This is the Truth Network. Yeah. Welcome to Finishing Well, brought to you by CardinalGuide.com with certified financial planner Hans Scheil, best-selling author and financial planner, helping families finish well for over 40 years. On Finishing Well, we'll examine both biblical and practical knowledge to assist families in finishing well, including discussions on managing Social Security, Medicare, IRAs, long-term care, life insurance, investments, and taxes.
Now, let's get started with Finishing Well. Welcome to Finishing Well with certified financial planner Hans Scheil and today's show: The Rising Tide. of boomer care. It's got a ring to it, right? Who's gonna carry that load?
And oh my goodness, right? The baby boomers, here we are, and we're going to get into some of those statistics. And I happen to be one of those, so I have no problem speaking to it. that oh my go you know Over the next 30 years, it's going to be a lot of And You know, there's a lot to that preparation. And so, when you think about the wise virgins, and there were some that weren't so wise in Matthew 25:1 through 13, but the wise ones, right, they came with plenty of oil, which has to do with all of financial planning, as far as I'm concerned, but especially in this one.
Because You know what they were doing is making the way for the bridegroom, for that which would help everybody. Right. with this with your lamps. And so that they could go in, but also so that everybody could go in eventually. When you think about what we're doing here, this is huge.
And this opportunity we have to do some planning about it, right, Hans? Right on. I'm part of this group too. Yeah. the baby boom generation, nineteen forty six births, to nineteen sixty four Burrs.
I think it's actually nineteen years if you include both forty six and sixty four. But that includes a lot of a sixty seven million boomers alive in the US today. And what's noteworthy talking about now Is the people born in nineteen forty six, which are the leading edge of the baby boom. They're turning eighty this year. Yeah, and turning 80 is a big milestone.
I mean, first of all, you made it. 80 years. And then when you look to the future, A number of those people are going to need care. I mean, it just that's the age where it really sets in. I mean I have people coming to me at eighty trying to buy long term care insurance, and there actually is something we can do for them, but It's pretty expensive.
And a lot of them can't qualify.
So when you reach 80. and the whole leading edge of the baby boom. is just reaching eighty this year. And then at the other end, the trailing edge, The nineteen sixty four bursts They're turning 62 this year, and that's Kind of a point that people hit at 62. Like, I am a senior now.
I mean, I'm eligible for Social Security at a reduced amount.
So Just the point of looking at all these statistics, we've got sixty seven million people. that are now between sixty two and eighty in Aging on The end. They're going to need care, and there's going to be a large number of caregivers needed in the future. Yeah, I think the idea, what you were saying earlier, Robbie, when we were talking about this, is that. The laws of supply and demand.
it's going to become harder and harder to find caregivers, and you're going to have to pay more and more for them. Yeah, and to me that's one of the real benefits of Of long-term care insurance or cardinalguy.com, right? Is that I know from experience that when these things happen and you gotta arrange care, oh yeah, they got a social worker at the hospital that's supposed to help you with that. And I bet I've been through that with both my wife and my father and my mother-in-law. And it's not helpful.
However, if you got people at Cardinal Guide you can call or your insurance company that you can call, then oh my goodness, I mean, they line it up for you. They know exactly what they're looking for. They know. What makes you qualify? What makes you not qualify?
How to do this? How to navigate it. And again, when everybody's. Going to be needing it as this supply, you know, increases and increases, these things become critical.
Well, and you know It's a good point here to just put a little definition on it. When we're talking about care, These people. We're talking about help with. Bathing Dressing getting through the day, transferring, driving to the doctor or having somebody drive you Going to the doctor, the doctor's appointment, having somebody go with you. Uh getting you into there.
Helping you just get helping you get through the day. And we're not talking about somebody changing your bandages or somebody coming out and doing physical therapy, although that could be considered long-term care, that's skilled care. And so When you talk about going to the providers of skilled care. or at the hospital or the doctor's office. And if you think those social workers Are going to help you.
find somebody to take care of you in your house. I mean, they may be able to give a few referrals, but a lot of them don't even know what you're talking about. Yeah, and and you're gonna You know, and immediately when it hits you, you know, it's not when you expect it that all of a sudden here it is. And as was absolutely the case with me just two months ago, you know, it fell right on my daughter. Like, what am I going to do?
