"I can simply save the money I'll need for future LTC services"
Fact: Anyone who’s had this thought should stop to consider two crucial questions: How will I save up the money? And (more important), why?
LTC services can be very expensive. The growing costs for care present a huge financial risk to older adults’ retirement dollars. Those who plan to take on the burden of LTC expenses for themselves and/or a spouse or
other loved one could wipe out their lifetime savings much faster than they expect.
Consider the facts:
• The average cost in 2010 for a one-year stay in
private nursing home room is $83,580.
• Of all Americans age 65 and up today, 1-in-5 will
require LTC services for five years or more.
• At today’s average cost, a couple with $500,000 in assets would deplete their savings in just a few short years paying for LTC services.
Industry expert Harley Gordon, J.D., CLTC, states that a lasting illness “invariably leads to an invasion of portfolio capital, the purpose of which is to provide predictable streams of income. Using capital to pay for care results in unnecessary taxes, market timing and liquidity issues. And just as important, every dollar used to pay for care is one dollar less toward keeping future commitments to the family, keeping commitments to charities and providing a legacy to those (you love).”