ATTN CALIFORNIANS: HIDE YOUR WALLET

Fellow Californians - It’s expensive enough as it is living in this state. They couldn’t POSSIBLY be adding more taxes… could they?

Well, they are certainly are thinking about it. California’s Long Term Care Task Force is strongly considering following suit behind 10 other states that implement a long term care tax. The idea behind this is to assist with long term care payments.

In short - to qualify for long term care benefits, you must qualify by having the inability to perform a certain number of activities of daily living (such as using the bathroom, walking, and eating). With people living longer, the likelihood of someone requiring long term care is increasing. But, so is the cost of this care. On average, the price of long term care of $6,000/month and this does not include inflation in future years. And, like I mentioned in last weeks article, Does retirement feel too far away? most people are not planning adequately enough for old age.

With this added tax, $0.58 per every $100 YOU make, goes towards long term care benefits. Depending on how much you make, that could be $700 a paycheck (assuming you make $1200 a pay period)! And, it doesn’t look like there will be too long of an opt-out period ¹

How can you opt out?

Purchase private long term care… NOW! If you’re young, RUN! For under $50/month, you can pay for your long term care and avoid losing more from your checks than you already do!

I do suggest doing your own research of course and speaking to a financial professional to best fit your own needs. If you would like a more detailed article on this tax, please let me know!

But, as I always say, financial literacy is more important than ever. And finding ways to keep your hard earned money in your own pocket is key to survival. Which is why I’m here to spill all the tea of the wealthy 😉 

Seriously, you don’t want to wait. Get on my calendar here for a complimentary financial analysis to see how we can improve your overall financial situation.

Future you will thank you!

Ariana - The Wealthy Tea

Disclaimer

All articles are for informational purposes only. It should not be considered financial, tax, or legal advice.

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