May 29, 2025 • 27 mins
#SafeMoney #JonHeischmanSr #LongTermCare
In this new episode, host Jon Heischman, Senior discusses how long-term care effects your retirement planning.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information.
In this new episode, host Jon Heischman, Senior discusses how long-term care effects your retirement planning.
Call Jon at (888) 426-0177 with questions, comments or to get a free copy of Top 10 IRA Mistakes and How to Avoid Tax Traps. Visit www.heischmanfs.com/ for additional information.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many
folks over a million dollars.
Speaker 3 (00:14):
He is no short thing in investing, but a lot
of people think that annuities may come close to that.
It's going to more safe, safe, safe, safe things that
they know.
Speaker 4 (00:22):
If they know they're going to need that money to
supplement the retirement, well then you can't play that rest.
Speaker 3 (00:27):
This is the Safe Money and Retirement Show. But John
Heischman Senior, Founder and partner of Heisman Financial Services serving
the Columbus and surrounding areas. John specializes in educating pre
retirees and retirees about safe money strategies and ideas. Now
it's the Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 2 (00:48):
Welcome to the Safe Money and Retirement Show. Good morning
to all my listeners. This is John Heischman. I always
like to hear from my whether it's to schedule a
meeting or they just have questions about retirement planning. The
(01:09):
number is eight eight eight four to two six zero
one seven seven once again triple eight four to two
six zero one seventy seven. And maybe there's a topic
that you would like me to present. Just let me
(01:31):
know and I'd be happy to do a show based
on your request. Part of retirement planning that needs to
be addressed if you're going to have a complete plan
is the cost of long term care services and supports.
(01:54):
That shapes your retirement readiness. If you you omit the
long term care part of your planning, it very well
could distort the outcome of retirement projections. This is a
topic that people retirees, they just don't want to think about,
(02:21):
and it might be one of the reasons that they
don't plan for long term care. I don't like to
think about it. I don't think it will happen to me,
and many others feel the same way. But we all
have to face the facts. The population of our country,
(02:42):
it's aging. The number of Americans age sixty five and
older is projected to surge from fifty six point one
million in twenty twenty two eighty point eight million in
twenty forty. As the population of older Americans grows, the
(03:08):
demand for long term care services and supports a broad
range of services to assist individuals who have trouble with
activities of daily living is going to certainly increase For
many retirees. Long term care services might be the most
(03:32):
significant risk to retirement income adequacy. The recent study from
morning Star Model of US retirement outcomes calculate the percentage
of households simulated to run short of money in retirement
(03:55):
under two scenarios, one that includes long term care cost
and a counterfactual where long term care costs are excluded.
The results are striking. When long term care costs are
not included, forty one percent of households are projected to
(04:19):
run short of money in retirement, compared with just twenty
six percent when those costs are included. It's a pretty
clear picture because ignoring long term care presents an overly
hopeful view of retirement readiness when in fact, in reality,
(04:44):
these costs could and more than likely pose a major
financial risk, one that we should not ignore. And when
I say it shouldn't be ignored, I'm referring to the
retiree and the advisor and retirement planners. More needs to
(05:10):
be done to emphasize the importance of the cost involved
for long term care, especially if there is a spouse.
