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I completely agree with you. That is why we sat and talked to a FP. Then took what we learned and came up with our plan. It is also why I started that thread. DW and I are in unique positions. But our path can show others a path as well.
You and your wife are textbook examples of a couple that should own LTC insurance because you have high incomes and modest assets. I find it hard to believe that a financial planner with a fiduciary responsibility would not recommend LTCi for you and your wife. (But anybody today can call themselves an FP, that doesn't mean they are fiduciaries.... many earn their living from commissions and fees.)
It seems like you're saying that your monthly income is much greater than your current living expenses. Are you banking $2,000 per month now, $3,000 per month, $4,000?????
most planners suck in the 2nd half of the game . they are so far behind on retirement planning strategy .
the worst in the 2nd half ,the decumulation /retirement stage i found are fee only planners .
they tend to be fee only because they lack the certification ,knowledge and training in more modern products and strategy's as well as comprehensive planning or they would not be fee only .
You and your wife are textbook examples of a couple that should own LTC insurance because you have high incomes and modest assets. I find it hard to believe that a financial planner with a fiduciary responsibility would not recommend LTCi for you and your wife. (But anybody today can call themselves an FP, that doesn't mean they are fiduciaries.... many earn their living from commissions and fees.)
It seems like you're saying that your monthly income is much greater than your current living expenses. Are you banking $2,000 per month now, $3,000 per month, $4,000?????
Modest assets? Hmmmm I have over a million in assets and in retirement pensions alone (not counting SS which we are planning on postponing to FRA her and 70 (maybe) me and while doing that postponing live off the 5k+ in monthly pension income while also taking 24k from retirement savings annually to do trips on. My wife is working until October this year and will max out her 401k to a full 24k. We have also opened a brokerage account to the tune of another 30k in the last three months.
You are right we are text book with high income modest assets. And if I was thinking I want to leave a legacy to my I could make that. But I do not think I will live long enough to spend all my retirement savings. There will be plenty for the wife to spend. Her income will drop if I pre-decease her but not nearly to poverty levels that you might think. The pensions are annuity with COLA provisions. They may not go up fast but honestly we will be just fine with the plan we have. Both of us are healthy now. If I turn sick in my 80s like my dad we will still have resources to take care of me and her. I do appreciate your concern. Even my financial planner showed far less concern when we talked with him about the plan. He wishes he had the same resources and the ability to do what we plan.
Regarding state partnership programs, are they transferable if you move to a different state?
Also, anecdotally, my in-laws both had LTCI. Mother-in-law developed myasthenia gravis and was quite sick for a few years but some reason, was never able to actually use the LTCI because of the rules they had in place for use.
Father-in-Law had a stroke 6 or 7 years ago and has been able to use LTCi effectively, but when all is said and done, he may just break even with the benefits vs premiums paid.
Not sure how common these scenarios are but it gives us pause as to whether LTCI is worth it especially with the sharp increase in costs.
It's my feeling also that state partnership plans which provide protection of assets for the non-LTC spouse are the main benefit of long term care insurance.
With health care inflation running at such high rates it becomes difficult to afford a large enough daily benefit. Long term care insurance policies are only available to cover a fixed number of years and after that time runs out you are back to spending down your resources until you qualify for Medicaid.
At least with a partnership plan the non-LTC spouse will have some assets protected (and the benefits paid by the insurance will help to preserve some assets to protect).
That said the insurance is quite expensive and I am still shopping around for ours. I am also interested in a non-forfiture policy to keep some benefits in the event that rising premiums and fixed post-retirement income would make premiums unaffordable.
When you find yours, will you tell us? Honestly, just thinking this stuff through makes my eyes glaze over. And I am a battle-hardened engineer, veteran of epic battles with incomprehensible spreadsheets, lol!
Did I read somewhere congress wants to cut Medicaid?
Yes conservative Republicans are pushing it but more moderate Republicans are pushing back. Democrats are totally against it. I doubt it if there will be much of cut but perhaps more testing of who gets it.
Washington politicians are so inept that I doubt if they will get anything done, I don't care what
side of the fence they are on.. I lost all faith in their ability to govern.
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