves considering the individual's needs, net worth, and risk tolerance.
Chapters
Introduction and Guest Introduction
Setting the Stage for the Discussion
Demographic Changes and the Impact on Long-Term Care
Exploring Different Types of Long-Term Care Insurance Policies
The Need for Open and Meaningful Discussions about Healthcare and Planning
Bringing up the Conversation about Long-Term Care
The Importance of Estate Planning and Power of Attorney
Challenges with Traditional Long-Term Care Insurance
Guaranteed Policies: A Better Option for Long-Term Care Insurance
Introduction to Hybrid Long-Term Care Insurance Policies
Benefits of Hybrid Policies
Hybrid Policies with Index Investing
Investment Growth and Return of Premium in Hybrid Policies
Hybrid Policies vs. Annuity Products
Hybrid Policies with Lifetime Benefits
Choosing the Right Hybrid Policy
Links
Register for the webinar with Retirement Researcher and Kenneth French! ‘Five Things I Know About Investing’ Wed 4/24 at 2 EST www.risaprofile.com/podcast
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips
 

Episode 122 : Thinking Like A (Financial) Economist

In this conversation, Bob French interviews his father, Ken French, a professor of finance, about key concepts in economics and investing. They discuss the concept of marginal cost and marginal revenue, which helps individuals make decisions based on the balance between costs and benefits. They also explore risk aversion and how it affects investment decisions, as well as the winner's curse, which refers to the tendency to overestimate the value of winning bids or investments. Overall, the conversation provides valuable insights into economic thinking and decision-making. In this conversation, Bob and Ken French discuss the challenges of drawing inferences about the future based on past performance in the financial markets. They highlight the winner's curse and the noise in securities returns as factors that make it difficult to predict which asset class or active manager will outperform in the future. They also discuss the problem of overconfidence and the importance of accurate market prices. The conversation concludes with a discussion on the benefits of stock buybacks and the option value of investments. Listen now to learn more! 
 
Kenneth French's Bio:
Kenneth R. French is the Roth Family Distinguished Professor of Finance at the Tuck School of Business, Dartmouth College. French is an expert on the behavior of security prices and investment strategies. He and his frequent co-author Eugene F. Fama have written many notable papers, including “The Cross-Section of Expected Stock Returns”, “Common Risk Factors in the Returns on Stocks and Bonds”, and “A Five-Factor Asset Pricing Model.”
French is a research associate at the National Bureau of Economic Research, an Advisory Editor of the Journal of Financial Economics, the Journal of Banking and Finance, and the Financial Review, a member of the Editorial Board of the Critical Finance Review, a former Associate Editor of the Journal of Finance and the Review of Financial Studies, and a former President of the American Finance Association. Professor French is also a Fellow of the American Finance Association and the American Academy of Arts and Sciences, Chair of the Valpo Surf Project’s Global Board of Directors, and a member of the Board of Directors of the Cato Institute, Grassroot Soccer, and the International Rescue Committee.
Professor French is a consultant to Dimensional Fund Advisors and a member of the firm’s board of directors.
Before joining Dartmouth, Professor French was on the faculty of MIT’s Sloan School of Management, the Yale School of Management, and the University of Chicago Booth School of Business. Professor French received his PhD in finance from the University of Rochester in 1983. He also earned an MS and an MBA from the University of Rochester and a BS from Lehigh University.
Takeaways
Understanding the concept of marginal cost and marginal revenue can help individuals make informed decisions based on costs and benefits.
Risk aversion is driven by the decreasing marginal utility of wealth, where the value of each additional dollar decreases as wealth increases.
The winner's curse refers to the tendency to overestimate the value of winning bids or investments, and it can be observed in various contexts, such as oil lease auctions and hiring decisions.
Considering these concepts can enhance economic thinking and decision-making in investing and other areas of life. Drawing inferences about the future based on past performance is challenging due to the winner's curse and the noise in securities returns.
Overconfidence is a common problem in investing, and people often overestimate their ability to pick winning investments or active managers.Accurate market prices are important for allocating resources efficiently and signaling the value of different activities.
Stock buybacks can be beneficial for companies and society, as they can signal undervaluation and allow companies to allocate resources more effectively.
The option value of investments should be considered, as companies may choose to buy back stock when they don't have better investment opportunities.
Chapters
00:00 Introduction and Setting the Stage09:19 Navigating Risk Aversion in Investing31:46 Enhancing Economic Thinking and Decision-Making45:39 The Importance of Accurate Market Prices51:42 The Benefits of Stock Buybacks
 
