Sandwich Generation - Mark Stratis

Sandwhich Generation: Caring for Children and Parents

Are you a part of the “sandwich generation”? Are you providing support and care for your parents as well as your children? Then this article will speak to you.

As we continue to experience the effects on society and the economy of our aging population, there is a rise in the number of households that are being categorized as “sandwich generation.”

This phenomenon can be particularly apparent in “boomer” households, where elderly parents may be in need of care as well as children still living at home or dependent on support. This situation and others like it often require time and/or monetary involvement by those identified as “sandwich.”

In an earlier part of their lives, members of the “sandwich generation” were most likely faced with the more traditional choices of cash flow and budgeting. That was usually identified as saving for a specific goal, such as a new home, in addition to retirement savings and college savings for children. As time passed, some of those goals may have been replaced by the need to take care of parents and children.

It is not unusual to find a household of “fifty-somethings” with septuagenarian (70 to 79 years old) or octogenarian (80 to 89 years old) parents and children in the teens and twenties. How does one then properly prepare to handle this situation should it arise?

  • What legal steps should be investigated?
  • Should there be updated or revised wills?
  • Would the creation of a trust be advisable in my circumstance?

Conversations with an estate planning attorney are suggested as a step to try to help put some clarity to what could otherwise be confusing and confounding. Or it may be the need to properly identify assets and savings with regard to specific uses.

It is common to have a discussion on the idea of how to handle personal savings in an effort to solve for multiple demands on your finances. Did the grandparents set aside enough for their retirement, or will you have to use your savings to supplement your parents? Did you discuss with them how to manage for retirement? What are you doing with your own retirement?

What about long term care? Statistically, for those over age 65 there is a 70% chance of needing some type of long-term care. Who will pay for it? Will you, in a self-insured way, or an insurance company pay for those expenses?

Is there an expectation of support from you for your children’s college plans?

Has a sinking fund been created to help with college expenses or will it be a pay as you go? What if you had plans to return for more education?

Everyone needs a basic estate plan. The estate plan should accomplish more than a transfer of wealth.

All of this may lead to that conversation about “leave behind” money or “live on” money. Take the time to review your plans with your advisor to try to gain more control on your personal situation.

Newly Enacted DOL Rules: What Affect Will They Have on my Retirement Savings?


There has been a notable amount of discourse concerning the “new” Department of Labor (DOL) rules regarding retirement plans, and specifically Individual Retirement Accounts (IRA), in the financial news over the last several months.

Most of that news has centered around how the service providers, that is third party administrators (TPA) for retirement and 401(k) plans, insurance companies, banks and brokerage houses, will react to mandated changes. How will compliance issues be handled? How will costs of compliance be allocated? How will business be affected? Certainly the rules will have significant effect on the institutional side of the financial industry and how business will be done moving forward, but how about the end user or retail owner of retirement and investment accounts? What changes can they expect? What might be the impact to consumers and retail owners of IRA and 401(k) accounts?

The 1974 Employee Retirement Income Security Act (ERISA) established regulations regarding pension and profit sharing plans at a time when those were the primary sources for retirement savings for most people. Although the ERISA rules allowed for the creation of Individual Retirement Accounts (IRA), the DOL did not exert any oversight on individual plans, only corporate sponsored or institutional plans. That is the way things were for the next forty years.

As pension and profit sharing plans began to disappear from the landscape and 401(k) participation became a primary source of retirement savings, a concern began to grow that fees, expenses and lack of transparency were working to the detriment of the individual participants. The result was a DOL ruling which mandated new guidelines for providers of services in the retirement savings industry.


These changes will result in bringing people’s Individual Retirement Accounts (IRAs) under the auspices of the DOL, who already was the overseer of qualified plans such as pensions, profit sharing and 401(k)s. There was, and continues to be, resistance regarding implementation by the service providers, because of the increased costs of administration and compliance. As is the case much of the time when a service provider has increased costs there is a propensity to pass those increases on the end user, or retail consumer.

This most certainly will have IRA owners seeing changes to their account administration, some of those changes may in fact be rather advantageous, which will be good for consumers. One thing is certain, the purchase and use of mutual funds will be forever different from how it has been in the past. New share classes and pricing will be the course of action going forward. However, merely reducing fund expenses is only one of the changes that can be expected. There will be an increase in paperwork for individuals who open an IRA and an increase in disclosures to assist the retail consumer to make informed decisions. Some of the same transparencies will apply to 401(k) plans as well.


