Financial Wise, 11/11

Financial Wise Radio
Saturday, November 11th

Financial Wise, for November 11.

00:25:48

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

Broadcasting from that talked thirteen seventy studios you're listening to a financial lives with your host and Suzanne Blackburn. How to pay for long term care. With out buying long term care insurance Blackburn and her financial life specialty has also been featured weekly on K view. So stayed too and she brings the same healthful life changing information to talk radios listening audience. Here's your host Suzanne Blackburn. Welcome to financial lies I'm seize up Blackburn and owner of capstar financial. We have been around Austin, Texas for decades and I'm here to tell yet as a fiduciary. Financial planner where going into our fifth year on thirteen seventy the right choice. And today's show is all about how we paid for long term care how we pay and planned. For this thing called illness late in life and I'm not talking about health insurance. You know that's a buzz thing that's happening right now in the truck administration they're trying to figure out how to pay. For our health care and it goes up and up and up and that's my goodness that's one of the number one line items. Whenever I'm doing a financial budget for someone. Is health insurance. What I'm talking about war in on today's shelled. Is what if you get too sick to take care of yourself later in life not going into the hospital. But she need a nurse at the house or you cannot. Perform. Activities of daily living. Like eating bathing transferring an out of a chair. Being able to have cognitive. Abilities. You know a lot of us we think oh it's gonna happen in one big fail swoop we'll have some big thing happened like a stroke. And then it'll just you know have that need to go into nursing home one here to tell yeah. That's not always the case. So many of people that are in our client base that have gotten sick it happens kind of on the installment plan. It's a little bit and a little bit and a little bit each and every year. Unfortunately. That's the kind it's really hard detract because you feel like he can take care of things when really. You're not able to I had one gallon our client base and I'll take what she was doing she's writing checks to people. Over and over and over to she kept forgetting that she was doing it. And so by the time her family kind of figured out what was going on in became a real problem her cognitive abilities were going. Now the cost of this kind of stuff is very very it's just not cheap I'm not cannon an Italian that. Do you need it the need this chronic care how about your family needs this. You have a loved one that needs long term care what's the cost to business. All right now we have 75. Million aging baby donor boomers seven in ten. Our age 65 or older will need some type of long term care. And the costs for that. Is going to be a 166845. Dollars. In a nursing home over a few years that's the cost it niece to be prepared. For this type of thing. And it's going up the rising costs of long term care is going up at four point 3% per year so in 2016. A one year stay in a nursing home is 93378. But in twenty years it's a 166000. So long term care is more than just that inning you've got to really planned for homemaker services. Home health aides adult day care. Assisted living facilities and one of the things we do it our firm is we have resource says to help you. Two do you caregiver training where we get supplies would of the death did best resource is available. Seed got to call my office at 5122159. This booklet but what if you need long term care. What if you're looking for. Into this topic this booklet that I'm referring to in the show is available TUB you've got to call my office. At 5122159030. Now this 2016. Genworth cost of care study. Is saying that 50% of us. Are going to pass away with absolutely no resources. Because we're going to be spending the majority of our assets in the last. Part of life on. This type of care. So think about that. You're going to spend in the last five years of your life more money on health care and you did your whole life prayer previously. A repeat that you're gonna spend more money in the last five years of life than you did your whole life before that so we have to play. That's what this book is all about now how we gonna pay for it. If you're like most people you you know you've got enough assets. To provide for an incumbent if you're working with someone like me. And they've done a very thorough plan. They set down with Q you've got to written income planned you know exactly where your assets are you know when to withdrawal which account. You know exactly how your taxes are gonna pay it would fare out. Now if you haven't done that kind of planning and you've got a call our office at 5122159030. And contact our firm because that's. What we do. But this secondary thing I started running an end to folks you know I've been doing the show as I said almost five years. And I was running into people needing more money towards the end of their life. And so brand new laws were passed in 2014. An implemented in 2015. In the mortgage. World. And so I started looking at reverse mortgages in a whole new way. Reverse mortgages in the past where. You know suspect of number one there were loaded with fees and it was something I would never and a million years ever