projecting future costs and availability of funds

HollyBerry

Today I learned that your investment person, or financial advisor, or ??? can put your information into a spreadsheet that projects how long someone's funds will last if they enter memory care at a given date. Intuitively I knew this could be done but it had never been suggested to me in a "you ought to do this now" sort of way. So I pulled some numbers from a bank statement and reached out to our investment guy and we'll see what he comes up with.

For those of you who have done this already, what other information is important to consider during this process? Funds in, from all sources. Assets in the PWD's name. Liabilities. Estimated monthly cost of a couple different MC facilities in the area. Other than the monthly cost of MC, how have you budgeted for the unplanned and the incidentals? Do you include the out of pocket limit on your insurance as a budget item, or just the deductible and project medical expenses based on the past couple years? Income tax on the investment income? All household expenses, property taxes, etc become the responsibility of the partner who remains in the house, correct?

In my mind, this is sort of a hybrid of the exercise they do at retirement time, and a look-ahead to the need for Medicaid. I'll have a longer conversation with the investment guy later in the week, but I'm wondering what I might be missing. What did you plan for and what surprises did you have, in terms of budget?

sherryandwilliam

Only thing I know if I self paid the money would be gone so fast then he would have to go on medicaid. It is so expensive!. Either you are rich enough to be able to afford it or poor enough to be able to go the medicaid route without losing anything. The middle group is the ones that pull their hair out trying to figure it out

allit

https://alzconnected.org/discussion/comment/225844#Comment_225844

I just said the same thing to my wife today! Pretty much the exact same thing! Freaky

Jeanne C.

you may also want to consult a CELA (yes, I know we always say that - insert eye roll). The reason I say it here is because I found my investment guy to be clueless about longterm care in our state. The CELA was able to help me move assets legally out my husband’s name and into mine using a Medicaid compliant annuity. We’re solidly middle class, but we were able to qualify him for Medicaid through careful planning. Not saying your investment person will be clueless but mine would have steered me very wrong.