Because my dad's in the hospital, my mother's in the hospital, and here she is, right?
Well, I know. I talked to her. You know, your short-term care insurance and the benefits and home health care benefits and who she needs to get to fill out the form, and then she She gave me some suggestions. I gave her some suggestions. Of some people to call locally to line them up, because we were ready to get people out there tomorrow.
Right. Here. I think the whole point of what you were saying, Robbie, is That If you have long-term care insurance, And especially if you buy it from us. I mean, you've got a whole support system in place.
So when you are in a crisis, that you can Um You've got somebody to help you work through this. because I think your daughter would have been in a little bit of a pinch without a conversation with me. Sure. Right, and it was the worst possible time, right? She was already highly upset because both her parents were really, really hurt.
And so you picture this any time is not the time when you need a big hassle on how we can do all this. And what a time to have resources. and to plan ahead for it regardless Yeah. Budgetary issues, but those are huge because it's also not a time where you really need a lot of stress on your finances.
Well, yeah, and so what we're talking about here is assistance with a daily routine. That's what you and Tammy needed it. was you know, and that was what she was seeing and that's what she provided is I mean, so you had to get home. And then once you're home. You both needed assistance.
With a daily routine. You needed to get through the day. Get dressed. Get food, get transferred, get phased. Um Take care of things.
You had to go to the doctor. I mean, all the things we were talking about. And that doesn't take a registered nurse to do that. That takes a A skilled caregiver, and it is the kind of thing that family can fill in on. But your daughter couldn't do this for both of you for an indefinite period of time.
I mean, I'm sure that wrecked havoc on her own life. She has a job and a family, and No, you're not. And w we live, you know, forty five minutes from any of our kids.
So it was it was severe havoc. Right. But again, Of You know, again, you in my life, from my standpoint, God provided you in our life to To begin to think about these things, we never would have thought of it. And um You know, just really helpful to as the wise virgins begin to prepare.
So the The topic of today's show is we're just talking about Us The Baby Boomers nineteen forty six. to nineteen sixty four births 67 million of us. We're getting old. And we're we're gonna need Some of us are going to need a lot of us are going to need help And it's going to be to our benefit. to hire paid caregivers And to have those set up And because of the demand for this care, There's It's going to cost a lot and it's going to be harder and harder to find and get what you need.
Yeah, exactly. And as the supply goes up and right, everybody's. Um you can imagine All the people that are turning to 80 and 85, and all of a sudden these things, the resources begin to grow short, and it's going to be nice to have. Those resources And there are so many wonderful options now because that's another thing that just in the short time I've been. you know, doing a radio show with you There are lots of neat options you didn't have when I started.
Well, yeah, and I think in the second part of the show, we're going to go through. four different options, and we're actually going to put some prices on it. This is just general information. but I'm going to show you a lot of different ways you can prepare for long term care in the future for yourself and your family. All right.
And so it is a matter of, and I do, I love the idea of who's going to carry the load. Because You know, as it turns out, at some point in time, you know, and it's scary when it begins to happen, but it does happen where you just. Like, I'm not capable of making these decisions right now. I'm on all kinds of pain medications. You know, I'm on this and that.
And I really was not in a position to. And so again, having this preparation and And knowing it's going to fall on your children. And what are we going to do? And having part of it's just having the discussion with your children, right, Hans?
Well it is. And you had already had that. um conversation with your daughter. And so it was a very easy conversation from my end. And I've had that There's several people, or somebody bought long-term care insurance, and now they're in the crisis.
Yeah. You know, you were able to talk to me, and actually, it wasn't you, it was. It was the gentleman at the station that you work with. I already had Tessa's number. Um and I think I called Tammy.
and talk to her. I don't remember exactly how it all played out, but No. We've had that same conversation in that same situation. Yeah. the people test was panic.
