If the word “retirement” makes you cringe, you may be one of the many family business owners who can’t imagine ever fully stepping down from your company. Even as you establish a business continuation plan, mentor the next generation, and relinquish some responsibilities, you may picture yourself still involved in some capacity with your business for many years to come.

What do you think of when you hear the words long term care (LTC)? The first image that may come to mind is an older adult who requires constant care, along with various medical treatments and procedures. But, this is not necessarily the reality of LTC for many of us. Far more frequently, it involves services that help an individual cope with a reduced level of functioning for a temporary or indeterminate period of time. This includes a wide range of care options delivered in various settings, including at-home care, an assisted living facility, or a nursing home.

Have you thought about what would happen to your family and your business if you were to need LTC at some point in the future? While it’s true that the majority of people needing LTC are over age 65, what you may not know is that approximately 40% of current LTC recipients are ages 18 to 64.[1]The need for extended care can come about suddenly, as a result of sustaining an accident or illness, or gradually.

As a business owner, planning can be important to help prevent a LTC event from interfering with future plans for your business. For example, a family member or members may need to scale back their responsibilities or even step down from a role in the business in order to provide caregiving. Or, the business and its assets may need to be liquidated to pay the costs of a nursing home or other extended care costs. If you own a family business, you may want to consider taking steps nowto help this valuable asset remain intact for your children, grandchildren, and beyond.

LTC Insurance

LTC insurance can play an important role in the future of a family business. In general, the cost of a policy varies with the daily benefit amount chosen, the maximum benefit amount, and the elimination period (the number of days for which the insured is responsible for his or her own care before benefits begin). LTC insurance policies can be customized to include inflation protection, which helps the policy benefits keep up with the rising cost of health care by increasing the benefit in line with inflation. It’s important to note, however, that adding any riders may involve an additional premium.

What’s covered?

LTC insurance helps cover the following care options:

• Skilled nursing care—around-the-clock medical care under a doctor’s supervision, typically provided by registered nurses and/or certified nursing aides in a nursing home;

• Assisted living facility—residential facilities that offer social support with several tiers of independent living, including varying levels of assistance with daily activities under the supervision of licensed professionals and qualified staff;

• Adult day health services—community social day programsthat provide light physical activityand cognitive stimulation among peers in a supervised group setting.

• Custodial or at-home care—in-home assistance from a certified home health aide with daily activities, such as meal preparation, bathing, doctor’s visits, housekeeping, etc., to help maintain independence longer.

As a family business owner, you may mitigate the financial risk of extended care, have more care options, and manage the potential burden of caregiving on family members with this type of insurance. A dual strategy of open and honest communication with family members and the guidance of a LTC insurance professional can help prepare your business ownership and assets for future generations.

LTCFAMBS-X

Important Disclosures

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

This material contains only general descriptions and is not a solicitation to sell any insurance product or security, nor is it intended as any financial or tax advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information.

This article was prepared by Liberty Publishing, Inc.

LPL Tracking #1-05184916

[1] U.S. Department of Health and Human Services National Clearinghouse for Long Term Care Information, 10/22/08.

The post Long Term Care Planning appeared first on Tribox Private Wealth.

☐ Have I decided on a retirement timeline? Most people don’t wake up one day and decide that they will retire tomorrow. It is a decision that requires years of preparation. Knowing when you want to retire is the first step toward pursuing this goal.

☐ Do I have enough money set aside to maintain my quality of life after retirement? This might seem like a no-brainer when it comes to retirement, but many small business owners wonder if they will have enough to comfortably retire. Experts suggest that upon retirement, you want to have at least 10 times your annual salary in savings. Here are a few more questions to consider in preparation for retirement: ii

· Are your debts paid off?

· Will you be able to pay your retirement expenses (both entertainment and bills) long-term without having to eventually depend on social security?

· Will the 4 percent rule be an approach that is feasible for you? (The 4 percent rule refers to being able to live off of 4 percent of your invested money in the first year of retirement, then increase or decrease the amount to account for inflation in subsequent years). iii

☐ Is my retirement portfolio diversified enough? Selling your business is one way to fund your retirement, but you don’t want it to be the only means that you depend on. Small business owners don’t have the luxury of retirement plans offered to employees of larger companies. You have to take it upon yourself to set up a self-employed 401(k), SIMPLE or SEP IRA, or another forms of retirement savings plan. You can invest in stocks and bonds, CDs, real estate, or some form of alternative investment

to help mitigate the risk of one of your investment instruments not performing as expected due to some unforeseen issue or market fluctuation. Consider consulting a financial professional to help you learn what suitable course of action to take to try and lessen the chances making unnecessary mistakes. iv

☐ Do I have a post-retirement plan? Having a post-retirement plan can help you find purpose in retirement. There are countless stories out there of people that have saved and invested money for their entire careers so they could retire. They looked forward to the freedom of waking up and doing whatever they want every day; however, a year after retiring, they realize they miss the day-to-day grind of the workforce. Why is that? Simply put, going to work had given them a purpose in their lives.

They were working to provide a comfortable life for their family and saving for retirement. That is why writing out attainable goals, making checklists, and regularly referring to them are important skills to cultivate, especially for retirees. Figure out what your new purpose will be after you retire. Write it down in a notebook and revise these plans periodically. These ideas don’t just entail financial plans and objectives, but lifestyle goals, and hobbies that you may be interested in pursuing but never had time before.

☐ Is my succession plan in order? Establishing a succession plan is not something that is done quickly. It requires planning and analysis, and business owners will often take years preparing to have their business passed on or sold to the right buyer. To start you want to:

· Determine the market value of your business?

· Identify succession candidates.

· Communicate your succession intentions with employees.

· Periodically review and revise your plans as you see fit.

· Stay up-to-date on tax planning and evolving tax laws. v

☐ Have I discussed my decisions and options with a financial professional? Creating a retirement plan is complex, and consulting a financial professional can help you design a course of action that works for you and your goals. When it comes to long-term financial goals, time is your greatest commodity, so the sooner you take action, the easier it will be to pursue your objectives.

Important Disclosures:

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.

Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Investing in stock includes numerous specific risks including: the fluctuation of dividend, loss of principal and potential illiquidity of the investment in a falling market.

Bonds are subject to market and interest rate risk if sold prior to maturity. Bond values will decline as interest rates rise and bonds are subject to availability and change in price.

CD’s are FDIC Insured and offer a fixed rate of return if held to maturity.

Investments in real estate may be subject to a higher degree of market risk because of concentration in a specific industry, sector or geographical sector. Other risks can include, but are not limited to, declines in the value of real estate, potential illiquidity, risks related to general and economic conditions, stage of development, and defaults by borrower.

Alternative investments may not be suitable for all investors and involve special risks such as leveraging the investment, potential adverse market forces, regulatory changes and potentially illiquidity. The strategies employed in the management of alternative instruments may accelerate the velocity of potential losses.

This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.

All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.

This article was prepared by LPL Marketing Solutions

Footnotes: i Lao Tzu Quotes – BrainyQuote ii 6 Signs You Have Enough Saved for Retirement, According to CFPs (businessinsider.com) iii What is the 4% Rule and How Can It Help You Save for Retirement? (cnbc.com) iv Retirement Accounts Are Filling up—How Diversified Are They? (usmoneyreserve.com) v Selling a Small Business and Succession Planning for a Small Business (sba.gov) LPL Tracking # 1-05362322

The post Small Business Owners: Are You Retirement Ready (or Not)? appeared first on Tribox Private Wealth.