Long-Term Care (LTC) Planning has never been more important for Americans. Yet, advisors and consumers often ignore existing assets and investment portfolios as an efficient and effective way to implement that planning.  There are many reasons this approach is appealing, but the ability to create a plan with little or no out-of-pocket cost is certainly at or near the top of the list.  If you're unfamiliar with this concept, perhaps it's time to look closer at Asset-based LTC planning solutions and their integration into an asset allocation model. 

Quite simply, implementing LTC Planning by reallocating a portion of your client's assets is often a better option than liquidating assets to create a plan via cash flow;  even more to the point, clients often prefer carrying their plan on their balance sheet rather than an expense on their income statement.  For clients looking to optimize their portfolios, or employ tax-efficient strategies, Asset-based LTC planning may be a compelling solution.

Today’s Asset-Based Planning Solutions.....

When LTC Planning is part of an asset allocation model, these solutions provide "insurance leveraged" benefits beyond just the dollars in the portfolio.  This helps mitigate risk if and when care is needed in the future.   Since asset-based LTC planning solutions are built on either a life insurance or annuity chassis, this provides some unique features and benefits for an asset allocation model, such as:

• "Live, Quit, or Die" Value Proposition:  Asset-based solutions provide LTC benefit guarantees, guaranteed cash surrender values, guaranteed residual value, and guaranteed premium or plan cost.

• No Market Correlation:  Most planning solutions are “fixed” products, so there is little or no market risk and the ability to know the asset's future value at any given time.

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• ​Tax Advantages:  Provides TAX-FREE withdrawals or distributions for LTC benefits, TAX-DEFERRED cash value growth, and potentially, partially TAX-DEDUCTIBLE premiums.

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• Decrease Portfolio Volatility:  Asset-based LTC plans and their guaranteed cash values may help lower the overall volatility of a client's portfolio.

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• Leverage Assets to Protect Assets:  These plans are often created by reallocating low-risk, low-yield deposit accounts or utilizing underperforming fixed-income assets. Plus, as interest rates rise, these plans are insulated from the impact of fluctuating interest rates on fixed-income assets.

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Don’t ignore your clients' LTC Planning needs!  Let’s work together to incorporate these solutions into their asset allocation model and secure their financial future.  If seeing "real-world" examples of Long-Term Care Planning will help you develop a better understanding of this strategy, please check out our case studies here:  Real-World Case Studies for Long-Term Care Planning

Click the Calendly button below to discuss leveraging your client's asset allocation for Long-Term Care Planning to provide peace of mind and multi-generational security.

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