Like any change in rules there may be a number of unintended consequences. The purpose of the new rules was to help the smaller investor, but the complexity and paperwork required to the financial industry as part of the implementation, may result in leaving those with the most need of assistance having less assistance available. Face-to-face or person-to person contact and relationships are vital to the ability of many investors to make informed decisions. What happens when the value of your account falls below a threshold established by your service provider and you are directed to a call center for assistance with your questions or concerns? To whom will you turn for help that you may need at the most critical of times? A key component of the DOL rules is to assure IRA owners of fiduciary treatment similar to what institutional plans have long since expected.

A fiduciary places the interest of the client above all else. Make sure to ask your provider if they are acting as a fiduciary in your best interest and if they are not, they need to have a good explanation as to why not. You may be asked to sign a form waiving this fiduciary relationship, depending on the services or products being provided. This is not necessarily bad, but make sure that you are completely clear on the reasons why, before you sign.


If you’d like more clarification or a second opinion as it relates to these issues, feel free to give us a call.



Financial Spring Cleaning: What to Review, Update, or Toss

Now that the initial filing deadline for personal income returns has passed, it is good time to review your financial “house” and get things in order.

Here are some suggested things to do:

Secure Your Data
Make back-ups and then back-up some more. Keeping a back-up at a different location than your computer, whether by using an online service or manually storing a back-up off site, such as safe deposit box at your local bank, is important. Also, ensure that your passwords are strong enough to protect your private data online and do not use the same password for multiple sites.
Review How your Assets are Owned or Titled
Not just what the asset is, but how do you own it. If it is an IRA or other retirement account now is the time to review beneficiary designations. Have there been any significant life events that might alter who the beneficiaries might be? Has there been a death, a divorce, a marriage, an adoption in your life to take into consideration? Have children reached the age of legal adulthood?
Do a Beneficiary Check-up
How current is your estate plan? When was the last time you checked who you named as beneficiaries for your retirement accounts or life insurance? Do you need to revise, amend or write a new Will or Trust to reflect where you are in your life’s journey?
Consolidating Bank Accounts, Retirement Accounts or Other Investment Savings
By consolidating you can not only reduce paperwork, but can also simplify record keeping tasks. Too many IRA accounts may make it a bit cumbersome to complete Required Minimum Distributions, so consider merging accounts to better manage the activity. Also, maintain a list of all deposit, credit and investment accounts to include name, location, email address and phone number, along with your account password, for your main contact at each respective organization.
Review Your Insurance Plans
It’s important to review your insurance plans periodically, especially your auto and homeowners. If there are children living at home, then adding an umbrella policy may help with exposure to risks caused by your children. Most major insurance companies make combining policies an affordable option.
Take Video of Your Belongings
When was the last time you walked through your house with the video on your phone recording what you have and how things look?  Do you have a place to store a video for insurance purposes, other than just your home computer, which could be stolen or destroyed in a house fire? It could help greatly at the time of a claim. Again, consider having a safe deposit box at your local bank to store a copy of these digital files.
Do you Have an in Case of Emergency or “Ice” File? 
Where are you storing your passwords and account numbers? Who are your contact people if you’re in an accident or the emergency room? Make sure that you have this information up-to-date and accessible to your emergency contacts.
Purge Old Files
Post tax season is a great time to do some purging and clean up some paper and digital files, but what do you need to keep and for how long?  As a general rule, you should keep tax records for seven years, so those records from 2009 and before can be condensed or shredded or digitalized to open up shelf space.
As you do your financial spring cleaning, if you’re not sure what to keep or you would like to review your investments, financial goals or life insurance coverage, give us a call, we’ll be happy to help.

What Can You Do if You Can’t Add to a Traditional or Roth IRA?

Traditional IRA and ROTH IRA plans are designed to allow investors to accumulate savings through contributions and earnings.

Traditional IRAs allow for deferred taxes until withdrawals are made, but tax liability is triggered when funds are distributed. On the other hand, there are no tax breaks for Roth IRAs when contributions are made, but eligible distributions are generally tax-free. This includes accumulated investment income.

So with Traditional IRAs, you avoid taxes when you put the money in. With Roth IRAs, you avoid taxes when you take it out in retirement.

Anyone with earned income can contribute to a Traditional IRA, as long as they are younger than 70½. Roth IRAs, however, have income-eligibility restrictions based on a person’s Modified Adjusted Gross Income (MAGI), depending on tax-filing status.

