My oldest client is 101. Never in her wildest dreams did she think she’d live that long… and most of us will also live longer than our forefathers, often by decades.
There are two things you can do to prepare:
Own LONGEVITY INSURANCE: – Longevity Insurance is provided via Annuities. Annuities ensure that your money will last as long as you do. Boston College economist Anthony Webb… “even individual’s well-informed guesses can be off by a decade or more”. To counter this risk Webb states Americans should be buying annuities that pay life time incomes.
“Lifetime income annuities are the most cost effective and least risky asset class for generating guaranteed retirement income for life.”
There is no guaranteed retirement without guaranteed income and the only annuities offer that guarantee.
Invest in Long Term Care Insurance (LTCI) aka “Anti-Nursing Home Insurance”
– this investment protects your nest egg and Estate from being destroyed by as high as $10,000 per month Nursing Home bills. Medicare does not cover Long Term care for Home health, assisted living, or nursing home care. You may be able to write the premium off your taxes too (talk to you CPA).
©2020 Doug Moore
*Bloomburg ** In “Rational Decumulation”, a scholarly work by Marriott School of Management, professors Babbel and Craig found that Fixed Index Annuities offer options not available with stocks, bonds and funds:*** talk with your CPA).