Planning for the Uncertainty of Long Term Care Expenses

The first step in planning for long-term care is to educate yourself about the different types of care available, the associated costs, and how it is paid for. Long-term care can include a variety of services, such as home health care, adult day care, assisted living facilities, and nursing homes. Understanding the different options and their costs can help you make informed decisions about your long-term care needs. Genworth has an amazing tool that shows the cost of care in each state, and even differentiates based on the various levels and types of care. You can access that tool here.

Once you have a good understanding of the different types of long-term care available, you and your spouse should discuss your options and preferences. Consider your current health status, family history, and lifestyle when making these decisions.

There are several different types of hybrid retirement strategies, and the right one will depend on a person's financial situation, goals, and interests. Here are a few examples:

Which option or options to choose is a very personal choice. Factors include the amount of savings you have accumulated, nature of retirement income sources, family and medical history, appetite for managing risk, and emotional factors. 

As part of your long-term care planning, you should review your estate plan to ensure that it addresses your long-term care needs. This may include updating your will, establishing a trust, and designating a power of attorney for health care and finances.

Planning for long-term care can be complex, and it's essential to seek professional advice to ensure that you make informed decisions. A financial planner who collaborates with an elder law attorney can help you evaluate your options and create a long-term care plan that meets your needs.

As your circumstances change, it's essential to regularly reevaluate your long-term care plan to ensure that it continues to meet your needs. This may include reviewing your insurance coverage, updating your estate plan, and making adjustments to your savings and investment strategies.

Planning for the uncertainty of long term care needs is an essential aspect of retirement planning for couples. By educating yourself, discussing your options, considering long-term care insurance and other funding sources, reviewing your estate plan, seeking professional advice, and regularly reevaluating your plan, you can help ensure that you and your spouse are prepared for any long term care needs that may arise.

Planning for long term care is a very nuanced and complex endeavor. The cost of care has risen significantly and is poised to continue to grow. Because of this, seeking professional counsel is imperative. And as much as it seems that there is a definitive right answer out there for everyone, the best we can do is plan for as many potential outcomes as possible, knowing that the future is very uncertain, and we won’t know until looking back in hindsight whether the plan was optimum. That said, to simply hope everything turns out okay isn’t a plan at all, so there may be some work to do to ensure you’ve done your best.