Considerations for Long-Term Care Expenses in Retirement

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1. Traditional Long-Term Care Insurance

I could get traditional long-term care insurance. It's good but expensive. It can cover nursing home, assisted living, and home care costs, but the premiums are sky high. The best time to buy is in your mid-fifties or early sixties at the latest.

2. Hybrid Life Insurance with Long-Term Benefits

I could also consider hybrid life insurance with long-term care benefits. This is a game changer for many retirees. You pay in, and if you don't need the care, your family can get the money as a life insurance payout. No wasted premiums. Yes, it does cost more upfront, but the flexibility can be well worth it.

3. Self-Insurance

Or you could do what I plan on doing, which is to self-insure. What can I say? I have a control issue. If you have a few million saved and invested across diverse asset classes, you might not need insurance at all. I would make sure to have a liquid and stable quarter of a million dollars that isn't exposed to market volatility.

Conclusion

As always, the worst plan is no plan. If any of this is helpful, sign up for my free newsletter by clicking the link in my bio. Each Sunday, I'll send you over more thoughts to help get you one step closer to where you need to be.

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