“As life expectancy extends, a retirement nest egg needs to account for not only extra spending years, but also the out-of-pocket healthcare costs that accompany it,” financial advisor Andrew Crowell cautions clients planning for their golden years. What he sees threatening nest eggs, he explains, is not market cycles, asset allocation, or risk levels, but healthcare costs. Crowell recommends exploring:
- supplemental healthcare insurance
- employment-related HSA (health savings) plans
- retirement communities offered by many colleges, denominations, corporations, fraternal organizations, and labor unions
At Geyer Law, helping our clients plan for future medical care is an important part of the estate planning process. In terms of legal documents, the key documents to have in place are:
- an Advance Directive for Health Care, which allows you to name a health care representative to make healthcare decisions if you become unable to give informed consent
- a durable power of attorney, which allows you to name someone to handle financial transactions on your behalf if you become unable to to do so, so that medical bills can be paid and Medicaid planning can be done to protect assets.
From a financial aspect, at Geyer Law we remain acutely aware of the reality — health care is one of the biggest expenses for retirees, and we make every effort to help clients take charge of their finances, protecting both themselves and their heirs against the ever=escalating costs of long term care. In fact, in recent posts on this very Geyer Law blog, we discussed different developments in long term care insurance, including:fWhile we realize that neither of these documents addresses the money side of healthcare, we know they offer legal protection and real peace of mind for our clients – and ultimately for their surviving family members.
From a financial aspect, meanwhile, at Geyer Law, we remain acutely aware of the reality –health care is, if not the biggest, at least one of the biggest expenses for retirees, and we make every effort to help clients take charge of their finances and protect both themselves and their heirs against the ever-escalating costs of long term care. In fact, in recent posts on this very Geyer Law blog, we discussed different developments in long term care insurance, including:
- living benefit riders on life insurance policies
- hybrid (life insurance/long term care) policies
- linked benefit policies
We encourage our clients to consult insurance professionals, and are always happy to provide input as our clients seek answers to the big “What if?” healthcare question.
– by Ronnie of the Geyer Legal Group, PC blog team