Links: 
Register for the webinar with Retirement Researcher and Kenneth French! 'Five Things I Know About Investing' Wed 4/24 at 2 eastern www.risaprofile.com/podcast
 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 121: The Importance of Adult Daycare Centers with Jackie Smiertka

Jackie Smiertka, the owner of Quality of Life Adult Daycare Health Care Center, shares her journey of opening an adult daycare center and the importance of providing purpose and meaning to individuals as they age. She emphasizes the need for a medical model daycare that offers both medical care and engaging activities. Jackie also discusses the challenges faced by caregivers and the importance of providing them with a break and social interaction. She provides insights for individuals looking for a daycare center, highlighting the importance of finding a center that offers meaningful activities and individualized care. The conversation explores the benefits and unique aspects of the Birdhouse Project, a daycare center for individuals with dementia. The social model of the center emphasizes group activities and giving individuals a sense of purpose. The center provides choices and autonomy to its participants, allowing them to make decisions and engage in enjoyable activities. The center also focuses on holistic care, advocating for the physical and mental well-being of its participants. The conversation touches on the importance of early intervention and the positive impact the center has on the longevity and mental sharpness of individuals with dementia. The conversation concludes with a discussion on the challenges of finding quality daycare centers and the importance of having conversations with loved ones about the need for respite care. Listen now to learn more!
 
To learn more about Jackie, view the information below: 
Jacquelyn K. Smiertka, RN, Center Director
The Quality of Life Adult Day Health Care Services Center3252 University Drive, Ste. 140Auburn Hills, MI 48326
Phone: 248-364-4064
website:  http://www.qualityoflifecenter.net/index.html
Facebook page: https://www.facebook.com/p/Quality-of-Life-Adult-Day-Healthcare-Center-100063594492637/
 
Takeaways
Adult daycare centers can provide purpose and meaning to individuals as they age.
A medical model daycare that offers medical care and engaging activities is important for the well-being of the participants.
Caregivers also need a break and social interaction to prevent burnout.When choosing a daycare center, look for one that offers meaningful activities and individualized care. The Birdhouse Project is a unique daycare center for individuals with dementia that focuses on providing a sense of purpose and autonomy through group activities and choices.
The center emphasizes holistic care, advocating for the physical and mental well-being of its participants.
Early intervention and engagement in enjoyable activities can have a positive impact on the longevity and mental sharpness of individuals with dementia.
Finding quality daycare centers for individuals with dementia can be challenging, but it is important to have conversations with loved ones about the need for respite care.
Chapters
00:00 Introduction and Background of Jackie Smiertka01:38 Inspiration for Opening an Adult Daycare Center06:12 Projects and Activities in the Daycare Center08:58 Supporting Caregivers: The Need for Breaks and Social Interaction11:54 The Impact of Isolation and Keeping Participants Busy16:04 The Medical Model and In-Home Healthcare23:35 The Birdhouse Project: Providing Purpose and Autonomy29:14 Holistic Care and the Importance of Early Intervention31:14 The Positive Impact of Engaging Activities33:39 Challenges in Finding Quality Daycare Centers
 
 
Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 120: The Role of IMOs with Dennis Mattern

