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Mike Loo, MBA
Vice President of Investments

"My mission is to make a meaningful impact on the lives of my clients and the people they love. I help families make informed decisions with their money and build a strong financial foundation for both themselves and their next generation."

MIKE LOO

With over 20 years of experience in the financial services industry, Mike Loo has spent the majority of his time committed to learning all aspects of financial, tax, and estate planning, especially in the areas of wealth accumulation, distribution strategies and wealth transfer strategies. In this very competitive industry, Mike helps clients understand that all financial areas are equally important to reaching their goals. He believes in a complete overview approach for all of his clients.

Mike entered the financial services industry in 1996 with an internship at A.G. Edwards. He then continued on with internships at State Farm Insurance, Merrill Lynch, and Pension Specialists later that year. Upon graduating from the University of California at Davis in 1997 with a dual concentration in Consumer and Managerial Economics, he accepted a job with Franklin Templeton Investments.

Mike took a break from the corporate world in August 2000 to attend the University of Southern California’s (USC) Marshall School of Business, a top tier business school ranked in the Top 25 schools in the nation, where he earned his MBA in Finance in 2002. Upon graduating from USC, Mike accepted a job with Trilogy Financial. Today, he functions as a Vice President of Investments at Trilogy and an Investment Advisor Representative for Trilogy Capital, Inc.

Originally from the Bay Area, Mike now resides in Irvine with his family, but he has a large number of clients in the Bay Area whom he helps with strategies regarding their company stock options.

 

Mike's Client Relationships

Mike supports a wide variety of clients, but here are some of the groups he has built his practice around.

In 2015, Americans spent $225 billion on long-term care. That’s 7 ½ times what was spent 15 years prior, in 2000. With the great advances we have made in medicine and medical technology, people are living longer. The downside to that is that it means people are more likely to need care and need it longer. In fact, over half of people turning 65 will need long-term care at some point in their lives.(1)
 
Types Of Long-Term Care

When you think of long-term care, skilled nursing facilities are probably what comes to mind. However, that is actually the last step in the long-term care journey. Most long-term care is not medical; it is simply assistance with basic activities of daily living like bathing, dressing, eating, and going to the bathroom.

Even without serious medical problems, most people become less and less capable of taking care of themselves as they age. Traditionally, people would turn to family for help with such things. However, in our modern era where families live far apart and adult children are already overburdened with careers and children, more and more people have to pay for long-term care services.

The most basic, and least expensive, form of care is homemaker services. Homemaker services do not involve anything medical, but rather things like meal preparation, cleaning, and running errands. The next step up, which does have a medical component, would be a home health aide.

Once basic in-home assistance is not enough, specialized facilities are needed. Care outside of the home can be in the form of adult day healthcare, assisted living facilities, and nursing homes.
 
Costs Of Long-Term Care(2)
 
Costs vary depending on the type of care needed and the part of the country in which you live. On an annual basis, the national average goes from just under $48,000 for homemaker services to over $97,000 for a private room in a nursing home, and that number is growing about 3-4% a year.

Things change drastically when you look at specific locations. In San Francisco, homemaker services are more than 150% the national average and growing twice as fast. A private room in a nursing home averages $171,185 a year. Even downgrading to a semi-private room still costs over $141,000 a year. Twenty years from now, that same semi-private room is expected to cost over a quarter of a million dollars.

As you can see, long-term care can be very expensive, especially with the rise of dementia, where people can live a long time while needing care. In 2018, the estimated lifetime cost of care for someone with dementia is $341,840,(3) and it’s probably much higher in a state like California.
 
Ways Of Paying For Long-Term Care
Because of the high cost, it is important to plan ahead for long-term care. There are a number of ways to pay for care, each with its advantages and disadvantages.

Medicaid
The vast majority of Americans turn to Medicaid for their long-term care expenses. However, it’s not because it’s a great option. Rather, it’s their only option. In order to qualify for Medicaid, you have to have a low income and low assets, so it’s not really something people plan for intentionally.

Self-Insure
On the opposite end of the spectrum from the people that can qualify for Medicaid are those who have amassed enough wealth to self-insure. If you have $50 million in assets, you can afford to pay $170,000 a year for a nursing home and it won’t have a significant impact on your finances.

The danger is that sometimes people take too great a risk thinking they can self-insure. Often, care is needed later in retirement when savings have already been spent down significantly. Having $500,000 in the bank may seem like a lot of money, but long-term care expenses can eat through it very quickly. Unfortunately, it’s not uncommon for a couple to spend all of their savings on the husband’s care only to leave the wife destitute at his passing.

Life Insurance With A Long-Term Care Rider
One option for those that find themselves in between broke and very wealthy is adding a long-term care rider to their life insurance. If you have, or are planning on purchasing, permanent life insurance, your policy may allow you to add a rider that would help pay for your long-term care costs. Using the long-term care option will often lower your death benefit, but many people appreciate knowing they will receive a benefit even if they never need long-term care.

Premium Paying Long-Term Care Insurance
Another option is buying pure long-term care insurance. Like with most kinds of insurance, you pay a regular premium in exchange for receiving a benefit when you need long-term care. One downside to this for many people is that you will only receive a benefit if you end up needing long-term care. As with car insurance where you have to get into an accident in order to get money out of it, if you never need care, you never see your money again.

Asset-Based Long-Term Care Insurance
The final option has been the fastest growing long-term care option over the last decade.(4) It is a combination of long-term care insurance and single premium life insurance, commonly called asset-based insurance.

The way it works is that you pay a large amount up front and then low annual premiums. You have several times your initial deposit available tax-free for long-term care needs. If you never use it or cancel your plan, you usually get your deposit back plus interest. Some plans even include tax-free death benefits.
 
Choosing A Long-Term Care Option
 
Looking at the statistics, you can tell that planning for long-term care is an important thing to do. Failing to do so can be a costly mistake. Because the multitude of options available can be complex and confusing, it’s important to work with an experienced financial professional.

An experienced advisor can explain all of your options to you, help you consider the pros and cons of each, and decide which is the best solution for your particular situation. If you want that kind of help choosing a long-term care option, call my office at (949) 221-8105 x 2128, or email me at This email address is being protected from spambots. You need JavaScript enabled to view it. to set up a no-strings-attached meeting.
 
 

(1) https://www.morningstar.com/articles/879494/75-mustknow-statistics-about-longterm-care-2018-ed.html
(2) https://www.genworth.com/aging-and-you/finances/cost-of-care.html
(3) https://www.morningstar.com/articles/879494/75-mustknow-statistics-about-longterm-care-2018-ed.html
(4) https://www.525longtermcare.com/asset-based-ltci/

 

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