The statistics can’t be denied. Seventy percent of Americans will need long-term care before they die. On average, someone needing long-term care will receive over four years of care in their home and then will go on to a facility, such as an assisted living, a memory care facility or a nursing home for another two years. Long-term care includes assistance with bathing, dressing, eating, moving around, toileting or incontinence due to physical limitations or cognitive impairment.
The interesting dynamic is how differently men and women tend to view long-term care, which relates to how they tend to think about risk. Harley Gordon, an influential elder law attorney, wrote a book about it, “The Conversation,” Helping Someone You Love Plan for an Extended Care Event.” He notes, “Men are wired to minimize if not dismiss risk in life. If there is no risk of a serious event happening, what consequences can there be? If there are no consequences, why put together a plan?” Whereas he says, “Women have an aversion to risk. They see the risk of serious event and the consequences of it as being inseparable.”
Gordon observes that trying to motivate men to plan for long-term care with the statistics doesn’t work because they don’t believe it will happen to them, whereas women hope it won’t but understand that the odds are that it will. He recommends that since men are most motivated by taking care of those they love, the conversation about planning for long-term care needs to focus on the consequences to those they love if they fail to take action and long-term care is needed.
The cost of long-term care can be prohibitive. Genworth, in its annual 2024 Cost of Care Survey, estimated that a home health aide in Auburn, AL, costs $5,720 a month or $68,640 annually. The cost of an assisted living facility in Montgomery was estimated to be $3,780 a month, or $45,360 a year. So, six years of receiving long-term care in the Auburn area currently costs in excess of $800,000.
There are multiple ways to financially plan for long-term care, including traditional insurance, hybrid types of life insurance and long-term care insurance, long-term care annuities, self-insuring, etc. These methods will be covered in a webinar format on Wednesday, July 30th at 12 p.m. Please call 256.234.2761, or email Sarah@moorewealthmanagement.com for more information and reservations.
Susan Clayton Moore, J.D., is a financial advisor and wealth manager of Moore Wealth Management, Inc., with offices Montgomery and Alexander City, AL. Susan has under advisement over $150 million (as of 9.1.24) in brokerage and advisory assets through Kestra Financial and has been a financial planner for over 40 years. Contact Susan at 334.270.1672. Email contact is susan@moorewealthmanagement.com.
The opinions expressed in this commentary are those of the author and may not necessarily reflect those held by Kestra Investment Services, LLC or Kestra Advisory Services, LLC. This is for general information only and is not intended to provide specific investment advice or recommendations for any individual. It is suggested that you consult your financial professional, attorney or tax advisor regarding your individual situation. Securities offered through Kestra Investment Services, LLC (Kestra IS), member FINRA/SIPC. Investment Advisory Services offered through Kestra Advisory Services, LLC (Kestra AS), an affiliate of Kestra IS. Kestra IS or Kestra AS are not affiliated with Moore Wealth Management, Inc. https://www.kestrafinancial.com/disclosures