10 Financial Ideas Americans Don’t Apply (But They Should)

Making a long-term care plan

For a person turning 65 today, there’s a 70%chance long-term care will become necessary in the future. Costs of long-term care in the United States topped$225 billion in 2015, and are expected to only grow as baby boomers age. Despite the fact long-term care is costly and there’s a good chance it will become necessary, many Americans have no plans in place at all for affording long-term care.

The process for making a long term care plan will vary based on your age and financial situation. If you’re still young, you may be able to purchase an affordable long-term care insurance policy to cover you for future care. Be sure to review policy terms carefully to find out the circumstances under which care is covered and whether there’s a daily limit on the amount the policy pays. Many policies provide inadequate coverage, so a careful review of the fine print is key.

If you’re getting older, you can work with an attorney to protect assets while qualifying for means-tested Medicaid benefits. Medicaid covers long-term care, but Medicare typically does not, so finding a way to structure ownership of assets to become eligible for Medicaid nursing home benefits is one of the most efficient and affordable ways to protect assets while getting care paid for.