What happens if you are ineligible to participate in a Traditional IRA or ROTH IRA, because for example, you find yourself at the point of maxing out your contribution limits? The current contribution limits are $5,500, and $6,500 for those over age 50, so what might your options be?

If you find yourself ineligible to participate in a ROTH or Traditional IRA, now may be the time to look to old friends for help. The life insurance and annuity business still receive favorable tax treatment on earnings, with the only limitations on deposits being affordability or underwriting.

You just can’t put everything there, nor would it be wise to do so, but this may be a consideration depending on your individual circumstances.

Life insurance offers the following benefits (just in case you forgot!):

• Income tax-free death benefits to beneficiaries

• No defined annual IRS limitations on premiums

• No limit on gross income or modified gross income to affect your ability to contribute

• Missed premiums may be “made up” at a later time

• Tax-deferred accumulation

• Distributions using loans and withdrawals are income tax-free when structured properly

• No 10% penalty tax for accessing cash values prior to 59 ½ if structured properly

• Take distributions when needed, if at all

• No required distributions (RMDs) for owners

All signs point to changes in some aspects of IRS rules regarding IRAs, such as RMD on ROTH IRA and a ceiling on accumulation values in IRA accounts, sometime in the future.

Give us a call to schedule a discussion with a Szarka advisor about how this option, and others like it, may help your retirement planning diversification.

Watch Out Baby Boomers it’s Time to Begin Taking Your RMD

It is estimated that over the next 18 years about 10,000 people a day will turn 70½. This will create a potential windfall for the Treasury Department, because these distributions are taxable at the highest marginal income tax rate.

Why are people being forced to take distributions?
IRAs and other retirement plans were not designed to allow people to transfer wealth or leave an inheritance. They were created to provide income during an individual’s retirement years.

The initial wave of Baby Boomers who were born in the first half of 1946 must begin taking their required minimum distributions (RMD) as of July 1, which are distributions from their retirement accounts held in IRAs, 401(k)s and similar plans. That’s because those born in January 1946 become 70½ in July of this year, and the distribution rules specify the latest the distributions may begin, without penalty, is April 1 in the year after turning 70½. Moving forward, annual distributions must be taken by December 31 each year in order to avoid a 50% penalty on the amount they failed to withdraw.

What happens if you wait until April to take the first distribution?
While April 1, 2017 is the latest time to begin distributions for those turning 70½ this July, it is usually advisable to take the initial distribution no later than December 31. If one waits until next April, then both the 2016 and 2017 distributions must be taken in 2017 and that may cause some additional income tax and other costs for the taxpayer.

That may not sound like a big deal, but one of the repercussions of taking two distributions in the same year is that it may increase Medicare premiums related to the higher reported income. Those higher premiums are then locked in for the next year.

Missing the April 1 deadline or not taking out the full distribution amount required can also be costly. There is a 50% excise tax on any amount that one fails to withdraw. For example, if you were required to take out $1,000 and you failed to meet the deadline, it’s a $500 excise tax penalty. That also means that the $1,000 is added to your ordinary income on which you are taxed. If that tax rate is 15%, then that means you will need to pay an extra $150 in income tax. So you could end up paying an extra $650 in taxes because you missed taking the $1,000 distribution on time.

Do I have to take the distribution from a specific IRA?
You can take your distribution from any one of/or combination of your qualified retirement accounts, as long as you take out the entire amount required for that tax year.  For example, Fred has 5 IRAs and the total value is $250,000. His RMD on those accounts would be approximately $8,000. Fred can elect to have that $8,000 come out of just one of his IRAs or he can spread it out across any combination the five different IRAs, however he chooses, as long as he meets the full amount of the RMD.

What if I am still working?
“If you are still working at 70½, you don’t have to take a distribution from your current employer’s 401(k) plan until you leave your job. Although you cannot contribute to a traditional IRA once you turn 70½, you can continue funding a 401(k) plan if you keep working beyond that age (unless you own 5% or more of the company). However, once you stop working, you must begin your annual required minimum distributions and can no longer fund your employer-based retirement plan,” says Mary Beth Franklin, contributing editor to InvestmentNews.

“If you have multiple 401(k) plans, you must calculate a separate required minimum distribution from each employer plan and you must take a distribution from each plan each year once you turn 70½.”