I mean, she was just like, what am I going to do? You weren't panicked. It's very rewarding when we're able to just jump into a crisis and m make people feel a little more at ease.
So again, this is a great time to remind you that the show is brought to you by CardinalGuide, CardinalGuide.com. And if you go to CardinalGuide.com, you're going to find the Seven Worries tab. One of those is Long-Term Care. And so there's a wonderful video along these same lines with a board that's going to show you all these solutions we're going to talk about in the second half of the show. Again, it's at cardinalguide.com under the seven worries tabs, this one being long-term care.
And of course, Hans's book, which is wonderful on the subject of long-term care and many other things like that, is the complete Cardinal Guide to Planning for and Living in Retirement, the workbook that goes along with that, as well as, believe me, the critical contact Hans and Tom page, which, you know, the sooner you push into this one and do some adult. which isn't easy, I agree. And and begin to do this planning right. The the easier it is, the less expensive it is, and the more options that you can have before you begin to not qualify for things.
Now this isn't something you need to put off. It's just really isn't.
So we'll be back. In just a minute, with a whole lot more of the rising tide of boomer care, who will carry the load? Investment advisory services offered through Brookstrone Capital Management LLC, abbreviated BCM. a registered investment advisor. BCM and Cardinal Advisors are independent of each other.
Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency. Welcome back to Finishing Well with Certified Financial Planner Hans Scheil and today's show, The Rising Tide of Boomer. Care, meaning baby boomer. Who will carry the load, Hans?
Okay, well, I've just... What we're going to talk about in the second part of the show here is Um so we are different categories of options for buying long term care insurance or short term care insurance if if is appropriate. Yeah, and I want to tell a little story about a guy that I was talking to yesterday that I think is going to become a client. I was able to wake him up a little bit. Um you've been li reading watching my videos for years.
and very complimentary, and he's going to meet with the lawyers and He was all fired up around trust. and doing this see-through trust for his IRA because He doesn't. want to pass away leave his IRA to his wife, And then she blows the money. and spending it on one of her kids who who's always needy for money and This is a second marriage, so He has kids. She has kids.
And they're kind of like all their kids now.
So they're all beneficiaries of the IRA. But he was real focused on. Getting this thing in a trust so she doesn't blow the principle of the IRA. And I'm kind of helping him do it, walking through that. Yeah.
I just said to him, I said, so what is going to happen if one of you needs long-term care. How are you going to handle that? And then I just shut up. The end. Almost in seconds, he came out.
Well, I've looked at long-term care insurance, it's just too expensive.
Okay. That's what he says back to me. And I said, well, I said no.
Now Why don't you define too expensive for me a little bit? I mean, tell me a little more about that. And then he had a real hard time. coming up with an amount because This is a guy that has nine hundred fifty thousand dollars in his IRA And then his wife's got about four or five hundred thousand in hers. The um You know, they're not spending any of it because he has a pension.
She is a hundred percent survivor. They got two Social Security checks. and they're living off of that. Yeah. You know, he thinks everybody's going to be just fine, and they are.
And he doesn't really need this IRA money. That's why he's getting so specific about how he can preserve it.
So that the kids get. I mean, that's where his whole focus is. Yeah. Um I just hit him with You know, look. Your whole planning and everything you're doing is going to be sent out the window if you're all of a sudden drawn out.
you know, eight, ten thousand dollars a month. before taxes, paying taxes on it, and then sending it to an assisted living or a nursing home or paying for home health care. And I think I woke him up.
So Um What I want to just point out to people is we have a a tendency to lean toward using assets to buy long-term care insurance. instead of a monthly premium or an annual premium. And by that I mean we got four. categories. Of long-term care insurance, or four areas that we can do it, and I'm just going to go through them kind of quickly.
The first one is traditional long-term care insurance. And I've thrown out there per person. It's going to cost you about five hundred bucks a month. or six thousand dollars a year to buy a pretty good size policy that's going to give you $300,000 worth of long-term care insurance coverage.
