Andre Zaal Financial Advisor Group LLC

Will You Be Able To Afford In-Home, Long-Term Care?

More than 90% of America’s older adults prefer to “age in place” in their own homes rather than in a senior housing community or facility.1 With today’s insight into how a deadly pandemic can affect nursing homes — as of September 6, COVID-19 has claimed nearly 55,000 nursing home residents’ lives — this preference may be prudent from a health care standpoint.2

However, aging at home also can be quite expensive. Much depends on the level and amount of care you require. And, as you can imagine, those levels are likely to increase as you get older. For some, it starts out as light housekeeping and running errands. That may progress into cooking meals and taking you to doctor appointments. Eventually, you may need someone to help you dress, groom and move around. A few hours a week could eventually change into 24-hour care, depending on your rate of health and/or mental decline.

According to the 2019 Genworth Cost of Care Survey, the average cost of an in-home caregiver is $22.50 per hour.3 If you need someone for eight hours a day, that could run you about $5,400 a month. If you need 24-hour care because, for example, you need help walking to the bathroom in the middle of the night, that cost could quickly amount to $16,200 a month. Is that a potential cost you’ve factored into your retirement income plan?

For many, the answer is no. We tend to plan as well as possible and hope for the best. If you’d like to explore different insurance options to help pay for potential long-term care needs, we can help. Contact us for more information.

As you develop a plan for old age and staying at home, it’s important to embrace technology. Today, about 75% of people age 55- to 65-years old own smartphones, download and use apps, and many search online for health information.4 This is a good start.

One of the silver linings of the pandemic is that more people have begun to embrace remote patient monitoring devices. Wearable technology enables certain vital signs to be constantly monitored and even emitted electronically to their physician’s office if they exceed normal levels. This allows some people who suffer from chronic illnesses or who are home-bound to monitor their own health instead of visiting doctors’ offices or requiring hospitalization.5

Another way to help combat the cost of 24-hour in-home care is to explore the growing availability of artificial intelligence-aided robots. While lacking the warmth of a human being, robots can research information, engage in conversation, play games and even make remote phone calls if their ward needs emergency care.6

If you’d rather have an actual body in the house to keep you company and provide for your needs, another way to help cut costs is to provide a rent-free room in exchange for care. This can start out as a simple arrangement in exchange for light housekeeping, cooking and chores. Later on, you may want to seek out a nursing student or other type of medical provider who can offer more substantive caregiving duties in exchange for a place to live.

Content prepared by Kara Stefan Communications.

1 Tracy Arabian. Gloucester Daily Times. Sep. 2, 2020. “Help available for all wanting to age in place.” https://www.gloucestertimes.com/news/living/senior-lookout-help-available-for-all-wanting-to-age-in-place/article_a375bb79-166d-5ddb-954f-8b70c11735ff.html. Accessed Sept. 8, 2020.

2 Centers for Medicare & Medicaid Services. Sept. 6, 2020. https://data.cms.gov/stories/s/bkwz-xpvg. Accessed Sept. 21, 2020.

3 Rachel Hartman. US News & World Report. June 10, 2020. “Can You Afford In-Home Elderly Care?” https://money.usnews.com/money/retirement/aging/articles/can-you-afford-in-home-elderly-care. Accessed Sept. 8, 2020.

4 Mallory Hackett. MobiHealthNews. Sept. 9, 2020. “An untapped market for digital health innovation exists among seniors hoping to age in place.” https://www.mobihealthnews.com/news/untapped-market-digital-health-innovation-exists-among-seniors-hoping-age-place. Accessed Sept. 9, 2020.

5 Rich Griset. Chesterfield Observer. Sept. 2, 2020. “During the pandemic, local companies help seniors bridge the technology gap.” https://www.chesterfieldobserver.com/articles/during-the-pandemic-local-companies-help-seniors-bridge-the-technology-gap/. Accessed Sept. 8, 2020.

6 Wolf Shlagman. HomeCare. Sept. 1, 2020. “The Potential of AI in Homecare.” https://www.homecaremag.com/september-2020/potential-ai-homecare. Accessed Sept. 8, 2020.

We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

The Potential of AI in Homecare As in many other industries, health care is undergoing a digital transformation as providers, payers and others in the health care value chain leverage new technologies to improve patient care and access, increase efficiencies and reduce costs. The most promising of these technologies is artificial....

