LTCGA
  • Home
  • Learn the Basics keyboard_arrow_down
    • Defining Long Term Care
    • Choosing the Right Long Term Care
    • Individuals Who Need to Purchase Coverage for LTC
    • Understanding Medicare
    • Long Term Care Fast Facts
    • Long Term Care Rates Vary by State
  • Long Term Care Insurance keyboard_arrow_down
    • The Importance of Long Term Care Insurance
    • Finding Out Who Needs to Purchase LTCI
    • Planning for an LTCI Purchase
    • Steps to Claim your Benefits
    • Types of Long Term Care Insurance Policies
    • Factors that Determine Long Term Care Insurance Rates
    • Long Term Care Insurance Premiums Tax Deductibility and Tax Benefits
  • LTC Quotes
  • Our Carriers
  • Agency Services
  • Commission Financing
  • About Us
  • Blog
LTCGA
  • Home
  • Learn the Basics keyboard_arrow_down
    • Defining Long Term Care
    • Choosing the Right Long Term Care
    • Individuals Who Need to Purchase Coverage for LTC
    • Understanding Medicare
    • Long Term Care Fast Facts
    • Long Term Care Rates Vary by State
  • Long Term Care Insurance keyboard_arrow_down
    • The Importance of Long Term Care Insurance
    • Finding Out Who Needs to Purchase LTCI
    • Planning for an LTCI Purchase
    • Steps to Claim your Benefits
    • Types of Long Term Care Insurance Policies
    • Factors that Determine Long Term Care Insurance Rates
    • Long Term Care Insurance Premiums Tax Deductibility and Tax Benefits
  • LTC Quotes
  • Our Carriers
  • Agency Services
  • Commission Financing
  • About Us
  • Blog
OCTOBER 26, 2016

Saving for Retirement? Don’t Fall into these Money Pits

3-oct29-saving-for-retirement-dont-fall-into-these-money-pits-ltcga

Are you financially ready to face the retirement years? According to the Genworth 2016 Cost of Care Survey, long term care costs have risen. Here are some annual figures revealed in the study:

Home Health Care (Home Health Aide) Cost: $46,332

Adult Day Health Care Cost: $17,680

Nursing Home Care (Private Room) Cost: $92,378

With the average cost of long term care insurance (LTCI) a steep price for most, it is of high priority for those preparing for retirement to start saving money. To help you out, let’s list down several money pits for you to avoid when planning for your future:

One More Bottle for the Road, (another) Last Stick to Smoke

Making the most out of life doesn’t mean going out late at night to all those parties, binging on alcohol, or smoking packs of cigarettes. As fun that these activities may be, it can also be an expensive way to live. Not to mention, there is also a heavy toll on one’s health that can prove to be a significant expense.

As mentioned by Fair Reporters, the average cost for a pack of cigarettes in the country is $5.51. Regardless of how many packs a smoker consumes, you can still see that it is a costly vice. Liquor prices vary (depending on the type, such as whiskey, rum, beer, etc.). But the same cigarette perspective can be done – regardless of the price, costs add up, taking a big chunk out of potential retirement savings.

Also, the consequences of these taking these vices on one’s health is damaging. According to the Centers for Disease Control and Prevention, cigarette smoking is the leading cause of preventable disease and death in the country. Treatment for lung cancer and alcohol-related diseases are expensive. Worst, retirees who partake in these vices may find it hard applying for medical coverage, with smokers and alcoholics as possible qualification deterrents for insurance policies.

The bottom line is, would you risk your retirement plans for vices that grant temporary pleasures? Or spend hard-earned cash on activities that you’d likely to regret in the future? Instead of spending for vices, why not spend for something beneficial to your health?

The Trap We Call Kids (or Grandkids)

When was the last time you said “no” to kids? As harmless as it may seem, but continuously giving in to children’s demands for cash can burn a hole in your pocket. The problem magnifies when children grow up – according to Larry Stein of Disciplined Investment Management, most retirees find it hard to cope with expenses, even with cash set aside for the golden years. The main reason why this is so is that most still support their children or grandchildren financially –an expense that isn’t initially included in any retirement plan.

There is nothing wrong helping out your family’s financial problems. But like vices, costs add up, which can result in bigger problems for both the elderly and their children. Avoid this trap by prioritizing and setting aside a budget for your children, in case you do need to contribute to any of their expenses. Best of all, consider alternative options – helping out kids doesn’t necessarily mean for you to pay cash (for example: you can opt to look after your grandchildren, instead of contributing money for a babysitter).

Giving in to Your Emotions

The reason why financial experts and insurance specialists stress the importance of writing down a plan is that it helps people enforce the idea of accomplishing a goal. With that said, it is also of equal importance to set your mind to stick to your plan. By prioritizing your emotions over your plan, you’re basically stretching milestones to a later date. Worst, you may end up accomplishing nothing at all.

To help you save money and commit to a plan, always make sure to think twice before making a purchase. Do you really need to travel overseas for vacation? Is lunch at that new café worth your daily spending budget? Do you really like that red blouse? Are you buying a new phone because you need one, not because everyone’s buying a new gadget?

Thinking beyond than what you’re feeling right now will help you prevent making impulsive decisions. Having a firm and practical mindset will also reward you in other aspects of life. You may potentially have a simpler and grounded view of life – you’ll start to value experiences over material possessions, seeing the bigger picture over temporary delights.

Delaying Long Term Care Insurance

Long term care premiums may have risen, but delaying the purchase of a policy may prevent you from enjoying the golden years. An LTCI plan provides excellent and appropriate care in case you need it. And chances are, you’d definitely need one, with 70% of individuals at the ages of 65 years and above expected to receive care during retirement.

Also, don’t let the average cost of long term care insurance turn you off from making a purchase. According to a recent study conducted by America’s Health Insurance Plans, approximately 90% of long term care insurance policyholders are satisfied with their policy purchases. This finding proves that an LTCI is an essential tool to have for the retirement years.

Avoiding the money pits mentioned above will help you secure your finances. Do you have other saving suggestions? Please share it with us below.

Categories Long term care insurance, RetirementTags fitness, health, insurance, Long term care, Long term care insurance, ltc insurance, retirement, retirement planning, savings
← Weekly Digest: Senior Treats this Halloween
Weekly Digest: Retirement Saving Tips →

Follow Us on

Twitter Facebook Google Plus RSS Feed

Get your Free LTC Quote Now

Popular

  • Weekly Digest: Continuing the Fight this Veterans Day
  • Where to Get the Best Long Term Care Insurance Information
  • Weekly Digest: Pushing for Alzheimer’s Awareness
  • Choices that Long Term Care Quotes Provide
  • Weekly Digest: Retirement Saving Tips

Categories

  • Long term care (13)
  • Long term care insurance (28)
  • LTC News and Updates (4)
  • Our Agents (5)
  • Retirement (9)
  • Uncategorized (18)
  • Weekly Digests (22)

Understand your Long Term Care insurance planning options and get a no obligation quote today!‎

Get Free Quote Now keyboard_arrow_right

Our Trusted Carriers

About Us

LTC Global was founded in 2002 by a team of financial and actuarial experts to provide strategic management and financial resources to agencies and agents in consulting to the LTC insurance and reinsurance industry.

learn more

Quick Links

  • Homepage
  • LTC Quotes
  • Agency Services
  • Commission Financing
  • Our Carriers
  • About Us
  • Privacy Policy
  • Terms of Use
  • Blog

Connect with Us

All Rights Reserved LTCGlobal Agency © 2025
In California: LTC Global Agency LLC d/b/a LTC Global Insurance Agency LLC (License No. 0K37821)