Planning Scenario #3

Planning for future Long-Term Care (LTC) expenses often include the desire to expend a finite amount of resources.  So, even if your assets are insufficient to fund the plan with a single-premium, there are several plan design options to consider.   In this planning scenario, we make the following planning assumptions:

- Sally is 60 years old, recently divorced, and has approximately $500,000 in assets, primarily home equity, in lieu of a portion of her ex-husband's retirement accounts.

- She will receive $5,000/month in alimony from her ex-husband until age 70 when she can take the maximum Social Security benefit.  The alimony will far exceed what's necessary to maintain her lifestyle.

- Her Long-Term Care "Plan" would be to tap that alimony for the next ten years, but she is unsure if she wants to tap home equity after that.

- A HALO Assessment projects a four-year, $4,200/month care need.