One Million Dollars Might Not Be Enough!
In New Line Cinema's Austin Powers, "Dr. Evil, International Man of Mystery," wanted to hold the world ransom for one million dollars. That is a lot of money for most of us - but is it really a lot of money? It may not be enough to fund retirement expenses and long-term health care when you get older.
Dr. Evil in New Line Cinema's Austin Powers, International Man of Mystery, wanted to hold the world ransom for one million dollars. That is a lot of money for most people, but perhaps Dr. Evil should have asked for more money, especially if he was planning retirement.
Many people hope to save that or more in their retirement accounts to enjoy a successful future retirement, although probably not by extorting the world. The problem is it may not be enough, especially if you require long-term care services and supports.
Given inflation and the higher cost of long-term health care in the decades ahead, you may need a lot of money to pay for quality caregivers. Too often, people fail to consider the financial costs and related burdens that long-term care places on their family and assets.
$1,000,000.00 seems very impressive, but consider the hurdles that could make your million bucks look like an old ten-dollar bill.
$1 Million Not as Impressive Any More
What can you get for one million dollars? If you invest the money and earn 4%, you'll get $40,000 a year in income. You should add social security, so give yourself another $17,000 for extra income. That will provide you with $57,000 annually to retire on without touching your savings.
A recent article explains that three big things will throw a wrench in your future retirement plan:
- Your basic expenses might mostly stay the same or even go up. Sure, you might think you will cut your expenses once you retire, but not only is that a hard thing to do for many people, your cost of living might increase even if you cut back.
- Your health care costs could skyrocket. This is a problem as too many people think their health will never change. Longevity means you will get old. Your health will decline, your body will decline, and many people will suffer from some type of dementia. When you get old, you need long-term health care. People need long-term care due to illnesses, accidents, or just the impact of aging. Did you know that the US Department of Health and Human Services says that once you reach the age of 65, your chance of needing long-term care is about 50/50. No matter what the statistic says, common sense tells us far too many people need help at home or in a facility. They don't build all those assisted living facilities and nursing homes for nothing. Most long-term care does start at home, but caregiving is hard on the family, and paid professional care drains savings. Care at home is less expensive than facility care, but the national average cost of care in your home will run you $55,461 a year. Don't forget, if you are still living at home, your cost of living won't change that much, but we just added a substantial unbudgeted expense. As you drain assets, you also lower your income. Ouch!
- Your Social Security benefits might get slashed. The fact is that Social Security has some significant financial concerns. Too many people live way too long, and fewer people are working. Don't need to be a math major here. While the program won't go bankrupt, they may have to slash benefits in the future.
Look at that million bucks now! Dr. Evil needed to ask for more. Oh, don't forget the impact of future tax increases that may affect who gets elected in the decades to come. Since we are living longer, your money must last longer.
Have You Prepared Family and Finances for Costs and Burdens of Aging?
One of the first steps you can take now is eliminating one of the biggest threats to your future successful retirement. Long-Term Care Insurance will safeguard income and assets from your future long-term health care costs.
Don't wait until you are old and need care, as you will not be eligible for a policy. The best time is to act is in your 40s or 50s before your retirement when you still enjoy good health. Plus, premiums are based on the total amount of benefits you purchase and your AGE and HEALTH at the time of application. In some cases, family history can impact cost and underwriting.
Start Planning Early
Premiums are much more affordable in your 40s and 50s, but you may still be able to find affordable coverage at older ages. Be sure to speak with a qualified Long-Term Care Insurance specialist so they can find available coverage based on your age and health.
A qualified, licensed Long-Term Care specialist can design an affordable plan based on your age, health, family history, and budget. Even small plans can give you significant asset protection, in addition to reducing the stress and burden otherwise placed on your loved ones.
One of the biggest retirement planning secrets available in most states is the Long-Term Care Insurance Partnership Program. These unique plans provide you with dollar-for-dollar asset protection. No matter if you have $200,000 or $2,000,000, you better investigate your options.
Use LTC NEWS Tools for Research
Start your research by finding the current and future cost of long-term care services in your area. Plus, you can discover the availability of partnership plans and tax incentives available where you live. The LTC NEWS Cost of Care Calculator will show you the current and future cost of care services where you live. Just click here for the calculator.
So go ahead, say out loud, "one million dollars." Now safeguard your money, no matter what amount you have, and enjoy peace of mind. You will enjoy access to your choice of quality care at home or in a facility. Your loved ones will have time to be family instead of caregivers.
About the Author
An LTC News author focusing on long-term care and aging.
James Kelly
Contributor since August 21st, 2017
Editor's Note
When you start planning for the financial costs and burdens of aging, key these points in mind:
- Long-Term Care Insurance is rate stable. Most states now have rate stabilization rules, making it very difficult to raise premiums in the future. Some companies offer single pay or limited pay options as well, which eliminates the need to keep paying premiums.
- Long-Term Care Insurance is comprehensive. Most policies will pay for all levels and types of long-term care, including care in your own home.
- Long-Term Care Insurance is custom designed. You get to decide the total amount of coverage. Even a small policy can reduce the stress and burden on your family.
- Long-Term Care Insurance can provide death benefits or return of premium options. While not all companies offer these options, if this is something important to you, be sure to mention that to a Long-Term Care Insurance specialist.
- Long-Term Care Insurance provides tax-free benefits. You might qualify for tax deductions or credits. If you own a Health Savings Account, you can use the tax-free money in your account to pay your premium.
