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AGS
FINANCIAL SERVICES |
Gary
F. Restall |
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Long-Term
Planning is a
Critical Need
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There
seems to be a lot of mis-information,
mis-understanding
and mis-perceptions
when it comes to
Long-Term Care.
Therefore, with this
article, I hope to
provide an overview
of the basics to
correct some of
this. Whereas
this topic can
develop into a highly
charged emotional
issue, I will try to remove
the emotion
and look at the
logic and facts
in addressing these
family and
life-staggering
issues.
This is a two part educational series. The first part deals with the problem, the needs, where, when, who, why, the costs, etc. The second part will deal with the various potential solutions. There is no one correct cookie-cutter solution for everyone as no two situations and/or goals/objectives are identical. The Problem: "Without proper planning, long-term care can be the greatest threat to our assets today, and we're not just talking about nursing home costs. Care or extended care may be at home or in the community, like assisted living or even adult day care." (Phyllis Shelton of LTC Consultants, a Nashville, Tennessee consulting company that specializes in long-term care.) The Need – When, Who and Why? The need for Long-Term Care is unpredictable and can happen to ANYone at ANY age. Seven major causes of nursing home stays are accidents, fractures or broken bones, strokes, heart attacks, cancer, Alzheimer's disease and senility. Stays can either be short or long-term, recuperative or chronic. Depending on which study you review, more than 50 percent of women and one-third of men over 65, and seven out of 10 couples will experience a nursing home stay sometime in the future. These figures increase to 70 percent for everyone at the age of 80. Almost all studies indicate a 50% likelihood of needing some form of long-term care. Shockingly, some new statistics report that as many as 40% of those in facilities are between the ages of 18 - 64 (under age 65) due to accidents, sports injuries and other issues, such as MS, brain tumors. Also, 1/3 of the people who have strokes in the US are under 65. For example, almost everyone knows about healthy Christopher Reeves' un-expected, split-second, life-changing accident. Home care statistics are also atrocious. Most people are beginning to agree that there is no greater risk - statistically speaking - than Long-Term Care. Where – NOT just nursing homes: Contrary to common mis-understandings, Long-Term Care is NOT just provided in nursing homes. If approached with good planning in advance, it may be provided in the home with family, friends, or professional care givers; or in other community facilities, such as Assisted Living, Adult Day Care, and other locations as well as in Nursing Home facilities. The Costs: Long-Term Care can be very expensive. Nursing Home stays in our local area with drugs and miscellaneous supplies can run $200 to over $400 a day or from $70,000 to $146,000 a year* depending on where one needs the care. And if both you and your spouse need care, you can see how these numbers explode. This cost is expected to triple in the next 20 years. * The national average is $55,000 to a $100,000 a year except in expensive areas like Massachusetts, Connecticut, NY and parts of California. Home Care costs can possibly be even more expensive depending on the need. One, two or three hours a day at $30 to $60 an hour two or three times a week vs. round-the-clock care can be either affordable or prohibitive. Again, this depends on the cause, the need for care, and the total assets available. Other facilities may be less or more expensive depending on the needs. This is why more and more smart people are so concerned about their assets and how they will pay for their Long-Term Care wherever and whenever they should need the care. The next article will deal with many of the most well-known various potential solutions available. ___________________________________
When this
article was
written and
published, Gary F. Restall of
AGS
FINANCIAL SERVICES
was an
independent
full-service
Registered
Financial
Planner, Registered Investment Advisor, Insurance
Broker and
Long-Term
Care
Consultant.
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