@thumper1 I don’t think it’s awful at all, and I thought about that this morning. and it’s no more awful than hoping he (or I for that matter) gets hit by a bus or have some freak accident before that time comes. Watching his parents go through it is killing him. He does not ever want to get to that point.
Like I said previously, I have to have it at mid to upper 90’s before I’m comfortable. I wouldn’t pay any attention to the individual lines., they’re just running every possible scenario. I’ve heard some people say they feel it’s more accurate to run it twice. Once to get you to retirement and once to assume already retired with X lump sum.
Make sure you’ve added in any SS and you can include the lump sum from sale of the house at a certain time. I haven’t been really worried about nursing home care costs. I figure if I have enough to get in somewhere and pay for awhile, Medicaid will take over once the assets are gone and I won’t have to move to a crappy place. I’m not married though, so no worries about leaving a spouse with nothing.
It is the time between when one can live completely independently and needing nursing home care that is the issue. AFAIK, Medicaid kicks in for nursing home care, but not for assisted living. There is some coverage under Medicare for rehab care in an assisted living facility following an accident or surgery, but not for the care required to allow one to live at home as physical state gradually declines. (Help with ADLs.)
I do not have a # to plug into the calculator either, but wanted to point out that only a small percentage of the population requires true nursing home care.
@bgbg4us – I believe that some of the reason LTC premiums have been increasing so rapidly is that insurers underestimated the amount the plans would be used, and their investment projections were not realized.
Seems like LTC insurance is subject to adverse selection – those who see their parents needing LTC and therefore see themselves as having higher risk of needing LTC are more likely to want to buy LTC insurance.
Honestly, I hope more states pass Death With Dignity legislation in the coming years. Hate to sound overly “practical” but we treat our pets with more dignity.
I don’t know what you would call sliding your assets to your spouse and then divorcing so you can get the taxpayers to pay for your health needs instead of using your own family funds would be, but it doesn’t sound ethical. Yes, it’s a terrible situation to be in, but that’s what your own assets are for. You move to Medicaid as a last resort, not a first one.
On a different note, I don’t believe that someone should assume that Alzheimers is their destiny. There are new discoveries all the time, and ways to know if you have genetic inclinations towards that disease. Recent studies show that certain medications carry higher risks. Instead of deciding it is my fate, I would look into all current research and adapt my lifestyle as much as possible. Who knows what they may discover in five years?
The bad part though is that one spouse can wipe out all the assets, die, and leave the other spouse potentially having to live for decades with little or no money. I can see how this is tempting to save one. Of course the lookback for Medicaid is several years, so divorcing when someone is headed to the nursing home probably would not pass scrutiny anyhow.
We only can do our best to stay as healthy as possible—physically, emotionally and financially. There are many unknowns.
For better or worse, some patients with severe dementia seem pretty content and otherwise healthy. Some may live long lives, greatly outliving their assets and certainly their ability for self-care. I am unaware of good solutions for this.
@busdriver11 in my friends case…the husband is living at their home with 24/7 help…and believe me, they are paying for that with their own assets…because Medicaid certainly doesn’t cover that. And neither does Medicare.
I have trouble with people who protect their assets to leave to their family and instead expect the state to take care of them. Where I live, the Medicaid facilities are not where I’d want to put my loved one. I’d rather spend the $ on good care even if they can’t comprehend it.
Even with the 5 year look-back, Medicaid is intended for those who cannot afford other care.
Sorry, sore subject.
Divorcing in that situation seems very practical to me. The care of one spouse should not take all the couple’s assets. The surviving spouse should be entitled to her half.
@jym626. I don’t disagree with you in principal but how far can you and your family go on spending $6,000/month on care? Plus wiping out all your savings to do so.
The system needs to be revamped is my opinion.
@Knowsstuff I completely agree that the system needs to be revamped, but Medicaid is intended for people who have limited financial resources, not for those who shield/protect their finances to make the appearance of need. If a family is no longer able to afford it, then they apply when their funds hit the threshold (I think the primary residence is protected, though not sure about the nitty gritty).
^^even the primary residence exemption can become a loophole. Have say, $3M in equities/bonds? Cash them in and purchase an expensive house to live in. Ill-spouse then becomes cash ‘poor’…
If you have an old car, buy a new one. I’m not talking a Maserati, but something the spouse can use
So you cash out and buy an expensive house, how then do you pay the property taxes?
A lot of these financial gyrations disappear when you just buy coverage. No divorcing, disowning, moving money to hide, etc. Newer versions of LTC are much easier to get and provide additional benefits so it’s not “use it or lose it”. Linked to life policies means there’s going to be a benefit paid one way or another.
Quite frankly, we position it as part of overall portfolio management. Not just about helping control market risk. Lots of things can eat away at a portfolio. If you have the coverage, you don’t need to set a side $X which means they can be invested differently.
My goal is to try to have enough liquid assets to generate around $14K gross income per month and the equivalent amount (based on investment return of 5% in dividend stocks and similar investments and not including Social Security benefits), taking into account inflation. This is in addition to a comfortable house and everything with no debt. I found it takes a lot more money not working because you have to do some interesting stuff such as traveling, taking up hobbies, help loved ones, and medical costs. As I near death, I plan to give some to good causes, give some to my kid and live enough for me and my spouse. Another reason I want to simplify things is in case I die before my spouse, I want to make it easy for my spouse to manage and live comfortably off annual income.
@rickle1 , I’m not familiar with the type of product you are talking about. Can you give links?
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$14K gross income per month and the equivalent amount (based on investment return of 5% in dividend stocks and similar investments and not including Social Security benefits), taking into account inflation<<<<<<<<<
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Ahh, the rarefied of CC. 28K a month plus SS.