8)Long-Term Care Strategy Using IRA Money. While most people use their IRA to supplement retirement, many times waiting until age 70 1/2, at which point the mandatory required minimum distribution rules apply, some people have chosen to take a portion of their IRA and fund an IRA-based annuity which then systematically funds a 20-pay life insurance plan with long-term care features. This type of IRA-based long-term care policy is unique in the sense that it starts out as an IRA annuity policy, also known as a tax-qualified annuity, and then over a twenty-year period makes equal distribution internally to the insurance carrier and funds the life insurance.
9)Important Documents for Long-Term Care Planning. One of the most important things to set in motion is the legal paperwork! A durable power of attorney for health care and financial power of attorney are essential, along with an advance directive or living will.
10)How To Use Veterans’ Benefits to Pay For Long-Term Care. The Veterans’ Administration offers a special pension with the Aid and Attendance (A&A) Benefit that is largely unknown. This most important benefit is overlooked by many families with veterans or surviving spouses who need additional monies to help care for ailing parents or loved ones. This is a “pension benefit” and is not dependent upon service-related injuries for compensation.
What’s Next? If you are struggling with a long-term care crisis for an aging parent, or you want to be proactive in planning for your long-term care, an elder care financial plan will become your roadmap on how to pay for home care, assisted living, or nursing home costs in the most tax-efficient, cost-effective way possible.
long-term care, an elder care financial plan will become your roadmap on how to pay for home care, assisted living, or nursing home costs in the most tax-efficient, cost-effective way possible.
At 1st Capital we can help you with your particular needs. Schedule a no-cost, no obligation Long-Term Care Roadmap consultation at (312) 952-8040, www.ChatWithChew.com or r[email protected].
Hopefully this month’s strategy will not frighten you but empower you to make certain this part of your lifestyle is in good order.