So if we talk two people, we're talking a thousand a month. But that's a pretty comprehensive plan. And you say, well, what age person is this?
Well, what I did is I just threw out one number because if you're if this is about the premium at about sixty five to seventy. we can get a coverage. we can get you covered for this amount. And if you're older than that, it's going to cost you more, but you really don't need to buy inflation if you're seventy five. Or 74, or there's less need for it because you're a little closer to it.
And if you're younger than that, you know, the premium's going to be less, but you got to buy more inflation because you know, if you're sixty years old, But in any case, traditional long-term care insurance, it just pays you a monthly amount. Uh it's just Like a challenge. Yeah. Category number two is the hybrid life long-term care insurance. And if you've been listening to the show for a while, you're already somewhat familiar with this.
And we're talking about Putting a hundred thousand dollars. Of either IRA money. Didn't you know? Regular money. It's actually preferred to buy with regular money.
that you've already paid taxes on. But we can work it out either way. And that's per person, and that's going to buy you about $300,000 worth of. long-term care insurance coverage. and it's going to buy you about one hundred thirty thousand dollars worth of life insurance.
Now, that's just kind of an oversimplification, but just to give you an idea. And if you didn't want to pay that all in a lump sum, One-time premium, you could spread that out over, like you could spread the hundred thousand dollars out over ten years. but then you'd have to pay a little more because of the interest factor. Um The third category is the hybrid annuity long term care insurance. Yeah.
You say, Well, that does that.
Sounds a lot like the hybrid life. What's the difference?
Well, the annuity. It's just the depth benefit is the cash value in the policy. And you're really not buying this for the annuity portion, you're buying it for the long term care insurance. But $100,000 put in that is going to buy you about three hundred thousand dollars worth of long term care coverage. Yeah.
The annuity is going to be a little easier to qualify for health-wise. than the life insurance long term care is. That's the third category. And then the fourth category. is short-term care insurance.
And this is for the people Who just can't afford any of the other three, or maybe they're well to do, but they're just not paying it. They're just looking, shaking their heads, saying, There's no way in the world I'm giving you $100,000. where I'm paying 500 bucks a month. Um Even though I could.
Well The short-term care insurance pays for one year in an assisted living or a nursing home, and it pays for one year at home. and I've thrown a premium in there per person of one hundred fifty bucks a month.
So you can buy a basic policy. That would give you, like, you're in a situation like Robbie and Tammy were in. Um you know, it gives him a a year worth of coverage, which is wonderful. And it's a year at home and it's a year in a facility. Those are separate benefits.
So Certainly not going to take care of the whole problem. But for those of you that are well to do that have said no to the other kinds of coverage, this is a nice stop gap that'll give your family something Well you're figuring out how you're going to spend your money. Yeah, which is exactly what Um You know, we have. And what we what we do have Which Gives you access to the resources, right? Which, you know, is part of what, you know, who's going to carry the load.
Of just here's the crisis, where are we going to go? How are we going to go with it? And what's our next step? you know, gives you you know somebody to help you through the process of of getting it in place. And in and actually is, you know, Damn it, I couldn't afford the other, but it gave us some sense of, well, gee, with her.
um mom and with my dad, both of them With the care they needed at the end of their lives. Would have easily been taken care of with a year of in-home and a year in facility. Plus, what we learned when we were in this crisis that if we needed you know, say two months of care because of the accident. um or three months that You know, once that was over, and that, you know, if 10 years later down the road, we would still get a full year of coverage. Which that was amazing to me and I didn't really understand that part before, but it was really nice to know, Hans.
Well, it is. And so we move over to some of the hybrid things. There are people. Who really don't spend their retirement money on themselves. Yeah.
When we really dig down, a lot of people That aren't spending the money on themselves. When I really dig down and ask questions with them, like, what, who is this money for? they a lot of times have a hard time answering the question. But where we end up by default, is it's really for my kids. I want to leave an inheritance.