In this episode, Wade Pfau and Alex Murguia interview Dennis Mattern from Creative One about the role of Independent Marketing Organizations (IMOs) in the financial industry. They discuss the difference between captive and independent advisors, the services provided by IMOs, and the importance of infrastructure for advisors. They also explore the marketing support and business partnership that IMOs offer to help advisors engage new prospects and expand their businesses. In this conversation, Dennis Mattern discusses various marketing approaches and strategies for financial advisors. He emphasizes the importance of understanding social media preferences and recognizing the different generations. Dennis explains how Creative One helps advisors grow their business through strategy sessions and the development of 30-60-90 day plans. He also highlights the significance of setting realistic expectations and finding marketing tools that align with an advisor's strengths. Dennis discusses the effectiveness of dinner seminars, educational events, and virtual webinars. He concludes by discussing the role of compliance and the importance of authenticity in marketing. Listen now to learn more!
 
Takeaways
IMOs provide support and resources for financial advisors, including marketing, product selection, and case design.Choosing the right IMO is crucial for advisors, and they should ask the right questions to ensure the IMO can meet their needs.IMOs can help advisors engage new prospects and expand their businesses through marketing strategies and advertising support.IMOs serve as a business partner for advisors, offering guidance, expertise, and access to a wide range of insurance products and solutions. Understanding social media preferences and recognizing the different generations can help advisors tailor their marketing strategies.Setting realistic expectations is crucial for both advisors and clients.Different marketing approaches, such as dinner seminars, educational events, and virtual webinars, can be effective in reaching and engaging potential clients.Working with an IMO that has a broker dealer or an RIA can streamline the marketing and compliance process.Authenticity and finding marketing strategies that align with an advisor's strengths are key to success.
 
Chapters
00:00 Introduction and Background01:49 Understanding IMO and FMO03:42 The Role of IMOs in the Financial Industry05:13 Captive vs. Independent Advisors06:39 The Importance of Infrastructure for Advisors08:59 The Evolution of IMOs12:19 Choosing an IMO and Asking the Right Questions14:03 Services Provided by IMOs16:13 The Role of IMOs in Product Selection22:48 Marketing Support from IMOs24:01 The Importance of Business Partnership with IMOs28:46 Engaging New Prospects and Marketing Strategies31:25 Social Media Preferences32:09 Recognizing Generation X32:29 Cutting Through the Noise33:19 Helping Advisors Grow Their Business34:10 Setting Up a Strategy Session34:37 Creating a 30-60-90 Day Plan35:08 Realistic Expectations36:17 Marketing Tools and Strategies37:26 Different Approaches to Marketing38:43 The Effectiveness of Dinner Seminars39:23 Educational Events and Seminars40:07 Virtual Events and Webinars41:12 Considerations for Marketing Approaches42:40 Benefits of Classroom Events43:11 Leading with Value in Education44:25 Virtual Events and Expanding Footprint45:50 The Role of Compliance in Marketing48:11 Consolidation and Differentiation in the Industry49:25 Setting Realistic Expectations51:09 The Role of an IMO51:39 Facilitating the Fulfillment Process52:09 Setting Up a Flywheel for Bringing in New Clients55:07 Authenticity in Marketing56:12 Considerations for Evaluating an IMO57:11 How to Start
Links 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 119: Options for Funding Long-Term Care Expenses (Part 5)

In this episode, Alex and Wade discuss options for funding long-term care expenses. They start by clarifying that Medicare is not a long-term care funding option, as it is for health-related issues. The four main funding options they cover are self-funding, Medicaid, traditional long-term care insurance, and hybrid policies. They focus on self-funding in this episode and discuss factors to consider when choosing a funding strategy, such as age, health, family health history, wealth levels, legacy objectives, risk tolerance, and the costs and benefits of different insurance policies. They also emphasize the importance of involving family members in the long-term care plan and considering the fungibility of assets. The episode concludes with a discussion on the impact of long-term care expenditures on one's standard of living and potential beneficiaries. This conversation explores the concept of self-funding for long-term care and the various factors to consider when making this decision. The chapters cover topics such as volatility and spending flexibility, the impact on inheritance and flexibility, insurance for long-term care, estimating reserves for self-funding, the probability of long-term care events, the ideal persona for self-funding, target date funds for long-term care, using QLAC as a planning tool, self-funding with annuities, spending guilt and behavior change, unpaid informal caregivers, and self-funding with annuities. Listen now to learn more!
 
