Kit Lancaster, AWMA, CFP on Financial Long-Term Care Planning
Pooja A. Patel, DrOT, OTR/L, BCG, CDP, CFPS, CGCP
Elder Care Consultant | Primary Care & Caregiver Health Advocate | AI Enthusiast | Occupational Therapist: Clinician, Educator, Mentor, Leader, Entrepreneur, Speaker, Author, & Podcast Host
To hear this information in an audio format, tune in here.
November is National Family Caregivers Appreciation Month. November is also Home Care & Hospice Month. As an occupational therapist, I have worked with countless families to understand their options for care following an acute hospitalization stay. The biggest misunderstanding? “I have Medicare.” Well, bad news folks. Medicare only covers so much. If you need around-the-clock care at home or potentially a transition into a long-term care facility, Medicare does NOT cover that. So who does? Well, in most cases, unless you have a state-funded secondary insurance plan, you will be responsible for those finances.?
In many cases, this is where there's a true crisis. Unfortunately, it’s a tale too frequent with little awareness of the importance of planning ahead - both legally and financially. Legally, stay tuned for an upcoming episode with an elder law attorney who will explain some of the documents to have in place to help.?
Financially, let’s find out. For this week's article, I provide a recap of interviewing Kit Lancaster, AWMA, CFP? , Founder & President of Sterling Edge Financial LLC .
Background
According to the U.S. Department of Health and Human Services, 70% of people turning 65 can expect to use some form of long-term care during their lives, with an average duration of three years. With the high costs associated with long-term care, it's crucial for older adults and their families to have a solid financial plan in place to ensure a secure and comfortable future.
The Interview
The following conversation has been summarized for clarity. You can listen to the full conversation on the?podcast!
Pooja: Can you briefly explain what financial planning is and what long-term care planning means to you?
Kit: For me, financial planning is all about helping people make more informed decisions around money-related topics that influence your life, which is pretty broad. The key distinction there is that it's a decision-making process, and the outcomes are emotional, as much as they are financial, and that's complicated - that's nuanced.
[W]hen it comes to long-term care planning, it's understanding and setting more realistic expectations for something you're either in or could suffer from, that being a loss of capacity, a loss of the ability to take care of yourself, and the second-third order consequences of that for you personally, emotionally, for your family, for people that are maybe dependent on you...or will need to help you in some capacity.
[T]oday we’re focusing on financial planning specifically for long-term care. In many cases, families hit a crisis in the event that a family member needs medical care or personal assistance that isn’t covered by their health insurance plans. In your experience, what has been the biggest pain point in these situations??
It's usually a combination of things: lack of planning and unrealistic expectations re: Medicare, Medicaid, Social Security, or maybe even one's own supplemental benefits for Medicare, for example.
What are some key myths related to financial planning, especially when it comes to long-term care?
What are some of the most common areas you address when working with older adults? What are the most common or highly recommended services you see or provide for older adults related to financial planning?
Key Takeaways
===
At Aging Together , we are dedicated to helping you navigate aging, together.
===
To get in touch with Kit, you can use one of the following: