Younger consumers not free of worries

By Deborah Adamson
Advertiser Staff Writer

When it comes to long-term care, Keith Nakaganeku is way ahead of his peers.

The 36-year-old financial adviser's family has a history of needing coverage — his grandfather, aunt and uncle required long-term care. Family assets went to pay for medical and other costs.

But Nakaganeku doesn't want to put off thinking about long-term care till he faces those bills, especially since he has some health problems.

"These are things people put off," said the Generation X'er.

He's considering taking out insurance for long-term care, even though he realizes that he might have to pay premiums for a long time.

"You might not be insurable 10 years later," Nakaganeku said.

He's also thinking about saving money now to pay for his long-term care when the need arises, although he estimates a nursing home bill of $1.7 million by the time he hits 80.

Most Generation X'ers don't need to worry about long-term care yet, financial experts say. Instead, X'ers should focus on more pressing needs.

"Take care of necessities first," said Alan Kodama, a financial adviser with American Express Financial Advisors and Nakaganeku's colleague.

Get your financial house in order so you'll be in a better position later.

Think about long-term care only if you have health issues that might require such care someday, said Rodney Chang, a financial adviser at Morgan Stanley.