Welcome to the second edition of The Fiduciary Guide, our monthly newsletter from Kinetic Wealth.
Our goal is simple: to share a little of what’s happening in our world, pass along planning insights that matter, and highlight ideas and resources we think are worth your time. We hope this becomes a useful and enjoyable touchpoint each month.
“It’s not a race. You are not ahead. You are not behind. You are here. Enjoy it and make the most of it.” – James Clear
THE FIDUCIARY BRIEF
What Is Long-Term Care, and Why Should It Be Part of Retirement Planning?
Long-term care is ongoing support for someone who can no longer fully manage everyday activities on their own due to aging, illness, injury, or cognitive decline.
It is important to distinguish long-term care from health care. Health insurance may help cover doctor visits, hospital care, or short-term rehabilitation, but it often provides little to no coverage for the ongoing assistance many people eventually need.
That assistance may include help with:
- Bathing
- Dressing
- Eating
- Mobility
- Medication support
- Supervision
Long-term care can take place in several settings: at home, in an assisted living community, or in a nursing care setting.
For many families, long-term care is one of the most significant and most overlooked financial risks in retirement. When care becomes necessary, the impact is rarely limited to dollars alone. It can affect a household’s cash flow, reshape retirement goals, and place a heavy emotional and logistical burden on spouses, children, and other loved ones.
Because of that, long-term care planning is not merely an insurance conversation. It is a financial planning conversation, a family conversation, and often a values conversation.
Recent cost surveys suggest that long-term care in a semi-private room in a nursing facility in our area is around $9,000 per month per person. That kind of expense can quickly and meaningfully alter the long-term sustainability of a retirement plan.
Consider a simple example:
- A hypothetical 60-year-old has $7,000 per month coming from sources such as Social Security, pension income, and portfolio withdrawals individually.
- If care costs around $9,000 per month, that creates an initial gap of roughly $2,000 per month.
- That gap must be covered either from accumulated assets, ongoing income, insurance, or some combination of the three.
This is why long-term care planning deserves thoughtful analysis long before care is needed.
For some, the appropriate strategy may be to self-insure by earmarking assets and building flexibility into their retirement plan. For others, it may make sense to transfer part of the risk through insurance. The right answer depends on cash flow, net worth, legacy goals, family support structure, health history, and personal preferences.
Today, the two primary categories of long-term care insurance are:
- Traditional long-term care insurance, which generally involves ongoing premium payments
- Hybrid long-term care insurance, which is often funded through a lump sum or premiums paid over a defined number of years
For the hypothetical 60-year-old we mentioned before, a traditional policy may cost roughly $2,000 to $4,000 per year, while a hybrid policy might require $50,000 or more total, depending on the structure, benefits, and underwriting.
In broad terms:
- Traditional policies are often viewed as “use it or lose it”
- Hybrid policies often provide a death benefit if long-term care benefits are never needed
Neither approach is universally better. Each has tradeoffs. The question is not simply, “should I buy coverage?” The better question is, “what is the most efficient and prudent way to address this risk within the context of my full financial life?”
In some situations, existing resources can also be repositioned. We have helped clients review older cash value life insurance policies that were no longer serving their original purpose and evaluate whether those policies could be exchanged or repurposed to support long-term care planning. For the right person, that can be a meaningful opportunity.
Ultimately what matters is that families make the decision intentionally. Some will choose insurance. Some will self-insure. But in both cases, clarity creates confidence.
At Kinetic Wealth, we believe long-term care planning should be approached the same way we approach all important financial decisions: with education, thoughtful analysis, and a clear understanding of the tradeoffs. Our role is to help clients evaluate the risk, understand the options, and make wise decisions in alignment with their goals and values.
It is also important to note that Kinetic Wealth does not receive product commissions. Whether a client purchases insurance or not, our compensation does not change. That allows us to provide objective, fiduciary guidance without the conflicts that can arise when advice is tied to product sales. That’s why we chose to operate fee-only.
