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Old 09-28-2017, 03:28 PM
 
71,511 posts, read 71,674,131 times
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then you made your decision .
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Old 09-28-2017, 04:53 PM
 
3,082 posts, read 818,180 times
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Originally Posted by mathjak107 View Post
then you made your decision .
Thanks, I appreciate you and others who post because each individual circumstance is so different and it helps work through various options.

I have one daughter who's still in college studying to become a gerontological social worker. She absolutely loves little old ladies!!! Given her targeted profession she may never be a big earner, hence my concern that I leave some assets. Trying to buy an affordable unlimited LTCi at my age (64) would be cost-prohibitive hence my concern to plan for the worst-case scenario, not just 3-5 years.

Over the years, I've looked at LTCi but each time rejected it for one reason or another. One general comment I have about the "cost" issue is how to manage costs to fit the need. So often I find those needing care for specific aid frustrated by the time minimums required (not infrequently 4 hours daily). I appreciate WHY that's the case for the provider but the-here-I'm-paying-all-this-money-for-some-stranger-to-sit-in-my-house IS an issue too.

Similarly, depending on your situation it may be possible to duplicate the best of an ALF in the community itself. Another need, of course, is not LTC but the short-term care that results from a temporary disability. Medicare helps here with rehab - but it's equally important to have a functional home setting with resources in place.

Anyhow, I have a number of personal circumstances (including our current home, location, community resources) that makes me think having one plan for less-intensive care with another for around-the-clock care (worst-case scenario) may make sense. LTCi would potentially not contribute much, even for the worst case scenario.

It's too soon to make the final financial decisions (property purchases etc.) - even though I'd love to get started on some lifestyle changes. But like I said the kid is still in college. One disadvantage of being an older parent.

Still, it's time to consult the financial planner and redo legal documents now 20 years old with this framework (Plan A - Plan B) in mind.
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Old 09-28-2017, 05:33 PM
 
Location: Central Massachusetts
4,800 posts, read 4,844,519 times
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Originally Posted by LTCShop View Post
What kind of investment is that that guarantees you $5,000 a month? Some kind of annuity, I guess? To guarantee you $5,000 per month for life you must have put A LOT of money into, right?
you do not have to have an investment that guarantees you $5k per month. You just have to have a portfolio that can allow you to take 5k per month without affecting all your other income sources. Try not to think that everything is depending on investment. It could be a bank account of 500k with 0% interest and it will last 8 years 4 months.
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Old 09-28-2017, 05:36 PM
 
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that bank account is missing a parameter , inflation . inflation creates sequence risk and without testing there can be a big variance in how long that money lasts . negative real return years with a bank account are losses too just like equity real returns that are down would be .

the worst failures in history of the 4% swr were caused not by returns or rates but inflation . in 1965/1966 inflation was 2.50% to 3.50% . who would have guessed in 3 years time it would have doubled and by 1974 it would be 11%. it was crushing to a retiree. but with inflation so low who ever expected a 4x increase coming .
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Old 09-28-2017, 05:40 PM
 
Location: Central Massachusetts
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Quote:
Originally Posted by mathjak107 View Post
that bank account is missing a parameter , inflation . inflation creates sequence risk and without testing there can be a big variance in how long that money lasts . negative real return years with a bank account are losses too just like equity real returns that are down would be .

the worst failures in history of the 4% swr were caused not by returns or rates but inflation .
no it didn't. The point was what sort of investment would guarantee a 5k a month draw. That is one way. Lets not make this into a complicated argument. But if you really insist on that then at a 4% increase annually on that 5k a month draw the 500k bank account will last 6 years and change.
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Old 09-28-2017, 05:44 PM
 
Location: Philadelphia/South Jersey area
2,871 posts, read 1,401,499 times
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Quote:
Originally Posted by oldsoldier1976 View Post
no it didn't. The point was what sort of investment would guarantee a 5k a month draw. That is one way. Lets not make this into a complicated argument.


I think the basic point is to have a plan. there are many options for covering long term care between buying very expensive ltc insurance and nothing. And many folks are able to find alternative solutions.

lots of great information though guys. thanks it really has been helpful for me
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Old 09-28-2017, 05:46 PM
 
71,511 posts, read 71,674,131 times
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when discussing investments and comparing you always have to consider sequence risk ,even with bank accounts . if 5k buys 2k worth of stuff and you were counting on 5k worth of stuff you will be way off in how long that money lasts . you can't buy things or pay bills with nominal dollars ,only inflation adjusted amounts by one's own personal rate of inflation .so that is my view .
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Old 09-28-2017, 05:59 PM
 
Location: Central Massachusetts
4,800 posts, read 4,844,519 times
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Quote:
Originally Posted by mathjak107 View Post
when discussing investments and comparing you always have to consider sequence risk ,even with bank accounts . if 5k buys 2k worth of stuff and you were counting on 5k worth of stuff you will be way off in how long that money lasts . you can't buy things or pay bills with nominal dollars ,only inflation adjusted amounts by one's own personal rate of inflation .so that is my view .
I agree with you. But we are talking about alternatives to LTCi. One way as you said is to have a separate account not tasked with anything but doing long term care. How many policies can take a person 6 years? How expensive would that be as well.

So lets say we have an individual that has income that is cola adjusted that includes SS pensions and they can live on that exclusively. They have a savings account that has a million. That person could then take 500k and set that aside in a mattress to draw upon when they need it for long term care. They are living on the other income and supplement it with the other 500k. Sounds to me to be quite reasonable to live on.
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Old 09-28-2017, 08:50 PM
 
29,774 posts, read 34,856,103 times
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Originally Posted by oldsoldier1976 View Post
I agree with you. But we are talking about alternatives to LTCi. One way as you said is to have a separate account not tasked with anything but doing long term care. How many policies can take a person 6 years? How expensive would that be as well.

So lets say we have an individual that has income that is cola adjusted that includes SS pensions and they can live on that exclusively. They have a savings account that has a million. That person could then take 500k and set that aside in a mattress to draw upon when they need it for long term care. They are living on the other income and supplement it with the other 500k. Sounds to me to be quite reasonable to live on.
A real Bada Bing and applicable to SOME!
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Old 09-28-2017, 08:56 PM
 
Location: Raleigh
8,046 posts, read 5,888,251 times
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Isn't it more about the plan than the company anyway?
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