You may have one vulnerability that could completely wipe out a lifetime of smart financial decisions in just a few years.
No, it’s not another market downturn (assuming you’re adequately diversified). Nor is it inflation or fees (both of which have a long term effect on your portfolio.)
What’s your biggest threat? It’s long term care.
About 70% of people will need long term care at some point in their lives yet the latest research report shows that less than a quarter of retirees have long term care insurance.
What’s the solution?
If you have $50,000 or more in liquid assets, an excellent solution is an asset-based policy. These single-premium policies include long-term care benefits. The main advantage in having this type of policy is that if you end up not needing any long-term care, your heirs will receive the death benefit tax-free.
As an example, if you pay a one-time premium of $100,000, this will give you a death benefit of around $100,000 and a long-term care benefit of over $250,000. If you end up never needing the care, your heirs will receive the death benefit, which will typically be 85% to 105% of the original premium, depending on how old you are when you start the policy and how long you live.
This is one of the best ways we know of to preserve your estate.