IF YOU WILL READ NO FURTHER

If I didn't already have a paid up long-term care insurance program for me and my wife, I would allocate a $1million fund to provide extra tax free income to pay for our care, regardless of what kind it would be or where it would be provided.  (Since I have been doing this for over 20 years, I often see the kind of bills people are paying for care, so I am probably more sensitive to the incredible financial impact that homecare will have on our finances.)  I won't have to reallocate that much all at once because I am leveraging some of my investments into a special tax free fund that instantly creates the $1million LTC fund. In the long run it won't cost me anything to make an annual deposit from cash flow or just move assets from another investment.

At our age and still in good health our annual deposit would be about $25,000.  That would assure that $1million would be available (tax free) if either or both of us were unfortunate enough to need care for a long time; or $500k would pass to our kids if we never needed it for our care.

I did something similar recently for a 72 year old gentleman whose daughter was on his case about making sure there was money available in case she needed to get care for him someday. We set him up with a $300k life policy with a long-term care rider.  He's depositing $10,500 per year.  If he ever needs care his daughter can draw down up to $12,000 per month.  If things work out the way he plans and LTC is never major issue, any amount of the $300k not used for his care will be received by her upon his death.  All tax free and everyone is happy.