Why Objective Financial Advice Is So Important

Over the years, I've had hundreds of people call me needing help with long-term care planning. My advice has always been the same: LTC Planning is an integral component of financial planning. Because of that, a person should seek advice from an objective financial advisor about how to plan for long-term care. The response is usually: "I'm not sure if my advisor is objective." Or, "I don't have an advisor, how do I go about finding an Objective Financial Advisor?"

One particular caller was a widow. She was only 49 and had 3 young children. Her phone rang off the hook after she received a multi-million dollar settlement for her husband's accident at work. People calling themselves financial advisors had sold her all types of financial products, including large life insurance policies on her young children. I immediately referred her to an Objective Advisor, who helped her get out of the mess she was in, including cancelling that life insurance on her kids!

Getting objective financial advice is important because the thousands of dollars you might spend on financial products you don't need can mean the difference between a carefree retirement and a retirement made up of daily struggle. 

Why Objective Financial Advice Is So Important

Over the years, I've had hundreds of people call me needing help with long-term care planning. My advice has always been the same: LTC Planning is an integral component of financial planning. Because of that, a person should seek advice from an objective financial advisor about how to plan for long-term care. The response is usually: "I'm not sure if my advisor is objective." Or, "I don't have an advisor, how do I go about finding an Objective Financial Advisor?"

One particular caller was a widow. She was only 49 and had 3 young children. Her phone rang off the hook after she received a multi-million dollar settlement for her husband's accident at work. People calling themselves financial advisors had sold her all types of financial products, including large life insurance policies on her young children. I immediately referred her to an Objective Advisor, who helped her get out of the mess she was in, including cancelling that life insurance on her kids!

Getting objective financial advice is important because the thousands of dollars you might spend on financial products you don't need can mean the difference between a carefree retirement and a retirement made up of daily struggle. 

Friday Afternoon Chuckle- Here's One Way to Stay Younger!

Family Caregivers: The Physical and Emotional Burdens

Before you automatically raise your hand and say "I'll take care of my spouse (mother, father, aunt, etc)," make sure you realize what you're getting yourself into. Unless they've done it before, most people can't even imagine the physical and emotional exhaustion experienced by a caregiver trying to care for a full size adult- in some cases one who is twice the size of the caregiver.

Answer these questions truthfully to determine if you would realisticcally be able to take on the role of caregiver:

• Will I be able to help them transfer in and out of bed? On and off the toilet?
• Will I be able to roll them over in bed to change clothing ad bedding?
• Will I be able to help them bathe or shower?
• Will I be able to get them dressed and undressed?
• Will I feel comfortable providing personal care and hygiene for them?

When Do People Need Long-Term Care?

Although we normally think of long-term care as a concern reserved for the elderly, the need for long-term care can arise at any age. Most of us are aware of younger people who have needed care, usually due to an accident or a disabling illness.

Middle-aged people can also suddenly lose the ability to care for themselves. In midlife, a need for long-term care usually results from conditions like heart disease or stroke. Mental health conditions also become more prevalent during middle age.

But the reality is that the odds of needing long-term care and the duration of the need for long-term care services begin to increase drastically as we age. The vast majority of people needing care for five years or longer fall into the 60 and older age group.

The most dramatic leap in the need for long-term care comes in the over-85 age group. Almost half of all people over 85 require some form of care, either at home or in a facility. Long-term care is a serious societal issue because this age group is the fastest growing segment of the American population. The over-85 age group will triple as a percentage of the population by 2050.

Long-Term Care Insurance and Your Personal Tolerance for Risk

Your personal tolerance for risk is an important psychological consideration when determining whether or not to purchase LTC insurance.  Some people have a tolerance for financial risk, while others believe in a conservative approach and would prefer to transfer the risk to an insurance company.

People who have covered their other high-priority risks with insurance usually have a low tolerance for the financial risk of long-term care. Their philosophy is to maintain as much financial control as possible and to plan ahead for long-term care insurance.

To help you better understand your personal tolerance for risk, ask yourself these questions:

• Have I consistently insured my family and myself for the proper types and amounts of insurance coverage, such as health, disability, and life insurance?
• If I have, do I tend to transfer the entire risk to the insurance company, or am I comfortable taking on some of the risk myself? In other words, should I consider coinsuring the long-term care risk?