Retire With Style Episode 119: Options for Funding Long-Term Care Expenses (Part 5)
Apr 2, 2024
46:07
In this episode, Alex and Wade discuss options for funding long-term care expenses. They start by clarifying that Medicare is not a long-term care funding option, as it is for health-related issues. The four main funding options they cover are self-funding, Medicaid, traditional long-term care insurance, and hybrid policies. They focus on self-funding in this episode and discuss factors to consider when choosing a funding strategy, such as age, health, family health history, wealth levels, legacy objectives, risk tolerance, and the costs and benefits of different insurance policies. They also emphasize the importance of involving family members in the long-term care plan and considering the fungibility of assets. The episode concludes with a discussion on the impact of long-term care expenditures on one's standard of living and potential beneficiaries. This conversation explores the concept of self-funding for long-term care and the various factors to consider when making this decision. The chapters cover topics such as volatility and spending flexibility, the impact on inheritance and flexibility, insurance for long-term care, estimating reserves for self-funding, the probability of long-term care events, the ideal persona for self-funding, target date funds for long-term care, using QLAC as a planning tool, self-funding with annuities, spending guilt and behavior change, unpaid informal caregivers, and self-funding with annuities. Listen now to learn more!
Takeaways
00:00 Introduction and Overview 02:58 Medicare and Long-Term Care 06:57 Costs and Considerations 09:59 Choosing a Funding Strategy 16:12 Involving Family Members 21:54 Funding Sources for Self-Funding 23:05 Impact on Standard of Living and Beneficiaries 23:19 Volatility and Spending Flexibility 24:15 Impact on Inheritance and Flexibility 25:45 Insurance for Long-Term Care 26:33 Estimating Reserves for Self-Funding 27:05 Probability of Long-Term Care Events 27:36 Ideal Persona for Self-Funding 28:33 Target Date Fund for Long-Term Care 29:23 QLAC as a Planning Tool 30:12 Self-Funding with Annuities 32:09 Spending Guilt and Behavior Change 36:18 Unpaid Informal Caregivers 41:02 Self-Funding with Annuities Links
- Medicare is not a long-term care funding option; it is for health-related issues.
- The four main funding options for long-term care expenses are self-funding, Medicaid, traditional long-term care insurance, and hybrid policies.
- Factors to consider when choosing a funding strategy include age, health, family health history, wealth levels, legacy objectives, risk tolerance, and the costs and benefits of different insurance policies.
- Involving family members in the long-term care plan is important to avoid misunderstandings and ensure support.
- Money is fungible, and assets can be used to fund long-term care expenses, including the house, investment portfolio, and life insurance cash value.
- Consider the impact of long-term care expenditures on your standard of living and potential beneficiaries.
00:00 Introduction and Overview 02:58 Medicare and Long-Term Care 06:57 Costs and Considerations 09:59 Choosing a Funding Strategy 16:12 Involving Family Members 21:54 Funding Sources for Self-Funding 23:05 Impact on Standard of Living and Beneficiaries 23:19 Volatility and Spending Flexibility 24:15 Impact on Inheritance and Flexibility 25:45 Insurance for Long-Term Care 26:33 Estimating Reserves for Self-Funding 27:05 Probability of Long-Term Care Events 27:36 Ideal Persona for Self-Funding 28:33 Target Date Fund for Long-Term Care 29:23 QLAC as a Planning Tool 30:12 Self-Funding with Annuities 32:09 Spending Guilt and Behavior Change 36:18 Unpaid Informal Caregivers 41:02 Self-Funding with Annuities Links
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