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As far as practical advice- it's too late to invest in rental properties, don't know how palatable frugality is to most of you.
A year ago September I bought a deferred benefit annuity for 50k that would pay a month of SNF starting in 14 yrs when I'm 80.
Wasn't sure how good a deal that would be with inflation raging but it's something to consider. Maybe someone with a financial calculator can run some numbers. I figured it wasn't as good as stocks but it felt more stable. I'm wondering if that's a viable alternative to LTCI. Payout goes up 3% a year after I start collecting. With my policy my estate gets the 50k back if I die before collecting.
As far as practical advice- it's too late to invest in rental properties, don't know how palatable frugality is to most of you.
A year ago September I bought a deferred benefit annuity for 50k that would pay a month of SNF starting in 14 yrs when I'm 80.
Wasn't sure how good a deal that would be with inflation raging but it's something to consider. Maybe someone with a financial calculator can run some numbers. I figured it wasn't as good as stocks but it felt more stable. I'm wondering if that's a viable alternative to LTCI. Payout goes up 3% a year after I start collecting. With my policy my estate gets the 50k back if I die before collecting.
If you hadn’t mentioned the 3% increase, I’d thought you might be talking about a QLAC.
as we age our chances of being in a car accident actually increases as we age .
for the amount of actual miles driven , seniors tend to have more accidents.
but even though i am not old enough yet to be in that sweet spot , my insurance is covering us every year .
i had a 55 year old co worker fall off a ladder painting and break his wrist and hip .
during hip surgery he had a stroke which left him paralyzed.
he was in a skilled nursing facility and financially crushed his family .
so i consider what i pay for my LTC insurance not for the future but for each year that i am covered now
That's why it's good to have friends that are not above sneaking you in a fatal dose of something. Or sneak you out for an appointment with the euthanasian / euthanasiatist / euthanasiast. Doctor.
I was very fortunate to find a "financial secretary" who helped dad with the paperwork of LTCI among other things. Her background was organizing - maybe couldn't have done it on her own but not surprising the AL administrator was able to guide her. As far as a contact person for premiums choose someone younger and not a spouse. I think I got one of those letters so I assume they are a requirement.
It is possible to self insure. I recently filled out paperwork to get my will updated and we both agreed the possibility of me needing Medicaid was slim to none.
Part of that reason is I have rental property (because I love real estate and always have). Other reason is I am by nature very frugal.
Both of these conditions are distasteful to MJ and therefore he assumes most everyone will be in his shoes. Though he will admit there are exceptions and I'm one of them.
I have been selling some properties but will keep the ones I'm most attached to under management. That's an inflation hedge.
Dad's ALF was up to 4500/mo with a full care package, SNF was about 8500. That was 3 years ago. I'm sure it's more now but not the numbers MJ quotes.
in these parts SNF care is brutal . my coworker was paying 130k 3 years ago
it is likely in the 140k range today. a rash of covid in the facility did him in ..he was there for his parkinson’s which got very very bad.
he ended up getting wiped out financially and filed bankruptcy and then went on medicaid .luckily he was divorced and had no spouse
a qlac is a longevity annuity you can buy inside an ira
“EXECUTIVE SUMMARY
The longevity annuity has become increasingly popular in recent years as a potential new vehicle for retirement income, as its ability to delay payments to an advanced age like 85 allows for a significant accumulation of mortality credits. And since the introduction of last year’s Treasury Regulations, a so-called “Qualified Longevity Annuity Contract” (QLAC) can even be purchased inside of an IRA or other retirement account, allowing a portion of a retiree’s RMDs to be deferred from 70 ½ to as late as age 85!
However, as it turns out the unique nature of a longevity annuity’s payment structure is not very hospitable as an RMD deferral strategy. The fact that it can take until a retiree’s late 80s just to break even and recover principal means the retiree risks significant foregone growth by trying to merely defer RMDs through the use of a QLAC. And of course, the RMDs will still eventually happen anyway, as the QLAC merely defers when payments begin. In fact, ironically, if the retiree does live, the accelerated payments of a QLAC in the later years can actually deplete an IRA even faster than normal IRA RMDs would have anyway!
Ultimately, this doesn’t mean that the longevity annuity (or a QLAC inside an IRA) is a bad deal. The ability to accumulate mortality credits still means it can be very effective as a fixed income alternative for those who fear they may not have enough money to fund a retirement well beyond their life expectancy. And if retiree intends to spend all of his/her assets anyway, and the only available dollars for retirement are held in an IRA or other retirement account, the QLAC is an effective means to engage in such a strategy. Nonetheless, the bottom line is that while a QLAC may be a valid way to use a retirement account to hedge against longevity – and defer RMDs along the way – it’s still not very effective as an RMD avoidance or deferral strategy! Just because you can buy a longevity annuity inside a retirement account as a QLAC doesn't mean you should!
Genworth New York partnership policies bought in 2003 together on one application and originally denied couple discount because unmarried. We protested to NYSDFS and were told the company was seeking a legislative solution.
Later our premiums were adjusted by company to include a 25 % couples discount. My partner is now collecting for home care and his premiums are waived but mine continue. We were told originally because we applied on one application that if one of us was collecting, the other premium would also be waived. We have identical policies but his included a good health discount as well as a couples discount.
My original agent is now himself not available. Genworth ignores my written requests regarding a waiver. Our increases on premium have been 60%, 52.09%, and now they have started their 143.7% increase. Does anyone else have experience with waiver of premium?
Seems to me that this would be driven by the text of the policy. Verbal statements by agent have no real validity. My wife and I have related but individual policies, pay separate premiums - and individual max pay limits - and what happens on one policy will not impact the other policy.
Thank you for responding. I have just joined this forum and am awkward with the procedures.
Our original application seems to imply we would get a waiver but since we were originally denied what we tried to sign up for, we took what we could get and what our agent recommended when he was told we were not a couple. The company never contacted us when the discount started ( don’t laugh, I thought it was just a premium reduction)and we just accepted it. There was no cost associated with the joint waiver at that initial time so when I found out it was a couples discount, I assumed all was rectified.
And yes, I know what assume means and I agree I am a big dummy. But, for Genworth to ignore my letters to me, indicates they do not want to address the issue. I am hoping to find others who purchased policies at that time and were married.
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