Can You Afford to Live into your Hundreds?


Did you know that the average American’s life expectancy is now 78-years-old and that figure will likely continue to grow higher year after year? Did you also know that the U.S. Department of Health and Human Services estimates that 70% of people over age 65 can expect to need long-term care services at some point in their lives?  It may seem like a sobering statistic, but there are plenty of things you can do now to prepare for those future years. Here at Tobias Financial Advisors, one of our key tenets is to plan ahead. Planning for long-term care does not need to be overly stressful or overly problematic. With a few key steps you can be well on your way to providing for your long term care needs. Below you will find our key tips to understanding long-term care services and what options you will want to consider as retirement approaches.

Do Your Research

Even if you do not see long term care in your near future, it is a good idea to start your research early. The first place to start is by examining your current retirement plan. Are you setting aside the right amount of money to cover more than just your basic needs as you reach retirement? Have you sat down with a financial planner to discuss options for maximizing your current investments so they can be a benefit to you down the road? When you’re conducting the necessary research, it’s important to keep in mind that while you may end up spending some money preparing for the future, that benefit is likely to outweigh the cost when you consider the difference that quality long-term care can make. It’s also important to remember that Social Security benefits will likely not be enough to cover your long-term care needs. Research other options available and ask your financial advisor for help in creating a plan that works for your situation.

Long Term Care Insurance

You can obtain long term care insurance and it may make sense to consider this additional insurance if your family has a history of certain conditions like Alzheimer’s. We recommend that you start researching long term care insurance when you reach your 50s, and do a personal assessment of your family’s medical history to see if it makes sense for you. Long term care insurance can help cover things that Medicare will not, but in order to find out what your particular policy will cover it’s important to check with your insurance provider. Deciding to self insure is a great way to guarantee that you receive the coverage you need, but it can be expensive, so there is no “one size fits all” when it comes to making that decision. Do your research and discuss it with your personal financial advisor to see if it is the right decision for you.   

Plan Early

We at Tobias Financial believe it is never too early to plan for your future. That being said, the ideal time to start preparing for potential long-term care is by the time you reach your late forties or early fifties. If you’re already past that stage it’s important to remember that while it’s never too early, it’s also never too late to start putting money aside and making arrangements for the future. The best way to move forward is to discuss your current plan with a financial advisor who can help you fine-tune your finances for success and help you afford the best care possible when you reach those golden years of retirement.  

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