When planning for retirement, all possible risks must be considered and evaluated. One of the most commonly overlooked is the potential need for long-term healthcare (LTHC) for you and/or your spouse. The cost of LTHC can be staggering, and can derail even the best laid financial plans. When evaluating the cost risk for LTHC, the old adage about three ways to manage risk can be clearly applied:

1. Avoid the Risk: Unfortunately, growing older is a fact of life and healthcare concerns increase with age. Clients can embrace a healthy lifestyle to reduce the risk, but nobody can completely avoid the risk with any certainty. Clients can also choose to live in denial that they will suffer an LTHC incident and do nothing to protect themselves. Unfortunately the odds do not favor this approach, given that about 70% of individuals over age 65 will require at least some type of long-term care services during their life and 20% will need five years or more of care, according to the U.S. Dept of Health and Human Services.)

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