GETTING OLDER: It happens to everyone
Most of my blogs have to do with ways to improve and grow your business. Today I want to discuss a more serious side of business and that is the planning and care of the business owner and his spouse. Let me start with a quote from the U.S. Department of Health & Human Services’ web page. “Someone turning age 65 today has almost a 70% chance of needing some type of long-term care services and supports in their remaining years.”
As a Certified Financial Planner, combined with my small business consulting practice, I have found that the net worth of small business owners is too low. Few business owners have planned for a comfortable retirement, and even fewer have planned for care givers or assisted living costs.
In a recent search for a client who needs assisted/dementia living support facilities, the cost ranged anywhere from $6,000 to $8,000 per month. To that add other costs such as medical insurance and everyday living expenses, excluding meals, and you can add another 1 to2 thousand to these costs. Most of the places I visited said that they expect a 2 to 3 % annual increase.
Independent living, renting a small apartment and receiving one meal per day can still cost close to $4,000 per month.
Yes, you might be able to find lower costs, but please check out the facility and the qualifications of the staff.
I encourage you to include a line item for your retirement in your 2019 budget. I also recommend looking into long-term care insurance, while it is still affordable. (It increases with age and over a certain age you cannot purchase it) There are a wide variety of products available and it is important to work with a knowledgeable person to guide you in this area. Visiting with a CFP (Certified Financial Planner) to help you determine future needs is highly recommended. (Yes, I am a CFP but I concentrate on helping small business owners grow their businesses.)
May be a somber topic, to end the year, but it is a necessary one that each business owner must take into account.
Tips & Advice by Nick Petra, CFP – Founder of Strategic Duck and BizQuack
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