Jim Phillips discusses the importance of long-term care
Listen to the interview on the Business Innovators Radio Network: Jim Phillips, SVP – Managing Director of BRB Wealth, Discussing Long Term Care
Jim Phillips, the managing director of BRB Wealth, shares his journey starting from Merrill Lynch to his current role. He discusses the advantages of working in a community bank environment compared to larger wire houses, emphasizing the importance of building personal relationships with clients.
Long-term care (LTC) is a critical aspect of financial planning that many individuals overlook until it’s too late. Jim explained the significance of long-term care was thoroughly discussed, shedding light on its definition, necessity, and the misconceptions surrounding it.
Long-term care refers to a range of services and support for individuals who experience chronic illnesses or disabilities that limit their ability to perform basic activities of daily living (ADLs).
To qualify for long-term care benefits, an individual must be unable to perform at least two of these six activities. This care can take various forms, from in-home assistance to nursing facilities, depending on the individual’s needs.
Many people may dismiss the idea of needing long-term care, believing it won’t happen to them. However, statistics reveal a different story. Jim shared that approximately 70% of individuals aged 65 and older will require some form of long-term care support. This statistic is further emphasized by Jim’s personal experience, where 75% of his and his wife’s parents needed long-term care at some point.
There are some misconceptions that people have regarding long-term care:
Health Insurance Coverage: Many believe that their regular health insurance will cover long-term care costs. However, traditional health insurance typically does not cover these expenses.
Medicaid as a Safety Net: Some individuals think they can rely on Medicaid for long-term care. While Medicaid does cover long-term care, it often requires individuals to be destitute, which may not be an ideal situation.
Long-Term Care Insurance: A prevalent misconception is that long-term care insurance works like other insurance policies, where premiums are paid, and benefits are received when needed. Many people fear wasting money on premiums if they never need care, leading them to avoid purchasing coverage altogether.
Jim emphasized the importance of planning for long-term care well in advance. Ideally, individuals should start considering their long-term care options in their 50s or 60s when they are still healthy and can qualify for benefits. Waiting too long can lead to regrets, especially if health issues arise that prevent individuals from obtaining coverage.
Jim shared insights from a survey indicating that one of the top financial regrets among individuals over 50 is not purchasing long-term care insurance. This highlights the necessity of addressing long-term care in financial planning to avoid potential financial strain during retirement.
Jim shared: “I act as a Financial Director, focusing on helping clients manage risk in their financial lives”
About Jim Phillips
Jim has over 30 years of investment and wealth management experience. Jim started his career with Merrill Lynch in Richmond, and most recently developed and managed the investment program at CB&T Wealth Management. Jim believes in a personalized approach to get to know his clients and their financial goals, and then develops a strategy to work toward achieving them. He helps his clients understand the current financial, economic, and political climate to better position their assets to address their preservation, growth, income, or legacy needs. Jim is a graduate of the University of Florida. He lives in Chesterfield with his wife, Nina. Jim enjoys distance running, travel, and spending time with his family.
Learn More: https://www.mybrb.financial/Wealth
