Financial Planning in the Age of Dementia

By
Jeff Motske, CFP®
May 29, 2018
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We live in a dynamic and inspiring time. Advancements in healthcare are doing wonders for retirees. Many are living longer, in greater physical health, maintaining their mobility and independence. However, there has also been a growing impediment to that independence – dementia. This syndrome that characterizes the decline of cognitive functions and encompasses degenerative diseases like Alzheimer’s, Parkinson’s and Huntington’s is impacting more and more every year. While it can be very uncomfortable to consider yourself or a loved one suffering from such an illness, living in this age of dementia makes planning for its onset a necessary endeavor.

The statistics are sobering. Those who are diagnosed with Alzheimer’s disease can typically live four to eight years after the initial diagnosis. However, there are also those who can live up to twenty years after their first diagnosis. As this is a disease that wrecks the mind, not the body, some can live up to 5 years in long-term care, rather than the typical two years of other illnesses. Needless to say, the costs of care can be staggering. With expenses ranging from various prescriptions, personal care supplies, limited or long-term care services, there is clearly a lot to plan for. Many rely on Medicare to cover the expenses. Yet, Medicare does not cover everything, oftentimes paying up to 80% of costs, only covering fees that are considered “medically necessary” and taking time to determine what falls under that qualification.1 When you or your loved one is struggling daily with the complications of dementia, hope can seem far off or entirely out of reach.

Due to the subtle ways symptoms can first appear, many can go years without a diagnosis. Unfortunately, that does not mean that the illness is not affecting their lives. While there are specific stages of decline with various forms of dementia, financial matters are generally impacted immediately. Memory suffers, with individuals forgetting to stay current with their bills or having issues understanding their bank and account statements. With subsequent stages, financial skills, along with others, decline further. It can be a rapid and steep decline. An individual’s independence, financial and otherwise, can be compromised very quickly.

This is why it is very important to discuss financial and legal matters once a loved one has been diagnosed, regardless of whether it may feel awkward or uncomfortable. The sooner these conversations take place, the better. There is a lot of information to cover and a lot of decisions on the possible future to make. Most importantly, the earlier the conversations are started, the more of a role the diagnosed person will have. At the end of the day, that is what we all want, for our loved one's wishes and desires to be upheld, even when they may no longer be able to vocalize them.

In addition to helping our loved ones afflicted with these diseases, we cannot forget the loved ones providing the assistance. The strain that can get placed on a familial caregiver can often get overlooked. If not adequately planned for, some will dip into their savings and sell their investments to cover the mounting costs to care for their loved ones. Additionally, the stress of the situation can detrimentally impact the physical and emotional health of the caregiver, which can put both individuals at risk.

Clearly, there is a lot to consider, and for many, it is easy to get overwhelmed, flounder in all the unfamiliar information and overlook that which we are not well-versed on. This is where your financial professional can assist you, both in the midst of this difficult time and also well before the actual diagnosis. They can help you make decisions and preparations, as well as educate you on the myriad of things you may not be aware of but need to know. Additionally, Trilogy Financial advisors are trained to not only identify when clients may be exhibiting symptoms of dementia but to continually monitor these behaviors as well. We truly do take our clients’ well-being seriously. Many individuals I have encountered have two distinct fears about growing older. The first is running out of money. The second is becoming a burden to their family. With dementia, those two fears can become a reality. However, with the proper preparation and planning, they don’t have to be.

Sources: 1. https://www.medicareresources.org/faqs/what-benefits-does-medicare-provide-for-alzheimers-patients/

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By
David McDonough
September 5, 2023

Navigating the intricacies of life insurance can be a daunting task, but at Trilogy Financial, we believe that understanding the basics is crucial in making informed financial decisions. Life insurance, in essence, provides a straightforward solution to a complex question: How can your family be financially safeguarded if the unexpected were to happen to you? Whether it's covering immediate expenses, sustaining a business, or planning for future needs like education and retirement, life insurance offers a safety net. At Trilogy, we're committed to simplifying the complexities of life insurance, empowering you to make choices that secure your loved one's financial well-being.

What is life insurance?

Life insurance is actually a simple answer to a difficult question: How will my loved ones manage financially if I were to die? If anyone depends on your income or the unpaid work you do, they would most likely struggle if you were to pass away. Life insurance pays cash—also known as a death benefit—to your loved ones when you die. It replaces your income and the many non-paid ways you support your household. Your family can use this cash to help pay for immediate and ongoing expenses like funeral costs, daily expenses, a mortgage or rent, and keep a business afloat. It can also be used for future expenses like college tuition, retirement and more.

