Investing For Long Term Care
Investing in order to meet the costs of long term care can mean that you are able to retain greater control over your capital and, but it can also come with certain risks and requirements.
Investing for long term care involves the investment of capital and drawing down an income from that investment to pay for the costs of care.
Before investing for long term care you will need to consider a number of things, including:
- Your attitude to investment risk and returns. Investment by it's very nature comes with a certain amount of risk. Whether investing your money if the right option for you will depend on how risk averse you are. Your income will be dependent on the performance of of your investment.
- How much capital you have available. You will need to invest carefully to ensure that you get the most out of your investment, but how much capital you are able and willing to invest will also effect how much you see in terms of returns.
- How long you are likely to remain in care. This can be a tricky one. If you are likely to remain in care for a long period of time you may find it more financially viable to purchase long term care insurance, to avoid early depletion of capital. However, investing for long term care would mean that in the event of an early passing your invested capital would become available to any beneficiaries.
- Tax and investment. If you choose the option of investing for long term care you will not enjoy the tax free benefits that come with a long term care insurance.
- Regular financial advice. If you choose investing for long term care as the option for you, you are likely to need continuing financial advice to help you make the right investment choices. This could be an added expense that you may like to take into consideration.
Investing for long term care may also be possible in conjunction with other options such as taking out long term care insurance.
Which option is right for you will depend on your own individual circumstances. For impartial advice tailored to your needs and to discuss your options on investing for long term care speak to a member of the long term care planning advice team at one of our partner firms. Get a fee free no obligation initial consultation.
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