In this episode, the conversation covers various aspects of long-term care, including qualifying for long-term care insurance, alternative options for funding long-term care, and the role of Medicaid. Alex and Wade also discuss the importance of planning for long-term care and the potential challenges faced by individuals who cannot afford to pay for care. The conversation concludes with a discussion on how to invest funds set aside for long-term care. The conversation covers various topics related to financial planning and investment management. They discuss fee-only planners, annuities, engaging a fee-only planner, strategies to lower risk during retirement, buying whole life insurance for teenage children, and investing to keep up with inflation. They also touch on the reinvestment of dividends and capital gains for a 74-year-old to offset RMDs. The conversation ends with a lighthearted discussion about push-ups. Listen now to learn more!

Takeaways

• Traditional long-term care insurance is difficult to qualify for if you have chronic conditions.
• Alternative options for funding long-term care include hybrid life insurance with long-term care, annuity with long-term care, and deferred income annuities.
• Medicaid can be an option for long-term care if you have depleted your other resources.
• Investing funds set aside for long-term care depends on your liquidity mindset and the timeline for needing the funds.
• Transparency and client preferences should guide the choice of compensation models for financial planners. Fee-only planners charge a fee for investment management and financial planning, while commission-based planners earn a commission on annuity sales.
• Engaging a fee-only planner may be worth it if you have enough assets, typically around $500,000 or more.
• Whole life insurance for teenage children can be used to protect their insurability in case of future health issues.
• Lowering risk during retirement can be achieved through strategies like adjusting asset allocation, creating bond ladders, and building an income floor.
• Investing in TIPS (Treasury Inflation Protected Securities) can help preserve the inflation-adjusted value of your principal.
• Dividends can be taken out to offset RMDs (Required Minimum Distributions) for IRA accounts.
• Both Wade and Alex need to get back on track with their push-up routines.

Chapters

00:00 Episode 130 starts
00:17 Exploring Alternative Options for Long-Term Care Funding
07:23 Considering Medicaid as a Long-Term Care Option
14:35 Investing Long-Term Care Reserve Assets
19:59 Transparency and Client’s Best Interests
23:34 Lowering Risk During Retirement Transition
31:13 Reinvesting Dividends and Capital Gains for RMDs
39:32 The Importance of Regular Exercise

Links

Register now to attend the next webinar with Retirement Researcher, “The Election and The Stock Market: Understanding the Effects on Your Investments” on 6/25/24 at 1PM ET hosted by Bob French. Visit risaprofile.com/podcast to reserve your spot!

Watch this episode on YouTube: https://youtu.be/rhZ3UlkDbVo?si=j3u6lFMkYddcGory

The Retirement Planning Guidebook: 2nd Edition has just been updated for 2024! Visit your preferred book retailer or simply click here to order your copy today: https://www.wadepfau.com/books/ 

This episode is sponsored by McLean Asset Management. Visit https://www.mcleanam.com/retirement-income-planning-llm/ to download McLean’s free eBook, “Retirement Income Planning”