#481 IO Blog Post for 8.11.2020 – The High Price of Health Care in America
Posted on August 4, 2020 by Admin
#481 IO Blog Post for 8.11.2020

The High Price of Health Care in America



If the U.S. health-care sector was a separate country, it would be the fourth largest economy in the world when measured by gross domestic product. Currently, the nation spends an average of $3.5 trillion annually on health care, more than Australia, Brazil, Canada, China, France, Germany, Italy, Japan, Spain and the United Kingdom combined.1



If you break that down by how much we spend per capita compared to other countries, it looks like this:2



S.: $10,246
Australia: $5,331
Germany: $5,033
Canada: $4,754
Japan: $4,168
United Kingdom: $3,858
Singapore: $2,618


It’s also worth noting that more Americans die by preventable and treatable medical conditions than in those countries, as well.3



This is one those expenses that can make it tough for consumers to save money. One reason is because health care pricing isn’t transparent. Even if you shop around for a low-cost procedure in a hospital, you’re still likely to get hit with other separate charges. For example, the expense of an out-of-network anesthesiologist who happened to be working on the day of your operation. Most patients do not get the bill they were expecting, and it often comes a few months down the road. Another reason we have a hard time curbing spending is that U.S. health care doesn’t benefit from the normal principles of capitalism. Without greater transparency of fees, there is very little competitive pricing that would normally help drive costs down.



Health care is expensive whether you’re still working or retired. There are several ways to help you save in case you have excessively high health-care costs in the future, such as a health savings account or a whole life insurance policy that allows you to tap into a growing cash account. If you’d like to learn more about flexible ways to save or help leverage assets for high care costs, please contact us.



The U.S. health care coverage problem is reaching its peak in the midst of a perfect storm: Among the millions of Americans who lost their jobs, 41% also lost their health insurance.4 Gilead Sciences, the maker of the remdesivir drug that has proven to be an effective treatment for COVID-19, announced it would price the medication at $3,120 per course for U.S. patients with commercial insurance. The price tag for other developed nations is $2,340 per patient.5



The growing cost of health care in this country is hardly a new issue. Little effort has been made toward reform of this divisive, partisan issue, and now that infection hot spots are continuing to pop up throughout the country, the coronavirus has exposed further flaws in America’s health care system. These range from the lack of a cohesive national plan, to poor federal stockpiles of supplies, to supply chain problems in manufacturing and distribution. America’s health care problems go far deeper than simply running out of ICU beds in hospitals.6



After the next set of elections, and once we’re hopefully beyond this pandemic, the effort to reform our national health care system will likely be a top priority in Congress.





1 Jeneen Interlandi. The New York Times. June 29, 2020. “Employer-Based Health Care, Meet Massive Unemployment.” https://www.nytimes.com/2020/06/29/opinion/sunday/coronavirus-medicare-for-all.html. Accessed July 10, 2020.

2 Huo Jingnan and Pranav Baskar. NPR. June 13, 2020. “Pandemic Perspective: What The 20 Poorest And Richest Countries Spend On Health Care.” https://www.npr.org/sections/goatsandsoda/2020/06/13/864563401/pandemic-perspective-what-the-20-poorest-and-richest-countries-spend-on-health-c. Accessed July 10, 2020.

3 Ibid.

4 Robert Preidt. U.S. News & World Report. June 23, 2020. “Pandemic Job Losses Leaving Many Americans Uninsured: Survey.” https://www.usnews.com/news/health-news/articles/2020-06-23/pandemic-job-losses-leaving-many-americans-uninsured-survey. Accessed July 27, 2020.

5 Michael Erman, Ludwig Burger and Manojna Maddipatla. Reuters. June 29, 2020. “Gilead prices COVID-19 drug remdesivir at $2,340 per patient in developed nations.” https://www.reuters.com/article/us-health-coronavirus-gilead-sciences/gilead-prices-covid-19-drug-candidate-remdesivir-at-2340-per-patient-idUSKBN2401C8. Accessed July 10, 2020.

6 Jordan Davison. EcoWatch. July 9, 2020. “America Faces a Critical PPE Shortage, Again.” https://www.ecowatch.com/us-ppe-shortage-coronavirus-trump-2646373026.html?rebelltitem=1 . Accessed July 10, 2020.











We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.



The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.



