Episode 123: The Importance of Long-Term Care Planning in Retirement with Neal Gordon

In this conversation, Alex, Wade, and Neal discuss the importance of long-term care planning in retirement. They highlight the emotional aspect of planning for long-term care and the challenges of getting people to think about and prepare for it. They also discuss the demographic changes that will impact long-term care, such as the decreasing ratio of family members available to provide care and the potential shortage of caregivers in the future. The conversation touches on the different types of long-term care insurance policies and the need for open and meaningful discussions about healthcare and planning for the future. Neal shares examples of clients who have had personal experiences with long-term care and emphasizes the need for estate planning and power of attorney documents. The conversation then transitions to a discussion about long-term care insurance, with Neal explaining the challenges of traditional policies and the availability of guaranteed policies with reputable insurance companies. These policies address the issues of premium hikes and the 'use it or lose it' nature of traditional policies. The conversation explores different types of hybrid policies, including those built on a whole life or universal life chassis. The benefits of these policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer. The decision-making process for choosing a policy involves considering the individual's needs, net worth, and risk tolerance. Listen now to learn more!

 

Takeaways

• Long-term care planning is a crucial aspect of retirement planning.
• Planning for long-term care involves emotional considerations and difficult discussions.
• Demographic changes, such as a decreasing ratio of family caregivers and potential caregiver shortages, will impact long-term care.
• There are different types of long-term care insurance policies to consider.
• Open and meaningful discussions about healthcare and planning for the future are essential.
• Estate planning and power of attorney documents are essential for ensuring that clients' wishes are carried out and that their loved ones are not burdened with difficult decisions.
• Traditional long-term care insurance policies have had challenges in the past, but there are now guaranteed policies available from reputable insurance companies.
• Inflation riders on long-term care insurance policies are recommended to ensure coverage against future costs.
• Hybrid long-term care insurance policies address the issues of premium hikes and the 'use it or lose it' nature of traditional policies.
• Different types of hybrid policies include those built on a whole life or universal life chassis.
• Benefits of hybrid policies include leverage, tax-free long-term care benefits, protection against sequence of returns, and potential wealth transfer.
• The decision-making process for choosing a policy involves considering the individual's needs, net worth, and risk tolerance.

Chapters

1. Introduction and Guest Introduction
2. Setting the Stage for the Discussion
3. Demographic Changes and the Impact on Long-Term Care
4. Exploring Different Types of Long-Term Care Insurance Policies
5. The Need for Open and Meaningful Discussions about Healthcare and Planning
6. Bringing up the Conversation about Long-Term Care
7. The Importance of Estate Planning and Power of Attorney
8. Challenges with Traditional Long-Term Care Insurance
9. Guaranteed Policies: A Better Option for Long-Term Care Insurance
10. Introduction to Hybrid Long-Term Care Insurance Policies
11. Benefits of Hybrid Policies
12. Hybrid Policies with Index Investing
13. Investment Growth and Return of Premium in Hybrid Policies
14. Hybrid Policies vs. Annuity Products
15. Hybrid Policies with Lifetime Benefits
16. Choosing the Right Hybrid Policy

Links

Register for the webinar with Retirement Researcher and Kenneth French! ‘Five Things I Know About Investing’ Wed 4/24 at 2 EST www.risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips