Not Having this Could Destroy Your Retirement

Combatting Myths About Long-term Care

Picture this: you’ve worked hard for decades in a demanding industry and now it’s time to transition into the next phase of life – retirement. You have a few vacation spots picked out. Your company retirement party was last week. Now you find yourself excited, but anxious about what life will be like when you no longer have to set your alarm clock. More importantly, you've saved well and built a healthy nest egg – life is good.

Assets alone may not be enough to ensure a comfortable retirement. It’s been my experience working with clients over the years that many don’t have a tangible plan for long-term care. Below, I share common misconceptions about long-term care. 

Myth 1: My health or disability insurance will cover long-term care. 

Many people incorrectly believe “other health insurance” will pay for their long-term care. The truth is surprising: long-term care is NOT covered by other kinds of insurance including your HMO, health or long-term disability insurance. Only long-term care insurance, typically purchased on your own, covers day-to-day personal care assistance when you are unable to perform everyday activities like bathing and dressing.

Myth 2: Medicare or Medicaid will cover long-term care.

Most people incorrectly believe Medicare will pay for long-term care services. In reality, Medicare does not generally cover long-term care. Medicare pays for skilled care in a nursing home only for short periods when you are recuperating following a hospital stay for a related condition. Once your care needs stabilize and you need personal or custodial care, Medicare will not pay these costs. Medicare will only pay for care at home under very limited circumstances. Medicaid pays for long-term care only for people with very low assets and limited income.

I’ve met with many people who have had to care for a loved one, either by physically moving them into their home or financially subsidizing some of their living expenses. It can be a real challenge for family to work through. Understand that nobody wants to be a financial strain on their loved ones. Consider your personal situation with your CERTIFIED FINANCIAL PLANNER™ professional and, if necessary, take action to help secure retirement.

Long-term care policies have exclusions and/or limitations. The cost and availability of long-term care insurance depends on factors such as age, health, and the type and amount of insurance purchased. As with most financial decisions, there are expenses associated with the purchase of long-term care insurance. 

The information contained in this report does not purport to be a complete description of the securities, markets, or developments referred to in this material. The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any information is not a complete summary or statement of all available data necessary for making an investment decision and does not constitute a recommendation. Any opinions are those of Steven J. Dawson and not necessarily those of Raymond James. There is no guarantee that these statements, opinions, or forecasts provided herein will prove to be correct. 

Securities offered through Raymond James Financial Services, Inc., member FINRA/SIPC. Investment Advisory services offered through Raymond James Financial Services Advisors, Inc. and First Choice Financial Planning, LLC. Dawson Private Wealth is not a registered broker/dealer and is independent of Raymond James Financial Services, Inc.

Certified Financial Planner Board of Standards, Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP® (with plaque design), and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete the CFP Board’s initial and ongoing certification requirements.

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Steven Dawson is an Allen resident, a CFP® certificant, educator, national speaker and president of Dawson Private Wealth. Dawson Private Wealth, 333 E. Bethany, I-120, Allen, TX 75002 (469) 795-923

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