There is no better way to ensure that you can get the care you need at any stage of your life than by planning for it. That’s especially true if you’re worried about dementia. It’s a condition that affects an estimated 48 million people worldwide and can be incredibly costly to treat, but fortunately, there are some ways to prepare for it financially. Today we’ll discuss those options so that when the time comes, you’ll know how best to pay for dementia care in Seminole Manor, FL.
Reduce Living Expenses
The first thing you should do is to stop eating out. If you are used to eating out, this will be a tough change, but it’s a good idea. The same goes for shopping—try not to go out as often, and if you do, make sure that it is necessary and important. Reduce your cable plan or discontinue it entirely. Reduce internet access in general, and make sure that you aren’t paying for things like YouTube or Netflix that take up space on your computer without adding any value.
Insurance is a good way to finance dementia care. You can use it to pay for care in your home or a retirement community. It’s important to review your insurance every year because the costs of dementia care are rising, and the insurance industry is working hard to ensure their prices keep up with inflation.
Sell The House
You can sell your house to pay for dementia care. But first, you must find exactly what you’ll get from selling it. It’s not easy; several factors affect the value of a house, such as its condition, location, and size. And those numbers change constantly depending on the market. To make matters even more complicated, different appraisers could come up with wildly different valuations for your property—and their estimates probably won’t align with how much you feel your house is worth!
You might be surprised to learn that employee benefits can be used to pay for dementia care. These include:
- 401(k) plans
- Pension plans
- Life insurance policies (with cash surrender value)
While these funding sources are not always available and may not meet the needs of your loved one, it is a good idea to explore them first before moving on. Remember, these funds can be used in addition to other funding sources such as long-term care insurance or home equity lines of credit (HELOCs).
There are many things to consider when planning for care costs, but if you are in a position to do so, it’s a good idea to look into your retirement benefits. Many people have 401ks or other pension plans that can be used to pay for care. However, these sources of funding will most likely have limits on how much money they can be used for and/or on how long they have been set aside for retirement purposes. If you plan on using your retirement benefits for dementia care (or any other purpose), it’s important that you plan ahead so that the money isn’t depleted when it’s needed later in life.
Personal savings are the most common source of funding for dementia care. This may come as a surprise, but it makes sense: you likely have a retirement account that can be tapped into if you need to pay for care. And this money can be used to pay for other expenses, not just your loved one’s care.
Work With A Financial Advisor
A financial advisor can help you plan for the future. They can help you decide how to allocate your assets, and they can also help you choose the right insurance policy. A good financial advisor understands how taxes work and may be able to find ways for you to reduce your tax burden.
Financial advisors usually work with individuals and families interested in maximizing their wealth over time, making them ideal partners if there is a need to finance dementia care within a retirement community.