What Is a Long-Term Care Funding Strategy?
A long-term care funding strategy is a plan for how you’d pay for care if you need it, built around where and how you want to age. It brings together your income, savings, home, family support, and insurance into one approach, so you decide in advance how care would be paid for.
Why start with where you want to live?
The goal shapes the cost. Staying in your own home, moving to assisted living, and relying on family each lead to different numbers and different funding choices.
What goes into a funding strategy?
Income, like Social Security, pensions, or retirement withdrawals
Savings set aside specifically for care
Your home, and the role its equity could play
Family support, with roles agreed on in advance
Long-term care insurance
Public programs: Medicare for short-term skilled care, and Medicaid after spending down most assets (NAIC Shopper’s Guide)
Where does insurance fit?
Insurance gives the strategy a dedicated source of funds for care, so other savings can stay focused on everything else. It’s one part of the strategy, not the whole thing. See Retirement Planning’s Blind Spot.
How does Staying Power build one?
On a first call, we start with you: where you want to live as you age, what matters most, and who’s in the picture. Then we look at your options and put together a funding strategy for aging in place, with no obligation. Start with a few questions.
Does it change over time?
It should. Revisit your strategy after major life changes, and keep your intentions current so the people around you know what you’d want.
Related reading: How Much Does Long-Term Care Cost? and Long-Term Care Insurance vs. Medicaid.
Frequently asked questions
Do I need insurance to have a funding strategy?
No. Insurance is one tool. A strategy can rely on savings, home equity, family support, or a mix.
Who should be involved?
Your spouse or partner, the family members who’d be affected, and your financial advisor if you have one.
How often should I revisit it?
After major life changes, like retirement, a move, or a change in health or family.