You know, and then it's kind of like, well, if you're going to do that, why don't you just give it to them now?
Well, I don't want to do that. You know, and then I mean, this is when I'm talking to people about all their financial planning and all their money and all their future. Yeah, so I zero in.
Well, like, what are you saving it for? And then, when we really pin them down, people are saying, Well, I might need long-term care. I might have to you know, go to an assisted living.
Okay, now we're getting somewhere.
Okay. If there's the one thing that people are living on less than they could. If there's one thing that could disrupt the whole program, it's like the guy the other day It's long-term care. I mean, it it it it is it can just take a cause a whole wreck. And so with that guy, Well, I already sent him a proposal.
I said, why don't we take $200,000. of the nine hundred and some thousand dollars in your IRA that you're not spending on yourself anyhow. And let's take 200,000 of it. And let's move it over into this IRA at the insurance company. And then from that.
we're going to pay the premium over ten years on a long term care insurance policy For you and your spouse. And then That way that money is really going to be gone by the time the second one of you passes, you're going to have used it for long term care. or something. But if you don't, there's going to be some life insurance there to go to the heirs, so it'll replace itself. But more than likely, it's going to be used for long term care, and it's going to protect the rest of the money for exactly what you set it up for.
So the solution that people choose And that we recommend, it's different for everybody, and it has different combinations because people are different and they have different preferences, they have different amounts of money. But the point I want to make is this is something you need to plan for And we've got something for just about everybody. Yeah. You know, give us a call. I mean, we'll, we'll, we'll, or send us an email, go on our website, cardinalguide.com, and send us a message.
and we could sit around and talk about this for you. Right, because there's different health qualifications. It it isn't a one size fits all. And the beauty of the CardinalGuy dot com to me is the contact ons and Tom page to sit down and have him look at the whole picture. Because the whole picture could be greatly affected by this one particular issue.
Again, the show is brought to you by CardinalGuide, CardinalGuide.com. There, you're going to find the seven worries tab. Today's worry would be the long-term care. Again, a wonderful video on these same lines going into great detail of these different plans and advantages to them. All that's there at cardinalguy.com, as well as Hans's book, The Complete Cardinal Guide to Planning Foreign Living and Retirement.
And of course, what we're talking about, the Contact Hans Tom page. Um Just a wonderful resource, amazing resource, especially from my standpoint on this particular issue.
So great show, Hans. Thank you, and God bless you. The opinions expressed by Hans Scheil and guests on this show are their own and do not reflect the opinions of this radio station. All statements and opinions expressed are based upon information considered reliable, although it should not be relied upon as such. Any statements or opinions are subject to change without notice.
Investments involve risk and, unless otherwise stated, are not guaranteed. Past performance cannot be used as an indicator to determine future results. Any strategies mentioned may not be suitable for everyone. Information expressed does not take into account your specific situation or objectives and is not intended as recommendations appropriate for you. Before acting on any information mentioned, please consult with a qualified tax or investment advisor to determine if it's suitable for your specific situation.
Finishing Well is designed to provide accurate and authoritative information with regard to the subject covered. Investment advisory services are Offered through Brookstrone Capital Management LLC, abbreviated BCM, a registered investment advisor. BCM and Cardinal Advisors are independent of each other. Insurance products and services are not offered through BCM, but are offered and sold through individually licensed and appointed agents. Cardinal Advisors is not affiliated with or endorsed by the Social Security Administration or any other government agency.
We hope you enjoyed Finishing Well, brought to you by CardinalGuide.com. Visit CardinalGuide.com for free downloads of this show or previous shows on topics such as Social Security, Medicare, IRAs, long-term care, life insurance, investments, and taxes, as well as Han's best-selling book, The Complete Cardinal Guide to Planning for and Living in Retirement and the Workbook. Once again, for dozens of free resources, past shows, or to get Han's book, go to CardinalGuide.com. If you have a question, comment, or suggestion for future shows, click on the Finishing Well radio show on the website and send us a word. Once again, that's CardinalGuide.com.
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