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Baby Boomer's financial planning with Long Term Care Insurance |
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It seems every time you turn on CNBC or pick up Fortune Magazine there is a story or an article on how to grow the Baby Boomer's portfolio in the market. What I fail to see enough of is the importance of protecting that same portfolio from the realistic risk of needing long term care with long term care insurance. A resent study by the American Society on Ageing said: "If you make it to age 65 you have a 70% chance of needing some form of long term care before you die." Think about it...
...if you were to set aside just a portion of the interest you are receiving on just one investment you could fund your long term care insurance policy and protect your WHOLE portfolio of investments, income, and your home from being eroded by needing long term care. For example, say Joe Baby Boomer has $500,000 in assets not counting his home, and invested $250,000 in mutual funds, $150,000 in a variable annuity, and $100,000 in a CD getting 5.5%. He could take only about half of the interest from the CD ($2750), leave the other half in the CD and let it grow and fund his long term care insurance policy with that portion of the interest. Odds are he won't even miss the $2750 and by diverting a small amount of his interest he protects his whole portfolio from ever having to spend $500,000 because Joe Baby Boomer got Alzheimer's at age 76 and needed long term care for 6 years.
People need long term care all the time and times have changed...it used to be that family took care of family, now both the husband and the wife (the kids and in-laws) work and don't even live in the same town as their parents anymore. The kids simply don't have the time to take care of Mom and Dad anymore.
Long Term Care Insurance is not right for everyone, but if you have a nice retirement saving do yourself and you kids a favor and get a long term care insurance policy. We work with all the major companies and will simply let you judge for yourself. Please fill out the form below to get your quotes today.
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Last Updated ( Friday, 17 August 2007 )
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