“How to cope with health care costs in retirement”

“How to cope with health care costs in retirement,” by Steve Vernon, CBS MoneyWatch

Long-term care is the wild card in your retirement planning. A lengthy stay in an assisted living facility or nursing home can quickly drain your retirement savings, even if you have substantial savings in an HSA, 401(k) or IRA. Ideally, you want to develop a thoughtful strategy to protect yourself and your family against potentially ruinous long-term care expenses, including some combination of:

  • Buying long-term care insurance
  • Holding home equity in reserve
  • Taking out a reverse mortgage line of credit and holding it in reserve for long-term care
  • Maintaining a separate investment account for long-term care, including an HSA
  • Buying a qualified longevity annuity contract (QLAC) that starts a lifetime income at an advanced age, such as age 80 or 85.”

LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Solid suggestions and no mention of consulting a Medicaid planner.

How to cope with health care costs in retirement