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
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.


Chapters



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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