The best long-term care plan is not necessarily the most complex one. It is the one that has been thought through in advance, aligned with your resources, and understood by the people who matter most.
If long-term care has been on your mind, whether for yourself, your parents, or your broader financial plan, hit REPLY and let us know. We would be glad to help you think through the options.
ADVICE IN ACTION
Don’t Ignore the Little Things
Sometimes, life-changing financial opportunities don’t show up with flashing lights. Sometimes they arrive as an ordinary piece of mail.
Recently, we helped a friend and client uncover an old, forgotten IRA worth more than $100,000 because they reached out to us with a document that could have easily been overlooked. It didn’t seem like a big deal at first, just one more piece of paperwork in the stack, but taking a closer look made a meaningful difference.
That’s a reminder for all of us: open your mail and pay attention to anything related to your finances, even if it seems small, confusing, or unimportant. And when something does catch your eye, reach out to us. Another tip: shred or carefully dispose of documents with sensitive information!
At Kinetic Wealth, we want to help with the big decisions and the small ones too. Sometimes a quick question, a short email, or a piece of mail you almost threw away can lead to clarity, opportunity, and real progress.
You never know what might be hiding in plain sight. And sometimes, one small step really can change your life.
WHAT WE’RE READING
Die With Zero by Bill Perkins
Die With Zero argues that money is a tool for creating a meaningful life, not just something to accumulate endlessly. Bill Perkins encourages readers to spend intentionally on experiences, memories, and opportunities while they are still healthy enough to enjoy them, rather than delaying life for a future that is never guaranteed. The core message is to balance saving with living well now, give more thoughtfully during your lifetime, and aim to use your resources in a way that maximizes fulfillment rather than simply leaving behind the largest possible nest egg.
Americans Are Moving to States with Lower Taxes and Sound Tax Structures
by Abir Mandal, Tax Foundation
The Tax Foundation’s latest migration analysis highlights a continued trend of Americans moving from higher-tax, higher-cost states to places that offer greater affordability and tax competitiveness. Using IRS migration data, the article shows that states like Texas, Florida, North Carolina, South Carolina, and Tennessee remain among the most common destinations for inbound movers, reflecting how financial considerations often influence where people choose to live. We can confirm this information here in Tennessee! Read the full article here.
War, Oil, and Your Money: Dimensional Fund Advisors on War and Market Headlines
War-related headlines can be unsettling, but markets typically adjust quickly to new information, including geopolitical conflict and oil shocks. While these events can cause short-term volatility, history shows that markets have often remained resilient over time. The key is to avoid making emotional decisions and stay focused on your long-term investment plan. Watch the discussion here.
INSIDE KINETIC
Kinetic Wealth is in the final stages of the light rebrand we’ve mentioned, and we’re excited about what it reflects. We’re grateful to those who’ve graciously given thoughtful input into this project to more clearly describe who we are and what we do.
Over our first year, we’ve realized that while phrases like “Ignite Financial Momentum” captured energy and action, they didn’t fully express the heart of how we serve. Our work is not just about movement. It’s about thoughtful guidance, clear education, wise stewardship, and helping people make confident decisions with their resources.
That shift is reflected in our new tagline: Where Money Meets Stewardship.
It’s a simple phrase, but it says a great deal about who we are. We believe money is more than a tool for accumulation. It’s something to be managed with care, purpose, and responsibility in light of the life you want to live and the impact you want to have.
Our new website is also nearly complete, and we’re looking forward to sharing it with you soon. Below is a sneak peak of the new feel. The updated language, design, and messaging are all meant to feel warmer, clearer, and more aligned with the kind of relationship we want to build: one marked by trust, learning, and steady guidance.
We’re grateful to keep this community growing in ways that help us serve you better.
Thank you for reading the second edition of The Fiduciary Guide.
Our hope is that this monthly note gives you something practical to think about, something helpful to learn, and a better sense of the values behind Kinetic Wealth. If a topic in this issue raises a question for you or your family, hit REPLY! We’d love to talk.
Warmly,
Kinetic Wealth