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America Faces a Critical PPE Shortage, Again Now, five months into the pandemic, health care workers are raising the same concern. They are facing a shortage of masks, gowns, face shields and gloves, as The Washington Post reported."We're five months into this and there are still shortages of gowns, hair covers, shoe covers, masks, N95 masks,"...

Two Retirement Planning Approaches: Safety vs. Probability
Posted on January 15, 2020 by Admin
#452 DL Blog Post for 1.21.20

According to Merrill, four of the most common risks to your retirement strategy are:

A significant market drop shortly before or early in your retirement
Inflation reducing your spending power over time
Unexpected medical and/or long-term care expenses
Outliving your assets


If you are nearing retirement, it might be time to review your current financial strategy and make adjustments, if necessary. It’s important that you make any adjustments based on your personal circumstances. If we can help you align your retirement assets with your objectives and timeline, please give us a call at 214-797-9722 or 972-665-9852.


Retirement income analyst, professor and author Wade Pfau defines two schools of thought when it comes to managing money in retirement. The first is the “probability-based approach,” in which an individual is comfortable holding equities for growth opportunities over the long haul. The second approach focuses on “safety first,” which also utilizes insurance-based contracts, such as life insurance or annuities, that spread risk across an insurance pool. This strategy basically gambles that some people will die early while others live longer — but that risk is managed by the insurer instead of the contract owner.


However, retirees don’t have to select just one approach; it may make sense to diversify between the two. With a probability-based approach, consider investments that are designed to generate retirement income, such as investment-grade bonds or high-dividend-paying stocks. However, keep in mind that all investing involves risk.



The “safety” approach is a good strategy for helping to cover unexpected expenses, such as long-term care. Not everyone ends up needing such care, but people who do can deplete their retirement savings quickly if they choose to self-fund this expense. One way to combine this coverage with your legacy planning goals is through a life insurance policy that offers a long-term care benefits rider. This type of strategy leverages a portion of your current assets to provide a substantially higher death benefit for beneficiaries. However, you can draw from the contract’s death benefit if you do need to pay for long-term care. That way you don’t pay for coverage you don’t need, but it’s there to assist with the costs if you do.3 It’s important to keep in mind that life insurance policies and long-term care riders are subject to medical underwriting and riders may require an additional fee.



A good place to start your retirement planning is to check your Social Security benefit estimate.

The Social Security Administration mails written statements to people age 60 or older who are eligible for benefits. However, anyone at any age can check out their statement by registering at the Social Security website — www.ssa.gov/myaccount/ — for a “my Social Security” account. Once you have signed up for an account online, you’ll stop receiving estimates by mail. However, you can check updated estimates online at any time. Double-check that your earnings history is accurate because that’s what determines the amount of benefits you’ll receive.4



Once you have a good idea of what to expect in Social Security, you can start to consider other income streams. Call us to help you determine the appropriate retirement planning approach for you.

1 Merrill. 2019. “4 Big Retirement Risks — and How to Prepare for Them.” https://www.ml.com/articles/big-retirement-risks-and-how-to-prepare-for-them.html. Accessed Dec. 15, 2019.

2 Knowledge@Wharton. Dec. 10, 2019. “What Will You Need to Retire with Safety and Security?” https://knowledge.wharton.upenn.edu/article/what-will-you-need-to-retire-with-safety-and-security-lanning/. Accessed Dec. 15, 2019.

3 Merrill. Oct. 25, 2019. “Will You Be Prepared to Cover the Costs of Long Term Care?” https://www.ml.com/bulletin/will-you-be-prepared-if-you-need-long-term-care.html. Accessed Dec. 15, 2019.

4 Bob Carlson. Forbes. Dec. 15, 2019. “How to Read Social Security Benefit Estimates.” https://www.forbes.com/sites/bobcarlson/2019/12/15/how-to-read-social-security-benefit-estimates/. Accessed Dec. 15, 2019.



We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial or investment advice. All investments are subject to risk including the potential loss of principal. Any references to protection benefits and safety generally refer to fixed insurance products, never securities or investment products. Insurance and annuity product guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company.



The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

my Social Security | Social Security Administration my Social Security | Open a my Social Security account today and rest easy knowing that you're in control of your future.

