Long-Term Care (LTC) Options as You Age

By Trilogy Financial
September 23, 2019
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People are living longer – that’s a fact. Unfortunately, all those additional years aren’t always spent in optimum health. With longevity comes the complicated question of how to pay for the necessary health care for those additional years. Costs for unexpected and long-term chronic care are rarely covered by Medicare. People are having to face these costs on their own. Thankfully, the right type of planning can make this task less daunting.

Long-term care can be an overwhelming topic. The statistics are sobering. 52% of people turning age 65 will need some type of long-term care services in their lifetimes, and 14% will need long-term care for longer than five years. With the median annual cost of adult day care averaging $18,200 and assisted living facilities at $45,000, the financial implications can be staggering. It can sound like a complicated topic, but the way to protect you really boils down to three options.

  • Self-insure: This is the option that many select by default because they don’t want to think about the possibility of illness creeping into their future. It’s a scary option, which they hope won’t happen to them. However, this option typically leaves them unprepared for the medical costs that eventually do occur.
  • Long-term Care Policy: This is a good form of financial protection as it covers your risk but won’t wreck your financial plan. However, the down side with such a policy is that if you don’t use it, you lose it.
  • Accelerated Benefit Riders (ABR’s): Lastly, you can invest in life insurance you don’t have to die to use. These riders in your insurance plan will allow you to receive your benefits prior to death due to terminal, chronic or critical illness. The ABR’s will cover your risk, and you’ll still receive the benefit if you don’t need to use it for long-term care purposes.

Now, there is no one-size-fits-all solution. It’s always best to meet with your trusted financial advisor to find the right option for you. Just know that when you do take the time to plan ahead and find the right option for your particular situation, you’re not only providing for your future but also your peace of mind as well.

[i] https://www.morningstar.com/articles/879494/75-must-know-statistics-about-long-term-care-2018-edition

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

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By Trilogy Financial
July 28, 2023

Password managers are a key resource in maintaining your security. They allow you to keep track of your passwords and encrypt them before they leave your device. Some password vaults can also generate and change passwords for you in one click, as well as securely store other types of data like credit card information. Password managers may remind you to change passwords regularly, evaluate their strength, or scan the dark web to check if any of your logins appeared online. A password manager also makes sharing your data with family and friends safer.

When using a password manager, you’ll only need to remember one master password. Combine it with multi-factor authentication (MFA)and biometric authentication to increase your security.

While they can increase your security exponentially, even reliable password managers can’t keep you 100% safe online. Following are a list of possible risks and ways to mitigate them:

  1. Not all devices are secure enough. Password managers can be hacked if your device is infected with malware. Users should invest in a trustworthy antivirus that will secure all devices first and reduce risks.
  2. Not using biometric authentication. NordPass, RoboForm, and Keeper all offer a biometric authentication option, such as requiring a fingerprint or face scan which offers another level of protection.
  3. Utilizing a Bad password manager. Not all password managers are created equal. Make sure the software you use does not lack the necessary security features to effectively protect your credentials at all times.
  4. Forgetting your master password. Select a password manager that has a reset feature or store your master password in some physically secure place. Be sure to enable account recovery options.
  5. Know what data is in your password manager. Be sure to know which accounts are stored in your password manager so in the case of a breach, you know which accounts to take action on, thus leaving the attacker with less time to cause more harm.

In a digital landscape where cyber threats are on the rise, using a password manager is a proactive measure that can overall protect your personal information and maintain robust online security. It simplifies the process of managing passwords, strengthens your defenses against unauthorized access, and provides peace of mind in an increasingly interconnected world. If you don't already, consider integrating a reputable password manager into your digital routine to enjoy the benefits of streamlined and fortified password security.

 

By
Jeff Motske, CFP®
March 7, 2019

A tax refund isn’t winning the lottery. It isn’t a gift. It’s the return of your money, money that you’ve earned that the government has been holding. At a time when you need your money to be working for you, you can’t afford to have your money do nothing, not even earn interest. Rather, your money needs to be working towards your financial freedom.

The issue with a large tax refund is that the money that has been withheld throughout the year could have been working for you all along. Rather than have it deducted, you could have been paying down debt, contributing to your emergency fund or investing it for your future. Yes, you can definitely do those same things with your tax refund. However, now you’ve missed out on the time your money was being held where it could have been earning interest or saving you money by paying off debt sooner.

While I am a firm believer in minimizing your withholdings throughout the year, I know that this shines a light on an individual’s sense of discipline. You need to make sure that you’re applying the additional funds where they need to go, which is not the retail fund or other expenses that aren’t working towards your future. Automatic transfers for both savings and investment accounts make it convenient to get your money to work for you. Another consequence of having a minimal amount withheld throughout the year is that you could owe the government come tax season. Once again, this supports the need for saving and being disciplined with your money.

You’ve put in a lot of hard work for your money. Not only should it be a means to your financial independence, it should be a tool that you can access right away. Take advantage of your money today to ensure that you get where you want to go tomorrow.

This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.

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