The most recent tax law changes preserved the option for IRA owners who are at least 70½ to donate up to $100,000 per person to charity and avoid the taxes on the amount donated.

For married couples, each spouse can give up to $100,000 per person of their RMD directly to charity, with the exception of private foundations and donor-advised funds, which are not eligible. Any money that is donated will be excluded from taxable income, although it will no longer qualify for a charitable deduction.

One-Time Transfers to an HSA
“You may be able to make a qualified funding distribution from your traditional IRA or Roth IRA to your health savings account (HSA). The one-time distribution must be less than or equal to your maximum annual HSA contribution, and it must be made directly by the trustee of the IRA to the trustee of the HSA,” notes Franklin. “The distribution is not included in your income, but it cannot be deducted as an HSA contribution.”

If you are nearing 70½ and have questions regarding how to calculate your RMD, when to begin taking it or how you might be able to reduce your tax burden, why not schedule a time to sit down and review your specific situation.

Things to Consider About Paying Off Your Mortgage or Should You Rent and Not Worry?

Have you ever wondered if it makes sense to eliminate your home mortgage?

Did you think about the interest expense and try to justify it with a tax deduction? Have you considered how illiquid your assets are if your home equity is a significant part of your net worth? What is the opportunity cost of borrowing money to buy a residence? What could I do with the down payment instead of buying a residence? How much mobility is needed in your lifestyle? Will you be moving frequently? If you have a mortgage now and your investments aren’t earning more than the interest rate on the loan is it still a good idea to keep the mortgage?

So many questions but is there a correct answer? Simply put, probably not. Like so many facets of our lives one answer often does not materialize to make decision making easier. Over the last forty years I have discussed this issue in many meetings. There are formulas that can be worked to obtain present and future values of the variables involved.

To begin with, in my opinion, housing prices don’t always go up, inflation is not always covered by the appreciation in residential real estate, especially in Northeast Ohio. There was time when an encouragement to buy a house was that the payments on the mortgage would be made with dollars that decrease in value due to inflation and thus it wasn’t costing as much. We had many years where index returns in the major markets, S & P 500 being an easy one to cite, noticeably exceeded the APR on traditional fixed mortgages. If the S&P grew at 10% per year and your mortgage was fixed at 7% for 30 years the simple math would indicate that you should have been better rewarded for the investing surplus savings rather than increasing the down payment on the house, right? Doesn’t 10% exceed 7%?

This could be where it starts to become analytical. What is your effective tax rate? Let’s use 20% to help our discussion. If you are itemizing your tax return, that is using Schedule A when you file instead of just taking the standard deduction, then your effective, or after-tax interest rate could be 5.6% (7% x 80% = 5.6%), so in theory you only need to exceed 5.6% after-tax return on your surplus savings. There is a lot more involved, but for simplicity let’s just stay on this path. A 10% return on savings in a 20% tax bracket results in 8% (10% x 80%=8%) after taxes and 8% exceeds 5.6%, doesn’t it?

On the other hand, if your savings are producing minimal to negative yields should you redeem your mortgage? In the above example wouldn’t that be like making 7% on your money? It’s the rationale for paying off credit, right? Nobody likes to pay 14.95% interest, do they?

The discussion or argument for or against buying a home or paying off the mortgage early is very emotional in many respects. If you chose to rent and never buy what could that mean to you? In the later years of amortized mortgages your payment is mostly principal, right? The lenders make their money in the early years of amortized mortgages using the Rule of 78, so in the last few years it’s mostly principal being paid back. There are few tax advantages to be had at the end if tax deductions were why you justified buying a residence.

It’s the American Dream to own a house according to many. If you’re not sure what’s the right path, contact your advisor before you sign on the dotted line.


Tax Exempt Income May Still Result in You Paying Taxes

Uncertain when tax exempt income may be taxable? Many people are confused when it comes to tax exempt income.

Tax exemption means the income is excluded from being taxed. Because municipal bonds are one of the few ways that individuals can earn interest and dividends that are exempt from federal taxes, a lot of investors flock to them. But, what some people don’t realize is that while the tax exempt interest is and of itself tax exempt, the amount of that income is included in the calculation to determine what amount of their Social Security benefits may be taxable. So when people begin receiving their Social Security benefits, they will have to begin every year doing an additional calculation which will include tax exempt income, to help determine what percentage of their Social Security benefits may be taxed.

