“Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around.”– Leo Buscaglia
Long-term care is taxing on the family and on the portfolio. Take a look at the AARP web-based calculator to see how much it costs in your area. In 2016, in Houston, the AARP answer is just over $74,000/year for a nursing home. Where will these funds come from?
The need for long-term care could quite possibly be the biggest threat to most Americans’ retirement money today. Many people don’t prepare for it because they either think that they will not need it, they believe that Medicare or health insurance will pay for it, or find it too expensive to deal with today. Unfortunately, all of these ideas are problematic. There are actually very few choices when it comes to paying for the costs of long term care. Oftentimes, in order to keep expenses down, the first caregiver is usually a family member or other loved one. This, however, can become draining and stressful for your loved one and can get expensive for them because of lost work hours.
Long-term care needs can quickly wipe out a lifetime of savings. Consider adding a long-term care insurance policy to your financial plans, if you can afford it. Without it, you must either pay expenses out-of-pocket, rely on other sources such as family members, or compromise your care.
Medicaid is the solution of last resort. Qualifying for Medicaid requires that you become impoverished and limits your care choices.