​For many retirees, long-term care is more than a remote possibility—it’s a very real probability. The U.S. Department of Health and Human Services estimates that retirees have a 70 percent chance of needing long-term care at some point in their lives. Twenty percent of seniors will need care for more than five years.1
 
Long-term care is extended assistance with daily living activities such as eating, bathing and mobility. It could also include household chores like cleaning and meal preparation. Long-term care is often provided in the home or in an assisted living facility.
 
Regardless of where the care is provided, long-term care can be an expensive proposition. It can cost thousands of dollars per month, even if the care is provided in the home. Also, care is often needed for months or even years. It’s easy to see how that kind of expense over a long period of time can be a drain on your savings.
 
Too many seniors fail to plan adequately for long-term care costs. They believe that it won’t happen to them or that they can rely on friends and family for support. They may mistakenly believe that Medicare will cover the cost.
 
Many of these assumptions are born from a misunderstanding of what long-term care is and why it’s needed. Below are descriptions of some of the major health issues that can cause a long-term care need and what kind of care is often required. With a better understanding of the threat, you can implement a plan and a funding strategy.

Why do people need long-term care?
 
Many seniors associate long-term care with cognitive disease such as Alzheimer’s or Parkinson’s. It’s true that cognitive issues are a major cause of long-term care. In fact, Alzheimer’s is the leading cause. However, a wide range of other health problems can lead to a need for long-term care. According to the Society of Actuaries, the following conditions are the leading causes for long-term care:2
 

• Alzheimer’s disease: 25 percent
• Stroke: 9 percent
• Injury: 9 percent
• Circulatory issues: 9 percent
• Cancer: 8 percent
• Nervous system issues: 6 percent
• Respiratory issues: 5 percent

 
Nearly half of all long-term care need is caused by issues other than Alzheimer’s. Even if you never suffer from Alzheimer’s, there’s still a strong likelihood that you will need care. Also, keep in mind that many of these issues are progressive, so it’s possible that you may need more intensive care over time.

What services are provided with long-term care?
 
There’s a common incorrect assumption that Medicare covers all health care costs in retirement, including long-term care. Medicare is a valuable resource, but it doesn’t cover everything. In most instances, long-term care isn’t covered under Medicare protection.
 
Long-term care is often about comfort and lifestyle support. In many instances, there’s no actual medical treatment for a specific medical condition. Medicare may partially cover a stay in a nursing facility as a result of a hospitalization, but it won’t cover ongoing care, especially if the care doesn’t include skilled treatment.
 
Very often, long-term care doesn’t include any skilled treatment. Instead, it includes support for basic daily living activities such as:
 

• Bathing
• Dressing
• Using the restroom
• Mobility
• Incontinence
• Eating

 
If you don’t have a funding strategy in place, you may want to consider long-term care insurance. You pay premiums today for protection in the future. When you need long-term care, the insurer pays some or all of the premiums. Most policies even cover care provided in your own home.

Ready to develop your long-term care strategy? Contact us today at Stoll and Basler Financial Services. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html
2http://www.aaltci.org/news/long-term-care-insurance-news/top-reasons-for-long-term-care-insurance-claim-alzheimers-cancer
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18148 - 2018/10/17
 

​The stock market is in the middle of one of the longest bull markets in history, if not the longest. Going back to March 2009, the S&P 500 has increased more than 320 percent. Although there have been some pullbacks along the way, the markets are nearing their 10th consecutive year of upward movement.1
 
Nothing lasts forever, though. At some point the market will correct, and the prolonged bull market will come to an end. In fact, the end of the bull market may be approaching. On Oct. 10, the Dow Jones Industrial Average (DJIA) dropped more than 800 points. The loss was based on a variety of fears and uncertainties, including rising interest rates, the impact of tariffs and corporate earning challenges.2
 
It’s never wise to try to predict a market downturn or time the market. However, it may be a good time to analyze your strategy and see if it still aligns with your long-term needs. There may be steps you can take to minimize your risk exposure and weather the potential downturn. Below are a few strategies to consider:

Don’t make an emotional decision.
 
It’s natural to become more risk-averse as you near or enter retirement. After all, you worked hard to accumulate your savings. You may need to rely on your savings to generate retirement income. You likely don’t want to see your balance decline because of a market downswing.
 
However, it’s important to remember that you could be retired for several decades. You will need some level of growth to fund your expenses and lifestyle over that long period of time. You also may need to increase your income over time to keep up with inflation and pay for health care expenses.
 
Growth and risk often go hand in hand. Many of the investment vehicles that have no risk exposure also offer little growth potential. Resist the urge to move everything out of the market. Instead, review your long-term plan with your financial professional. You may find that a different allocation may be more suitable or that certain tools could help you minimize your exposure. But don’t make an emotional decision to abandon your strategy.

Cut your spending and save more.
 
Budgeting and spending discipline are always wise strategies. They’re critical during a correction or market downturn. If you’re retired and using your savings to generate income, you may want to reduce your spending and distributions. The combination of withdrawals and market declines can have a significant impact on your assets. You can reduce the damage by limiting your spending.
 
If you’re not retired yet, consider looking at this time as an opportunity to increase your contributions. You could increase your deposits to your 401(k) or IRA and take advantage of reduced asset values. Take a look at your budget and identify areas for cuts.
Explore tools to minimize your risk exposure.
 
Finally, talk to your financial professional and explore tools that can protect your retirement income and minimize risk. For instance, annuities can be used in a variety of ways to limit downside exposure. An annuity with a guaranteed income rider can provide you with a defined stream of cash flow that’s protected for life, regardless of whether the market declines. A fixed deferred annuity can offer predictable interest rates.
 
Ready to protect your retirement from risk? Let’s talk about it. Contact us today at Stoll and Basler Financial Services. We can help you analyze your needs and implement a strategy. Let’s connect soon and start the conversation.
 
1https://www.fool.com/investing/2018/08/29/were-in-the-longest-bull-market-in-history-what-sh.aspx
2https://www.cnbc.com/2018/10/10/why-this-market-selloff-isnt-like-the-correction-earlier-this-year.html

*Guarantees, including optional benefits, are backed by the claims-paying ability of the issuer, and may contain limitations, including surrender charges, which may affect policy values.
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18155 - 2018/10/17