recommend. The second thing that I saw with reverse mortgages. Is that it was only for one borrower and an if you couldn't keep up the house and all this he'd end up losing the house the house when. It just was a mess and that's what a lot of people remember is people losing their homes. Well adhered Italian that they completely revamped. A lot of the language that's in the reverse mortgage. They've also standardized. The costs. An FHA and Hud took over a lot of the thing is that. We didn't know you know we're handled by banks. And so with the government involved they now have standardized. A lot of that so on top of doing that you can use your reverse mortgage. To pay for long term care. So let's just say you're sitting here and you've got a 300000. Dollar home. Well if your home is paid for and you do a reverse mortgage. You have up to. A certain amount lets college 50% it's probably a little more like 60% did you have a a chunk of money available. From that home that could be anywhere from a 15280000. Dollars. Available. To you. To use for a lot of different things itself as a fiduciary financial planner I started looking at the home in a whole different way. I started looking at it as it is which is an asset class. And so with a reverse mortgage. If we standardize the fees and we can get a rain we get away from all these high crazy costing commissions. And then you have a low interest rate and we we're able to use that equity position. To pay for things. Well then that might be a source for your home to be used for long term care. Okay you have to call my office and I can do a proposal for you to see if this fits for you or your family yet to call me at 512. 2159030. And the first five callers that call me I will give you. This booklet called but what you need. But what if you need long term care and on top of that. Those of you don't call me right now you've got to pick up the phone I'm gonna give you this national council on aging. Use your home to stay at home. And this is a booklet that I got from the national council on aging and it's packed filled. With how to use your home in the challenge of needing additional money. The tank. Now with that said again I'm trying to come up with ways that you can have. Access to money to pay for things in retirement. That you weren't normally going to use such as home equity so when I come back from the break I'm gonna do an overview. Of what that looks like and also using annuities and life insurance. To pay for long term care so when we come back from the break. Please stay with it because I'm going to go and. Deep dive into these topics are made and again remember. Some feel our financial wise and some view our otherwise I'm season Blackburn. Let's talk retirement planning in today's economy grew red lines today if capstar finance junk. This is about taking power lines and making headlines with Halard retirement powered doing capstar I need to put retirement planning in today's economy. Suzanne like fairness the Barack financial planner behind this insulin like shot. Can not already know our commercial financial life radio on top of the 1878. Now the entire great financial wisdom to work for you and your retirement teacher. It works happen once or complementary but the information is a 100% in valuable. It's doing cast our financial tasty December Sunday 12 PM in the river place for Luntz wind power. Again next Tuesday December 12 at 12 PM and river place details today kept our financial background didn't call I went 51 by 98 registered. Seating is limited cop today by 22 when I 9080. Investment advisory services I predict global financial by the capital. Welcome back to financial wise with your posts who's at Blackburn. Welcome back to finance realized boy we are deep to hide in the day I'm going and all types of topics that have to do with how are we going to manage the cost. Of long term care. Now as I said in the break I won it mentioned. That so many people haven't planned for long term care and over 50% of us. Are going to die with absolutely no assets they Sundays surveyed by Genworth costs of care and mainly because we haven't planned. For a long term care situation. We're looking at over a 130000. Dollars needed. To cover costs of care when you're in your old age and I said it many times I said it last week. If you want to lose control of your financial life lose control. Of your money lose control of this topic. So what times when I'm challenging you to do is to call our office at 5122159030. And received these free offers I'm offering you a book. But what if you need long term care and also for the those Indian collar right now I'm going to give you this national council on aging. Use your home to stay at home these two things are available to you at no charge. And they will help you immensely. So right now I'm talking about the reverse mortgage and it's a whole different ball game folks I was completely against this as I said before. But I actually got my mortgage loan officer license because. I want it to be able to help people for very low cost to build access the equity in their home. You know people who need their home they face challenges. To live at home yet have enough money to struggle with every day types of needs. So if you right now as I mentioned that the two at a six active the daily living like. Eating bathing transferring in out of the chair cognitive impairment those kind of