How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

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StevenNJ1
Posts: 270
Joined: Fri Apr 04, 2014 12:56 pm

How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

Post by StevenNJ1 »

Shared my investment strategy with someone and they were like ... yea, yea, that's great, better have it all in a Trust Fund or you medical bills will eat it all alive.

Thoughts?

Thank you.
cadreamer2015
Posts: 1029
Joined: Wed Apr 08, 2015 1:52 pm
Location: North County San Diego

Re: How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

Post by cadreamer2015 »

Do you want to protect your assets from Medicaid, while getting Medicaid services? I believe there are strategies for that. I hope I have enough assets so that I don’t have to go on Medicaid. YMMV
De gustibus non est disputandum
mhalley
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Joined: Tue Nov 20, 2007 6:02 am

Re: How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

Post by mhalley »

One of the purposes of saving for retirement is to pay for medical bills. You protect retirement assets from medical bills by being healthy, and buying supplemental Medicare coverage. Before Medicare, appropriate aca coverage. IRAs and 401ks have some protection from creditors, IRAs depending on the state.
https://www.retirementwatch.com/how-to- ... -creditors
togb
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Joined: Mon Oct 23, 2017 8:36 pm

Re: How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

Post by togb »

When you're saving for retirement, you have to save for all your expenses. If you have not provided for medical insurance and expenses, that's a big oversight. (Just the same as if you did not save enough to cover travel, or groceries or housing.)

My personal plan includes enough in the living expenses to cover Medicare, supplemental insurance, a reasonably healthy HSA balance and a cushion of about $200K for out of pocket expenses, and an asset to be sold to cover LTC if needed. I know that there are ways to "hide money" so that you can have others pay for medical expenses, but have not researched that topic since I am not planning to do so. I do realize that sometimes that's necessary, but I've also seen cases where there were sufficient assets to take care of medical needs and families 'preferred to employ strategies to not cover the expense themselves, Everyone is different.
NotWhoYouThink
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Joined: Fri Dec 26, 2014 4:19 pm

Re: How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

Post by NotWhoYouThink »

The someone you talked to didn't know what he/she was talking about.
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Mullins
Posts: 180
Joined: Wed May 08, 2019 4:38 pm

Re: How to protect your IRA, 401k, savings in Retirement??? - Trust Fund?

Post by Mullins »

StevenNJ1 wrote: Thu Jun 06, 2019 3:31 pm Shared my investment strategy with someone and they were like ... yea, yea, that's great, better have it all in a Trust Fund or you medical bills will eat it all alive.

Thoughts?

Thank you.
My thought is, one of ways people think is in terms of absolute all-or-nothing extremes. "OMG, whattaya gonna do IF... ??"

Whenever someone offers a view where the pendulum's swung way over to one side, remember most things aren't that all-or-nothing. Lots of nuances in-between. It's a concern but like the others have pointed out, you can prepare for unexpected medical care. Same way you would for lawsuits, divorces, natural disasters and other such concerns which may or may not happen. Can you imagine the same buddy being told of your engagement only to have him say, "yea all love-struck now until she leaves you and takes half yer assets!" It's not exactly spot-on advice.

I keep in mind this quote:

'I've had a lot of worries in my life, most of which never happened.' - Mark Twain

Wait a sec, I have another thought. Don't share your investment plan with regular people for their feedback, they're not where you want to be.
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