The Nervous Senior Citizen

Planners Title (planner's focus):
An Elder Client wants to Discuss Long-term Care.

Personal Title (client focus):
The Case of the Nervous Senior Citizen.

Case background:
The client is the average senior citizen. Approximately 70 years old and is hearing stories about long-term care nightmares. They have heard of their friends going into a nursing home and losing all their money. They want to discuss with a financial planner what to do about this but are nervous as some financial planners recommend giving away their life saving's or buying expensive insurance to pay for the nursing home.

What happened in the meeting:
I sat down with my client to determine if she was able to afford to pay for long-term care. My client has sufficient assets to cover her monthly living expenses and some additional capital. I explained to her that the insurance payment to protect her entire life savings could be paid if we were to withdraw some additional money per month from her investment assets. She agreed with me and felt that this may be a good idea to protect her money for her future years and if she does not use it can go to her children.

How did it turn out?:
The client was happy about the results of finding out how much she need monthly. She also was happy to see what the cost was approximately for long term care.

Notes to myself on the meeting:
I need to review quotes from various insurance companies to make sure we are getting the best price for the insurance we want to purchase. I also will need to run hypothetical portfolios to rebalance my client's assets to reduce the risk in her portfolio and produce income to pay for the insurance.

Unexpected Revenue:
The unexpected revenue Bernie generated on this case will amount to about 25% more than the originally expected case revenue, as the client held stock positions in various utility companies that she previously was unwilling to sell. After our meeting, she agreed that we may spend down some of the utility stock assets to give her monthly income. We may not spend them down as purchased a income mutual fund to provide monthly income to pay for the long-term care expenses.