things require some additional assistance at a cost. Well. When you do a reverse mortgage you can have access up to over 50% of the value so and it tip Oklahoma city's 300000 dollars. If he did a reverse mortgage it doesn't mean that you have to take all of that out. Let me make that very clear you could take out a portion. Of the equity. Maybe 20030000. Up front that they need to have access to a line of credit. So your basically your opening your home up to the availability. Of paying for things that you normally would kneeled and you. OK so a paid for house means. That if you did a reverse mortgage you in your spouse get to live there for the rest of your life as long as you're both great breeding. And it's your homestead. And you're keeping your insurance and your taxes paid and upkeep on the home. The access to the equity is yours. Now it's a percentage of data to let's say 60%. But on a 300000 dollar house such 180000. Dollars worth of equity exposure that you can have access to. The other cool thing about it is is no taxes on those proceeds. So if you took the money out of your home to pay for long term care. Or let's say you need somebody to come in the house and just help with light housekeeping. Make sure that you take your medications. Those kind of things that axis of that cash has no tax on it. All right so. With that said. What kind of help do you need. There's all kinds of of needs that you might meet need meal preparation shopping for food and yard work home repairs. Maybe you need to modify your kitchen and your bathroom so you can get around. That's stuff costs money we recently did a reverse mortgage specifically for that. So they needed the money to do is 60000. Dollar re model. So they can stay in the home and not leave that the cost of care survey by Genworth said that 90%. That's a big percentage of us. Do not want to go to a nursing home we wanna get better at home. But how do you do that if you don't have the money to pay for it well if you call my office 5122159030s. I said I'm going to give you. This national council on aging book says use your home to stay at home. And also this other booklet called but what if you need long term care. That requires you call my office or go on my website. It's capstar financial dot com. And we will hand that to you we'll send it T in the mail I just. He's been normally buy life insurance when your working for income replacement that's the purpose of it but when you get older. A purpose of it is to have a death benefit so if you died that's a tax free proceeds for your spouse. They can rock the IRA they have another bucket of money just for ease of of longevity to make sure they don't grant money but the third thing an if you if you miss it please pay attention when I'm saying. Life insurance if it's in the right type of life insurance can be set up to where you can withdraw. The death benefit out. For a heart attack real failure a stroke. If you're to have certain types of cancers. These major illnesses when they hit just remember what I said you're gonna spend more money in the last five years into your life. On health care. And you dig your hole if so this type of life insurance could be a 600000. Dollars in a life insurance contract that you're paying for. That if you don't get six somebody's gonna get that money. But if you do get sick you've got a tax free bucket of money. For cancer stroke. Heart attack regional failure to any kind you know those types of illnesses. Or what if you can't perform. Two of six activities of daily living what are activities of daily living. Eating bathing toilet king transferring and of chair. A cognitive impairment. Getting in out of the bathtub. Okay those kind of activities. To get assistance with those I really do have clients that are spending. 9000. A month for those types of care. Do you have that kind of money it just extra nine grand lane around most of us haven't got that. And so an idea is to have. We're very well structured life insurance that have access to that death to benefit to cover those expenses. And it's a heck of a lot cheaper than if you bought traditional. Long term care. Which many of my clients are getting statements assailed by the way were raising rates another 30% another 40% another 30%. Year in and year out in year in and year out. Still have a predictable numbered account on like health care. So these are things that I have found to help clients to achieve those. The last type of insurance that could be very beneficial for long term care is annuities. And annuities. Many of the annuities their equity indexed annuities have income writers. Where you pay in other point. Elicit all in your paying appoint half all your fees. And then at certain periods or say in ten years you turn on an income stream for life. Out of that annuity growth. And that sounds great but it's a finite number we at 15100 a month fifteen I don't know month 15100 a month that sounds great right. Well certain annuities please listen to me. Certain annuities. If fewer sick. And you can't perform those activities daily living or year and a nursing home. Those numbers double. For five years. Now that is a planned frankly you don't have to qualify for I've got a gentleman right now with parkinson's. And he bought. Half a million dollars worth of that type of annuity. To grow is money over time and then when he needs it he can double that. Instead of like I said