“How To Turn A Glass Of Wine Into A $173,000 Bump In Your IRA,” by Paul Katzeff, Investor’s Business Daily
“Playing the odds. Carrozza says a client couple both had long-term care insurance policies. The wife, who was 62 years old, was paying $2,500 a year. Her 68-year-old husband was paying $3,200. ‘We reasoned that statistically speaking, the wife would likely be able to help care for her husband, should the need arise,’ Carrozza said. ‘She, however, wanted to retain her insurance, so as not to be a burden on their children in years to come.’ The husband dropped his policy, while the wife added an inflation rider to hers for an additional $500 per year for a total cost of $3,000 per year. The couple’s net annual savings was $2,700. As a result, they were able to invest an additional $225 per month for retirement.”
LTC Comment (from Stephen A. Moses, President, Center for Long-Term Care Reform):
Penny wise, pound foolish.