How Spending Priorities Change as We Age

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"Long term care is the largest unsecured risk facing Americans today" – Money Magazine.
Jonathan Pond, America's Financial Planner, says that 90% of estates are spent this way: 1) nursing home, 2) IRS, 3) children, 4) grandchildren, 5) charity. More people are worried about the IRS taking their money than about having to spend it on a nursing home.
Some 75 million boomers are ill prepared to cover the costs of long term care especially since Medicare and health insurance does not cover the bulk of long term care and Medicaid only does once someone has spent their live savings to the poverty level. http://www.longtermcare.gov
With only about 10% of those buying long term care insurance (http://www.nationalltc.com) the rest will spend their estates on paying for care and some will end up on welfare health care (Medicaid) after spending all their money.
The Federal Deficit Reduction Act provided for every state to have a Partnership program to provide asset protection for those who buy qualified long term care insurance policies. http://www.partnershipforlongtermcare.com/
An alternative are linked-benefit products, Life insurance or Fixed annuities with long term care riders. In most states you can also use your qualified money (IRA/401k) to fund your plan. http://guidetolongtermcare.com/linkedbenefit.html

Durt of IA 10:56PM February 16, 2012

This can't count the cost of going into a nursing home or assisted living, where it costs $5000/month to $10,000/month.
That's why many senior's assets are wiped out the moment the can't take care of themselves.
The solution is continued steady exercise to that they don't become sick and non-ambulatory.
The solution to our financial crisis for the elderly is as simply as 20 minutes of the right exercise. Nobody talks about THAT. Exercise is essentially free.

Hans Beerbaum of CA 3:31PM February 15, 2012