1. The Conversation
Why An Extended Care Plan Is A Critical
Component In Retirement Portfolios
Presented for:
Producers Choice Network
August 16, 2017
Attorney Harley Gordon
The Conversation Why A Plan For Extended Care Is A Critical Component In Retirement Portfolios
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Presented to:
Financial Planning Association
May 17, Attorney Harley Gordon

2. There is perhaps no other unexpected serious event in life that has the potential of causing serious if not irreversible consequences to a family than a need for care over an extended period of years
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3. Agenda Part 1: Is the conversation worth having? Part 2:
Changing the intent of the conversation
Part 3
The essential need for a plan and what LTCi solutions actually do
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4. Part 1: Knowledge of subject matter is essential
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5. The need for care is caused by impairments. There are 2…
What you likely know…
The need for care is caused by impairments. There are 2…
A physical impairment are illnesses that can be managed with medication and therapy but cannot be cured by either
A cognitive impairment is a marked decline in intellect
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6. What you may not know about providing care…
These impairment so severely compromise clients that they are no longer safe therefore jeopardizing the innocent
Therefore by definition providing care becomes all-consuming
Which creates the first of two sets of potentially irreversible damages…
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7. The First Consequence: The emotional & physical wellbeing of those your client is committed to protect is severely impaired…
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8. Providing care to a chronically ill person makes healthy caregivers chronically ill…and in many instances creates resentment
At least one will have to put aside her (or his) life if a parent is no longer safe. This has a direct impact on the child’s wellbeing and family
Providing care is rarely shared between siblings creating friction between those who do and those who don’t
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9. The result is that providing care rarely brings siblings together…
It tears them apart, causing irreversible consequences to present and future generations
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10. secure a sense of financial viability
The Second Consequence:
Paying for care disrupts every plan to
secure a sense of financial viability
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11. Paying for care requires a reallocation of resources which starts with income
It is likely that successful people live on all or close to all of their income as they move into the future
Shifting income to pay for care has a direct impact on the client’s ability to keep financial commitment
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12. That assets are capital in nature? Unnecessary taxes? Market timing?
Wealthy clients can cover the cost of care but have you considered the following…
That assets are capital in nature?
Unnecessary taxes?
Market timing?
Liquidity?
That every capital dollar used for care is one less dollar to generate income?
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13. Part 2 Changing the intent of the conversation
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14. Traditional approach
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15. 3 Steps To An Argument… Step 1: Risk based
The client is educated about the risk of care as well as the cost. The presentation is supported with statistics
Step 2: Client based
The client is educated about what happens to him
Loss of independence
Burden to family
Inability to choose where and how is delivered
Loss of assets paying for care
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16. Maintains independence Is not a burden to the family
Step 3: Product driven
is positioned as a solution to the problem; If the client owns the product he or she…
Maintains independence
Is not a burden to the family
Can choose where and how is delivered
Protect assets
Risk based Selling is founded on the deeply flawed assumption that risk motivates clients to take action in the form of buying a product to cover a perceived need
Simply put, it doesn’t
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17. When you change the way you see things the things you see change
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18. The psychology of risk assessment between men and women
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19. Evolutionary psychology helps explain how men and women assess risk
Men generally are wired for*…
Coordination of movement
Problem solving
Spacial memory
Aggression
Short-term focus
A deep sense of invulnerability expressed in a disregard or minimizing of risk
* Men and Women Display Patterns of Behavioral and Cognitive Differences. Doreen Kimura, Scientific American, May 13, 2002; The Biological Differences Between Men and Women, Deborah Blum, Viking Press 1997; Gender Differences in Risk Assessment: Why do Women Take Fewer Risks than Men? Christine R. Harris, Michael Jenkins, University of California, San Diego and Dale Glaser, Glaser Consulting Firm, San Diego. .
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20. What are the consequences to their families?
The result?