Almost half of the baby boomers will need some form
of long term care in retirement. Now, this might seem
(05:34):
like a high number, but these estimates are comparable to
a lot of other studies. For example, a study by
the Urban Institute found that forty eight percent of adults
surviving to age sixty five they're going to need some
(05:57):
form of paid law long term care. Couple that with longevity,
which we're seen today. The longer a retiree lives, the
more need for long term care is present. I think
most of my listeners are aware or have heard in
(06:21):
some form or fashion about the longevity risk. Simply because
of longevity, people are living longer. Incomes in retirement are
adjusted or should be adjusted for longevity. Therefore, longjevity creates
(06:42):
the need for long term care. So I'll give you
some percentages of baby boomers with long term care needs
in retirement age seventy five, about twenty four percent for males,
twenty five seven percent for females. As retirees age at
(07:06):
eighty five, it jumps to forty percent for males and
forty five percent for females at ninety forty six, almost
forty seven percent for males, fifty two percent for females,
and at ninety five, pretty much more than doubles than
(07:28):
it did at age seventy five. Those numbers are fifty
two percent for males sixty percent for females. Due to
the fact that females live longer based on mortality tables,
females have a greater need for long term care. So again,
(07:52):
the longevity risk and long term care cost risk, they're interconnected,
so retirees have to consider both together rather than thinking
just about the risk of outliving your money. And by
(08:12):
the way, I have a lot of information on the
effects of long term care, the importance of long term care,
which I can have sent to you. I don't charge
for this, and you're not under any obligation whatsoever. So
(08:32):
if you're thinking you'd like some more information, the number
is eight eight eight four to two six zero one
seven seven triple eight four two six zero one seventy seven.
Now you may be thinking as I present the importance
(08:54):
of long term care to you, Okay, John, I realize
the important but there are two concerns the cost and
what if I don't use the long term care benefits.
I've paid this exorbitant premium for fifteen or twenty years
(09:18):
and I didn't have to use it. You know, years ago,
when I first started in practice, they used to have
a long term care policy that would refund your premiums
if you didn't use it, or a portion of your premiums.
The longer you had it, more of a percentage was
(09:39):
refunded back. Unfortunately, those contracts are not available today because
companies were losing money paying out more in benefits than
premium payments coming in. And back then there were a
lot of companies right long term care, and today there's
(10:03):
a small group that write long term care insurance. And again,
if you've looked into the premium, you know how expensive
it is, so we need to look at alternatives. Today,
more people are considering the alternatives how to preserve their assets,
(10:30):
their retirement accounts so they don't get wiped out by
the cost of long term care. And I'm going to
discuss those options a possible solution for your long term
care needs after the break. In the meantime, I'd like
(10:51):
for you to think about your situation. What you have
in assets for retirement savings, all the money that you
have designated for retirement over the next twenty twenty five
years or so, and how that would affect your retirement
(11:15):
income if you had to dip in to those accounts
to cover the cost. Many times it's unexpected. It could
be from an accident, a stroke, heart problems, or a
number of other things that's happened, especially as we get
(11:35):
older and there's going to be a high cost for care.
Let me give you my number one more time before
the break eight eight eight four two six zero one
seventy seven eight eight eight four to two six zero
one seventy seven. Stay tuned. I'm going to go over
(12:00):
some ideas solutions for your long term care needs. They
have worked for my clients and their retirement planning. Stay tuned.
I'll be right back.
Speaker 1 (12:17):
Avoiding mistakes can save owners of iras four oh one
KS and TSP plans, as well as other retirement plans,
a fortune and taxes.
Speaker 5 (12:33):
Penalties, fees, and loads. These potential mistakes are addressed in
the free book entitled Top ten IRA Mistakes. This is
John Heischmann from The Safe Money and Retirement Show offering
a complimentary copy by calling eight eight eight four two
(12:56):
six zero one seven seven that's triple eight four two
six zero one seven seven.
Speaker 4 (13:16):
Welcome back to the Safe Money and Retirement Show with
John Heischman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heisman.
Speaker 2 (13:33):
Welcome back to the Safe Money and Retirement Show. I
was discussing long term care and how the cost can
wreck a retirement plan if you're not prepared for the
cost and it continues to increase and will continue in
(13:57):
the future. In the Columbus area central Ohio, a nursing home,
depending on where you go, could range from six to
eight thousand dollars per month. Now, there are those, and
I have clients that can afford to pay that because
(14:21):
of the amount of money they have on and above
their retirement income accounts. But that's a rarity that's not
your average retiree. The average retiree and the majority of
retirees are the ones that need a plan, a solution
(14:45):
to the problem. I want to talk about some ways
to solve this problem that have helped my clients and
have solved their long term care problem or at least
partially solved their problem. But before I get started, I
(15:07):
don't want to forget that I wanted to mention one
of the books that I sponsor, the ten Biggest IRA Mistakes,
How to Solve Them and also goes into detail covering
taxes and retirement. So order yours along with the long
(15:28):
term care brochures information that I have available for you
eight eight eight four to two six zero one seven
seven triple eight four to two six zero one seventy seven.
