By Terry Savage on June 22, 2020 | Insurance & Annuities

Hi Terry,
I still don’t understand the need to purchase LTCI. I have completed several scenario analyses of my own using different assumptions and if I invested $100K at age 60 and let it go until 85, I come out ahead with rates of return of only 5.5% or so. Plus, if I never had a need to use these funds, I would only get my initial investment back with a token interest rate and have to allow the provider keep all of the accrued interest over that span of time. Why should I pay someone to do what I can do on my own? What have I missed? Thanks!

Craig Berger
South Elgin, Il.

Terry Says

You have miscalculated the future cost of long term care — which is rising at nearly twice the rate of traditional inflation, and will have upward pressure because of boomer retirements. And who says you won’t need care until age 85?!
It’s up to you. Either leave your money to your kids — or to the nursing home!



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