What does long-term care really cost, and can I just self-insure?
Long-term care is expensive and largely uncovered by Medicare. A private nursing-home room can run well over $100,000 a year, assisted living is often half that, and in-home aides add up quickly — and the average care need lasts a few years, though some stretch much longer. Self-insuring means earmarking a chunk of your portfolio, often several hundred thousand dollars, that you'd rather not touch but could liquidate for care. It works if you have substantial assets and a plan for how a surviving spouse stays funded. The risk is a long, costly event — like multi-year dementia care — that drains far more than you set aside. Decide deliberately: either buy coverage, formally earmark self-insurance dollars, or accept Medicaid as the backstop. Drifting without a plan is the costly default. Map the impact on your retirement at wealthserene.com/assessments/retirement-readiness.
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