Takeaways
Medicare is not a long-term care funding option; it is for health-related issues.
The four main funding options for long-term care expenses are self-funding, Medicaid, traditional long-term care insurance, and hybrid policies.
Factors to consider when choosing a funding strategy include age, health, family health history, wealth levels, legacy objectives, risk tolerance, and the costs and benefits of different insurance policies.
Involving family members in the long-term care plan is important to avoid misunderstandings and ensure support.
Money is fungible, and assets can be used to fund long-term care expenses, including the house, investment portfolio, and life insurance cash value.
Consider the impact of long-term care expenditures on your standard of living and potential beneficiaries.
Chapters
00:00 Introduction and Overview
02:58 Medicare and Long-Term Care
06:57 Costs and Considerations
09:59 Choosing a Funding Strategy
16:12 Involving Family Members
21:54 Funding Sources for Self-Funding
23:05 Impact on Standard of Living and Beneficiaries
23:19 Volatility and Spending Flexibility
24:15 Impact on Inheritance and Flexibility
25:45 Insurance for Long-Term Care
26:33 Estimating Reserves for Self-Funding
27:05 Probability of Long-Term Care Events
27:36 Ideal Persona for Self-Funding
28:33 Target Date Fund for Long-Term Care
29:23 QLAC as a Planning Tool
30:12 Self-Funding with Annuities
32:09 Spending Guilt and Behavior Change
36:18 Unpaid Informal Caregivers
41:02 Self-Funding with Annuities
 
Links
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 118: Long-Term Care Planning: Nursing Homes and CCRCs (Part 4)

In this episode, Wade and Alex continue their discussion on long-term care, focusing on nursing homes and continuing care retirement communities (CCRCs). They also touch on hospice care and the importance of having a power of attorney in place. They highlight the need to carefully review contracts and consider the financial strength of CCRCs. Listen now to learn more!
 
Takeaways
Nursing homes provide 24-hour care for individuals who need significant help with daily activities and medical issues.
Hospice care focuses on providing comfort and pain relief for individuals with terminal conditions.
CCRCs offer multiple levels of care within one community, allowing individuals to transition as their needs change.
It is important to review CCRC contracts with an elder law attorney and consider the financial stability of the facility.
Upcoming topics will include funding options for long-term care and interviews with experts in the field.
Chapters
 
00:00 Introduction and Correction
00:31 Continuing Care Retirement Communities (CCRCs)
10:02 Hospice Care
25:52 Considerations for CCRCs
30:38 Upcoming Topics and Conclusion
 
Links 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"

Episode 117: The Continuum of Long-Term Care Planning (Part 3)

In this episode, Alex and Wade discuss the continuum of long-term care, focusing on the different levels of care and the importance of planning for aging in place. They explain the distinction between skilled care and custodial care, and the role of geriatric care managers and care coordinators in navigating long-term care decisions. The hosts also highlight the concept of aging in place and the modifications that can be made to homes to support this. They touch on the potential use of reverse mortgages and the importance of ensuring the safety and comfort of individuals receiving long-term care. This conversation explores various aspects of aging in place and the different options available for seniors. The importance of creating a safe and accessible living environment is emphasized, including the use of smart home technology and wheelchair accessibility. The benefits of social interaction and the potential risks of social isolation are discussed. The conversation also touches on the role of adult daycare and community centers in providing care and support for seniors. Finally, the episodes concludes with a discussion on assisted living facilities and the considerations involved in choosing the right one. Listen now to learn more!
 
