One Million Dollars Might Not Be Enough!

Dr. Evil in New Line Cinema's Austin Powers, International Man of Mystery, wanted to hold the world ransom for one million dollars. That is a lot of money for most people, but perhaps Dr. Evil should have asked for more money, especially if he was planning retirement. 

Many people hope to save that or more in their retirement accounts to enjoy a successful future retirement, although probably not by extorting the world. The problem is it may not be enough, especially if you require long-term care services and supports.

Given inflation and the higher cost of long-term health care in the decades ahead, you may need a lot of money to pay for quality caregivers. Too often, people fail to consider the financial costs and related burdens that long-term care places on their family and assets. 

$1,000,000.00 seems very impressive, but consider the hurdles that could make your million bucks look like an old ten-dollar bill.

 $1 Million Not as Impressive Any More

What can you get for one million dollars? If you invest the money and earn 4%, you'll get $40,000 a year in income. You should add social security, so give yourself another $17,000 for extra income. That will provide you with $57,000 annually to retire on without touching your savings.

A recent article explains that three big things will throw a wrench in your future retirement plan:

1. Your basic expenses might mostly stay the same or even go up. Sure, you might think you will cut your expenses once you retire, but not only is that a hard thing to do for many people, your cost of living might increase even if you cut back. 
2. Your health care costs could skyrocket. This is a problem as too many people think their health will never change. Longevity means you will get old. Your health will decline, your body will decline, and many people will suffer from some type of dementia. When you get old, you need long-term health care. People need long-term care due to illnesses, accidents, or just the impact of aging. Did you know that the US Department of Health and Human Services says that once you reach the age of 65, your chance of needing long-term care is about 50/50. No matter what the statistic says, common sense tells us far too many people need help at home or in a facility. They don't build all those assisted living facilities and nursing homes for nothing. Most long-term care does start at home, but caregiving is hard on the family, and paid professional care drains savings. Care at home is less expensive than facility care, but the national average cost of care in your home will run you $55,461 a year. Don't forget, if you are still living at home, your cost of living won't change that much, but we just added a substantial unbudgeted expense. As you drain assets, you also lower your income. Ouch!
3. Your Social Security benefits might get slashed. The fact is that Social Security has some significant financial concerns. Too many people live way too long, and fewer people are working. Don't need to be a math major here. While the program won't go bankrupt, they may have to slash benefits in the future.

Look at that million bucks now! Dr. Evil needed to ask for more. Oh, don't forget the impact of future tax increases that may affect who gets elected in the decades to come. Since we are living longer, your money must last longer.

Have You Prepared Family and Finances for Costs and Burdens of Aging?

One of the first steps you can take now is eliminating one of the biggest threats to your future successful retirement. Long-Term Care Insurance will safeguard income and assets from your future long-term health care costs. 

Don't wait until you are old and need care, as you will not be eligible for a policy. The best time is to act is in your 40s or 50s before your retirement when you still enjoy good health. Plus, premiums are based on the total amount of benefits you purchase and your AGE and HEALTH at the time of application. In some cases, family history can impact cost and underwriting.

Start Planning Early

Premiums are much more affordable in your 40s and 50s, but you may still be able to find affordable coverage at older ages. Be sure to speak with a qualified Long-Term Care Insurance specialist so they can find available coverage based on your age and health. 

A qualified, licensed Long-Term Care specialist can design an affordable plan based on your age, health, family history, and budget. Even small plans can give you significant asset protection, in addition to reducing the stress and burden otherwise placed on your loved ones.

One of the biggest retirement planning secrets available in most states is the Long-Term Care Insurance Partnership Program. These unique plans provide you with dollar-for-dollar asset protection. No matter if you have $200,000 or $2,000,000, you better investigate your options. 

 Use LTC NEWS Tools for Research

Start your research by finding the current and future cost of long-term care services in your area. Plus, you can discover the availability of partnership plans and tax incentives available where you live. The LTC NEWS Cost of Care Calculator will show you the current and future cost of care services where you live. Just click here for the calculator. 

So go ahead, say out loud, "one million dollars." Now safeguard your money, no matter what amount you have, and enjoy peace of mind. You will enjoy access to your choice of quality care at home or in a facility. Your loved ones will have time to be family instead of caregivers.