What Do You Need To Do About Long-Term Care?

The Principle:

Do you really need to save for long-term care? If so, how much? Or is it better to get a long-term care insurance plan? Find out in today’s podcast.

Honest Takes:

If you need long-term care, do you know how much that might cost? An average 65-year-old couple has a 75 percent chance that one partner will require significant long-term care in later life. And 25 percent chance that both will need such care, according to the report by the HealthView Services. Are you able to self-pay or do you need long-term care insurance?

It’s not something anybody likes to face, but the need is there. People are on waiting lists to get into assisted living or nursing homes. It’s a huge demand. What long-term care benefits could you shore up? How can you make a plan to be able to pay for these costs if you need to?

Another thing retirees tend to think about is their required minimum distributions (RMD). Is it better to take them at the beginning of the year or the end of the year? Brian tries to talk his clients into taking their RMDs throughout the year. The end of the year can mean the accounts are down. When you’re taking income, Brian advises you to take it slowly over the course of the year instead of all at once.

Over the coming years, Social Security will likely replace less of our income. The cost of living and inflation is up. The full retirement age is increasing and Medicare prices are rising. So how do you pay for that? You’ve got to do something with your plan to prepare for taxes and inflation. Remember when you look at your IRA that you’ll have to pay the taxes unless it’s a Roth.

Listen to the entire episode or skip ahead using the timestamps below.

[0:12] – What do you do about long-term care?

[5:02] – When should you take your RMDs?

[7:08] – How do we make up for a lack of Social Security?

Today’s Truth:

“It’s not what you make or what you have, it’s what you keep: net.”

Brian Bowen


The Host:

Brian Bowen – Contact