You spend years saving for retirement, hoping to enjoy more time with your family, travel, or relax without worrying about money. But have you thought about what would happen to those savings if you or your spouse needed long-term care?

It’s something most people don’t think about until a health problem comes up. Suddenly, you might need to look into nursing homes, assisted living, or in-home care. And as you’re figuring out what kind of care you need, you also have to think about how you’ll pay for it.

Research says that 70% of people turning 65 will need some form of long-term care during their later years. But a lot of families never plan for how they’ll pay for it. That’s why talking to a financial planner before you need care can help you prepare for those costs.

But to get useful advice, you need to know what to ask. So, here are the important questions to bring to your next meeting so you can protect your savings, understand your options, and feel more prepared for your future.

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Why Should You Discuss Long-Term Care With Your Financial Planner?

Your retirement plan probably includes everyday expenses like housing, groceries, healthcare, and vacations. But long-term care can introduce costs you never expected.

• For instance, you might need someone to help you bathe, dress, prepare meals, or manage daily activities. Depending on your health, that support could last a few months or several years.

• And here’s something a lot of families discover too late: Medicare usually doesn’t pay for ongoing custodial care, even when you need help every day. That means you might have to use your savings, insurance, or other financial resources to cover the expense.

Taking into account these possibilities early can help you find ways to pay for care without using up the savings you and your spouse need for retirement.

Important Questions You Should Ask Your Financial Planner About Long-Term Care

Here’s what you need to ask your financial planner –

1. How Much Could Long-Term Care Cost Me?

Before deciding how to pay for care, you need a proper idea of what it might cost. The amount depends on where you live, the type of assistance you need, and how long you need it. For instance, receiving help at home can cost less than full-time nursing home care, depending on the hours and services required.

You can ask your planner to estimate expenses for –

• In-home caregivers who help with daily activities.
• Assisted living facilities that provide housing and personal care.
• Nursing homes that offer round-the-clock supervision and skilled nursing services.
• Memory care facilities for people living with dementia.

If you live in Reno, you can ask for local cost estimates rather than relying only on national averages. Also, have your planner account for future price increases. That’s because the cost of care ten years from now could be considerably higher than the current rates.

2. Will My Retirement Savings Be Enough to Cover Long-Term Care?

After you understand the possible costs, the next question is how those expenses would affect your retirement. You might have enough savings to live comfortably today. But what if you needed to pay for three years of nursing home care? You should ask your planner to calculate how different care situations could affect your finances.

For instance, you could compare –

• Your retirement savings if you never need paid long-term care.
• Your savings after two years of assisted living.
• Your finances if one spouse needs extended nursing home care.

These estimates won’t predict exactly what will happen, but they can show where your current plan can fall short. More importantly, you’ll have time to make changes before a medical emergency limits your choices.

3. Should I Consider Long-Term Care Insurance?

If you’re concerned about using your savings to pay for care, insurance could be a good option. Traditional long-term care insurance can help cover eligible services, including in-home assistance, assisted living, and nursing home care.

But policies differ in what they cover, how much they pay, and when benefits start.

So, ask your planner –

• What services would the policy cover?
• How long would benefits last?
• How much would I pay in premiums?
• Could my premiums increase later?
• Is there a waiting period before benefits begin?

You can also ask about hybrid policies that combine long-term care benefits with life insurance or annuities. But before purchasing anything, make sure the coverage fits your budget and your actual needs.

Paying for insurance shouldn’t make it difficult to afford your everyday retirement expenses.

4. Could Medicaid Help Pay for My Long-Term Care?

If your savings and insurance aren’t enough, Medicaid can become an important part of your plan.

Unlike Medicare, Medicaid can include qualifying long-term care services for people who meet financial, medical, and other eligibility requirements. But qualifying isn’t always easy and straightforward. Your income, assets, marital status, and the type of care you need can all affect your eligibility.

That’s why you should ask your planner whether you might eventually need professional Medicaid planning support. You should also understand that Nevada has rules concerning asset transfers and estate recovery. Giving away money or transferring your home without proper guidance could create serious problems later.

5. How Can I Protect My Spouse’s Financial Security?

If you’re married, long-term care planning involves more than paying your own medical expenses. Imagine your spouse needs nursing home care while you continue living at home. You still have a mortgage or property taxes, groceries, utilities, and other bills to pay.

How would you manage those expenses if a large portion of your retirement income went toward care?

