A Financial Golden Rule

By LouAnn Schulfer, AWMA®, AIF® Accredited Wealth Management AdvisorSM, Accredited Investment Fiduciary® , Published Author |

Long term care planning can go in a few different directions.  One never knows what their future may hold and whether they will be one of the 70% of people1 who need some sort of ongoing care after age 65.  Long term care is different than medical care, which is why Medicare only covers a short duration of long-term care and only under limited circumstances.  Medicaid is the other government program that pays for LTC, but only for those who are impoverished. 


The best thing you can do financially to potentially mitigate the high cost of long-term care, is exercise, follow a discipline of great nutrition and tend to your healthcare needs.  A fit body is a healthier body.  A healthier body is generally a wealthier body.  But life still happens and if you or your spouse need long term care, who pays?   Medicare?  Limited.  Medicaid?  For the indigent.  Insurance?  If you have policy that covers LTC.  You?  Most likely.  Is this a bad plan?  Maybe not.


Many who qualify for Medicaid have simply outlived their assets, spending all that they’d saved.  The program is there as a safety-net.  There is a process of “divestment” that some have used to retitle their property into others’ names such as their children, so that the property/assets are not counted when assessing net worth and qualifying for government-paid care.  Maybe this worked for some in the past.  But what does the future hold?  The baby boomers, America’s largest generation until recently, are aging.  Boomers are the 76 million people born between 1946 – 1964.  The oldest is 80 in 2026.  The youngest turns 65 on 12/31/2029.  That means that in 2030, which is right around the corner of the calendar, all boomers will be 65 or older.  If 70% of those boomers will need care at some point, what will the system look like? That’s a lot of demand, or need for a critical and ongoing service.   Currently, there are a limited number of Medicaid beds available in long-term care facilities overall, and not all facilities even accept Medicaid.  That means your choices may be limited if you are relying on Medicaid as your financial resource.  If you do not divest your assets and you have your own financial means to pay for your care, you will have the ultimate choice as to the care you receive and where you receive it.  After all, he or she who “holds the gold” proverbially “makes the rules”.  It’s a financial golden rule.



LouAnn Schulfer of Schulfer & Associates, LLC Wealth Management can be reached at (715) 343-9600 or louann.schulfer@lpl.comSchulferAndAssociates.com , louannschulfer.com or louann.biz


Securities and advisory services offered through LPL Financial, a Registered Investment Advisor.  Member FINRA/SIPC. 



  1. LongTermCare.Gov  https://acl.gov/ltc/basic-needs/how-much-care-will-you-need