Let’s say, for the moment, that you are about to exit your business into what you anticipate will be a great retirement. You and your team of transition advisors have crafted a strategy that is about to give you success. As a result, you are exiting –
- When you want,
- With the income you want, and
- A purpose for the second half of your life, so you are doing what you want, with the people who are important to you.
You have covered all the bases so that your portfolio is doing what you need it to do. Your exit planning includes some “risk management,” in the form of life insurance, asset protection, and estate planning. When you pass away, your assets – including the converted value of your company – will be distributed to people you love, and causes you believe in.
But there is an invisible problem – and how you deal with it will directly impact how much wealth you pass on to the people and causes that are important to you.
That threat is Long Term Care. Unless you die instantly when a beer truck hits you while you are out riding your Harley during Daytona Bike Week, your passing will be preceded by two to as long as ten years of home care, assisted living, nursing home, or memory care (Alzheimer’s/dementia). It is expensive, and stressful for family members to direct, and none of it is covered by Medicare.
In Gone with the Wind, Scarlett O’Hara, when confronted by a difficult situation, often said “I can’t think about that today. I’ll think about that tomorrow.”
You will pay for your Long Term Care, and/or your spouse’s. Long Term Care is an unfunded liability that will be paid in a wasteful, default kind of way – unless you are intentional about controlling the result. What you do now will make the difference between each dollar spent costing $1.40 and costing as little as 33 cents or less.
#LongTermCare, #BusinessTransitionPlanning, #ExitPlanning