Nobody wants to imagine themselves needing help, but planning for it now can help protect you, your future, and the people you love most.
The Bottom Line:
- What’s the cost of long-term care? A semi-private nursing home can exceed $100,000 annually, and full-time in-home care can cost several hundred thousand dollars each year depending on your location. These figures can dramatically impact even well-funded retirement plans.
- Should I consider long-term care insurance? It depends on your portfolio’s ability to self-insure and the timing of when you start planning.
- Why should I bring my family into these decisions? Open discussions about health scenarios and care preferences today can help prevent difficult decisions later.
The Full Story:
Facing the reality of deteriorating health is never easy, and talking about it can be even harder.
No one wants to picture needing help one day. Yet we’ve seen time and time again that when clients address that possibility early, they give themselves something powerful: choice.
The choice to stay where they feel most comfortable. The choice to relieve their families from difficult, last-minute decisions. The choice to live on their own terms, even when life feels most restricting.
At Waddell & Associates, we think of this as part of your overarching wealth strategy. Because planning for your future care isn’t about expecting loss or crunching numbers; it’s about protecting your independence and ensuring your decisions remain your own.
Healthcare Costs for Future “You”: Why This Matters More Than You Might Think
Most people understand that healthcare is expensive. What’s surprising is how quickly those costs can reshape an otherwise solid retirement plan. Nearly 70% of people turning 65 today will need some form of long-term care, and around-the-clock support can exceed $100,000 per year.
These expenses often hit at a vulnerable moment, when your earning years are behind you and your options are more limited due to:
- Insurance challenges. Long-term care insurance can become prohibitively expensive or difficult to qualify for later in life.
- Portfolio strain. Self-insuring requires a portfolio strong enough to weather years of withdrawals without compromising your spouse’s security or your legacy.
- Emotional stress. When families face sudden care decisions without a plan, it can create tension and confusion at the worst possible time.
Thoughtful planning can replace these uncertainties with clarity, allowing everyone involved to focus on what matters: care and alignment.
Related: Click here to read “The Strategic Questions Every Sophisticated Investor Should Ask Right Now”
The Long-Term Care Question: To Insure or Not to Insure?
Over the past decade, the insurance landscape has evolved dramatically. Older policies often failed to deliver on their original promises, while newer ones may be more flexible but also more complex. Our role is to help you analyze what truly aligns with your current and long-term goals:
- Can your assets sustain several years of high care expenses without compromising other priorities?
- Does history suggest a higher likelihood of care needs later in life?
- Would you prefer to hold liquidity and self-insure, or share the cost through a hybrid policy?
Recently, we worked with a family who had done this planning early. When the mother’s health changed unexpectedly, the daughter already knew what steps to take. Together, we had already reviewed facilities, modeled costs, and clarified financial guardrails. When care quickly became necessary, decisions felt informed rather than rushed.
Making it a Family Matter
Talking about aging, health, and finances with family can feel uncomfortable, but early communication nearly always prevents hardship later. From our experience, families who speak openly about these topics tend to move through transitions with less conflict and more unity.
Here’s what we’ve seen work well:
- Start the conversation before there’s urgency. Frame it not as “here’s what to do when I get sick,” but rather as “here’s the plan we have in place, and here’s your role in it.” It takes some of the emotional weight out of the discussion.
- Be specific about what you want. Do you want to stay in your home as long as possible? Are you open to a family member providing care? Would you prefer a facility that offers progressive levels of support? These preferences matter, and they affect the financial planning.
- Identify who will step in if decisions need to be made. Who has power of attorney? Who will coordinate with your financial team? Making these decisions now, while everyone’s calm and thinking clearly, helps to prevent family conflicts later.
These discussions don’t just prepare your family; they bring relief. Parents feel relieved that someone else understands the plan, and children feel prepared and less anxious about the future. Together, we can make sure the whole family is aligned on what happens in the worst-case scenarios.
Building a Health Strategy That Works
Healthcare planning is not separate from retirement and estate planning; it’s a critical part of both. We take a customized, detail-oriented approach to integrate all three into your broader strategy:
We run the stress tests.
We build a baseline financial plan first: Here’s where you are, here’s your projected growth, and here’s your spending. Then we add scenarios. What if one spouse needs five years of memory care starting at age 80? What if both spouses have overlapping care needs? Does the plan still work?
We consider your family health patterns.
If dementia runs in your family, or if multiple relatives needed extended care, we factor that into your planning. It doesn’t mean it will happen to you, but it’s a possibility worth planning for.
We evaluate long-term care options now.
Even if you decide not to purchase insurance, we help you understand options available in your area. What do facilities cost? How much does in-home care run? What would you actually want if you needed help?
We help you keep liquidity accessible.
Care needs can arise suddenly. Having cash or easily liquidated assets available means you’re not forced to sell investments at an inopportune time to cover immediate costs.
We review your plan with you regularly.
Your health strategy isn’t static. As you age, your portfolio changes, and as the care landscape evolves, your plan should adapt. We check that your powers of attorney are current, ensure your healthcare directives are clear, and help you keep your family informed about where important documents are located.
The Value of Planning Ahead
Once clients address these questions, they often describe feeling lighter. The unknown becomes defined, and the path forward becomes visible. Their families gain alignment and understanding. Their finances reflect both optimism and realism.
And ultimately, that’s what this is about. Yes, we’re talking about money, healthcare, and long-term care costs. But underneath it all, we’re talking about protecting what matters most: your independence, your choices, your family’s wellbeing, and the legacy you want to leave.
If this article surfaced new questions or if anything in your family situation has changed since you last met with your wealth strategist, let’s talk. Maybe there’s a health development you’re navigating, or perhaps you’re ready to have that conversation with your adult children. Whatever’s on your mind, we’re here.
And if you’re new here and thinking, “I wish someone was thinking through all of this with me,” that’s the signal it might be time for a conversation. Learn about the Waddell & Associates difference and explore how you can work with us. We’d love to hear from you.
Sources: Administration for Community Living (ACL). “How Much Care Will You Need?” U.S. Department of Health and Human Services. https://acl.gov/ltc/basic-needs/how-much-care-will-you-need. Long Term Care Federal Employees Insurance Program. “Long-Term Care Costs.” U.S. Office of Personnel Management. https://www.ltcfeds.gov/long-term-care/costs
This content is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. Waddell & Associates, Inc. is an SEC-registered investment adviser. Registration does not imply a certain level of skill or training.
The strategies and examples discussed are illustrative only and may not be appropriate for every individual. All investments and planning decisions involve risk, including the possible loss of principal.
Please consult your financial advisor, attorney, or tax professional before making any decisions related to retirement, estate, or healthcare planning.