#452 IO Blog Post for 1.21.20 Finding Solutions to America’s Energy Challenges
Posted on January 15, 2020 by Admin
#452 IO Blog Post for 1.21.20

The United States is the second-largest energy consumer on the planet. Over the past dozen years, domestic production of oil and natural gas has grown thanks in part to the innovation of shale extraction. The surge in energy production has been further advanced by lower costs of renewable sources, such as wind and solar power. As a result of the increased supply of natural gas and renewable energy, the coal industry has declined significantly, and more than 200 plants have closed.1



Today, renewable sources account for more than 10% of U.S. energy production.2 According to the Institute for Energy Economics and Financial Analysis, the United States is expected to generate more power from renewable energy than from coal starting next year, in 2021. Texas has already passed that threshold: Wind energy represents 22% of Texas’ overall power generation compared to 21% from coal.3



One of the lessons we can take from this shift is that innovation requires us to adapt to new ideas. For a while we may cling to past solutions. However, when innovation begins to provide cost-effective solutions that offer other benefits — both for humans and the environment — it can make economic sense to embrace the changes.



The same could be said for one’s personal insurance outlook. If you have older insurance policies that do not offer some of today’s newer features and benefits, it may be worth exploring what is now available. This is an opportunity for you to evaluate your current strategy and make sure you are working toward your long-term goals and objectives. Let us know if you’d like help reviewing your insurance policies.



It’s funny, though. With innovation, there are always new problems and challenges. We tend to accept new technology when we recognize that the negatives of the previous option are more onerous than the drawbacks of the new solutions. For one case in point, consider electric vehicles, which are touted for their advantages of mileage economy and eliminating exhaust emissions. However, there is growing concern about the disposal of the vehicles’ lithium-ion batteries after their 15- to 20-year lifespans. Lithium-ion batteries cannot be buried in landfills because they are flammable and could release toxic chemicals into the environment.4



One solution to this problem could be yet another innovation, an alternative to lithium-ion batteries: molecular thermal solar storage systems. While still in the early stages of development, this concept takes a liquid molecule made up of carbon, hydrogen and nitrogen that, when exposed to sunlight, draws in the sun’s energy and holds it and then can be triggered to release that energy as heat. This innovation conceivably could store energy for smaller enterprises, such as homes and automobiles, for a much longer period than that of lithium-ion batteries. Developers are focused on heating; it remains to be seen whether such a system could generate electricity.5



Perhaps the good news about America’s energy challenge is that many traditional energy companies are motivated and well-positioned to help address these issues, seeking new solutions to address demand.



Content prepared by Kara Stefan Communications.



1 BP. CNN. 2019. “America’s role in the dual energy challenge.” http://advertisementfeature.cnn.com/2019/bp-america/. Accessed Dec. 15, 2019.

2 Ibid.

3 Matt Egan. CNN. Nov. 26, 2019. “Solar, wind and hydro power could soon surpass coal.” https://www.cnn.com/2019/11/26/business/renewable-energy-coal/index.html. Accessed Dec. 15, 2019.

4 Katie Hunt. CNN. Nov. 6 2019. “The rapid rise of electric vehicles could lead to a mountain of battery waste.” https://www.cnn.com/2019/11/06/business/electric-vehicles-battery-waste-scn/index.html. Accessed Dec. 15, 2019.

5 Adam Popescu. Bloomberg. Nov. 3, 2019. “An Energy Breakthrough Could Store Solar Power for Decades.” https://www.bloomberg.com/news/articles/2019-11-04/moth-poulsen-s-energy-trapping-molecule-could-solve-solar-storage. Accessed Dec. 15, 2019.



We are an independent firm helping individuals create retirement strategies using a variety of insurance products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic retirement income strategies and should not be construed as financial advice.



The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

BP - Dual Energy Challenge How can America meet the global energy demand while reducing emissions?

What is the signifiance of a well lived life? Is it your family and the relationships you have created? A successful career, a rewarding hobby or pastime, the accumulation of meaningful possessions, or exciting travels? Hopefully, most of us can relate to all of these life experiences to one degree or another. To be proud of our accomplishments that hold value to us in our lifetime and to know that your having a pretty fulfilled life.

As a financial advisor, I can help you achieve a peace of mind, that comes with the knowing that your assets are safe. That you can enjoy the people and activities you love. Freeing up your time and energy to do the fun stuff, like planting flowers in an old wagon! This is a project my wife and I did on our ranch. It was a great afternoon just enjoying the outdoors and decorating this wagon.

