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Vagabond,

Wow, interesting post (facts?). This sounds like a very good sales pitch from an official "Insurance Council" (read Insurance salesperson) to me.

"In 1994, 7.3 million Americans needed long term care (LTC) services at an average cost of nearly $43,800 per year. By 2000, this number will rise to 9 million Americans at nearly $55,750 per year, and due to inflation, by 2060 it will skyrocket to 24 million Americans paying over $250,000 per year to receive long term care." (Long Term Care Insurance National Advisory Council)

First, this is 2000 not 1994 and my mother, who is at miximum care rate, is paying $49,000 a year, not $55,750. Second, I am 50 and just retired. If, I make 2060 I would be 110 years old. I don't think I will make it or will have to worry about paying "over $250,000 a year" in LTC. If I did make it, my current annual calculated retirement needs of $50,000 today, due to inflation , would be about $700,000. If I don't intend to die broke (Iknow, many people do) I would probably commit myseof early just for the cheap rent and good maid service. Seriously, I could easlily afford the cost. Remember I would not have housing, auto, meal, travel, etc. costs to worry about anymore.

I believe that any Foolish investor, with a reasonable retirement plan, can self insure this situation.

Second, get real, nobody knows what this world will be like in 2060. Think back. In 1940 we didn't even have nursing homes, medicare insurance. SS was brand new. A trip to Minneapolis for my parents and grandparents (150 miles) was a 3 day trip. There is no way these people have a crystal ball that can predict what life will be like in 2060.

I believe that the real question should be, “Can my portfolio afford this expense and probably my last expense?” Mine can. I believe I'll keep my money fully invested and self insured.

I agree and if you can't and still have time, work longer, expend your portfolio, and self insure.

Regards,
Paul
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