A Repeatable Process Will Bring Clarity To Necessary Planning
Most Americans lack a formal plan for Healthcare In Retirement and Long-Term Care in their comprehensive planning, and that’s simply a reality; however, this isn't where you should start the "well, that's not in my wheelhouse" nonsense! And that’s because, regardless of your advisory function with clients, it will take me about five seconds (at most) to define your role and why you must, or have a fiduciary duty to, address this topic with your clients.....Period!
Once you embrace a successful, repeatable PROCESS, perhaps the rest will fall into place to bring more clarity to the planning...
Step #1 - Help clients see the problem and clarify why answers to basic questions should be found in their financial, retirement, estate, or risk management planning. Deciding whether that means a formal plan, memorialized decisions based on legal documentation, or insurance solutions, the next step is to define a client's exposure to potential risk exposure.
Step #2 - Quantify the current and future cost of healthcare, and explain how this is an unfunded liability on the client’s personal balance sheet. Doing that will allow you to continue the discussion and quickly move toward having clients complete a HALO Assessment. The report will provide results based on their unique and personal health situation, lifestyle, and family dynamics.
Step #3 – It’s now time to inventory your client’s assets, including the honest and realistic evaluation of their health and/or insurability from the HALO report. This will significantly impact moving through the remaining steps.
Step #4 - This is where you should have a meaningful discussion about the four solutions available to your client.
Step #5 - Engagement and implementation of your client's plan.
When considering all of life's eventualities, healthcare in retirement is simply a mandatory expense your clients must address. As their advisor, this should be your reality check: Will your clients have plans they control, or will healthcare eventually control their plans?
Please contact us with questions or to discuss specific client scenarios.....