The Hidden Crisis in Long-Term Care

How to protect your loved ones from unnecessary hardship. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=56393&elqTrackId=fae6292568234e54b09572452d4d82e8&elq=8d8910e146ae4a1aa1a3f2d4428ec73b&elqaid=56393&elqat=1&elqCampaignId=28704&elqak=8AF5098CED2E04A40741A281A8F597860FDB158054E263C2A7698071B2DB9D7A7855) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] In [a recent article]( I examined the statistics on the likelihood that a 65-year-old in the US would end up needing long-term care. The data reveal a head-scratching gap: While 22% of the population of people 65 and over will need long-term care for more than five years, just 4% of the population over age 65 is expected to need paid long-term care for longer than five years. Unpaid caregiving, often delivered by family members—especially adult children and close friends—explains the difference. Such care is often provided to save older adults from exhausting their resources to pay for care and/or needing to receive care through Medicaid funding. But delivering unpaid care also has the potential to exact a steep toll on the individuals providing it—on their careers and own finances, as well as their physical and emotional health. It can also create strife within families, as the burden of care inevitably falls on a single sibling or two. In [my latest piece]( I wrote about the underdiscussed topic of unpaid care and shared some strategies for protecting your loved ones—and your finances—if you end up needing care. Elsewhere on the retirement front, [tax and IRA guru Ed Slott and I chatted about the new rules for missing a required minimum distribution](. The penalties for a missed RMD are less punitive than they were in the past, thanks to the retirement legislation called Secure 2.0, but Ed suspects that penalties could now be harder to duck out of, too. He shares some strategies to ensure that you don’t miss an RMD, as well as the steps to take if you do. On the investing front, I appreciated [Amy Arnott’s recent piece about the risks of overdoing long-term bonds]( in the expectation of rate cuts. While long-term bonds often benefit most from declining yields and provide an opportunity to lock in today’s high yields for a while, there are risks if those rate cuts don’t materialize on time. Finally, for a read on the state of the economy, inflation, and interest rates, I can’t recommend highly enough the [conversation that Dan Lefkovitz and I recently had with Carl Tannenbaum]( chief economist at Northern Trust. In addition to being an exceptionally clear thinker and communicator, Carl served a stint at the Federal Reserve and shared great insights into the Fed’s inner workings. I thoroughly enjoyed this one and learned a lot from it, too. With warm regards, Christine Benz [The Hidden Crisis in Long-Term Care]( How to protect your loved ones from unnecessary hardship. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [3 Reasons Not to Bet on Long-Term Bonds]( Despite potential price gains, counting on the Fed to cut interest rates is a dangerous game. [Find Out More]( [The New Rules for Missed RMDs]( The penalties are lighter but will more people pay them? Tax and IRA expert Ed Slott weighs in. [Watch Now]( [Carl Tannenbaum: Settling Into ‘Soft-Landing Territory’]( Northern Trust’s chief economist weighs in on the direction of interest rates and inflation, and current conditions in real estate. [Listen Today]( Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or pans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=56393) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602