How To Create a $3600/mo. Long-term Care Income in Retirement (without risking a single dollar)

(checkout the video of this post too)

If there is one thing that can blow up a retirement portfolio it’s a long-term care event.

Providing long-term care is expensive, and the most expensive form of long-term care is having care provided to you in your own home (which is what most people want anyways).

When it comes to retirement planning, long-term care is something that must be addressed.

With running out of money in retirement as retirees number 1 concern, protecting your portfolio from a long-term care event is of the utmost importance (very few portfolios can financially support an extended long-term care event).

And 70% of retirees will have at least one spouse needing some form of long-term care during retirement!

So how do you pay for it?

With annual costs that can easily exceed $100,000, how do you ensure that long-term care doesn’t bankrupt YOUR retirement plan if you or your spouse need care for a few years?

10–15 years ago, you could buy long-term care insurance, but it was VERY expensive and if you didn’t end up using it (like most insurance) it went to waste. 
 
People didn’t love the idea of forking over hefty premiums for something that they might not use.

Plus, insurance companies themselves got slaughtered with long-term care insurance…

They didn’t collect enough premiums on the front-end and had to payout enormous sums of money in claims which hadn’t fully accounted for…

So, the industry had to change and evolve to address this growing retirement risk.

There is still traditional long-term care insurance available with a few insurance companies, but the benefits have been greatly reduced to protect the insurance companies from going belly-up with long-term care claims.

Much better solutions have emerged.

One of those options is a long-term care multiplier — where the company provides you a 2-to-1, 3-to-1, or even a 4-to-1 multiplier on long-term care money.

So, if you put $100k in, you could have up to $400k in long-term care benefits (depending on your health).

This is a great way to leverage money that you won’t need as income in retirement.

If you have done proper income planning, you can simply repositioning some of your discretionary money into a leveraged long-term care contract, allowing you to use a small amount of money to cover a much larger risk.

So, that’s one option.

The next option, the one that I really like, is a hybrid, asset-based insurance contract that doesn’t require you to risk ANY money to provide coverage.

Here’s how it works (using a real example):

You lump-sum money into an indexed insurance policy (let’s say $100k) at age 78 and the insurance company immediately promises $135k of tax-free benefit to your beneficiaries if you die (which will grow over time).

This money is guaranteed to grow, it’s guaranteed NOT to go backwards, AND it is linked to the stock market indices, so it has the potential to grow very substantially if the market does well.

Just based on some conservative projections, in this example, at age 90 you would have $180k that you could pass on to your heirs completely tax-free, OR you could take $3600/month (for 50 months) to pay for long-term care.

You can do all of this without risking a single dollar….

But, how?
 
 Well, at ANY POINT, you can take the $100k you put into the policy out for any reason, without penalties.

It’s called return-of-premium.

So, if you have created a solid retirement income plan, and still have assets that you won’t need in retirement, you can position those in one of these polices, allow it to grow guaranteed, have it cover your long-term care risk, AND if you don’t ever need it for long-term care, just transfer it along to your beneficiaries completely tax-free.