• Ask your planner to review how your income and savings could support both of you.
• You should also discuss spousal protections available under Medicaid rules, if applicable.

These provisions may allow the spouse living at home to retain certain income and resources.

6. What Happens to My Home and Other Assets?

For many families, their home is their most valuable asset. Naturally, they want to know whether they’ll have to sell it to pay for long-term care. The answer depends on your circumstances.

• Your home may be protected when Medicaid determines whether you qualify for benefits. But that doesn’t always mean it will be protected after your death.

• In Nevada, the state may recover certain Medicaid costs from your estate after you die if you received long-term care benefits at age 55 or older. This can include assets in some trusts or jointly owned property, but recovery is generally delayed while your spouse is alive.

Ask your financial planner how your home, investments, retirement accounts, and other assets fit into your care plan. You may also need estate & life planning support to understand how your financial decisions could affect your estate plan and your family’s future.

7. Who Will Manage My Finances If I Can No Longer Make Decisions?

It’s difficult to imagine someone else handling your money. But a serious illness, stroke, or dementia could make it harder to manage bills and financial decisions independently. That’s why your plan should address who can step in if you need help.

Ask your planner how your financial accounts would be managed if you became incapacitated. You should also discuss the importance of a durable financial power of attorney and other appropriate legal arrangements.

An important part of planning is choosing someone you trust to handle these responsibilities. They may need to pay your bills, speak with your bank, and manage the costs of your care. By deciding who that person will be ahead of time, you can make things easier for your family when they already have a lot to deal with.

8. How Often Should I Review My Long-Term Care Plan?

Even a carefully prepared plan can become outdated. Your income might change. You could move to another state, lose a spouse, or develop a health condition that affects your care needs. Insurance policies, care costs, and government program rules can also change over time.

So, ask your planner how often you should review your plan and when you might need to update it.

For most families, reviewing the plan once a year is a good place to start. But if your health, finances, or family situation changes, you may need to revisit it sooner. This way, your plan stays in line with your needs as life changes.

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How Should You Prepare for Your First Financial Planning Meeting?

Having the right questions is a good start, but bringing the right information to your appointment can help you get clearer answers. You don’t need to organize every document you own. Start by gathering the information that gives your planner a proper picture of your finances. Bring –

• Recent statements for retirement, savings, and investment accounts.
• Information about pensions, Social Security, and other income.
• Existing life insurance and long-term care insurance policies.
• A basic list of monthly expenses and outstanding debts.
• Any existing estate planning documents that may affect financial decisions.

You should also think about your personal preferences. Would you prefer to remain at home as long as possible? Are you comfortable considering assisted living? Do you have family members who could help with care? These details matter because a good financial plan should reflect how you want to live and not simply how much money you have.

Frequently Asked Questions About Financial Planning for Long-Term Care

1. At What Age Should You Start Planning for Long-Term Care?

It’s best to start planning before you retire, ideally in your 50s or early 60s. That gives you more time to save money, explore insurance options, and make important decisions while you’re still in good health.

2. Can Your Adult Children Help With Long-Term Care Planning?

Yes. If you’re comfortable involving them, your adult children can help discuss care preferences, emergency contacts, and future responsibilities. However, you should remain in control of your decisions for as long as you’re able.

3. Is a Financial Planner the Same as an Elder Life Planning Professional?

No. A financial planner helps you manage your money, investments, and retirement savings. Elder life planning  also addresses important aspects of aging, such as where you want to live, what kind of care you may need, and how your family can support you. But both can help you prepare for the future in different ways.

Takeaway

Long-term care planning isn’t just about having enough money to pay for a nursing home. It’s also about making sure you have options if you need additional care as you get older.

Asking the right questions now can help you understand how much care may cost and what you can do to protect your family’s savings. These conversations can also help you with estate planning, so you can make your wishes clear and help your family know what to do if your needs change.

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Plan Your Future With Confidence at Schulze Elder Life Planning

You’ve worked hard to build a secure future for yourself and your family, and you want to make sure it stays that way. At Schulze Elder Life Planning, we’re here to help you protect what matters most.

We’ve served Northern Nevada families for over 25 years, and our founder, Richard P. Schulze, JD, MBA, brings more than 30 years of elder law experience. This combined experience helps us provide trusted estate & life planning support in Reno. 

Whether you need Medicaid planning support in Reno or help preparing for your future care, we’ll listen to your concerns, explain your options, and help you make decisions with confidence. You can call us at (775) 853-5700 to schedule a consultation.