Feel free to contact me anytime about how I can help you manage your assets and investments. And create more time to plant flowers!

Ways to Help Increase Retirement Savings and Reduce Your Tax Liability

As we head into the homestretch of this year, two things individuals may be seeking are ways to help maximize retirement savings and minimize 2017 tax liability.

One way to help do so is by contributing as much as possible to an employer-sponsored retirement plan. Many employers match worker contributions up to a certain point, so that’s just “free” money going into the account. Plus, the more you contribute, the less taxable income you will have to claim. For 2017, the maximum contribution limit for a 401(k) plan is $18,000; $24,000 for people age 50+.1

If you’re already set up to max out your account, you might consider opening and/or contributing to an IRA. Even if you don’t get to claim a tax deduction for IRA contributions (although IRA contributions can also be made pre-tax, subject to certain limits), you can still benefit from additional retirement savings and tax-advantaged compounding. In 2017, the maximum for an IRA (Roth, Traditional or both combined) contribution is $5,500; $6,500 for people age 50+.2

Here’s a little-known benefit available only for active duty military widows: They can contribute all or part of the service member’s $400,000 life insurance death benefit, and even an additional $100,000 for a combat-related fatality, to a Roth IRA within one year of receiving the payout. Because life insurance proceeds are tax-free, this benefit allows the money to be transferred to a tax-free retirement savings account, which also benefits from tax-free growth.3

Another option for those who are already contributing large amounts to a 401(k) and/or an IRA is to consider purchasing an annuity. An annuity also enables tax-deferred growth, and there typically are no contribution limits.4 There is a wide variety of immediate, fixed rate, fixed index and variable annuities from which to choose. We’d be happy to evaluate your financial situation and recommend if an annuity may suit your needs and objectives.

One more tax-related bit we ran across: If you’re considering relocating during retirement to a low/no tax state, or even just wonder where your state gets its tax revenues, check out this breakdown compiled by Pew Charitable Trusts.5

Content prepared by Kara Stefan Communications

1 Brighthouse Financial. July 21, 2017. “5 Tips for Tax-Smart Investing.” https://www.brighthousefinancial.com/education/tax-smart-strategies/tax-smart-investing-strategies. Accessed Sept. 4, 2017.
2 Ibid.
3 Jeff Benjamin. Investment News. June 26, 2017. “Military benefit allows widows to put $500K into Roth IRA at once.” http://www.investmentnews.com/article/20170626/FREE/170629938/military-benefit-allows-widows-to-put-500k-into-roth-ira-at-once. Accessed Sept. 4, 2017.
4 CNN. 2017. “Ultimate guide to retirement.” http://money.cnn.com/retirement/guide/annuities_basics.moneymag/index4.htm. Accessed Sept. 4, 2017.
5 Mary Beth Quirk. Consumerist. July 5, 2017. “Should You Move? See How Your State Gets Its Tax Money.” https://consumerist.com/2017/07/05/should-you-move-see-how-your-state-gets-its-tax-money/. Accessed Sept. 4, 2017.

The content provided in this blog is designed to provide general information on the subjects covered. It is not, however, intended to provide specific legal or tax advice and cannot be used to avoid tax penalties or to promote, market or recommend any tax plan or arrangement. You are encouraged to consult your personal tax advisor or attorney.

Annuities are insurance products that may be subject to fees, surrender charges and holding periods which vary by company. Annuities are not a deposit of nor are they insured by any bank, the FDIC, NCUA, or by any federal government agency. Annuities are designed for retirement or other long-term needs.

We are an independent firm helping individuals create retirement strategies using a variety of insurance and investment products to custom suit their needs and objectives. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. Investing involves risk, including the potential loss of principal.

The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.

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Tax-Smart Investing Strategies | Brighthouse Financial Some of your portfolio returns will become taxes. Minimize investment tax loads using these tips, which include diversification, annuities, and perspective.

Long-Term Disability Insurance Vs. Long-Term Care Insurance When you're over 50, here's how to choose between buying long-term disability insurance and long-term care insurance if you can't afford both.

Can Intergenerational Election Talks Change Minds? When young and old talk politics, votes might not change, but attitudes do

Looting the Pension Funds All across America, Wall Street is grabbing money meant for public workers