Here’s an eye-opening stat from a recent pair of Journal of Financial Planning articles about long-term supports and services (LTSS). Both were co-authored by Grand Wealth Management Principal Steve Starnes, MBA, CFP® and Tom West, CLU®, ChFC®, AIF®:
“The largest payer of LTSS costs is out-of-pocket spending from household financial resources, according to 2012 data reported by the National Health Policy Forum.”
In other words, when spending happens on long-term care and related services, you will likely have to cover the cost.
LTSS planning isn’t just about preparing for rare, catastrophic events. It includes planning for the types of common challenges that eventually impact almost every family’s life, including their activities of daily living. What is your financial planner’s role in helping you preparing for LTSS needs? Who else should be on your fiduciary “team” (such as healthcare, financial, risk management and legal professionals)? What are optimal, tax-friendly strategies for tapping into savings, investments, benefits and debt to fund LTSS costs when they arise?
As Steve and his co-author observe, “A plan of action fails if there is no action.” One simple, but important action you can take today is to read the rest of their insights in these two articles: