Financial risks of long-term care
One of the risks I often see clients ignore is the financial risks caused by long-term care. The reason is obvious. This is one unpleasant and costly risk to deal with. It seems when clients have
had family members go through these circumstances, they are more acutely aware of the potential costs and challenges, as well as the desire to be sure they plan for their own needs in a manner that fits their wishes.
There are limited solutions to this problem, but there are various possibilities. First, insurance can provide a means of at least mitigating these costs. There are multiple kinds of insurance products now, but admittedly these have cost. The cost is less than paying out of pocket, but it’s not small. The alternative is trying to give assets away to heirs or an irrevocable trust, but these have the drawback of limiting one’s access to the funds involved. However clients decide to deal with these risks, some plan is much better than no plan.
--J. Christopher Boyd, Asset Management Resources, LLC, Hyannis, Mass., 02601, 508-771-8900
Michael McCloskey
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- The most common financial planning mistakes
- Running from risk
- Putting the cart before the horse
- Save more for retirement
- Watching too much business TV
- Not planning for business continuity
- Financial risks of long-term care
- Staying out of the markets
- Lying to yourself
- Too much money in one place
- Women not taking part in financial planning
- Not keeping enough in cash reserves
- Owning assets jointly with children
- Being emotionally attached
- Not updating beneficiary designations
- Lack of early planning
