This topic is not comfortable for everyone to talk about but planning now can make a world of
difference later. More than a third of long-term care residents are younger than 65 years of
age. This statistic reminds us that we should prepare for the future, and the earlier you start
preparing, the better. Here are some steps you should take to prepare for your golden years.
Draw up a Will
You'll want to decide how your estate gets divided up. If you don't decide while you're alive,
the state will do it for you. That's why it's important to draw up a will. It's estimated that only
40% of Americans have a will or estate plan set up. Not only will you avoid having the state
decide how your estate is divided up, your family will not have to worry as much if you've
given them clear instructions as to what should happen when you die.
Draw up a Living Will
Another issue that the state or your family could decide is how to administer your end-of-life
care. A living will gives directions as to how much medical care you'll receive beforehand. You
might not want to deal with heroic medical care if you've passed 80 years of age. You can let
your family and medical providers know your wishes. Absent such a directive, doctors will
frequently administer expensive and invasive treatments that are not likely to work on elderly
patients.
Buy Life Insurance
As noted above, no one knows when he or she will die. That's why it's important to buy life
insurance. This insurance will provide a death benefit, and it can also build cash value over
time. The presence of cash value associated with life insurance can be a tax-efficient way to
build wealth over time. Additionally, if you die with dependents at home, you'll be able to
provide money to care for them in your absence.
Buy Long-Term Care Insurance
Another option for avoiding major costs in your later years is the purchase of long-term care
insurance. About one in eight Americans will wind up in a nursing home at some point. This
cost can impact even fairly wealthy families. Long-term care insurance can take care of some
of the expense that comes from staying in a nursing home or extended care facility. Medicare
does not pay for long-term care, and these costs can definitely add up over time.
Stay Healthy
Staying healthy can be a good way to increase the likelihood you live to old age and avoid
some of the costs that are common with aging. Maintaining your health will be easier if you
eat well and exercise. Those who take care of themselves are able to stay in their homes
longer and are less likely to die young. Also, because you'll be able to hold off on many of the
health issues that lead to long-term care, more of your nest egg will be available for your
heirs.
Plan now, your spouse or your executor will be happy you took the time to prepare for your
end-of-life details. Additionally, your heirs will be happy you took care of yourself because you
can leave more of your nest egg for them.
Contact us today for help with all your financial planning needs!
This material was created for educational and informational purposes only and is not intended as ERISA, tax, legal or investment advice. If you are seeking investment advice specific to you needs, such advice services must be obtained on your own separate from this educational material.