Comments on Boston Gal's Open Wallet: 107 year old VA man outlives money - twice!

I'm just impressed that he lived that long in such...

2009-07-08T10:03:49.733-04:00

I'm just impressed that he lived that long in such great health. That's certainly not the direction that most of the population is headed in today.

I have spoken to several financial planners about ...

2009-07-07T13:46:17.975-04:00

I have spoken to several financial planners about LTC insurance. Each have told me that LTC insurance is starting to become an unreachable goal for many people.

The LTC industry grossly underestimated the costs and have since aggressively been raising rates to the point that the annual premiums are not affordable.

In all cases they have made the suggestion that it is far better to start NOW with savings and earmarking investments that you can tap in later years for health care.

Even if you start buying it at a young age. 45 or 50, or 55, its still very expensive and costs will soar later pricing most people out of the market for it. It sure would suck if you paid premiums for 10-15 yrs then suddenly could no longer afford to pay them at age 70 when you get to the point where you start to need them.

just think if he had bought an immediate annuity.....

2009-07-07T11:32:34.759-04:00

just think if he had bought an immediate annuity...he'd be killing the insurance company!

I guess I will have to disagree with you on this o...

2009-07-03T12:42:43.158-04:00

I guess I will have to disagree with you on this one anonymous. Here are my take-aways from the story:

1) Prepare and plan for your end years. Don't just assume you can always just stay in your apartment/house until they bring you out in a body bag.

2) Buy Long Term Care Insurance and understand what medicaid will and will not pay for in your last years in your state of residence. If you don't like the terms in your state prepare to move and establish residency in a state with better options before it is too late.

3) Know that the last few years or even decade of your life may be your most expensive. Don't assume at 65 when you first retire that you can always make-do with X amount and just plan on spending the cash down to your projected expiration date. Instead, you have to assume that you will need a wad of cash toward the end - so try to keep as much principal intact as possible for the end stretch and live most of your retirement years off of interest, investment gains, pension income or other income.

I am not saying that everyone can do it - just that you need to be thinking that way now while you are saving and investing and building your retirement nest egg.

I'm not really sure there is a take away lesson in...

2009-07-03T08:50:02.331-04:00

I'm not really sure there is a take away lesson in this story... How can you really plan for living until you're 107? Sounds like he did pretty well planning into his 90s. If you are a normal person, of ordinary means, how do you really prepare for possibly living until 107?