All right, here's some ideas that again have worked for
(15:52):
my clients, and I have seen benefits paid to them
for those that need did long term care, so I
know it works. It's been very helpful and the retirement
income has been able to continue for the client and
(16:15):
or spouse. As I mentioned in the first segment, a
long term care policy is expensive. Obviously, the younger you
purchase a long term care policy, the lower the cost,
but it's not unusual to see a monthly premium of five, six,
(16:42):
eight hundred dollars a month or more for an individual.
This is an actual policy from an insurance company. If
you don't use the benefit or have a claim, the
premium dollar that you paid for this policy is just
(17:04):
like your homeowners or automobile insurance premiums. If you don't
have a claim, your premiums are not refunded. The policy
is protecting your assets your retirement income. Companies over the
years have put together a policy that covers a couple
(17:29):
all in one policy. They'll give you an amount, let's
say five hundred thousand dollars. It's available for each couple
at any time. But once the policy amount in this
case of five hundred thousand has been used up, the
(17:51):
contract is gone. It's terminated because there are no more benefits.
I've seen the cost reduce by using this concept. It's
more popular today than buying your own individual policy. How
(18:12):
can this policy be funded? It can be built in
to your budget. Once a year. You can take the
annual premium out of savings. Another idea, I have a
lot of clients that receive required minimum distributions from their
(18:33):
IRA accounts. They don't need these rmds, so their annual
premium for their long term care policy comes due right
after they receive their required minimum distributions. They use that
to pay the premium. It can be done on an
(18:56):
annual basis, semi annual basis, corely or monthly. Once again,
that retiree has to be in a situation where they
don't need their required minimum distributions. Good funding method or
possibly a withdrawal from a non qualified annuity that's doing
(19:23):
well giving an average rate return. And in a lot
of cases I've seen where the growth is being used
to pay the long term care premium. Today, short term
care is very popular. The benefits are cut, for example,
(19:43):
maybe there's a two year benefit or three year, and
the policy premium is much lower than a long term
care policy. You still have coverage, but it's short. The
emphasis is on home healthcare. We would all prefer to
(20:07):
stay at home if we had a long term care claim.
So again the emphasis is on home care and it's
much more affordable. Medicaid can step in and cover your
cost only if you've exhausted all of your assets, which
(20:30):
I do have clients that have transferred assets into an
irrevocable trust spend down so they can qualify for Medicaid
payments to cover their long term care cost. One problem
is it has a five year look back period, so
(20:52):
if there's a claim that irrevocable trust had to have
been in force for five years or longer. I bring
in an elder law attorney to assist with the documents
and the trust. I think one of the most popular
(21:13):
today and many of my clients have this concept where
they will have an annuity or life insurance that has
a writer attached that will pay double. For example, there's
(21:34):
different percentages towards long term care. Very simply, you have
a tax deferred annuity for one hundred thousand, there could
be included two hundred thousand worth of long term care.
The neat thing about this there is no premium, so
(21:57):
one hundred thousand is deposited in who an annuity and
the annuity is issued with long term care, so we
have growth, tax deferral and long term care benefits if needed.
