March 05, 2024

Episode 115: Intro to Long-Term Care Planning

40 minutes

In this episode, Wade and Alex introduce the long-awaited arc on long-term care planning. They discuss the importance of planning for long-term care and the impact it can have on retirement. They define what a long-term care need is and explain the activities of daily living (ADLs) that determine eligibility for long-term care benefits. They also highlight the distinction between ADLs and incidental activities of daily living. The episode concludes with a preview of the next episode, which will cover the costs and prevalence of long-term care. Listen now to learn more.

Takeaways

Long-term care planning is a crucial aspect of retirement planning, as it can have a significant impact on financial security and the well-being of individuals and their families.

A long-term care need is defined as requiring assistance with activities of daily living (ADLs) for more than 100 days. The six common ADLs include bathing, continence, dressing, eating, toileting, and transferring.

Cognitive impairment, such as dementia, may also trigger the need for long-term care, depending on the policy's definition.

It is important to distinguish between ADLs and incidental activities of daily living, as only ADLs typically qualify for long-term care benefits.

The next episode will cover the costs and prevalence of long-term care, providing further insights into planning for this important aspect of retirement.

Chapters

00:00 Introduction to Long-Term Care Planning

03:01 Personal Experiences and the Importance of Long-Term Care Planning

08:58 Budgeting for Long-Term Care

14:12 Determining the Amount to Set Aside for Long-Term Care

21:36 The Demographics and Increasing Need for Long-Term Care

26:39 Defining a Long-Term Care Need

27:56 Activities of Daily Living (ADLs) and Cognitive Impairment

32:46 Incidental Activities of Daily Living

36:53 Summary and Next Steps

Links

Join the waitlist for the next Retirement Income Challenge by visiting risaprofile.com/podcast

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/

This episode is sponsored by Retirement Researcher https://retirementresearcher.com/. Download their free eBook, 8 Tips to Becoming A Retirement Income Investor at retirementresearcher.com/8tips

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By Wade Pfau & Alex Murguia

3.9

152152 ratings