The Biggest Threat To Your Assets
Let''s assume you''ve done everything right when it comes to planning for retirement. You''ve saved diligently from an early age. You took advantage of tax sheltered accounts like your 401(k) and a Roth IRA. You put together a diversified portfolio of low cost investments. You''ve run a retirement calculation that projects you to be well on track to hit your retirement goals.
But if you''re like many people, you may have one Comprar Levitra vulnerability that could completely wipe out a lifetime of smart financial decisions in just a few years. No, it''s not another market downturn (assuming you''re adequately diversified). Nor is it inflation or fees (both of which have a long term effect on your portfolio.)
It''s a lack of long term care insurance. About 70% of people will need long term care at some point in their lives yet our latest research report shows that less than a quarter of Baby Boomer employees have long term care insurance. Medicaid can pick up the bill but to qualify, you have to spend down most of your assets to practically a poverty level. With the median annual cost of private nursing home care topping over $80k last year and home health aides generally costing over $40k, it may not take many years to deplete your assets before Medicaid kicks in. That doesn''t include the emotional toll it can take on your loved ones and their lost wages due to taking time off to take care of Testosterone Enanthate 1000 Mg Per Week a parent or spouse.
So why don''t more people have long term care insurance? Well, for one thing it''s expensive. The average cost of a policy for a 55 yr old couple is $3,500 per year. Many people are also worried about rate increases, insurers leaving the market altogether, and paying a lot of money for something you may never need. Here are some alternative ways to plan for long term care expenses:
Asset based policy. These are life insurance policies or annuities that allow you to use the death benefit or cash value for long term care costs. The main benefit is that if you end up not needing the insurance, your heirs can receive the death benefit. In addition, these policies are generally protected from premium increases. The downside is that you can end up getting a lower long term care benefit or spending extra money for life insurance that you may not need.
Long Term Care Partnership Program. These state programs offers a unique Medicaid asset protection feature. If you use up all the long term care insurance benefits, you can "Anadrol 50" qualify for Medicaid and still keep an amount of assets equal to the insurance coverage you purchased through the program. So if you purchase $300k worth of long term care insurance benefits and use up all the coverage, you can keep $300k of assets and still be eligible for Medicaid. This allows you to know exactly much "Achat Anabolisant Belgique" insurance "Oxandrolone Powder India" to buy: enough to CYA (cover your assets).
5 year policy and asset give away The length of time is a major factor in how much a policy costs. Why 5 years? Under current law, any assets you give away within the last 5 years can be required to be spent before you qualify for Medicaid. That means you can give assets away (including to an irrevocable trust) should something happen to you and use the long term care policy to cover you until you''re Medicaid eligible. Just remember that gifts over $14k per person per year will trigger a gift tax filing unless it''s your spouse.
Group policy If your health isn''t so great, long term care insurance may be extremely expensive Testosterone Cypionate Blood Clots or even impossible to purchase. See if your employer offers a group plan that you can purchase into.
Self insurance. Some experts are suggesting foregoing it altogether. That makes the most sense in two opposite situations. One is if you have very little assets to protect. In that case, it may not make sense to pay for a policy since Medicaid would become your plan. The other is if you have so much assets (around $2 million or more), "4-chlorodehydromethyltestosterone Ireland" that you can pay the expenses out of pocket.
You can learn more about some of these options, get quotes, and find a long term care insurance agent at the American Association for Long Term Care Insurance. In any case, this is not something you want to neglect. Be sure to explore all of your different options to see what makes the most sense for you.
Erik Carter, JD, CFP is a senior resident financial planner at Financial Finesse, the leading provider of unbiased financial education for employers nationwide, delivered by on staff CERTIFIED FINANCIAL Testosterone Enanthate Injection 250 Mg PLANNER professionals. For additional financial tips and insights, follow Financial Finesse on Twitter and become a fan on Facebook.