Another way that tax exempt income becomes taxable is for those whose income is over approximately $200,000 for individuals or $250,000 for couples. For those individuals or couples, their otherwise tax exempt income is now lumped together with their taxable income. They face the potential of a 3.8% Medicare surtax on the total amount of their income (i.e., taxable + tax exempt).

How might tax exempt income affect you?

To help determine what percentage of your Social Security benefits are taxed, tally up all of your income including wages, retirement income (i.e. pension income, IRA distributions, profit sharing distributions, basically anything that produces a 1099R), dividends, interest, capital gains, K1 distributions, and tax exempt dividends or interest. Depending on what that total is, the amount of your Social Security benefits that will be included in your taxable income will be determined using one of the two thresholds: 50% or 85%.

If you are a single filer of tax returns that have a combined income between $25,000 and $34,000 have to pay taxes on up to 50% of Social Security benefits. If your income is over $34,000, then up to 85% of your Social Security benefits are taxable. If you are filing married and jointly, and your combined income is $32,000 to $44,000, then up to 50% of Social Security benefits are taxable. If your combined income is more than $44,000, then up to 85% of your Social Security benefits may be taxable.

Are you still confused?

Give us a call and we can determine if your tax exempt income might actually result in an increase of your tax liability.

Do you still need life insurance, even if the kids have grown?

Most people are aware of the importance of having life insurance when they are raising a family. The untimely death of the family bread winner, especially when children are young, can have devastating effects on how the remaining spouse is able to continue to raise and educate the children. It is a story that is repeated time and time again as attested by all the television commercials.

As time passes there is another series questions to arise. If my kids are now out of the house, my debts are under control, the house is paid off, and retirement is around the corner, why do I need the life insurance? Can’t I stop the premiums and spend the money on something else?

The short answer is yes. You’ve made it through the maze of life, you’re looking at the downhill slide and all things are good. Yet, as the infomercials exclaim, “But wait, there’s more!”

Let’s take a different look at life insurance, not as a safety net, but rather as a tool to help accomplish other things.  For instance, do you have charitable gifting in mind? Did you know you can buy life insurance and the premiums become tax deductible for charitable purposes? Under this scenario at your death the charity receives the death benefit. This allows you and the family to become a benefactor of the church, charity or foundation of your choice.

Another reason to have life insurance is for the tax benefits. If one of your objectives is to reduce your taxable income, then tax free distributions from life insurance may be a solution for you. Did you know that you could use life insurance to help defer income and then convert it into non-taxable income to help offset the 3.8% Medicare tax on investment income? Additionally, there are ways in which you can use life insurance to limit taxes on your social security benefits.

Since the estate tax in Ohio is no longer applicable and the federal estate tax has been eliminated on estates below $5 million, it would seem the use of life insurance for estate transfer costs isn’t as necessary as it once was. However, can you think of a more cost efficient way to shift wealth? Depending on your situation, there may be benefits to having an Irrevocable Life Insurance Trust (ILIT) to accomplish your family’s financial goal.

If you are the owner of a business then you may have already had a discussion regarding a funded buy/sell agreement as a way to assure a more appropriate exchange of value than might be provided by a probate court. If not, then why not consult with your advisor to discuss the advantages of a funded agreement? I just recently advised a client on the benefit of such an agreement as it relates to his family, now that he is experiencing some severe health issues.

Life insurance has moved a long way from the days of the agent stopping by the house to collect weekly premiums. There are many ways in which life insurance can be used as a tool within an overall financial plan. Ask you advisor how life insurance can help you accumulate money, save on taxes and generate a better return on your savings and investments.

Will Your Pension Plan be There When You’re Ready to Retire?

Most people today acknowledge the change in retirement options. The days of the company sponsored pension plan began disappearing thirty years ago with the change in economics and demographics.

It’s no longer a longevity issue alone for current and future retirees as Congress weighs more requests to alter the pension landscape. According to a recent newsletter from National Retiree Legislative Network (NRLN), a provision in H. R. 83, signed into law by the President in December 2014, sets in motion new ways for plan sponsor to de-risk or remove pension obligations promised to workers and retirees.

We’re all familiar with stories of financially weak companies allowing plans to fall below a 90% funding level needed for solvency of the plan. This underfunding leads to freezing of benefits or conversions from defined benefit to defined contributions and shifting the onus to the plan participant—the employee. If insolvency of the sponsoring company is realized and bankruptcy ensues the plan may be terminated and then the Pension Benefit Guaranty Corporation (PBGC) assumes the risk.