Get Accurate Quotes and Recommendations from Qualified Specialist
Be sure to discuss these points with a Long-Term Care Insurance specialist when doing your research. They will be able to learn about your health, family history, retirement objectives, and other concerns in order to shop all the major insurance companies in order to provide accurate quotes and recommendations.
Planning Tools and Resources on LTC NEWS
You can find many tools and resources on LTC NEWS to assist you in your research for a planning solution or help your family find the appropriate care for a loved one at the time of crisis.
To help you plan the costs and burdens of changing health and aging, LTC NEWS has put in place several resources, including:
- The LTC NEWS Cost of Care Calculator will show you the current and future cost of long-term health care services where you live. Plus, each state has vital state-specific information you should know - Cost of Care Calculator - Choose Your State | LTC News
- The Ultimate Long-Term Care Guide is an outstanding read to help you get a good overview of the topic area.
- Compare the major insurance companies that offer Long-Term Care Insurance products here - Top Insurers for Long-Term Care Insurance | LTC News.
- A detailed tax guide that includes available tax incentives can be found by reviewing the Long-Term Care Tax Benefits Guide.
Find all the resources on LTC NEWS - Resources for Long-Term Care Planning | LTC News.
Seek Professional Guidance
Insurance rates are regulated, so no insurance agent, agency, or financial advisor can give you special deals. However, insurance companies' premiums vary over 100% for the same coverage.
Experts suggest using a qualified Long-Term Care Insurance specialist to help you navigate the many options available to you and your family.
A specialist who works with the top companies can match your age, health, family history, and other factors and find you the best coverage at the best value. A specialist will save you money, and you will have peace of mind knowing they are making the appropriate recommendations - Work With a Specialist | LTC News.
Finding Quality Care for Mom or Dad
Start by reading our four guides -
- Finding Quality In-Home Care | LTC News
- Adult Day Care Centers (ADCCs) | LTC News
- Assisted Living and Memory Care Facilities | LTC News
- Finding a Quality Nursing Home | LTC News
If they are lucky enough to own a Long-Term Care Insurance policy, be sure they use it. Sometimes families wait, thinking they can save the benefits for a rainy day. Waiting on using available Long-Term Care Insurance benefits is not a wise idea.
Get Help in Filing a Long-Term Care Insurance Claim
Quality care obtained early will help provide a better quality of life and reduce the risk of a deep decline and facility care. If you need help in starting the process of a Long-Term Care Insurance claim, LTC NEWS can help.
LTC NEWS provides free assistance with no obligation to help you or a loved one complete the claims process with a Long-Term Care Insurance policy. We have teamed up with Amada Senior Care, who will do all the work, free with no obligation.
You can also get support in finding quality caregivers and get recommendations for a proper care plan, whether a person has a policy or not. - Filing a Long-Term Care Insurance Claim | LTC News.
Benefits of Reverse Mortgages
Today's reverse mortgages for those aged 62 and older could be an ideal resource to fund a Long-Term Care Insurance policy OR even provide money to pay for care if you, or a loved one, already needs help and assistance.
Some people have much of their savings invested in their homes. With today's reverse mortgages, you can find ways to fund care solutions, care itself, even help with cash flow during your retirement.
Learn more by asking questions to an expert. LTC NEWS columnist and host of the TV Show "62 Who Knew" will answer your questions regarding caregiving, aging, health, retirement planning, long-term care, and reverse mortgages.
- Just "Ask Mike." - Reverse Mortgages | LTC News.
Share Your Knowledge - Be A Guest Contributor for LTC NEWS
LTC NEWS is open to contributors to share their stories with the world.
You can write a story or ongoing column for LTC NEWS. You can write about many topics, including aging, caregiving, health, lifestyle, retirement planning, and long-term care, to name a few.
Be sure to write for our core target audience of adults aged 40 and older. Our audience is worldwide; however, our primary target is the United States, Canada, the United Kingdom, and other English-speaking nations.
Improve your website or blog's SEO and gain exposure and traffic at the same time by being a contributor to LTC NEWS.
You can even promote yourself, your business, and your website or blog. However, it must have editorial content exclusive to LTC NEWS and not just an advertisement. It can include links to other sites, and you can share the article link once published on your website or social media.
Email your story idea or article: newsroom@ltcnews.com - LTC News Contributors | LTC News
Your Marketing and Advertising Partner – LTC NEWS
Use LTC NEWS to drive traffic to your website and help you attract people interested in your products and services. Plus, you can improve your website's SEO so more consumers can find you when they search for your products and services.
There are various marketing options available with LTC NEWS. Traditional advertising, sponsored content articles, strategic alliances, and more are available.
Learn more about how LTC NEWS can help you market your business, drive traffic, and improve SEO - Advertise With Us | LTC News.
Shared Links
LTC NEWS offers a 'helpful links' page so readers looking for additional information can find them easily. You can get a dofollow link to your website on LTC NEWS in exchange for a dofollow link on your site.
Let's work together and help consumers who search for us on the web - Site Request | LTC News.
You can also affordably purchase a dofollow link to your website or blog on LTC NEWS. Just contact the advertising department.
Sharing News with LTC NEWS
Include LTC NEWS in your press release distribution. If your group, organization, business, political committee, etc., have news to share, send it to LTC NEWS. Email - newsroom@ltcnews.com
