Dear Paula,

I was talking to a friend recently while playing a round of golf and he mentioned something that got me thinking.  He was explaining how his mother sold her home to continue paying for her services at the Assisted Living Facility.  I am glad he brought this up because it led me to consider what long-term care might look like for me and my wife in our later years.

For some perspective on our situation, we are both in our early 50's, no children, and earn approximately $400k each year between the both of us.  Combined, we have around $3,500,000 in our retirement accounts and $1,600,000 in taxable accounts.  We plan on retiring in our mid-60's.  With all that being said, what options do we have to pay for long-term care later in our lives should the need arise?

Thank you,

Tim

Hi Tim,

While we all hope to live independently for years into retirement, chances are we will need help with such basic activities like eating, bathing or walking.  That long-term care need should be accounted for in your retirement planning.  Typically two-thirds of Americans will require long-term care at some point in their lives, it’s increasingly expensive, and it’s largely not covered by Medicare.

There are six strategies outlined in the "How to Pay for Long-Term Care" article above in Advanced Planning Thought Leadership section I believe you will find beneficial.  

I'm always available to chat about which options may be the best alternative for your specific situation.

Warm Regards,
Paula

Paula R Chesser, CSA
Sr Vice President & Sr Investment Consultant
pchesser@rwbaird.com

Mary Ellen Polosky

Client Assistant

mpolosky@rwbaird.com