Asset Protection Today Podcast: Preparing for Surprises in Retirement

Sometimes our clients completely overlook one important financial issue when planning for  retirement.  Your health risks and the cost of a long-term care crisis, as well as the importance of maintaining financial liquidity are all factors that you must analyze when planning.

The biggest things that most people fail to consider is that their future wealth and ability to maintain a reasonable lifestyle directly corresponds with their health. Many financial planners will tell you how much income you will need to keep you at your accustomed standard of living throughout retirement, but few will stress the likelihood or expense of a long-term care crisis.  Failing to factor in these risks is unwise, as long-term care can cost between $3,000-$7,000 a month.  This would be a devastating financial crisis for most. For this reason, consider both your health risks and your financial portfolio when planning for retirement. Planning for the worst will not solve all of your problems, but it will put you in the best possible position to confront the unexpected. Contact an experienced Elder Law Attorney today to help you with your retirement planning.

At our firm, we encourage seniors to maintain financial liquidity as they age.  This is because paying for long-term care requires cash—and most seniors will eventually need help with activities of daily living or more.  There are many families who enjoy high net worth in land or businesses that lack liquidity. These families and others without cash often struggle when faced with a long-term care crisis, because they lack the cash flow necessary to pay for the cost of care.  For this same reason, annuities can be dangerous to seniors, as they limit the amount of money that a family has in times of crisis. While many annuities have great sounding terms, insurance companies retain ultimate control of your money. In addition, most annuities have hefty withdrawal penalties. The bottom line is that if you have plenty of liquidity or long term care insurance, you will be protected from a long-term care crisis. But, if you lack liquidity, you face a greater risk of being unable to pay for long term care in times of need.

If you or your loved one needs assistance with retirement planning, or if you have questions about government assistance programs such as Medicaid or Veteran’s Benefits, consider W.G. Alexander & Associates – we offer a unique blend of asset protection, Elder Law and estate planning.  You can also attend our free seminars and learn more at or call us at (919) 256-7000.

Check out this episode!