And if long term care benefits aren't needed, the assets
(22:19):
of the annuity principle and interest is available, paid out
to a beneficiary or used as supplemental retirement income in
the future. Life insurance works the same way. Attach a
long term care writer. You've got the growth a tax
(22:45):
free death benefit in the event the long term care
benefits are not needed. Another option is a combination of
the strategies I just gave you. For example, a short
term care, home health care policy, premiums paid by other
(23:09):
assets required minimum distribution so it doesn't increase your out
of pocket cost. Supplement that with a tax deferred annuity
and self fund any shortage. What I try and do
is minimize the cost. How can you get long term
(23:32):
care coverage at the lowest cost by using different strategies
that I'm giving you a combination of all or some,
And so many retirees or pre retirees are not aware
of these different strategies and how you can take two
(23:57):
or three and put them together in the interest of
the lowest possible cost to set up a long term
care plan for you. Everyone's different, everyone has different amounts
of assets, so it has to be personalized for you
(24:19):
in your best interest and cost. It's worked for my
clients and those that will become clients of mine in
the future. Hopefully I've given you some good ideas to
solve the long term care risk. The longevity risk and
long term care risk go hand in hand, and I
(24:43):
have to put those at the top of all the
retirement risk that each retiree is going to face. We've
all seen situations where a parent, family member, or friend
has had to suffer the cost of long term care,
and we want to prevent that. And if you haven't
(25:07):
addressed in some form your long term care needs, I
don't think your retirement plan is complete. I'd like your feedback,
your questions, or to hear about your problems with your
long term care hasn't been addressed. Chances are it hasn't.
(25:28):
That's why I'm here to see if the problem can
be solved in some way, giving you the ideas that
are available. I appreciate you taking the time this morning
to listen to the Safe Money and Retirement Show. Here's
my number again before I close, eight eight eight four
(25:52):
to two six zero one seven seven. That number again,
eight eight four two six zero one seven seven. I'm
John Heischman, your host. Thank you for tuning in to
my show this morning. Be sure and tune in next
(26:13):
week where I'll bring you some more ideas that will
help with your retirement planning.
Speaker 3 (26:21):
The Safe Money and Retirement Joe John Heisman Senior. To
get in touch with John, call one AA eight four
two six zero one seven seven. That's one triple eight
four two six zero one seven seven. For more information
about Heisman Financial Services, visit their website. Heisman fs dot com.
(26:42):
That's h E I S C h m A n
f S dot com. Join us again next time for
the Safe Money and Retirement Joe with John Heisman Senior
People really don't know what their expenses will because they
don't know how long that they're going to live.
Speaker 2 (00:06):
The Americans are worried they won't have enough safe for retirement.
Now more than ever, retirement's going to cost for many
folks over a million dollars.
Speaker 3 (00:14):
He is no short thing in investing, but a lot
of people think that annuities may come close to that.
It's going to more safe, safe, safe, safe things that
they know.
Speaker 4 (00:22):
If they know they're going to need that money to
supplement the retirement, well then you can't play that rest.
Speaker 3 (00:27):
This is the Safe Money and Retirement Show. But John
Heischman Senior, Founder and partner of Heisman Financial Services serving
the Columbus and surrounding areas. John specializes in educating pre
retirees and retirees about safe money strategies and ideas. Now
it's the Safe Money and Retirement Show. Here's John Heischman, Senior.
Speaker 2 (00:48):
Welcome to the Safe Money and Retirement Show. Good morning
to all my listeners. This is John Heischman. I always
like to hear from my whether it's to schedule a
meeting or they just have questions about retirement planning. The
(01:09):
number is eight eight eight four to two six zero
one seven seven once again triple eight four to two
six zero one seventy seven. And maybe there's a topic
that you would like me to present. Just let me
(01:31):
know and I'd be happy to do a show based
on your request. Part of retirement planning that needs to
be addressed if you're going to have a complete plan
is the cost of long term care services and supports.
(01:54):
That shapes your retirement readiness. If you you omit the
long term care part of your planning, it very well
could distort the outcome of retirement projections. This is a
topic that people retirees, they just don't want to think about,
(02:21):
and it might be one of the reasons that they
don't plan for long term care. I don't like to
think about it. I don't think it will happen to me,
and many others feel the same way. But we all
have to face the facts. The population of our country,
(02:42):
it's aging. The number of Americans age sixty five and
older is projected to surge from fifty six point one
million in twenty twenty two eighty point eight million in
twenty forty. As the population of older Americans grows, the
(03:08):
demand for long term care services and supports a broad
range of services to assist individuals who have trouble with
activities of daily living is going to certainly increase For
many retirees. Long term care services might be the most
(03:32):
significant risk to retirement income adequacy. The recent study from
morning Star Model of US retirement outcomes calculate the percentage
of households simulated to run short of money in retirement
(03:55):
under two scenarios, one that includes long term care cost
and a counterfactual where long term care costs are excluded.
