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 Overview02:58 Medicare and Long-Term Care06:57 Costs and Considerations09:59 Choosing a Funding Strategy16:12 Involving Family Members21:54 Funding Sources for Self-Funding23:05 Impact on Standard of Living and Beneficiaries23:19 Volatility and Spending Flexibility24:15 Impact on Inheritance and Flexibility25:45 Insurance for Long-Term Care26:33 Estimating Reserves for Self-Funding27:05 Probability of Long-Term Care Events27:36 Ideal Persona for Self-Funding28:33 Target Date Fund for Long-Term Care29:23 QLAC as a Planning Tool30:12 Self-Funding with Annuities32:09 Spending Guilt and Behavior Change36:18 Unpaid Informal Caregivers41:02 Self-Funding with AnnuitiesLinks

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