My husband, 59, and I, 55, are planning to retire over the next few years, and this is one of the biggest unknowns I'm struggling with. My mom had Alzheimer's disease and spent seven years in a really nice memory-care facility in a smaller town. It cost about $7,000 a month.
Thankfully, my parents had purchased long-term-care insurance and had paid premiums for about 12 years. My dad died shortly after being diagnosed with cancer, so his policy was never used. But my mom's policy ended up being worth its weight in gold.
It essentially covered all of her care. By the time my mother died, the insurance company had paid out almost $600,000. We only paid about $100 a month for some extras.
Needless to say, that experience has made me think. The 10-year Treasury is having its worst run in over 100 years. Why investors are buying bonds anyway. 'I'm burned out': I'm constantly helping my cousin who is running out of money.
Is it too much to expect his sister to help? I've looked into long-term-care insurance, but the premiums are so incredibly expensive, and I worry about what they'll cost by the time it makes sense for me to seriously consider a policy. We're fortunate financially.
After 35 years in the corporate grind, we'll have substantial retirement savings; we've always saved carefully; and we have no debt or mortgage. I also genuinely love my job, so I'm perfectly happy to work longer if that makes sense. What I really don't want is to leave our two kids with a huge financial burden someday if one or both of us need years of expensive care.
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