50+ Lifestyles

Keep that Wheelbarrow Protected!

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

As we age, we become increasingly aware of a fact emphasized by the Certified Senior Advisor curriculum. That fact is – too many retirees fail to plan for eventual health care costs that could become financially catastrophic for individuals, spouses and family. To demonstrate the importance of planning, we always tell the story of the wheelbarrow. Let’s review that story.

Imagine for a moment that I live directly across the street from you. Our neighborhood houses face each other. If I phoned you at 2 a.m. and said, “Hey neighbor, Wally World is having a special sale on wheelbarrows this week….why don’t you and I go down to Wally World. They are open 24/7. Let’s pick up a new wheelbarrow on sale!”

Remember – it’s 2 a.m., and I woke you up from a sound sleep. What would you tell me? Your response probably couldn’t be printed here and rightfully so. You would be upset because of the lateness of the hour over a seemingly useless call. But now let’s change the story. If I called you at 2 a.m. and woke you from a sound sleep and said, “Hey neighbor, your garage door was left open last night, and there’s a couple kids out there and I think they are going to take off (steal) with your wheelbarrow.” NOW – what’s your reaction?? Different reaction for sure! I am not sure what that reaction will be, but I know you will do something; call police department, 911 or something else but regardless – you will react!

What’s the difference in these two scenarios? The difference is – the wheelbarrow is yours. It is your property. Human nature says we protect our property from the thief. We safeguard our property and home always. Now let’s add to our story the analogy that this wheelbarrow – about to be stolen – contains ALL our property. We protect our property at all costs.

Think of that wheelbarrow representing assets we have worked for our entire life. Think of that wheelbarrow as representing our savings, pensions, stock, bonds, mutual funds, life insurance, real estate, other property, business interests, farm property. Now think of that “thief” as the costs of long-term health care ready to “take off” with what we have worked an entire lifetime to obtain. The cost of long-term healthcare is extensive. With today’s life expectancy – the reality of the stolen wheelbarrow story can become a reality for each of us. The longer we live the greater the risk of those costs absorbing our assets. Long term care costs become the thief in the night after our wheelbarrow loaded with our assets taking a lifetime to accumulate.

Readers I encourage you to work with a financial advisor and develop a plan to protect your wheelbarrow from being stolen. The cost of long term health care is today’s thief waiting to walk away with your assets. Guard those assets with the plans that are available today. Long Term Care insurance remains available. Other plans that may help safeguard our assets are long-term care annuities and long-term care life insurance.

Sometimes planning could be to simply repackage current assets into one or a combination of these products. Wheelbarrows (our assets) properly protected allows you to maintain control, continue to receive competitive yields in today’s low interest environment and now have added security again those catastrophic costs. Consult with your advisor. We are available to discuss options at your request. Richard J. Schillig

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJS and Associates, Inc. He can be reached at (563) 332-2200.