Investing to pay for long term care

Although for many a care fee annuity may provide the most secure way of paying for long term care fees, should you not like the potential loss of capital on premature death, and have a sufficient tolerance to the possibility of future fluctuations in the capital value of remaining money, investing to achieve income to meet costs can be a possible alternative.

Rather than simply paying care fees from a deposit account we can use some of the available capital to structure a carefully designed diversified portfolio of cautious/medium risk investments to try and produce a higher income than would be available from deposits alone

In adopting such a strategy we would discuss with you your views on the following:

• Flexibility – both in terms of access to capital to allow for unforeseen needs and to change investment strategies.
• Tax efficiency
• Charges
• Requirement for access to funds
• Attitude to Risk.

We will then use our experience and expertise not only to draw up a suitable allocation of assets to meet your attitude to risk and income requirement, but to also select various fund managers who have consistently achieved above average returns compared to peers in each asset class.

Please note: Although we would pay great attention to your attitude to risk and would build a diversified portfolio any investment carries a degree of risk and the capital value can fall as well as rise and depending on actual duration of care and withdrawals made to pay for care, the funds may become exhausted before the person in need of care dies.

Advantages

• Could result in more capital being retained, should death occur relatively quickly.
  
  
• Family/ Enduring powers of Attorney retain control of money, and can make investment decisions.

Disadvantages

• Prolonged periods of care could result in total exhaustion of capital, which in turn could force a change in homes to one which the Local Authority would pay for.
  
  
• Investments can go down as well as up leading to an even faster erosion of capital.
  
  
• Investment decisions will need to be continually made and therefore will require more involvement by Attorneys etc, and may incur periodic professional advice, resulting in ongoing expenses.
  
  
• Income produced from most investments, do not enjoy the tax free status afforded to benefits provided by Immediate needs Annuities, thus more capital is required.
  
  
• Certain investment may require annual tax return declarations.
  
  
• Income produced from such investments may vary depending on investment performance and cannot be guaranteed to meet rising cost of care increases.

If you would prefer this option and would like us to call you regarding making an appointment to discuss building a portfolio then please complete the following enquiry form.

Alternatively if you would prefer would now prefer the security of an Immediate needs annuity, then please click here and chose between a fully underwritten quote and indicative request.

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