Ron Roberts discusses healthcare planning for retirement
Listen to the interview on the Business Innovators Radio Network: Interview with Ron Roberts Founder and CEO of Roberts Retirement Group Discussing Health Care Planning for Retirement
Ron Roberts, founder and CEO of Roberts Retirement Group, discusses the critical topic of healthcare planning for retirement. Ron shares insights on navigating Medicare for clients over 65, including the importance of understanding the coverage for doctor visits, hospital stays, and skilled nursing care. He explains the eligibility requirements for skilled nursing benefits, such as the need for a prior hospital stay, and the financial implications of exceeding the 100-day coverage period.
Healthcare planning for retirement is essential, particularly given the high costs associated with long-term care, which can range from $60,000 for in-home care to $180,000 for skilled nursing care annually. As individuals approach retirement, understanding the financial implications of health care becomes increasingly important, especially for those over the age of 65 who are eligible for Medicare.
Long-term care encompasses various services, including in-home care and skilled nursing facilities. The associated costs can be staggering:
- In-Home Care: The average cost for in-home care can reach up to $60,000 per year, or about $5,000 per month. This type of care allows individuals to remain in the comfort of their own homes while receiving assistance with daily activities.
- Skilled Nursing Care: For those requiring more intensive care, skilled nursing facilities can cost between $150,000 and $180,000 annually. This level of care is often necessary for individuals who cannot perform at least two of the six activities of daily living (ADLs), which include eating, dressing, bathing, toileting, continence, and transferring.
Many individuals rely on what Ron Roberts refers to as the “hope and pray method,” hoping they will not need long-term care. However, this approach can lead to significant financial distress if care is required. Without a proper plan in place, individuals may find themselves in a position where they must “spend down” their assets, including investments, savings, retirement accounts, and home equity. This can deplete resources that were intended for retirement living.
To mitigate the financial burden of long-term care, several planning options are available:
- Standalone Long-Term Care Insurance: This type of insurance is medically underwritten and requires ongoing premium payments. However, many people find the premiums to be expensive, and there is a risk that they may never need to use the policy.
- Life Insurance with Long-Term Care Riders: Policies such as universal or whole life insurance can include riders that allow policyholders to access death benefits for long-term care expenses. This means that if care is needed, the funds can be drawn from the death benefit, preserving the policyholder’s assets.
- Annuities with Long-Term Care Riders: Annuities can also be structured to provide long-term care benefits. Depending on the initial investment, the payout for long-term care can be significantly higher, providing a safety net for those who may need care.
- Innovative Retirement Account Solutions: A newer option involves utilizing existing retirement accounts, such as 401(k)s or IRAs, to provide long-term care benefits without the need for traditional insurance premiums. This approach allows individuals to access funds directly for care, providing flexibility and control over how the money is used.
Having a comprehensive health care plan in place is essential for peace of mind. It allows individuals to prepare for potential healthcare needs without the stress of financial uncertainty. As Ron emphasizes, planning for health care is not just about hoping for the best; it’s about being proactive and ensuring that resources are available if and when they are needed.
In conclusion, healthcare planning for retirement is a critical component of financial security. With the rising costs of long-term care, it is vital for individuals to explore their options and develop a strategy that aligns with their needs and financial situation. By doing so, they can avoid the pitfalls of inadequate planning and ensure a more secure and comfortable retirement.
Healthcare planning is a crucial aspect of retirement that often gets overlooked. As individuals approach retirement age, particularly those over 65, understanding the complexities of healthcare options becomes essential. In this discussion, we will explore various facets of healthcare planning, including Medicare, long-term care options, and innovative solutions for managing healthcare costs.
Medicare is a federal health insurance program primarily for individuals aged 65 and older. It covers a range of health services, but it is important to note that it does not cover all expenses. Medicare typically pays for about 80% of medical bills, leaving beneficiaries responsible for the remaining 20%. This is where Medicare supplements come into play. These supplemental plans can help cover out-of-pocket costs, including co-pays and deductibles, and may also include additional benefits such as prescription drug coverage and dental care.
Long-term care is a significant concern for retirees, as it can lead to substantial financial burdens. Long-term care refers to a variety of services that assist individuals with daily activities when they can no longer perform them independently. The six activities of daily living (ADLs) include eating, dressing, bathing, toileting, continence, and transferring. If an individual cannot perform at least two of these activities, they may require assistance from a caregiver.
Recently, a new concept has emerged that utilizes existing retirement accounts, such as 401(k)s and IRAs, to provide long-term care benefits without the need for traditional insurance premiums. This innovative approach allows individuals to access funds from their retirement accounts if they become unable to perform two of the six ADLs.
Ron shared: “A lot of folks don’t have a plan. They have the hope and pray method. And they’re gambling their future based on a hope and pray plan”
About Ron Roberts
Ron was born in Burbank California and grew up in the Mojave Desert. Being the first of six children born to deaf parents, he learned responsibility at an early age. His commitment to family and faith is unwavering. It’s the essence of who he is and the foundation of his business success. Living for a higher purpose and caring for others has always been Ron’s focus.
After high school, he joined the United States Coast Guard where he learned about hard work, discipline, and duty. He enjoyed serving his country and helping to keep people safe. He grew in experience through training, education, and travel. He developed a love for the sea and enjoys boating and sailing with friends and family.
After completing his time with the Coast Guard, Ron served on a mission for the deaf in Chicago for his church. While there, he formed the first deaf scout troop in Chicago for the Boy Scouts of America. Returning from Chicago, Ron attended college in Stockton, California where he met his wife, Julie. They were married in the spring of 1984. In 1991, Ron and Julie moved to Amador County where they enjoyed raising their four daughters in a close knit community. Ron’s hobbies include reading, boating, sports, and traveling with his family. Ron also volunteered at a private school where he taught history and American Sign Language. Family, faith, and community are the most important things that define Ron.
Ron’s chosen vocation as a Retirement Planning Professional allows him to use his experience, his gifts, and his love for family to help people in a very special way. Ron has been in the retirement planning industry since 1990. Founded in 2002, Roberts Retirement has grown over the years to serve families in northern California and around the country.
Ron has served as President of the California Estate Planning Counsel and continues to mentor other retirement planning professionals all across the United States. He is constantly educating himself on the most up-to-date investment strategies and changes in the financial industry. Ron is recognized as a leader in the industry, is a sought-after speaker, and has been featured in Senior Market Advisor Magazine
Learn more: https://www.robertsretirement.com/
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