I really like this list - it mirrors my own long range plans - as an inveterate spreadsheeter and partially retired (went 50% in August) I have laid out goals for each year that move me along the path. I have to comment on LTC policies though - having watched a 90 year old parent attempt to actually get the benefits she has paid for for the last 40 years…(including premium increases) - be aware: most LTC policies have a 100 day deductible - in addition they require that the policy holder can’t meet at least 2 of 6 activities of daily living. If you have to be in a memory facility or nursing home permanently they will pay for some (not all - there is a daily limit and at most 3 years is total benefits) , however, if you want to age in place at home and just need some additional help (home health aide for example) it probably will not unless can’t walk / bathe / feed etc - also took a letter threatening to contact to state insurance commissioner to finally get them to start to pay claim! Given this negative experience, I am self funding a “bucket” that I will use for elder care if / when I get that far - I’m 61 - hopefully won’t ever need it -but I want money available that I and my family can use without the insurance company struggles and limitations. My initial budget is 250k for the bucket - maybe at some point I will look at a annuity solution but at this point just knowing that I have a “bucket” makes me sleep easier at night.
Comments
I really like this list - it mirrors my own long range plans - as an inveterate spreadsheeter and partially retired (went 50% in August) I have laid out goals for each year that move me along the path. I have to comment on LTC policies though - having watched a 90 year old parent attempt to actually get the benefits she has paid for for the last 40 years…(including premium increases) - be aware: most LTC policies have a 100 day deductible - in addition they require that the policy holder can’t meet at least 2 of 6 activities of daily living. If you have to be in a memory facility or nursing home permanently they will pay for some (not all - there is a daily limit and at most 3 years is total benefits) , however, if you want to age in place at home and just need some additional help (home health aide for example) it probably will not unless can’t walk / bathe / feed etc - also took a letter threatening to contact to state insurance commissioner to finally get them to start to pay claim! Given this negative experience, I am self funding a “bucket” that I will use for elder care if / when I get that far - I’m 61 - hopefully won’t ever need it -but I want money available that I and my family can use without the insurance company struggles and limitations. My initial budget is 250k for the bucket - maybe at some point I will look at a annuity solution but at this point just knowing that I have a “bucket” makes me sleep easier at night.
Post: Retiring Right
Link to comment from October 31, 2022