A Tale of Two Sisters
While meeting with a client yesterday I heard a story that I thought was instructive and worth repeating. My client's two aunts were both in the same nursing home. One of her aunts was destitute, and her room was paid for by Medicaid. The other had managed to save a couple of hundred thousand dollars and was in the room next door privately paying for her care at about $5,000 per month. After about 3 years, the other aunt was also destitute and received Medicaid. My client correctly observed that both sisters had the same type of room, in the exact same facility, and received the same care, but one was spending her life's savings while the other received the same care at no cost. My client wisely recognized the wisdom of planning in order to preserve her life's savings.
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This is an excellent example. I use a story like this to explain to my potential clients, but I have never had an actual face to face example. Very good job. I wish more people understood this fact. Our clients have worked hard to save a little. I see it as our job to help these people that have scrimped and saved are able to pass along a little.