Perrotto Private Wealth

Just back from the NAIFA Congressional Conference in DC, where I met with staff for senators and House representatives, including Representative Tom Suozzi of Long Island.

One of the biggest issues we discussed: America has a long-term care problem, and almost no one is prepared for it.

Only about 4 percent of Americans own long-term care insurance. Most people assume Medicare will cover long-term care. It will not. What actually happens is people spend down their assets and end up on Medicaid, which is now the largest payer of long-term care in the country. Qualifying means draining your savings, navigating a multi-year asset look-back, and often accepting care you would not have chosen. Meanwhile Medicaid's long-term care costs keep climbing, and the demographics are only moving one direction.

Here is what NAIFA is pushing for:
A national long-term care public education campaign, so people understand the truth before they need care: Medicare does not pay for it, Medicaid is not a plan, and coverage is far cheaper when you buy it earlier in life. This includes a national clearinghouse where people can actually compare what they can buy, plus media and community outreach.

HR 6324, the Retirement Simplification and Clarity Act. This bipartisan bill would let people 50 and older roll retirement savings into an annuity while still working. The advantage: you can lock in guaranteed lifetime income before you retire, instead of scrambling to build an income plan after. Knowing your income floor also lets you invest the rest with more confidence.

HR 7187, the Clarity for Compensation Act. This one is closer to home. It clarifies regulatory standards around how advisors are compensated, which helps firms grow and serve more Main Street clients.

This is why advisors show up in DC. These are not abstract policy debates. They decide whether a family keeps its savings or loses it to a nursing home.

Flashback Friday. Market outlook presentation at Bedminster to a great group of clients and prospects. The portrait had opinions. So did the audience. The best client events are the ones where the Q&A runs longer than the deck, and this one did. Good crowd, good questions, good night.