Later Life Issues

[steelpony10]

      After dealing with two sets of parents and later life issues I more or less followed this article covering my retirement spending with regular raises plus adding 2 set asides for possible later life issues because I self insured. I used an income section and a growth section. As with everything else it’s personal and I like a lot of wiggle room in case I overlooked something and of course unknowns like markets.

       This article is a couple years old and I used my moms figures because she lived to 99. My set asides are for a much higher cost based on my factual experience over 35 years. Feel free to comment. There may be substantial costs in addition to LTC leading up to that.

        www.forbes.com/sites/davidmarotta/2022/05/31/how-to-self-insure-for-long-term-care-health-expenses-2022/?sh=7e2996033b53
        

[yogibearbull]

A different perspective.

LTCI becomes very expensive at older ages and may not even be available due to health issues.

It's an "insurance" that should be bought in 40s or 50s, and preferably, through a group benefit plan at work. That is precisely what I did when it was offered as a group benefit without any medical underwriting (that alone made it worth it to me because at that point, I am not sure if I could pass medical underwriting).

After that sweet window is passed, and it isn't realistic to buy LTCI, all that remains is to talk about is why one didn't buy it or doesn't like it.

It may be said that LTCI is for the middle class because poor have Medicaid and rich can take care of themselves.

I also read somewhere recently that there is nothing like self-insurance. As insurance is a transfer of risk, the term self-insurance may be an oxymoron. A better term or descriptor may be that risk was just retained; NOT transferred. And when one retains that risk, one should make sure that $300K-500K in dedicated liquid assets is available without hesitation for end-of-life care, and that isn't part of some general fuzzy pool of funds for retirement, gifting, helping family members, vacations, inheritance, emergencies, etc. Probably when one needs end-of-life care, one may not be in full control of their complicated portfolios.

[steelpony10]

yogibearbull ,

   3-500k would be in the ball park at this time. I started 40+ years ago in single stocks, mostly tech. Right now most of that money is in VTI which is our biggest holding. None of that money may ever used. As mentioned I only have to watch our income and cash flow which requires little attention at this point.

    When the first of a couple goes in the second person is in the most jeopardy.*. When the second went in the house or condo money is a big boost. In either case choosing a facility that is all in one and takes medicaid as a last resort really helps.

     I asked my parents about insurance or a set aside in the early 80’s at semi retirement which they declined. I saw the merits of a set aside after that long stressful period dealing with their subsequent issues, 2 in assisted living and 2 in LTC. In our case as a couple we should be ok because of the set sside.

     * I also learned to set up a prepaid funeral trust to shield money for the second of a couple.

[johntaylor]

Wife and I shoulder the risk for LTC, and set aside a million each (hopefully ample)

[archer]

My parents self insured and died pretty much broke. They didn't really PLAN to self insure, but that's how it turned out. Between the 2 of them they spent about 4 years in skilled nursing, and about 10 in assisted living. Assisted living costs exceeded their income slightly, and skilled nursing by a great margin. My grandparents spent zero on LTC and just died at home. Like any insurance, you don't know if you need it until you do need it.

[anitya]

archer , Congratulations on the longevity genes inherited from your grandparents. You do come across like someone who takes good care of them (genes).