Just one nitpick/note (which I think willthrill81knows), in much/most of the country home health (no medical training except perhaps basic CNA type stuff) is going to cost $20 to $25 an hour if you use an agency (and using an agency means you have a backup when someone calls in sick, quits, etc).willthrill81 wrote: ↑Tue Jan 14, 2020 4:05 pmI'm referring to inflation-adjusted numbers. So everything, including the needed portfolio size, may double in the next 20 years.wrongfunds wrote: ↑Tue Jan 14, 2020 4:00 pmYou said $0.5M "today". When you reach 70 years, which is probably few decades away, what would be that number? Are you planning to have that amount available at age 70?willthrill81 wrote: ↑Tue Jan 14, 2020 11:38 amIn general, those with at least $2 million of invested assets can pretty easily self-insure LTC risk. The lion's share of those needing LTC need it for no more than five years, and even in a nursing home (typically the highest cost LTC setting), that would cost about $500k in most places today. That would leave the surviving spouse with a still very significant $1.5 million of assets. Depending on how much non-portfolio income a couple has, they might be able to self-insure the risk of LTC with well under $2 million.TresBelle65 wrote: ↑Tue Jan 14, 2020 7:40 amLots and lots of posters in this thread seem to have devoted much of their life's resources in order to be able to turn those funds over to the long term care industry, if needed.
What are the options for long term care?
- a facility
- paying someone(s) to come to your home and care for you full time
- family or friends care for you in your home or theirs for compensation or not
I seem to recall an article in this past week in the WSJ where people are shipping their relatives to long term care facilities offshore - Thailand or Mexico, for a fraction of the cost.
Based on the options currently available, I think that we would be most attracted to buying into a CCRC with a type 'A' contract (i.e. guarantees lifetime care regardless of future inability to pay the monthly fees) using the proceeds from selling our home by the time we're around age 70. Last year, we visited a new facility (actually an ILF and not a CCRC) that opened a couple of miles from our current home, and it felt like a nice cruise ship, certainly a place that my wife and I would be very happy living in. The amenities were incredible.
If you plan on self-funding for both of you and for many years (worst case scenario), is there an upper limit on the amount that will be extracted from you by the elder care industry? Would having double digit millions be enough when two people need 15 years of solid care each?
Will there be ever a point where the collective us will say "enough is enough" and I am not throwing any more money to that industry?
No one is 'forced' to go to a LTC facility. If you don't want to go, then don't go, but you will have to make other arrangements for needed care. Usually, this burden falls to a family member, the afflicted's spouse or child(ren). I think that paying for in-home care is a relatively cost-effective solution in many instances, but it's not a one-size-fits-all solution. There are no such solutions.
I don't think that many will be open to "shipping their relatives" to offshore facilities for LTC, no matter what. We certainly would not.
At $20+ [it's $23 where I live, generally] per hour, you are not looking at many hours of help before a facility becomes substantially more cost effective than hiring people. Though if you hire someone to sit there, your loved one will get quicker help (i.e. needs to go to bathroom) and better monitoring.
What some people might try is hiring help during the day and then manage things at night themselves. Of course, that means that they cannot go anywhere at night without making arrangements. And if you have somebody with Alzheimer's that wanders, you are not going to get much sleep. Ever. From what I've seen, I don't think in-home help works well unless you have a lot of money (I do mean a lot) or you don't need anywhere near 24x7 help.