Takeaways
Understanding the continuum of long-term care is crucial for planning and making informed decisions.
Skilled care refers to medical intervention, while custodial care involves assistance with daily activities.
Geriatric care managers and care coordinators can provide valuable support in navigating long-term care decisions.
Aging in place is a growing movement that aims to enable individuals to stay in their homes and receive in-home care.
Modifications to the home, such as walk-in showers and single-floor living, can facilitate aging in place. Creating a safe and accessible living environment is crucial for aging in place.
Smart home technology can enhance safety and convenience for seniors.
Social interaction is important for maintaining cognitive function and overall well-being.
Adult daycare and community centers can provide support and stimulation for seniors.
 
Chapters
 
00:00 Introduction to Long-Term Care Continuum
06:02 Transitioning to Different Levels of Care
09:21 Skilled Care vs Custodial Care
11:46 Geriatric Care Managers and Care Coordinators
12:44 Home Care and Aging in Place
24:05 The Importance of Aging in Place
24:47 Reducing the Risk of Falls
25:08 The Benefits of Smart Homes
26:05 Wheelchair Accessibility and Levered Handles
27:09 Good Lighting and Low Cabinets
28:08 The Importance of Social Interaction
29:06 Adult Daycare and Community Centers
29:22 Reducing Hazards to Falling
30:14 Assisted Living Facilities
 
Links 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

Episode 116: Costs and Prevalence of Long-Term Care Planning (Part 2)

In this episode, Wade and Alex discuss the costs and prevalence of long-term care. They explore the probabilities of needing long-term care and the average lengths of care for men and women. They also differentiate between any long-term care needs and paid long-term care needs. The conversation provides insights into the importance of planning for long-term care and highlights the need for realistic expectations and budgeting. This conversation explores the financial implications of long-term care, including the distinction between unpaid and paid care. It highlights the impact of unpaid care on caregivers' lives and the need for paid care. The discussion also delves into the gender differences in long-term care needs and the higher costs associated with women. The Genworth Cost of Care Study provides insights into the average costs of various long-term care options. The conversation emphasizes the importance of considering inflation and demographic trends when planning for long-term care expenses.
 
Takeaways
The probability of needing long-term care is higher for women than men, primarily due to their longer life expectancy.
On average, men need long-term care for about 2.5 years, while women need it for about 3.6 years.
About 56% of individuals will likely need to plan for long-term care in their retirement.
Planning for long-term care should consider both the probability and length of care needed, as well as the potential costs involved. Unpaid care can have a significant financial and personal impact on caregivers, often disrupting their own retirement plans.
Women tend to have longer long-term care needs and higher costs due to their longer life expectancy and caregiving roles.
The Genworth Cost of Care Study provides estimates of the average costs of different long-term care options.
Long-term care expenses are likely to grow faster than the overall inflation rate, making it important to plan for higher costs.
Chapters
 
00:00 Introduction and Personal Updates
05:12 Probabilities and Length of Long-Term Care Needs
10:32 Probability and Length of Any Long-Term Care Event
18:59 Unpaid Care vs. Paid Care
19:37 The Financial Impact of Unpaid Care
20:23 The Cost of Paid Long-Term Care
21:11 Lower Probability of Needing Paid Care for Longer Durations
22:18 Long-Term Care Needs and Gender
23:08 The Impact of Unpaid Care on Women
24:05 Lifetime Expenditures for Long-Term Care
25:18 Inflation and Long-Term Care Expenses
26:35 Triggers for Long-Term Care Needs
28:18 Gender and Long-Term Care Planning
29:01 Genworth Cost of Care Study
31:05 Inflation Rate for Long-Term Care Expenses
32:02 The Progression of Long-Term Care Needs
33:27 State-by-State Differences in Long-Term Care Costs
38:01 Considering Alternative Care Options
39:46 The Growing Need for Long-Term Care
 
Links
Join the waitlist for the next Retirement Income Challenge by visiting risaprofile.com/podcast 
The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 
 
 
This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/roth/ to download McLean's free eBook, "Is a Roth Conversion Right For You?"