The Columbia Press
October 9, 2020
Senior
7
Financial Focus
Moments
with Adam Miller
with Emma Edwards
Importance of voting
Protect your family from long-term care costs
As a child, if I should hap-
pen to sneeze my mother
would always say “Bless you
child!” and somehow I always
said “Thank you.”
Who or what started those
responses? We’ve blamed
our parents almost since the
beginning of time. I always
said “bless you” to my kids
when they sneezed and I hear
them doing the same to their
kids and grandkids.
You may have thought, as I
did, of Adam blaming Eve in
the Garden of Eden. Blame
did not have to be taught to
us by anyone. A word we sel-
dom use is blameworthiness.
Sometimes, our reaction or
response to being blamed has
an immediate cause and ef-
fect.
Politicians especially like
to speak of their sad begin-
nings, as if that were a ban-
ner of acceptance for living
beyond such circumstances.
Thinking of politicians, I’m
reminded of my responsibil-
ity to vote. My parents and
grandparents set the example
by voting. And my kids can
blame us for that “burden of
responsibility” if they wish to
do so.
What’s standing between
you and success right now
is you. And the future of our
country is ultimately in our
hands. Recently, a preacher
told his congregation to “Get
out of their ‘blessed assur-
ance,’ get off their duff and
get out and vote!” I liked that.
We can make a difference.
Census taker analyzers like
to put our population into
specific categories.
Some
sources use different names
for the many generations, but
I like to use these easily ex-
Like everyone, you want to
remain physically and finan-
cially independent through-
out your life.
But if you lose some of this
freedom, the last thing you’d
want is to become a burden
on your family. How can you
keep this from happening?
First, you need to be aware
of the risk. Someone turn-
ing 65 today has almost a
70 percent chance of even-
tually needing some type of
long-term care, according
to the U.S. Department of
Health and Human Services.
It doesn’t necessarily mean
you’ll face that likelihood.
You have either a zero per-
cent chance of requiring
long-term care (you’ll nev-
er need it) or a 100 percent
chance (you’ll definitely need
it).
If you think you’re in the
zero category, you’re taking a
gamble – and it could be a big
one, because long-term care
is expensive.
The median annual cost
for a private room in a nurs-
ing home is over $102,000,
according to Genworth, an
insurance company. Other
long-term care services, such
as those provided by a home
health care aide, also aren’t
cheap.
You can’t count on Medi-
care footing the bill – in fact,
it would probably only cover
a small portion of a nursing
home stay and provide limit-
ed assistance for home health
care.
So, if you were financial-
ly unprepared, the burden
might fall on your loved ones.
This could be a big financial
challenge, in two ways.
First, if a family member
plainable names.
2010 to 2024: Generation
Alpha (the first generation
born entirely in the 21st cen-
tury.) Serious voters.
1997 to 2009: Generation
Z -- sometimes called the
“new silent generation.”
1981 to 1996: Millennials
-- progressive and serious,
they carefully weigh options.
1965 to 1980: Generation
X -- the first TV generation,
they focus on music videos,
rock music, and a good work-
home balance.
1946 to 1964: Baby
Boomers -- characterized as
workaholics, they tend to be
team players.
1928 to 1945: The Silent
Generation – traditionalists
and the best overall workers
with a focus on family-work
balance.
1900 to 1927:
G.I.
Generation or the Lost Gen-
eration – their lives are de-
fined by the rise of radio and
telephones, the stock market
crash, and World War II.
Australian researcher Mark
McCrindle, who takes credit
for naming the current gen-
eration, points out that “Gen-
eration Alpha marks a fresh
start for the economy, polit-
ical climate, environment,
and more.” He goes on to call
it “a period of rebirth and re-
covery.”
To attain a fresh start, I sug-
gest we heed the advice of the
preacher I mentioned above.
That includes carefully read-
ing your voter pamphlets and
weighing your vote on the life
issues you hold dear.
See you at the voting place
(oops, those were the days;
now we mail our vote in)!
We can do it, but not alone.
became your caregiver, he
or she might have to aban-
don a career, or substantially
reduce working hours. Not
only would this result less
income, it could lower the
amounts contributed to his or
her 401(k) or other employ-
er-sponsored retirement plan.
Second, if no one could
leave their jobs or cut back
on their hours, they might be
forced to pay out of pocket for
a nursing home stay or home
health care worker.
You have a couple of options
to avoid these outcomes:
Self-insure – You could de-
vote a portion of your invest-
ment portfolio specifically to
long-term care. If you require
admission to a nursing home, it
may require a significant com-
mitment of your resources.
Purchase protection – Over
the past decade or so, there’s
been an increase in the types
of long-term care protection
vehicles available.
These instruments vary in
cost and what they cover, but
you may greatly lower the fi-
nancial risk you might face.
By consulting a financial pro-
fessional, you should be able
to find an arrangement ap-
propriate for your situation.
Preserving your financial
independence and helping
protect that of your family
should be a key financial goal.
And you can make progress
toward accomplishing this by
recognizing the potential cost
of long-term care and taking
steps to deal with it.
This article was written by
Edward Jones and submit-
ted by Adam Miller, financial
advisor at the Astoria office,
632A W. Marine Drive. To
reach him, call 503-325-7991.