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Investing/Strategies / Retirement Investing
|Subject: Re: Long Term Care||Date: 3/27/2011 7:09 PM|
|Author: 2gifts||Number: 68737 of 81959|
The presenter said that if you had about $1M of assets (excluding your house) when you retired, that you'd be just as well off without a LTCI, jusr self-insure instead.
Does this assume that you will receive a pension?
Having $1M in assets that you can tap to fund your retirement is only about $40k per year if you use a 4% SWR. What happens to the other spouse if you then need to use this nest egg to for one spouse's long term care?
Like homeowner's insurance that I pay in case the house burns down, but I hope I never need it, I have LTC in case we need that, but I'd rather never need it. In my case, if we need it for one spouse, that will help to preserve the assets for the other spouse. Once one of us is gone, I don't see it as being as big of a risk and would most likely see the surviving spouse cancel it, but only after looking at the entire picture to see what makes sense at the time.
We got our LTC when I was 45 and DH was 46. I don't consider the cost prohibitive, we have not seen any increases, and it has the coverage that we want. We also have no pension, so have to self-fund our retirement although there will be some social security for us, probably even with means testing.
For us, LTC was the last brick I wanted to have in our financial foundation.
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