Thanks to incredible medical advances and healthier lifestyles, seniors in the U.S. are living increasingly longer lives. Recent estimates give a healthy 65-year-old man a 24% chance of living to at least 90 and a healthy woman a 35% chance of living that long. As medical advances continue to improve, life expectancies will likely rise even higher.
Although this is great news, it adds to the challenge of retirement income planning. It’s no wonder that today’s Baby Boomers say one of their biggest fears is outliving their money. Luckily, there is a way to ensure your wealth will last your lifetime. Retirement planning experts say the solution is a comprehensive financial plan — one that includes financial, tax, estate and long-term care (LTC) planning.
Building a comprehensive financial plan. These days, it’s not enough simply to have a financial plan and a separate estate plan. If you want to accumulate money and protect your wealth and family, you need a truly comprehensive, integrated plan.
In addition to retirement savings and investment funds, your comprehensive plan should include:
- Life insurance: This ensures your family is protected if something happens to you. Otherwise, they might struggle to get by without your income.
- Medical insurance: These days, as health care expenses continue to skyrocket, medical insurance is simply a must-have.
- LTC insurance: Because unexpected long-term care costs can quickly whittle away at your wealth, it’s essential that you budget for the cost of an LTCI policy.
- Estate planning: An effective estate plan ensures that your property will go to the loved ones of your choice. It will also help your family save a great deal on taxes, court costs and attorney fees. Your estate plan should include a durable power of attorney, a will, a health care proxy and guardianship arrangements if you have children.
LTC is no longer a luxury. Although most seniors realize that both financial planning and estate planning are necessary, many neglect to plan for LTC. Financial planning allows you accumulate wealth, and estate planning helps you preserve that wealth. But why do you need LTC?
Statistics show that approximately 40% of LTC services are provided to people between the ages of 18 and 65. These numbers prove that LTC isn’t just important for the elderly—every adult stands to benefit from LTC planning. Experts say it’s never too early to purchase LTC insurance.
Unexpected long-term care costs can quickly eat away your retirement savings. Unfortunately, Medicare and Medicaid do not cover LTC expenses. However, Long-Term Care insurance (LTCI) can help you cover many long-term care expenses if and when it’s needed.
These days LTCI is no longer a luxury — it’s a necessity that should be a part of every comprehensive retirement plan. Plus, the sooner you purchase an LTCI policy, the more likely you will qualify for discounted preferred health rates.
Assemble a team of pros. Of course, you won’t be able to build such a comprehensive plan on your own. If you want to build a truly successful, integrated retirement plan, you’re going to need a skilled team of experts on your side. Seek out informed and well-educated experts who can help you create an all-inclusive plan.
A unified group of professionals all working together can help you build a truly winning financial, tax, estate and LTC plan. In this day and age, these four critical components are all integrated.