Why Long-term Care Insurance is Important

Click here to read Ivory Johnson’s CNBC Op-ed: An Alzheimer’s wave is coming.

Care costs can swiftly deplete savings

This is not something I read in a textbook — I bear witness to how dementia affects responsible people who thought they had everything figured out.

A memory care center for dementia patients in northern Florida cost my family $6,700 a month until I was able to relocate. In Washington, D.C., where I lived before my father’s health declined, that same facility would have cost twice as much. My dad may be among the 6.7 million Americans living with dementia, but it was my aging mother who watched her retirement savings evaporate one monthly payment at a time. Planning is not solely about us, but also the spouse and the children who must make difficult and often heartbreaking decisions about their loved one.

Medicaid will provide a nursing home if you run out of money, after the children have exhausted their own savings, but these facilities do not resemble the lifestyle you have likely become accustomed to. Moreover, the quality gap of a state-provided at-home nurse versus a private-pay service may be just as cavernous and unsettling.

Even those who have properly saved for retirement will see their accounts dwindle with all deliberate speed. After all, withdrawing $10,000 or more each month net of taxes to pay for a facility can devastate even the most responsible among the middle class.

SCHEDULE A CALL WITH IVORY JOHNSON

We can tailor a solution that works for you and your loved ones

We all have different health concerns, financial abilities and expectations about what we want to happen as we age. That’s why you should decide what happens in the event of a long-term illness with a plan specifically designed for you and your family.

SCHEDULE A CALL WITH IVORY JOHNSON

Ivory Johnson, CFP®, ChFC
Delancey Wealth Management, LLC
Founder
20 F Street, NW, Ste. 750
Washington, DC 20001
(202) 507-6340

The views expressed are that of the host and are for informational purposes only and in no event should be construed as an offer to buy or sell securities or products. Opinions expressed are subject to change without notice and do not take into account the particular investment objectives, financial situation, or needs of individual investors. The information given herein is taken from sources that IFP Advisors, LLC, dba Independent Financial Partners (IFP), IFP Securities LLC, dba Independent Financial Partners (IFP), and its advisors believe to be reliable, but it is not guaranteed by us as to accuracy or completeness. Please consult your tax and/or legal advisor before implementing any tax and/or legal related strategies mentioned in this publication as IFP does not provide tax and/or legal advice.