LTC Bullet: The LTC Promise
Wednesday, September 10, 2008
South Bend, Indiana (LTC Tour Mile 18,350; State # 25)--
LTC Comment: What is the most common "LTC Promise" and how does it fall short? Find out after the ***news.***
*** LTC TOUR END-OF-YEAR SPECIAL: Get the best of the benefits of being an LTC Tour Sponsor at 1/3 the original price. That's right, with 1/3 of the LTC Tour year remaining, we still have 2/3 of the country to cover and ½ of all the miles to drive. That's major exposure for your company and message in RV Parks, on the highway, and in our highly rated speaking engagements. So get your logo on the Silver Bullet of Long-Term Care and your message in our elegant presentation packet, but pay only 1/3 the original cost. Can't beat it. Read all about it in "LTC Bullet: LTC Tour End-of-Year Special" at http://www.centerltc.com/bullets/latest/776.htm. ***
*** AIRSTREAM LIFE MAGAZINE covers the LTC Tour in its Fall 2008 issue:
Hi Rich (letter to the editor): I'm on a year-long "National Long-Term Care Consciousness Tour" in an Airstream [trailer]. The purpose of the LTC Tour is to reach the media, public policy makers, consumers and financial advisors with a critical message: long-term care planning is a personal responsibility; the government's safety net for long-term care funding is frayed and will break; the Age Wave is about to crest and crash on a demographically challenged America; consumers need to wake up to the risk and prepare. The tour's schedule and calendar is on our website. Where I go when within the broad confines of the six geographical areas for two months each depends entirely on who invites me where and when. See www.centerltc.com. Regards, Steve Moses
Source: "Long-Term Tour for Long-Term Care," Airstream Life, Fall 2008, p. 8. ***
*** WESTERN KENTUCKY HEALTH UNDERWRITERS in Owensboro, KY had Steve Moses and the Center's 2008 LTC Tour in for a two-hour "LTC Graduate Seminar" presentation on September 3, 2008. Here's some of the feedback from that program:
"Extremely informative session! The issue of LTC is so important we must increase our efforts to get folks protected." L. Stuart Augenstein
"Very inspirational speaker for a difficult subject." Kimbra Blandford
"This was a very informative meeting. I will have to study and try to digest this information." Robbie M. Miller
The National Long-Term Care Consciousness Tour can make presentations like this one available at no cost to NAHU, NAIFA, Financial Planning Associations, Estate Planning Councils and other organizations. All you have to do is schedule the session to fit into the LTC Tour's schedule and itinerary. See the LTC Tour Calendar at http://www.centerltc.com/TourCalendar/General.htm#September. Proprietary events can be booked for a nominal contribution to support the LTC Tour. Contact Damon at 206-283-7036 or firstname.lastname@example.org for details. ***
LTC BULLET: THE LTC PROMISE
LTC Comment: The most common LTC promise made by an adult child to an aging parent is "I'll never put you in a nursing home." But too few people who make that promise ever ask themselves the key "LTC question": how will I keep that promise?
That's the "hook" in the following marketing letter by Center member and supporter Mari Tautimes. Mari, her father, Mel Rose, and her brother Paul Rose are the brains, drive and compassion behind Western Asset Protection of Phoenix, Arizona.
They're very much in my thoughts because the National Long-Term Care Consciousness Tour is headed to Phoenix soon for a round of activities, media and speaking engagements sponsored by Western Asset Protection.
So when I saw the following piece by Mari, it seemed to me like something others should see as well. Ms. Tautimes concurred. So here it is with footnotes omitted for brevity.
Greetings Friends and Colleagues,
When you open this email, you might think, "I don't have time right now to read this obviously long email." I'm asking you to please just take the less than 5 minutes it will take to digest what I think is so important for you to know.
This email is to invite you to help me raise awareness about the fact that people need to plan ahead of time financially for their family's long-term care events. This seems obvious right? The reality is that the depth of the average conversation about this topic is a promise in passing to mom or dad that they will never put them into a nursing home.
What an excellent promise to make! Most people however, don't take the necessary steps to ensure they can keep that promise. What are the necessary steps?
The same steps one takes to plan for future life stage events such as college or retirement. People don't assume what the cost of college will be when their kids hit that stage of life; they research it and put a plan in place to make sure the funds are there when college becomes a reality, sometimes through savings, sometimes through a vehicle such as a 529 plan.
When planning for retirement, people don't assume what size nest egg they'll need to create their ideal retirement; instead, they look up the average age at death to understand how many years from the date they retire they'll need income for. They research inflationary factors and what investment vehicles their nest egg should comprise of to ensure a steady income stream to make their retirement dreams a reality. So why is planning for long-term care any different?
The Main Issue
According to an article published by the Institute of Gerontology, "a 2001 survey of adults aged 45 and older revealed that 55% believed that Medicare covered extended nursing home stays for "age-related or other chronic conditions," when in fact it does not (AARP, 2001)." In addition, 41% of respondents erroneously believed that Medigap (Medicare Supplemental) insurance covered such care." Because of poor planning, the approximately $50,000 on average per year will ultimately result in the spending down of personal assets requiring baby boomers to resort to Medicaid as their resource to pay for their long-term care needs. Equally significant is the inflation factor which according to a recent study by Prudential financial, is increasing between 5% and 13% annually.
People run the opposite direction of anyone who utters the words "long-term care" because they erroneously envision a horrific image of a place that feels like a hospital with hallways filled with moans and the smell of urine. No wonder why no one wants to "plan" for something like that. The truth is however that a nursing home is an unlikely scenario for people who financially prepare in advance. Studies show that people who need assistance with their activities of daily living and can afford private pay STAY AT HOME which is actually the more costly form of care. People who DON'T plan and end up on Medicaid are required to receive care at a facility where it is less expensive for the state to administer care.
This isn't an issue to plan for when long-term care becomes a reality, it's something to plan for ahead of time, just like any other financially significant life stage affair.
If you agree that this is an important issue too, please forward this to the people you care about to help me raise the awareness. To learn more on how to plan for long-term care, you can of course contact me, but I also recommend www.LongTermCare.gov or take the quiz and hear other people's stories at www.MyLifeMyFamily.com, both great places to go to learn about methods and financial vehicles for planning.
I sincerely thank you for taking the time to read about an issue that is so important to me.
Mari Tautimes, LTCP