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Investing to pay for long term care
Although for many people an Immediate Needs Annuity may provide the best solution for funding long term care fees, some people may feel that the potential loss of capital on premature death is not a risk they would wish to take.
It is therefore important to utilise the capital available as efficiently as possible and seek to avoid eroding funds too quickly. In some cases investing the capital to achieve income to meet some or all of the costs can be a possible alternative. This is particularly important where a person is able to tolerate the possible fluctuations that investment may incur.
Rather than just paying the care fees from a deposit account, each month or on another frequency agreed with the care provider, and depending on the costs of the care and the capital available, we will be able to review your options and design a diversified portfolio of investments, selected to suit your attitude to risk, and so try and produce a higher income than would be available from deposits alone.
In order to provide the best possible solutions for you, we would discuss your views on a range of topics such as income required, capital available, tax efficiency, flexibility such as access to the funds and your attitude to risk.
It should also be pointed out that although we would seek to meet your requirements in relation to investments, any portfolio would carry a degree of risk and you should be aware that the capital value could fall as well as rise. It is also possible that the fund would be exhausted before the person in need of care dies, depending on your personal circumstances.
If you would like to discuss this option further as part of your overall financial plan to fund for care fees, please contact us and we will be happy to assist you.
There are various other options with regard to care funding and financial planning in general that we can assist you with. Some of these are mentioned below and include Equity Release, selling your home and bridging finance.
The Financial Conduct Authority does not regulate commercial mortgages
Mortgages on and Equity Released from your home will be secured against it
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