LTC is such a crap shoot. Pay a bunch of money for LTC, which you may or may not need, more expensive every year, may out live it, self fund it, partially self fund it, etc. How do you plan for that? I've heard you can't find LTC plans today, many insurance companies are going to hybrid plans (form of life insurance). Even the federal government stopped enrolling new policies. Will these plans go bankrupt? Maybe you can provide a video of the basics of evaluating LTC policies, and the various kinds of things we should think about. BTW, thanks for this video.👍
That's been our experience as well. The issue is that many LTC carriers did not price policies correctly. As a result, price hikes are plenty, and new policies are revised. Fortunately, many insurance carriers will usually step in to purchase other weaker LTC plans, but it's never a guarantee. Genworth is a big LTC provider that has seemingly run into some trouble lately. We've considered doing a dedicated video on LTC. We'll add it to the list, and thanks for your support!
@@TheFedCorner Thanks for the videos and making one dedicated on LTC. Maybe to avoid buying into LTC plan you hopefully are in good health and lucky if you have healthy family genes and avoid dementia, and eat whole foods, exercise/workout, out of debt and the house is paid off with a good retirement portfolio, pension and SS. Still it will really drain you if you need it w/o ins. I don't know if you already have a video on this request. Could you also do a detailed video on having FEHB in retirement AND what does adding Medicare Part B do for you additionally or gives you that isn't covered already in FEHB, I have BCBS now. Also if you are single, I see Part B in 2024 will go up to $174 a month.. FEHB discounts $800/yr or $67/mo..Thanks!!
Some things, like potential LTC, are just such a drain on one's resources, relative to the likelihood of needing it, that purchasing it moves out of the realm of reality into the realm of fantasy. Sure, I could spend every dollar I have ever made paying for mitigations of every fear I have of the future, but what kind of a life would l have then? Reasonably priced mitigations are fine, but even as a 35 year, 24 years, ago the price of LTC was beyond reach and sanity. I can imagine what it is now! Staying as healthy as I can by exercising, having a positive mental attitude, and eating right = reasonable mitigations. Paying my entire nest-egg to an insurance company because of fear of the future = never happening.
I think long term care is the biggest. And take a younger investor at the moment, let’s say a millennial around 40 years old. Just imagine what the actual cost will be in 40+ years when they are in their 80s. It could easily be several times higher than $300k. Do people really have the discipline and mindset to save that much for their no-go years?
Great point, that $300K is in today's dollars. Inflation will continue to increase the cost. That's the importance of always having parts of your portfolio growing fast enough to outpace inflation.
Do you think an investor should really focus on long-term care investing in general? For most people it would dominate there life to try to prepare for the costs? What do you actually think the median income in the US is? How much would somebody have to save to pay for long-term care?
