It is hard to ignore the news of the day. No matter what your personal view, allowing the news to consume your time is not good for you, especially if you ignore planning for long-term care and retirement planning.
"We get glued to our smartphones, computers and TV and radio news programs. Too often this paralyzes people from making decisions they should be making. Take a step back and really try to understand what is noise and what is important," said Matt McCann, a nationally known speaker and specialist in long-term care planning.
McCann, speaking to insurance agents and financial advisers in Wichita, said too many people allow events in the news to stop them from making decisions that they should be making so they can enjoy a future successful retirement. The news is a great excuse to delay and defer. However, that is the worst thing you can be doing right now.
"Explore the facts. First, we all understand that planning for retirement is something we all should be doing, especially if we are in our 40s and 50s and have not put concrete plans in place. Second, we know longevity is a big obstacle. With aging comes the big risk of needing long-term care. We better have a plan for the financial costs and burdens of aging otherwise you will either pay for all these costs yourself or your family will become caregivers. Neither is a good solution," McCann explained.
McCann outlined several facts consumers, and their advisers, should understand:
- Government solutions will not change much. McCann said as he speaks with experts in Washington on both sides of the aisle, big changes in healthcare – especially long-term care are not happening.
"It is unrealistic to see the major changes some presidential candidates are speaking about to become law even if they win an election. The experts have already run the numbers. While some minor changes might occur, long-term care will not see any beyond what is available now. We have Medicaid, which will pay for long-term care for the poor. Then we have the Long-Term Care Partnership program which provides consumers with additional dollar-for-dollar asset protection if they have a qualified Long-Term Care Insurance policy. Also, tax incentives exist which help some people and business owners. Health Savings Accounts might be expanded. This allows people to use pre-tax money to pay for premiums," McCann explained.
- Demographics will continue to increase the cost of long-term care services and supports. McCann said as Generation X and Late-Boomers continue to age in mass, with the remaining Baby Boomers will aging, the pressure on the long-term care system will increase. With younger demographics being smaller that supply and demand will increase care costs.
- The family will continue to face the pressure of having careers, families and having to address the needs of both their children and their elderly parents. McCann said the "sandwich generation" is a real thing. Most people really don't want to place the burden of caregiving on their family. Plus, they want independence and control. You can avoid this family stress with advance planning prior to retirement.
- Advances in medical science will continue to increase longevity and the future need for long-term care. McCann explained that just getting older can cause a need for help with normal activities of daily living. With aging comes the higher risk of cognitive decline as well.
- The insurance industry will continue to design affordable ways to address the financial costs and burdens of aging. There are several options already, according to McCann. These include traditional and partnership qualified plans, asset-based or "hybrid plans" (life insurance or annuities with riders for long-term care) and limited duration plans. But McCann says it is incumbent on us to take advantage of these plans which give us access to your choice of quality care as we protect savings and income and reduce the burden on those we love.
"We must understand that we must live our lives no matter what craziness is going on in Washington or anywhere in the world. We are responsible for our families. It is easy to be consumed with things in the news but that should not take away from our responsibility for our families. Planning for long-term care is all about family. It is easy and affordable but we must take advantage of planning when our health gives you the availability of the most affordable options," McCann said.
McCann said research should start with finding the current and future cost of long-term care services in your area. This calculator will be very helpful: https://www.ltcnews.com/resources/states.
McCann helps consumers nationwide using a unique method where he speaks with a consumer on the telephone while viewing his computer screen on their computer. This provides a pressure-free way to learn about these products and their various options available from the many companies available.
He also works with many financial advisors helping them assist their clients.
Consumers can learn more about long-term care planning at https://mccannltc.net/resources/faq. On his website, there is a link to obtain free quotes from all the major companies.
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