East Tennessee's Mountain Views

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P.O. Box 432

Vonore, TN 37885


Do You Have a Story?

Monday, January 6th, 2020 | Uncategorized | No Comments

By Yvonne Marsh, CFP®, CPA

My clients’ stories just keep coming: A couple from church running through their life savings, a husband with an Alzheimer’s diagnosis, a dad suffering a debilitating stroke.  The one thing they all have in common is that no one had long-term care protection. Now they just hope their life savings don’t run out paying for the huge health care costs Medicare doesn’t cover.  In the work I do, this is the defining issue for today’s generation of retirees.  So let’s face these costs head-on and make informed decisions!

In Knoxville, assisted living costs more than $3,600/month and full skilled care is more than $7,000/month, according to the 2018 Genworth Cost of Care Survey. Layering that cost on top of most Americans’ retirement savings is not a realistic option.  Even if you have the means to pay for it yourself, you need to consider:

» Taxes: When you withdraw money from your retirement account to pay for care, you also have to pay the tax on that withdrawal.  If you’re in the 22% tax bracket, you’d have to withdraw $4,615/month to cover the tax and the $3,600/month assisted living cost.  You’d have to withdraw $8,975/month to pay the tax and the $7,000/month full skilled care cost.  

» Medicare Part B and Part D premiums are based on taxable income.  All of those extra taxable withdrawals can force you into paying more for Medicare.  

» Timing: What if the stock market has taken a downturn at the same time you need to pay for care costs?  Having to “sell low” can severely limit how long your money will last.

» Income needs: You may already be using your retirement assets for monthly income.  Selling those assets to pay for care will reduce your monthly income sources.

» Legacy: Perhaps you wanted to leave your hard-earned savings to your grandkids instead of paying it out to a health care agency.  

If you don’t want to spin the roulette wheel of good health, let us help you weigh your options. Protecting your assets from the unknown is just prudent financial planning.

We are hosting small group gatherings where we will discuss the book by Peter Stahl, Top of the First; The Convergence of Health Care and Financial Planning.  You’ll learn how to protect yourself and your family, plus take home a book to keep.  Space is limited, so call today.   

Marsh Wealth Management, LLC
Fiduciary Registered Investment Advisor
504 Ebenezer Road
Knoxville, TN 37923

Financial Planning & Investment Advisory Services are offered through Marsh Wealth Management, LLC (“MWM”), an independent investment advisor registered with the state of Tennessee. Yvonne Marsh is an Investment Advisor Representative of MWM in the state of Tennessee. Marsh Professional Group, LLC is a TN registered public accounting firm and a separate legal entity from MWM. For a detailed discussion of MWM and their investment advisory fees, see the firm’s Form ADV on file with the SEC at www.adviserinfo.sec.gov.

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East Tennessee's Mountain Views

P.O. Box 432

Vonore, TN 37885

Email: inquiry@etmv.com

865.607.4337 Local

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