The results are striking. When long term care costs are
not included, forty one percent of households are projected to
(04:19):
run short of money in retirement, compared with just twenty
six percent when those costs are included. It's a pretty
clear picture because ignoring long term care presents an overly
hopeful view of retirement readiness when in fact, in reality,
(04:44):
these costs could and more than likely pose a major
financial risk, one that we should not ignore. And when
I say it shouldn't be ignored, I'm referring to the
retiree and the advisor and retirement planners. More needs to
(05:10):
be done to emphasize the importance of the cost involved
for long term care, especially if there is a spouse.
Almost half of the baby boomers will need some form
of long term care in retirement. Now, this might seem
(05:34):
like a high number, but these estimates are comparable to
a lot of other studies. For example, a study by
the Urban Institute found that forty eight percent of adults
surviving to age sixty five they're going to need some
(05:57):
form of paid law long term care. Couple that with longevity,
which we're seen today. The longer a retiree lives, the
more need for long term care is present. I think
most of my listeners are aware or have heard in
(06:21):
some form or fashion about the longevity risk. Simply because
of longevity, people are living longer. Incomes in retirement are
adjusted or should be adjusted for longevity. Therefore, longjevity creates
(06:42):
the need for long term care. So I'll give you
some percentages of baby boomers with long term care needs
in retirement age seventy five, about twenty four percent for males,
twenty five seven percent for females. As retirees age at
(07:06):
eighty five, it jumps to forty percent for males and
forty five percent for females at ninety forty six, almost
forty seven percent for males, fifty two percent for females,
and at ninety five, pretty much more than doubles than
(07:28):
it did at age seventy five. Those numbers are fifty
two percent for males sixty percent for females. Due to
the fact that females live longer based on mortality tables,
females have a greater need for long term care. So again,
(07:52):
the longevity risk and long term care cost risk, they're interconnected,
so retirees have to consider both together rather than thinking
just about the risk of outliving your money. And by
(08:12):
the way, I have a lot of information on the
effects of long term care, the importance of long term care,
which I can have sent to you. I don't charge
for this, and you're not under any obligation whatsoever. So
(08:32):
if you're thinking you'd like some more information, the number
is eight eight eight four to two six zero one
seven seven triple eight four two six zero one seventy seven.
Now you may be thinking as I present the importance
(08:54):
of long term care to you, Okay, John, I realize
the important but there are two concerns the cost and
what if I don't use the long term care benefits.
I've paid this exorbitant premium for fifteen or twenty years
(09:18):
and I didn't have to use it. You know, years ago,
when I first started in practice, they used to have
a long term care policy that would refund your premiums
if you didn't use it, or a portion of your premiums.
The longer you had it, more of a percentage was
(09:39):
refunded back. Unfortunately, those contracts are not available today because
companies were losing money paying out more in benefits than
premium payments coming in. And back then there were a
lot of companies right long term care, and today there's
(10:03):
a small group that write long term care insurance. And again,
if you've looked into the premium, you know how expensive
it is, so we need to look at alternatives. Today,
more people are considering the alternatives how to preserve their assets,
(10:30):
their retirement accounts so they don't get wiped out by
the cost of long term care. And I'm going to
discuss those options a possible solution for your long term
care needs after the break. In the meantime, I'd like
(10:51):
for you to think about your situation. What you have
in assets for retirement savings, all the money that you
have designated for retirement over the next twenty twenty five
years or so, and how that would affect your retirement
(11:15):
income if you had to dip in to those accounts
to cover the cost. Many times it's unexpected. It could
be from an accident, a stroke, heart problems, or a
number of other things that's happened, especially as we get
(11:35):
older and there's going to be a high cost for care.
