October is Long-Term Care Month
1. Fed cuts rates; labor is cooling — AI spend helps growth
On Sept 17, the Fed cut rates by 0.25% to a 4.00%–4.25% target range, noting that “downside risks to employment have risen.” August private payrolls were soft. Health care & social assistance +47k while 8 of 13 other private industries fell.
Sources: Fed statement https://www.federalreserve.gov/newsevents/pressreleases/monetary20250917a.htm BLS summaryhttps://www.bls.gov/news.release/empsit.nr0.htm
AI-led growth: AI/data-center investment has been a major growth driver, at times outpacing consumption. Funded mainly by free cash flow, not debt; leading firms show ROIC >20% vs. ~9% for the S&P 500®. If AI investment stays strong, it can offset softer hiring. If it slows, markets may wobble.
Sources: Natixis IM https://www.im.natixis.com/en-us/insights/macro-views/2025/labor-market-slows-tech-drives-us-economic-growth
2. Social Security: why solvency keeps coming up
The 2025 Social Security Trusteesoutlook points to 2033 depletion and a ~23% needed benefit cut without any other changes.
Benefits won’t vanish, but changes to taxes, retirement age, or formulasare likely. Plan early to manage the uncertainty.
Source: BPC summary →https://bipartisanpolicy.org/blog/2025-social-security-trustees-report-explained/
3. Long-term care (LTC): plan before you need it ❤️
What LTC is: Help with daily activities or ongoing health needs at home, in the community (adult day centers), or in residential settings.
Why plan now: LTC can be costly and often uses a mix of personal savings, Medicare/Medicaid, and private options like LTC insurance, certain life/annuity riders, or trusts. Sources: NIA →https://www.nia.nih.gov/health/long-term-care/what-long-term-care
Practical steps:
Keep up healthy habits and make your home safer.
Discuss care preferences with family.
Compare costs for home, community, and facility care.
Review coverage while you’re healthy to keep premiums lower. If you’d like quotes tailored to your situation, I’d be glad to help.