Men generally separate the risk of an event happening from the consequences of the event…
If they deeply believe the risk of needing care (or dying or becoming disabled during working years) is essentially zero, then…
What are the consequences to their families?
If there are no consequences why purchase a product to cover them? .
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21. Gathering and interpreting of auditory and visual information
Women’s brains developed different traits. They generally developed characteristics that favor*:
Gathering and interpreting of auditory and visual information
Reading emotions
Empathy
Intuition
Bonding
A strong aversion to risk
* Men and Women Display Patterns of Behavioral and Cognitive Differences. Doreen Kimura, Scientific American, May 13, 2002; The Biological Differences Between Men and Women, Deborah Blum, Viking Press 1997; Gender Differences in Risk Assessment: Why do Women Take Fewer Risks than Men? Christine R. Harris, Michael Jenkins, University of California, San Diego and Dale Glaser, Glaser Consulting Firm, San Diego.
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22. The result is that unlike men who generally separate the risk of an
Unexpected death
Unexpected disability
Unexpected need for care over an extended period of years
…from the consequences of the event
Women look at these risks and their consequences as…
One in the same
A risk IS a consequence .
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23. Changing the focus of the conversation starts with
an understanding what motivates decent men
A man’s sense of purpose in many ways is connected to his ability to take care of others, in this case his family
Making an unqualified commitment to them creates great purpose which brings a sense of pride, wellbeing, value and meaning to his life
That purpose is manifested by assuming responsibilities which reinforces his deepest instincts to provide and protect
Even to the detriment of his own health
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24. Consultative Engagement:
Changing the conversation from risk to consequences
The client is educated about how an unexpected need for care…
Would so severely compromise him (or her)…
That he is no longer available to protect and provide for those he loves…
Resulting in serious if not irreversible consequences to them
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25. The answer is not a product but a plan
That plan is to allow your client to remain safe in the community while protecting the emotional, physical and financial wellbeing of those he or she loves
This is done by mitigating the two sets of consequences…
You want others to provide care
You want someone else to pay for care, so commitments can be kept
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26. Part 3 Funding A Plan: What LTCi solutions actually do
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27. Properly positioning LTCi solutions
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28. Here is the sequence of the conversation
Step 1:
The conversation focuses on the key question, Who and what are important to you? 
Step 2:
The client allows you to protect his or her family based on being educated about the two sets of severe consequences providing care would have on those who are important to them and their lifestyle
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29. What do you think will fund it?
 Step 3:
The protection is in the form of a plan the goal of which is to keep the client safe at home while mitigating the two sets of consequences endemic to providing care
Step 4:
Since it was the client that asked you create a plan, you have every right to ask…
What do you think will fund it?
LTCi solutions should be positioned as a funding source for that plan
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30. It’s positioned as funding the plan
LTCi solutions provide a predictable stream of income. That income is not positioned with the client as paying for his (or her) care. Why?
It’s positioned as funding the plan
By doing so, it mitigates the sets of consequences providing care has on the family…
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31. Emotional and physical impact mitigated
Paying for someone to provide care allows those the client loves to supervise it. This has a direct and positive impact on…
The emotional and physical wellbeing of the caregiver. In turn, it makes it far more likely that the primary caregiver can keep his or her spouse home longer
Children, are given a second gift of life
solutions mitigate the first set of consequences
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32. Financial impact mitigated
By providing a stream of income to pay for care, there is no need to reallocate income from the portfolio, pension, and or social security.
This allows the client to keep financial obligations
Since little or no money has to be allocated to pay for care, it obviates the need to use capital
LTCi solutions mitigate the second set of consequences
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33. Final Thoughts
In the final analysis the extended care conversation, as with a Life and DI conversation, should not be product driven but purpose driven
These products should be positioned as an extension of the client’s absolute commitment to protect those he or she invited into their lives and promised to take care of
And, as with Life and DI they do so, not by protecting assets but income guaranteeing it is not dissipated due to illness
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