4 Ways to Keep Retirement Plans Afloat
by Tim Jacquet
4 Ways to Keep Retirement Plans Afloat. The fastest way to sink a retirement plan is not having a strategy to pay the bills for long-term care. Too many people simply bury their head in the sand and hope that day never comes. But when it does, the impact on their plans for retirement can be devastating. Yet there’s a simple, sensible solution to help keep retirement afloat…long-term care insurance.List below we will names some way to keep your Retirement Plans afloat.
Here are four things you can do to keep your Retirement Plans afloat:
1. Help your clients understand the risk they face in retirement. According to the U.S. Department of Health & Human Services, 70 percent of people who reach age 65 will need long-term care services at some point in their lives. Compare that to the risk of being in a severe car accident (15.5 percent for men and 18 percent for women) or having a major house fire (2.2 percent for men and 2.6 percent for women). Yet people don’t question the need to insure their homes and cars. So you need to help them understand why protecting themselves and retirement from the real risk of needing long-term care is so important.
2. Guide them as they explore their options for care. Many people mistakenly believe in retirement that their family members will be able to take care of them. But these folks generally haven’t considered what it takes to be a full-time caregiver. A spouse may have to quit working or put a career on hold. Adult children may find it difficult to juggle caring for their own families with caring for a parent. Caregivers often suffer stress, burnout and their own health issues. And it’s not uncommon for families to argue or harbor resentments when one person assumes a greater portion of the care-giving duties. Also, most people want to stay in their homes as long as possible in retirement, so they probably aren’t willing to think about giving up their independence by moving in with one of their children or going to a nursing home or assisted living facility.
3. Explain how people pay for long-term care services. Many people think they have sufficient assets to pay for the services they need. But they probably haven’t thought about having to liquidate those assets. They may find themselves dipping into savings or 401(k) accounts, cashing in stocks or selling assets, maybe even their home. Others believe the government will take care of their long-term care needs. But that’s only partially true. Medicare provides coverage for a short time – just long enough to help people get back on their feet after an accident or illness. Medicaid is a program of last resort for people of limited means. So if your clients have assets to protect, spending them down to the level required to qualify for Medicaid probably isn’t an effective strategy.
4. Show them why long-term care insurance is a better solution. There are a lot of advantages to owning a policy. It helps people pay the bills for long-term care services. It prevents them from burdening family members with the responsibility of caregiving. It allows them to protect a portion of the assets they’d set aside for retirement. And it gives them peace of mind knowing they have a plan in place should the need for long-term care arise this could help in firming up your retirement plans.
This article 4 Ways to Keep Retirement Plans Afloat Afloat is provided by Tim Jacquet, an advisor with Mutual of Omaha in Arlington, Texas. You can call at 281-780-1728 or check out Mutual of Omaha page at http://www.mutualofomaha.com/agent/timothyjacquet