Let me give you my number one more time before
the break eight eight eight four two six zero one
seventy seven eight eight eight four to two six zero
one seventy seven. Stay tuned. I'm going to go over
(12:00):
some ideas solutions for your long term care needs. They
have worked for my clients and their retirement planning. Stay tuned.
I'll be right back.
Speaker 1 (12:17):
Avoiding mistakes can save owners of iras four oh one
KS and TSP plans, as well as other retirement plans,
a fortune and taxes.
Speaker 5 (12:33):
Penalties, fees, and loads. These potential mistakes are addressed in
the free book entitled Top ten IRA Mistakes. This is
John Heischmann from The Safe Money and Retirement Show offering
a complimentary copy by calling eight eight eight four two
(12:56):
six zero one seven seven that's triple eight four two
six zero one seven seven.
Speaker 4 (13:16):
Welcome back to the Safe Money and Retirement Show with
John Heischman. To contact John, the number to call is
one eight eight eight or two six zero one seven seven.
That's one eight eight eight or two six zero one
seven seven. Once again, here's John Heisman.
Speaker 2 (13:33):
Welcome back to the Safe Money and Retirement Show. I
was discussing long term care and how the cost can
wreck a retirement plan if you're not prepared for the
cost and it continues to increase and will continue in
(13:57):
the future. In the Columbus area central Ohio, a nursing home,
depending on where you go, could range from six to
eight thousand dollars per month. Now, there are those, and
I have clients that can afford to pay that because
(14:21):
of the amount of money they have on and above
their retirement income accounts. But that's a rarity that's not
your average retiree. The average retiree and the majority of
retirees are the ones that need a plan, a solution
(14:45):
to the problem. I want to talk about some ways
to solve this problem that have helped my clients and
have solved their long term care problem or at least
partially solved their problem. But before I get started, I
(15:07):
don't want to forget that I wanted to mention one
of the books that I sponsor, the ten Biggest IRA Mistakes,
How to Solve Them and also goes into detail covering
taxes and retirement. So order yours along with the long
(15:28):
term care brochures information that I have available for you
eight eight eight four to two six zero one seven
seven triple eight four to two six zero one seventy seven.
All right, here's some ideas that again have worked for
(15:52):
my clients, and I have seen benefits paid to them
for those that need did long term care, so I
know it works. It's been very helpful and the retirement
income has been able to continue for the client and
(16:15):
or spouse. As I mentioned in the first segment, a
long term care policy is expensive. Obviously, the younger you
purchase a long term care policy, the lower the cost,
but it's not unusual to see a monthly premium of five, six,
(16:42):
eight hundred dollars a month or more for an individual.
This is an actual policy from an insurance company. If
you don't use the benefit or have a claim, the
premium dollar that you paid for this policy is just
(17:04):
like your homeowners or automobile insurance premiums. If you don't
have a claim, your premiums are not refunded. The policy
is protecting your assets your retirement income. Companies over the
years have put together a policy that covers a couple
(17:29):
all in one policy. They'll give you an amount, let's
say five hundred thousand dollars. It's available for each couple
at any time. But once the policy amount in this
case of five hundred thousand has been used up, the
(17:51):
contract is gone. It's terminated because there are no more benefits.
I've seen the cost reduce by using this concept. It's
more popular today than buying your own individual policy. How
(18:12):
can this policy be funded? It can be built in
to your budget. Once a year. You can take the
annual premium out of savings. Another idea, I have a
lot of clients that receive required minimum distributions from their
(18:33):
IRA accounts. They don't need these rmds, so their annual
premium for their long term care policy comes due right
after they receive their required minimum distributions. They use that
to pay the premium. It can be done on an
(18:56):
annual basis, semi annual basis, corely or monthly. Once again,
that retiree has to be in a situation where they
don't need their required minimum distributions. Good funding method or
possibly a withdrawal from a non qualified annuity that's doing
(19:23):
well giving an average rate return. And in a lot
of cases I've seen where the growth is being used
to pay the long term care premium. Today, short term
care is very popular. The benefits are cut, for example,
(19:43):
maybe there's a two year benefit or three year, and
the policy premium is much lower than a long term
care policy. You still have coverage, but it's short. The
emphasis is on home healthcare. We would all prefer to
(20:07):
stay at home if we had a long term care claim.
