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Old 02-21-2018, 10:22 AM
 
Location: MIAMI FLORIDA
44 posts, read 27,949 times
Reputation: 143

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When one reads about how much it costs to end up in a nursing home($50-$60k/year unless it's a really
bad one that looks like something out of a horror movie)...it must be obvious that there is no way most of us will be able to save enough to cover those kind of costs.
How much can one possibly save?.. .Is it really realistic that we would have saved $500K or even $300K to be able to stay in a nursing home for 5-10 years? and unfortunately you don't die.... Especially if you have no family to help you at that point in your life ... And then when the money runs out they will jump on any leftover assets you may still own and dry those up...what happens next??? Why even try??
Long term insurance seems very expensive,and probably not enough for a long term stay
Early death,whether natural or on purpose seems more and more like the best retirement plan.
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Old 02-21-2018, 11:04 AM
 
Location: VT; previously MD & NJ
2,202 posts, read 1,345,129 times
Reputation: 6336
Try not to be so discouraged. You don't say how old you are, but I suspect you still have time to save and invest. If you have debt (credit cards, car loans), pay it off. Nothing wastes your money more than paying interest on loans. Work toward saving for things ahead of time so you can pay cash, rather than taking yet another loan where the interest makes you pay so much more for the item than it actually costs.

I have been quite surprised that my savings over the years have mushroomed in recent years. I have so much more than I ever expected to have. You can do it too.
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Old 02-21-2018, 11:14 AM
 
588 posts, read 301,609 times
Reputation: 1604
Quote:
Originally Posted by ansible90 View Post
Try not to be so discouraged. You don't say how old you are, but I suspect you still have time to save and invest. If you have debt (credit cards, car loans), pay it off. Nothing wastes your money more than paying interest on loans. Work toward saving for things ahead of time so you can pay cash, rather than taking yet another loan where the interest makes you pay so much more for the item than it actually costs.

I have been quite surprised that my savings over the years have mushroomed in recent years. I have so much more than I ever expected to have. You can do it too.
The depressing point the OP was making is that what good is it to save up a big nest egg only to have it go to pay a nursing home?
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Old 02-21-2018, 11:15 AM
 
Location: Tampa, FL
27,798 posts, read 26,209,546 times
Reputation: 14611
Quote:
Originally Posted by TNSLPPTSO13 View Post
When one reads about how much it costs to end up in a nursing home($50-$60k/year unless it's a really
bad one that looks like something out of a horror movie)...it must be obvious that there is no way most of us will be able to save enough to cover those kind of costs.
How much can one possibly save?.. .Is it really realistic that we would have saved $500K or even $300K to be able to stay in a nursing home for 5-10 years? and unfortunately you don't die.... Especially if you have no family to help you at that point in your life ... And then when the money runs out they will jump on any leftover assets you may still own and dry those up...what happens next??? Why even try??
Long term insurance seems very expensive,and probably not enough for a long term stay
Early death,whether natural or on purpose seems more and more like the best retirement plan.

My plan is to pay for LTC insurance as long as I can budget for it. It's a priority behind home, utilities, food, transportation, regular health care.....but ahead of discretionary spending like travel, entertainment, etc.

If you use up all of your assets in your estate for your long term care, I assume Medicaid (if available and not defunct) will be the next way to finance the care.
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Old 02-21-2018, 11:16 AM
 
2,565 posts, read 1,022,328 times
Reputation: 2003
Quote:
Originally Posted by ansible90 View Post
Try not to be so discouraged. You don't say how old you are, but I suspect you still have time to save and invest. If you have debt (credit cards, car loans), pay it off. Nothing wastes your money more than paying interest on loans. Work toward saving for things ahead of time so you can pay cash, rather than taking yet another loan where the interest makes you pay so much more for the item than it actually costs.

I have been quite surprised that my savings over the years have mushroomed in recent years. I have so much more than I ever expected to have. You can do it too.
Agreed. It is doable. We don't have long-term care insurance, but our savings should cover such expenses. The key is for young people to start saving early and live beneath their means. And it helps, bigtime, to have two 2 incomes.
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Old 02-21-2018, 11:17 AM
 
Location: Omaha, Nebraska
7,316 posts, read 4,157,689 times
Reputation: 18318
Quote:
Originally Posted by Winter Sucks View Post
The depressing point the OP was making is that what good is it to save up a big nest egg only to have it go to pay a nursing home?
What else should it be used for? That's the point of building up a big nest egg: to cover your expenses in your final years of life.

Most people, though never need to go into a nursing home, so the OP's worry is overstated.
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Old 02-21-2018, 11:19 AM
 
2,565 posts, read 1,022,328 times
Reputation: 2003
Quote:
Originally Posted by Winter Sucks View Post
The depressing point the OP was making is that what good is it to save up a big nest egg only to have it go to pay a nursing home?
Savings allows you to be able to make choices you otherwise couldn't make. I promised my mom I would not put her in a nursing home. She had an excellent pension, SS, and some savings (which allowed me to honor her wishes by hiring sitters).
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Old 02-21-2018, 11:19 AM
 
Location: Omaha, Nebraska
7,316 posts, read 4,157,689 times
Reputation: 18318
Quote:
Originally Posted by BucFan View Post
If you use up all of your assets in your estate for your long term care, I assume Medicaid (if available and not defunct) will be the next way to finance the care.
That's exactly what happens. Impoverished elderly people, just like impoverished younger people, end up as wards of the state. It's sad when that happens, but that's why we pay taxes for social services: to help others who truly cannot help themselves.
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Old 02-21-2018, 11:21 AM
 
1,532 posts, read 1,438,987 times
Reputation: 11199
The point of saving for retirement is not to "save" $500k or whatever goal one sets. The point is to "save" a goal amount with each chunk of income (weekly, monthly, whatever works) and let the miracle of compounding do its magic. Make the money do as much of the work as possible.


Once that is on autopilot, then the goal should be learning about creating other streams of income, preferably something that doesn't require the application of one's own labor. For many people, that takes the form of some type of investment.


If one manages to avoid succumbing to greed or the blandishments of the get-rich-quick con artists, it is, indeed, possible to achieve that seemingly impossible goal of sufficient funds to provide care in one's old age.
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Old 02-21-2018, 11:26 AM
 
2,565 posts, read 1,022,328 times
Reputation: 2003
Quote:
Originally Posted by Aredhel View Post
That's exactly what happens. Impoverished elderly people, just like impoverished younger people, end up as wards of the state. It's sad when that happens, but that's why we pay taxes for social services: to help others who truly cannot help themselves.
There is talk of reducing Medicaid assistance.
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