How much does life insurance cost?

The good news is, life insurance may be less expensive than you think. The cost depends on four main factors: your age, your health, the type of policy and how much coverage you buy. In general, you’ll pay less the younger and healthier you are. To put the price in perspective, a healthy 30-year-old may be able to buy a $250,000 20-year level term policy for about $13 a month.1 That means if you purchase that policy and pay the $13 a month without fail, your loved ones would get $250,000 if you were to die at any point during those 20 years.

What are the different types of insurance?

Life insurance generally falls into two categories:

Term life insurance provides protection for a specific period of time (the “term” is often 10, 20 or 30 years). This makes sense when you need protection for a specific amount of time—for instance, until your kids graduate from college or your mortgage is paid off. Term life insurance typically offers the most amount of coverage for the lowest initial premium, and is a good choice for those on a tighter budget.

Permanent life insurance provides lifelong protection for as long as you pay the premiums. It also provides “living benefits” like the ability to accumulate cash value on a tax-deferred basis, which you can tap into to help buy a home, cover an emergency expense and more. Because of these additional benefits, initial premiums are higher than what you’d pay for a term life insurance policy with the same amount of coverage.

Sometimes getting a combination of term and permanent insurance is the best answer.

How much life insurance do I need?

The amount of life insurance to buy depends on who you want to protect financially and for how long. As a very general rule of thumb, experts recommend having life insurance that equals between 10 to 15 times your gross income. But you may need more or less than that. An easy way to get a working idea of how much you need is to use an online Life Insurance Needs Calculator.

 

Download this comprehensive blog as a concise one-page here: What You Need To Know About Life Insurance

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By
David McDonough
February 18, 2021

What is a fiduciary?

When selecting a Financial Advisor, it’s important to know they will be looking out for you and the money you worked hard for all your life. Not all financial advisors are the same. When considering a financial advisor to partner with, it’s important to know if they are fiduciaries, meaning they will be ethically obligated to work in your best interests to help you reach your goals.

Why choose Trilogy?

At Trilogy, we operate by suitability standards in offering advice and recommendations that are the most suitable to your needs. We aren’t just salesmen looking to sell products that earn the highest commission. We are dedicated Advisors, financial life planners, who use our expertise to guide you to make smart money decisions. We recommend investments and financial products that are the best fit for your life situation.

Trilogy Capital Inc. is a Registered Investment Advisor. We are a fee-based firm. That means some of our Advisors earn commissions from the sales of certain insurance or securities products. While this incentivizes our Advisors to be the best they can be at their job, be assured that they put people first to select the best solutions for you.

You have a team behind you

When you work with Trilogy, you don’t just have just one Advisor, you have a team who have an ethical duty to recommend what’s best for you. We are specialists with decades of experience in wealth management and protection.

Life planning

With our Advisors, you can be sure they have a fiduciary duty of care to work at the highest level of trust in creating and reviewing your Life Plan. When they make a recommendation, it’s because they feel strongly it’s the right fit for you and your needs, in the life stage you are now and for the future.

Investing for your future

Our financial professionals work in a fiduciary capacity with our investment platforms. We value our relationship with you and work to maintain your trust. We look at the big picture and consider all aspects of your life regarding your personal financial situation.

We know managing your finances can be a full-time job. That’s why our Advisors are there for you to ensure your investments are properly diversified for your risk tolerance. We also monitor other service providers working on components of your plan (including investment companies, record keepers and third-party administrators) to make sure they are catering to your needs and in a cost-efficient manner.

Managing risk

Your fiduciary Financial Advisor will review your personal situation to determine where the risk factors are when it comes to protecting your wealth and recommend insurance products that best fit your needs to add peace-of-mind protection. Whether it’s long term care or life insurance – we’re here to set you up for success so you have a solid plan for whatever comes your way in life.

In keeping with our fiduciary commitment to you, we are an independent financial planning firm. That means we don’t own any insurance products. We’ve done the legwork to find reputable insurance companies who have a proven track record of financial security and claims-paying ability, so you can be confident we recommend products that have the credibility you can count on.

A partner you can trust

When you work with Trilogy, you can finally take a breath in knowing you have a partner who will look out for your finances and do what is best for your life situation and help you meet your financial goals. You can get on with enjoying life, not worrying if you have the money to cover it.

Get Started on Your Financial Life Plan Today