Linda Jensen discusses how Long-Term Care expense impacts retirement.
Listen to the interview on the Business Innovators Radio Network:
In this podcast, Linda has outlined the risks of retirement:
- Longevity. Half of us are living until 92, and 25% of us until 97. Retirement can be 25, 30 years or more.
- The stock market. Most retirees believe they took a lot of risks while working and accumulating their nest egg. When facing retirement, for the most part, they want to protect their hard-earned savings. Safe money strategies can be an important part of retirement planning.
- A sequence of Returns is the risk of taking funds out of savings when the market is dropping. This risk can be devastating.
- Taxes can be the biggest expense a retiree can face, especially when most of their savings are in pre-tax IRA’s.
- A long-term care event can be financially devastating. Seventy percent of women and little more than half of men experience a long-term care event.
- For married couples, when the first spouse passes away, the taxes for the surviving spouse will increase because the standard deduction is nearly cut in half. Income will decrease because the surviving spouse can only keep the higher Social Security benefit. Most pensioners don’t provide a 100% survivor benefit.
Long-Term Care expenses can quickly deplete retirement savings. This is especially true for seniors who live longer and require more ongoing medical intervention. While many people plan for life in retirement, they don’t adequately budget for the potential cost of long-term care services that could be needed down the road. Long-term care costs vary depending on a person’s needs but may include home health aides, assisted living facilities, or nursing homes.
Linda explained: “It’s important to understand how much someone will need to set aside to cover those expenses should they ever need them. It’s best to start by researching average costs in their area and then create a strategy to save what they need over time so that it will be ready when necessary. Additionally, it’s important to consider additional sources of income and government programs that can help offset long-term care expenses. Ultimately, planning for potential long-term care needs will ensure people have the funds available to cover any necessary services and maintain their quality of life in retirement.”
By planning ahead for Long-Term Care expenses, people can ensure that unexpected healthcare costs do not deplete their retirement savings. This will give them peace of mind knowing that no matter what happens down the road, they will have enough money to cover all their needs comfortably.
Additionally, it’s wise to consider purchasing a long-term care insurance policy as part of a retirement planning strategy. With this type of policy, people can be reimbursed for the costs of care up to a certain amount, depending on their policy’s coverage. These policies can help them pay for long-term care services and give them more control over how they are paid for and when.
Linda added: “Long-Term Care expenses can be a significant burden in retirement if not adequately planned for in advance. That’s why it’s important to educate yourself on potential costs and save enough money now so that you won’t have to worry about them down the road. With the right planning, you can rest assured that your future is secure no matter what life brings.”
About Linda Jensen
Linda has been self-employed for her entire life. A successful financial advisor since 1994, she has enjoyed all aspects of entrepreneurship, especially problem-solving, sizing up dilemmas, and working through complexities with creative solutions. She is a lifelong learner. In addition, she has a passion for establishing a good rapport with business owners and clients helping them access a wide range of resources. “Business owners are in a lonely place,” says Linda. “I want to develop a relationship with the business owner, offer counseling and serve as a referral service.” Linda began her career in 1994 with Prudential Preferred Financial Services; for three years Linda was an agency leader in Tacoma, Washington.
Since starting her own firm in 1997, Linda has enjoyed working with individuals and business owners helping them achieve their financial dreams and goals. She is an expert in all aspects of retirement planning.
Linda has lectured widely on financial topics to both the general public and business professionals. She is passionate about helping business owners leverage corporate cash to create benefits for the owner(s), and key employee(s) and to identify estate-planning solutions.
Linda calls the Pacific Northwest home. She married her college sweetheart. She and her husband Brad have two children and five grandchildren. Linda loves learning, reading, hiking, sewing, and cooking.
Learn More: https://www.heartfinancialgroup.com/
Investment advisory services are offered through WealthWatch Advisors, an SEC-registered investment advisor. WealthWatch Advisors and Heart Financial Group are independent of one another. Please note that registration with the SEC does not guarantee the success of investment advice.
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