listing his amounts 5000 a month 5000 a month 5000 a month he didn't have to qualify for this you guys. And then when he needs long term care it goes from 5000 a month had 101000 a month for five years. So fabulous benefit of some of these annuities not everyone does it. You can't go to credential you can't go to some of these big box brokerage houses and get this type of annuity. You've got to call a retirement specialists like myself. It's independent. It's not attached to any big bucks brokerage house because. There really good annuities frankly in life insurance contracts he can't get them there I don't know why have really don't maybe you don't make enough I don't know what it is but. Don't really good plans you have to be. Going to an independent. Financial advisor that specializes in retirement. Just like we do in nineteen will help you it caps are financial. Our phone number is 512215. Nine. Or go to capstar financial dot com and the offered today is but what if you need long term care this is a book I'm reading from actually from the show. And I wanna give it to you this is something that's invaluable. If you wanna make good decisions in your retirement. And those of you to call me right now I'm gonna give you this secondary book it's called. Use your home to stay at home and it's from the national council on aging and this book is invaluable. On the use of your home equity. Your equity in your home. The life insurance. The annuities here and used that stuff no matter what somebody's gonna get those benefits regardless if you get sick or not. If you like traditional long term care insurance. How are you gonna access that money. If you don't ever get so really his home equity for income planning for long term care planning life insurance. Yeah you don't need it specifically. Once she get retired and less you don't have planning for long term care for death costs have won if he dies fairly. It tax issues so if it doesn't have a purpose do not buy it. But he had a plan for the stuff it's worth talking about so called me 5122159. B thirty. And remember. Some of you are financial lives and the rest of your otherwise I'm Susan Blackburn. Let's talk retirement planning in today's economy of headlines today that capstar finance health. This is about taking up our lines and making headlines with Allard retirement Howard doing capstar I need to our retirement planning in today's economy. See them like Perry as the fast financial planner behind this insulin like shot. You already know where commercial financial life radio on talk thirteen seventy. Now the entire great financial wisdom to work for you and your retirement feature that works happen once or complimentary but the information is a 100% and valuable. It's doing cast our financial tasty December topping 12 PM in river place for lions went Allard. Again next Tuesday December 12 at 12 PM and river place details today kept our financial account didn't call I went into went by 98 registered. Seating is limited cop today I'm 22 and I 9080. Investment advisory services offered to global financial by the capital. Welcome back to financial lives with your hosts whose at Blackburn. Welcome back to financial life sciences at Blackburn owner of cancer financial and an independent. Series 65 financial planner. And today show's been great we've been talking about how we pay for long term care without buying the traditional. Long term care insurance have talked about. Annuities have talked about life insurance I've talked about using your equity in your home. If you want more information about that we've got some events coming up now these retirement game changer. I do they show every week every week without an eruption have been doing this for almost five years were in our fifth year actually doing in the show. But some of you wanna come and meet me he don't want to quite make a commitment to be a client or you don't want to. Make you know any kind of commitment which I give that I really do you wanna make sure that I don't have to three heads and I'm not gonna eat you alive hook up. But if you would like to meet me in a workshop. We have a retirement planning in today's economy this is a power lunch. This is a lunch where I'm going to ask you questions of what the topic you want me to talk about. There's no canned spiel okay I'm not trying to sell you anything. What I'm doing is just visiting this just talk about what every year and issues are. And you have to comedy you've got to go to 5122159030. Or. Capstar financial dot com and this is retirement planning in today's economy. And I'll be going over life planning taxes legacy planning estate planning investments. In come. All of that depending on what you wanna talk about as I said I'm in my fit appeared in this radio show we've been doing in this. Power hour workshop. Every. First Tuesday of the month we've been doing it forever and we had a new location. And river place boulevard. I would love to shake your hand and just you know that we can mean dozens CR office of scene where did that for you. Find out what we have to offer that fits for you I want to be relevant I wanna make sure that the information that I'm providing you as an a premier educator. In the Austin area is relevant so let me know if I'm doing a good job call me at 512215. Nine. So wise and the rest are otherwise I'm season last time. 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