Are YOU Prepared for Care?

Written By: Katana Abbott

“There are only 4 types of people: those who have been caregivers,
those who are caregivers, those who receive care,
and those who will be caregivers in the future!
~Rosalyn Carter

caregiving-in-home-katana-abbott

First, we would like to honor all the doctors, nurses, full-time caregivers, and those caring for family members and friends. Our hearts go out to you, and we thank you from the bottom of our hearts for all you do and all you give. 

The average age of a family caregiver is 49. I was 47 when I received my call in the night that my stepfather had lung cancer. That was 15 years ago. 

Like me, many Baby Boomers have already experienced caring for parents and loved ones, but as the Baby Boomers age — and right now, there are 54 million of them — the new question is…

“Who will take care of ME when I’m old?”

 This leads me to a recent email I received from a friend. When she asked her daughter about caregiving and appearing on a panel discussion with us, her daughter’s response made her mother’s jaw drop.

“I don’t want to be a caregiver. I don’t want to go through it like you did, mom.
 I do it all day as a nurse, so I don’t want to come home and keep on doing it!”

Could this happen to you?

Well, after that conversation, my friend and I are talking about the purchase of a long-term care policy that will provide thousands of tax-free dollars should she need to hire in-home care, assisted living, or skilled care.  What do typical costs look like?

  • In-home care: $42,000/year  
  • Assisted Living:  $60,000/year
  • Nursing home private:  $172,000/year

One client I know is still working in her 70s, while her husband’s caregivers are at home costing $70,000 per year. Most of her income goes to his care, so she simply can’t retire let alone slow down or enjoy her life. What happens if she can no longer work?

What is the solution?  Medicare only covers the first 100 days of skilled care. It’s not a long-term solution.  Unless you have plenty of funds to cover costs like this, or you have no assets or are willing to give away all your assets to a special trust, the simple solution is purchasing a long-term care policy. 

The problem is if you wait too long to explore this, you could end up uninsurable, or the premiums could get too high.  The key is getting coverage when you are young, healthy and have plenty of options. 

Although the older traditional long-term care policies have a couple big drawbacks, primarily, if you don’t use it, you lose it. Second, the premiums could go up.

However, things have changed. Today, you have many choices.  In fact, the newer hybrid policies combine life insurance with long-term care benefits, so you can receive tax-free monthly income if you need care AND if you never need care, the death benefit goes to your beneficiary tax-free.  So, someone always get the money.   

So now, let’s talk about you.  Have you had the conversation with your loved ones?  What is your plan? Are you the Designated Daughter? Do you need a Designated Daughter? 

I invite you to download my free ebook: 

Four Steps to Help Prepare for That Call in the Night: The Caregiver’s Manual

In addition, you are welcome to schedule an appointment to talk with me personally.  I’ve helped hundreds of women through this. I’ve also helped my loved ones. You can learn about the steps I took in my report. 

This month, we are celebrating National Caregiver’s Month, and to honor those who provide care, especially during COVID-19.  I’m so excited to be bringing you two experts in caregiving. 

On November 3rd, I will be talking with Cathy Sikorski, author and practicing attorney dealing in Elder Law who has been a significant caregiver for the past 25 years.

On November 24th, we welcome Tina Abbatte Marzolf , President of American House Foundation, who will share strategies to care for the caregiver.

Remember, you can listen live at show time or catch our show on your favorite venues like iTunes, Spotify or Stitcher.  And if you know a caregiver, reach out to them and let them know how much they are appreciated. If you are a caregiver yourself, be sure to make time for self-care or reach out to someone for respite. 

Katana Abbott, CFP®, is a Retirement Reinvention Coach, founder of the Smart Women Companies, and the host Smart Women Talk Radio with over a million subscribers.  For over 30 years, Katana has shown women how to take charge of their life and finances and believes it’s never too early to plan for expected and unexpected events like retirement, encore careers, moving abroad, or preparing for long-term care.  She has written several books, created a financial literacy course, and is a popular speaker. Katana has been honored by NAWBO as one of Detroit’s Top 10 Business Women, receiving the Breakthrough Award.

To download her new retirement guide, Three Smart Strategies to Maximize Your Retirement Income. visit www.katanaabbott.com

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