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I watched a YouTube that said there are 3 ways to tackle the LTC problem.
1. Long term care insurance, (which is more costly as we aged),
2. Whole life w a LTC rider, (maybe much more costly comparing option 1), or
3. Self funding from investment.
Your thoughts. Thanks in advance.
Way back, when I was in my 40s, the megacorp offered employees Option 1. I figured I would likely be paying premiums for over forty years for something I might never use, and passed. Since then companies have abandoned the business, and premiums for remaining policies have risen. I do not regret that decision.
Instead, I have implemented David’s suggestion. In my mid-70s I moved to a non-profit CCRC that promises to keep me if I run out of money. It has been in operation for over 30 years and has an extensive wait list. Of course, this plan might be derailed by some black swan event, but that is true of any plan.
Self funding seems right to me!
We are relying on our portfolio, but also are planning on joining a nonprofit CCRC with a guarantee they will not put us out on the street if our assets are emptied. Possibility of number two.
As to your side note on point two vs point one costs, with number two you have a guaranteed payout. With number one you may or may not get any financial benefit, and from what I have read the red tape is very burdensome compared to option number two. I would pick two as long as you can afford the premiums.
I am doing option 3. We have no debt, and our basic expenses covered w our SS benefits, we have set aside a brokerage account for this future needs that is about 7 figures because the markets are up so nicely.