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Long-Term Care Insurance: Beyond the Sales Pitch

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The long-term care insurance (LTCI) debate is chock-full of misinformation. Frightening statistics on nursing home care abound: The costs are huge, the odds are high. It apparently adds up to one conclusion: The long-term care decision is critical to avoiding bankruptcy in your retirement. At least, many financial planners and insurance salespeople would like you to think so.

Here is the typical sales pitch: “Long-term care is expensive. Most people will need it. Buy insurance and you’ll have no worries.” It sounds compelling, until you dig into the details.

LTCI does have some benefits. It can leverage your money for certain health care scenarios. But, according to my analysis, that leverage is on the order of 2-3x, not the more extravagant ratios sometimes claimed by insurance agents. And, as I’ll shortly discuss, LTCI does not protect you from the worst-case scenarios, nor does it remove every worry in other scenarios.

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My Investment Portfolio: 2015

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The Best Retirement Calculators

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Should You Be a Dividend Stock Investor?

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The Good News About Retirement

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Money News, Calculator Reviews and What You Might Have Missed…

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Our Retirement Expenses: Where Does the Money Go?

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Y2K and Black Swans: Investing for the Next Crisis

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It was late 1998 and I had traveled across the country to present at a software conference. In the lobby of the hotel was a group handing out literature on the impending "crisis" that would become known as "Y2K" (Year 2000). I hadn't heard of it, so … [Continue reading]

What Will You Do When You’re Retired?

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"If all the year were playing holidays, To sport would be as tedious as to work." --Shakespeare Mention "retirement" at the office. Most people will be conjuring visions of sun-drenched beaches, lush golf courses, soaring mountains, or shimmering … [Continue reading]