De-risking of plans has been accomplished over the last several years in three significant ways. One way is for the plan itself to alter the mix of the investment portfolio by reducing equity holdings and substituting fixed income, or theoretically lower risk securities. This may be done as a way to prevent a ratings drop in the company’s bond rating, which in turn could lower stock values. Lower stock prices could then affect executive bonuses. Can’t have that now, can we?

Another way to reduce plan liabilities is to remove participants and that is done with Lump Sum Pension Buyout offers. The net effect of that is to transfer the risk to the employee and off the books of the pension plan. Why did you think the plan sponsor was making the offer? Lump sum offers may leave the plan less funded for those who didn’t, or couldn’t, take the offer. This may also affect surviving spouses as well. That is one reason why the spouse must sign off on the paperwork to complete a lump sum distribution.

The plan may also choose to purchase an annuity to assist with the de-risking of the plan. Once issued the annuity becomes a liability for the issuing insurance company. This would remove the plan from PBGC protection as well.

Lastly, H.R. 83 contains an amendment to ERISA rules and opens up a potentially dangerous precedent to allow for reductions in benefits to existing retirees where plans are underfunded. Have you seen the stories emanating from Detroit and Chicago regarding this very issue?

Don’t fall into the trap of asking coworkers for their advice. That may not be the best option for your specific situation. I suggest you review what’s going on with an advisor now so you are prepared to protect your retirement assets and income in case you are contacted by your pension plan administrator.

There are usually tight deadlines to respond to their communications. Being prepared with what options to choose once you do receive a letter will help make the process less stressful.

Feel free to give me a call if you have any questions or would like to begin planning now for what may happen with your plan at some point in the future.


What Plans Do You Have for Long-Term Care?

When my father passed away in 2013, my brother and I realized that my mom was not going to be able to continue to live in our family home and take care of herself on her own.

We had the agonizing process of having to find a new home for her, a place that we knew would be best suited to her mobility and medical needs. After many hours of discussion with my brother, and numerous tours of facilities in the area, we settled on a facility that wasn’t too far from either of our homes. I know that my brother and I are not alone in having to face the dilemma of deciding on long-term care options for a loved one. Maybe you are finding yourself in the same situation now, or perhaps you are beginning to have concerns regarding your parents or another family member. Industry statistics indicate that approximately one person in six will spend time in a skilled nursing facility, with the average stay ranging between eighteen months and four years. What are your options? How do you prepare ahead of time for all the various possibilities?

You may never need care, but what if you did? How would that affect your family? Many baby boomers are unwilling to face the possibility of something that they think may never occur. If you do need care, how will you pay for it? There are three possible answers to the question.

Medicaid: Relying on some form of government assistance, such as Medicaid, will require becoming impoverished in the eyes of the government. The look back period for Medicaid is currently 5 years, but that could change at any time, especially with the constant budget maneuvers in Congress. Some may be eligible for assistance from Veteran’s Affairs, if they quality, but there is a means testing to that as well.

Long-term Care/Nursing Home Insurance: Purchasing Long-term Care/Nursing Home insurance has been an option since the 1970s, when Fireman’s Fund Insurance pioneered the category of long-term care. The fact that Fireman’s Fund no longer exists is a testament to the difficulty insurance companies have in properly pricing their product and maintaining the reserves necessary to fund the liabilities. Until about twenty-five years ago, the options for obtaining coverage were limited to annual premium type policies. You could pick coverage with different benefit periods and different deductible periods. The policies were either reimbursement or indemnity benefits, with some offering return of premium. The return of premium option existed because people wanted a choice to get their money back if the insurance wasn’t used. That’s understandable, isn’t it?

It is not uncommon for insurance companies today to make available coverages funded with a lump sum of money. A key feature of this type of coverage is the beneficiary option, in the event the insurance is not used, and there are several providers offering this type of coverage. Some are only available with after tax dollars, while others are available for use with IRA dollars. It is always a good idea to examine all your options when considering funding potential coverage for long-term care. Keep in mind that newer policies which are compliant with the Pension Protection Act, allow distributions from long-term care to be tax free if used for long-term care costs. This can be a significant savings.

It can sometimes feel daunting to wade through all the variables and possible options when it comes to handling long-term care needs, concerns and expenses. Whether you decide to pay for potential expenses out-of-pocket or would like to investigate insurance based solutions, please contact me to assist you with your decision-making process.