So again the emphasis is on home care and it's
much more affordable. Medicaid can step in and cover your
cost only if you've exhausted all of your assets, which
(20:30):
I do have clients that have transferred assets into an
irrevocable trust spend down so they can qualify for Medicaid
payments to cover their long term care cost. One problem
is it has a five year look back period, so
(20:52):
if there's a claim that irrevocable trust had to have
been in force for five years or longer. I bring
in an elder law attorney to assist with the documents
and the trust. I think one of the most popular
(21:13):
today and many of my clients have this concept where
they will have an annuity or life insurance that has
a writer attached that will pay double. For example, there's
(21:34):
different percentages towards long term care. Very simply, you have
a tax deferred annuity for one hundred thousand, there could
be included two hundred thousand worth of long term care.
The neat thing about this there is no premium, so
(21:57):
one hundred thousand is deposited in who an annuity and
the annuity is issued with long term care, so we
have growth, tax deferral and long term care benefits if needed.
And if long term care benefits aren't needed, the assets
(22:19):
of the annuity principle and interest is available, paid out
to a beneficiary or used as supplemental retirement income in
the future. Life insurance works the same way. Attach a
long term care writer. You've got the growth a tax
(22:45):
free death benefit in the event the long term care
benefits are not needed. Another option is a combination of
the strategies I just gave you. For example, a short
term care, home health care policy, premiums paid by other
(23:09):
assets required minimum distribution so it doesn't increase your out
of pocket cost. Supplement that with a tax deferred annuity
and self fund any shortage. What I try and do
is minimize the cost. How can you get long term
(23:32):
care coverage at the lowest cost by using different strategies
that I'm giving you a combination of all or some,
And so many retirees or pre retirees are not aware
of these different strategies and how you can take two
(23:57):
or three and put them together in the interest of
the lowest possible cost to set up a long term
care plan for you. Everyone's different, everyone has different amounts
of assets, so it has to be personalized for you
(24:19):
in your best interest and cost. It's worked for my
clients and those that will become clients of mine in
the future. Hopefully I've given you some good ideas to
solve the long term care risk. The longevity risk and
long term care risk go hand in hand, and I
(24:43):
have to put those at the top of all the
retirement risk that each retiree is going to face. We've
all seen situations where a parent, family member, or friend
has had to suffer the cost of long term care,
and we want to prevent that. And if you haven't
(25:07):
addressed in some form your long term care needs, I
don't think your retirement plan is complete. I'd like your feedback,
your questions, or to hear about your problems with your
long term care hasn't been addressed. Chances are it hasn't.
(25:28):
That's why I'm here to see if the problem can
be solved in some way, giving you the ideas that
are available. I appreciate you taking the time this morning
to listen to the Safe Money and Retirement Show. Here's
my number again before I close, eight eight eight four
(25:52):
to two six zero one seven seven. That number again,
eight eight four two six zero one seven seven. I'm
John Heischman, your host. Thank you for tuning in to
my show this morning. Be sure and tune in next
(26:13):
week where I'll bring you some more ideas that will
help with your retirement planning.
Speaker 3 (26:21):
The Safe Money and Retirement Joe John Heisman Senior. To
get in touch with John, call one AA eight four
two six zero one seven seven. That's one triple eight
four two six zero one seven seven. For more information
about Heisman Financial Services, visit their website. Heisman fs dot com.
(26:42):
That's h E I S C h m A n
f S dot com. Join us again next time for
the Safe Money and Retirement Joe with John Heisman Senior
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