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The conversation about long-term care often begins with a story about a family caught unprepared. Perhaps it’s a grandmother needing specialized care, a parent diagnosed with Alzheimer’s, or a spouse requiring unexpected assistance. These situations highlight why long-term care planning isn’t just about healthcare—it’s about shielding your family’s financial future and maintaining control of your choices.

The Hidden Costs of Care

Beyond the obvious expenses, long-term care creates ripple effects throughout families that many don’t anticipate until they’re experiencing them firsthand. When families step in as caregivers, they often face reduced work hours, career interruptions, and increased stress. A recent study found that family caregivers spend an average of 24 hours per week providing care, with many reporting significant impacts on their own health and well-being.

Consider Sarah, a local Castle Rock resident who recently shared her story with us. When her mother needed care, Sarah assumed she could manage while working remotely. Within months, she realized the true scope of caregiving extended far beyond basic daily assistance—it included coordinating medical appointments, managing medications, handling finances, and making countless daily decisions about her mother’s care.

The Reality of Rising Costs in Colorado

When we discuss long-term care costs, the numbers are sobering, particularly in our region. Here’s what families in the Castle Rock area are currently facing:

• Private Room in a Nursing Home: $132,819 annually
• Assisted Living Facility: $63,654 annually
• Home Health Aide: $99,521 annually
• Adult Day Health Care: $24,825 annually

These costs typically increase 3-5% annually, outpacing general inflation. Looking ahead to 2035, that private room could cost upwards of $178,498 per year. Without proper planning, these expenses can rapidly deplete retirement savings that took decades to build.

Understanding Your Options: A Deeper Dive

Traditional Long-Term Care Insurance represents the most straightforward approach. Think of it as a specific tool designed for a specific job. While premiums may increase over time, starting early—ideally in your 50s—can help lock in better rates. One client recently secured a policy at age 55 for $2,800 annually that provides $6,000 monthly in benefits with a 3% compound inflation rider.

Hybrid Life Insurance/Long-Term Care Policies offer more flexibility. These policies solve the “use it or lose it” concern of traditional long-term care insurance by providing a death benefit if the long-term care portion goes unused. While initial premiums are higher, they’re typically guaranteed not to increase.

Self-Funding requires careful planning and typically works best for those with significant assets—usually $2 million or more in investable assets. This approach provides maximum flexibility but requires disciplined investing and careful consideration of market risks.

Government Programs like Medicare and Medicaid come with important limitations. Medicare’s coverage is typically limited to 100 days of skilled nursing care following a hospital stay. Medicaid, while comprehensive, requires spending down assets to qualify—often leaving the healthy spouse with limited resources.

The Tax Angle: Maximizing Efficiency

Long-term care planning intersects with tax planning in several important ways. Qualified long-term care insurance premiums are typically deductible as medical expenses, with higher deduction limits as you age. For 2025, deduction limits range from $480 for those 40 or younger to $6,020 for those age 70 and over.

When self-funding, consider tax-efficient strategies such as:

• Using HSA funds to pay for qualified long-term care insurance premiums
• Positioning assets to optimize tax treatment of future withdrawals
• Leveraging tax-free exchanges from existing life insurance or annuity contracts
• Structuring investments to minimize tax impact during high-expense years

Estate Planning Integration

Long-term care needs can severely impact estate plans without proper coordination. We recommend a three-pronged approach:

First, ensure your basic estate documents—powers of attorney, healthcare directives, and wills—explicitly address long-term care scenarios. Second, consider trust structures that can help shield assets while maintaining eligibility for benefits. Finally, communicate your plans with family members to avoid confusion and conflict later.

Developing Your Strategy

Creating an effective long-term care plan requires balancing multiple factors unique to your situation. Key considerations include:

Your Family History: Understanding your family’s health history can help predict potential care needs. Longevity and specific health conditions often run in families, affecting both the likelihood and duration of needed care.

Geographic Considerations: Care costs vary significantly by location. In Castle Rock, we’re seeing costs about 10% higher than the national average, but moving just 30 minutes away could reduce expenses by 20% or more.

Family Dynamics: Every family is unique. Some families have multiple children nearby who can help with care, while others are geographically dispersed or have different capabilities to assist. Your plan should reflect these realities.

How McGregor Wealth Management Can Help

At McGregor Wealth Management, we understand that long-term care planning is about creating a clear strategy that helps shield both your financial future and your family’s well-being. Our approach combines thorough analysis with practical solutions.

We start by understanding your specific situation—your health, family dynamics, and financial resources. Then we model different scenarios to help you understand the impact of various choices. Working with our network of insurance specialists, healthcare providers, and elder law attorneys, we help you implement a strategy that balances protection with flexibility.

Contact us today to schedule a consultation and take the first step toward implementing your long-term care strategy. Our office in Castle Rock serves clients throughout the Colorado Front Range, combining local insight with comprehensive planning expertise.

About Mark

You probably have people helping with your investments, legal matters, and taxes…but who makes sure you are getting all the benefits you’re owed? I do. My name is Mark McGregor. I scour federal, state, local, and corporate databases to find benefits you are owed but NOT receiving. That’s what I do. Yes, we do all the other things as well, such as providing investment management, tax planning, long-term care planning and other services. Those are the big things, but I also help to make sure the little unknown things are taken care of for you. It’s also making sure that the little things don’t become big problems for you down the road.

I got into this business to fill a void I noticed after the passing of one of my friends’ parents who was experiencing hardship due to poor planning. I saw the issues they had to deal with firsthand, and this left me feeling that there were lots of financial salespeople, but not many true advisors making sure people were getting all the available benefits they had worked so hard for.

I use the skills I gained from my bachelor’s degree from California Polytechnic State University and 24 years of industry experience to get all the benefits my clients are owed. I live in Castle Rock, and we are actively involved in sports and charitable organizations, such as Unbound, which provides personal attention and direct benefits to children, youth, the aging, and their families so they may live with dignity and achieve their desired potential and participate fully in society.

Disclaimer: Investment advisory services offered through Brookstone Capital Management, LLC (BCM), a registered investment advisor. BCM and McGregor Wealth Management are independent of each other. Insurance products and services are not offered through BCM but are offered and sold through individually licensed and appointed agents.