How Likely Are You to Need Long-Term Care?

Examining the facts on the average incidence and duration of long-term-care needs and who’s most likely to have a severe, sustained long-term-care need. [Morningstar](?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=56133&elqTrackId=f32285b32483481f8ee850ea01de3e34&elq=de1f7f2c6b7b4efe976237beaaa373ee&elqaid=56133&elqat=1&elqCampaignId=28549) [Improving Your Finances] Improving Your Finances with [Christine Benz]( [Christine Benz] I spoke to a local investment club the other night. My presentation was about [our team’s retirement-income research]( and I also included an extended discussion about portfolio construction during retirement and [bucketing](. (These were investment enthusiasts, after all.) But guess what topic most of the group’s questions centered around? Long-term care. Attendees wanted to know what percentage of the population has long-term-care insurance (8%—I just looked it up) and whether I have a long-term policy myself (I don’t). What do I think of the hybrid products that bundle life insurance or an annuity with some long-term-care coverage? How much do you need to save for long-term care if you don’t have insurance coverage? Indeed, long-term care is the elephant in the room for retirement planning, especially for people who have some resources (and therefore are unlikely to qualify for government-provided care) but not unlimited resources. Not only have life expectancies increased for affluent Americans, boosting the incidence of cognitive decline and in turn the need for long-term care, but also decades of rising long-term-care premiums have led many older adults to skip insurance in favor of self-funding long-term care. In [my latest article]( I examined the statistics on long-term-care usage. While research from the Department of Health and Human Services suggests that 56% of people will need long-term care in their lifetimes, a much smaller percentage will have an extended or intensive need for care. I’ll be examining many facets of the long-term-care problem—including the challenge of paying for it—over the next several weeks, and it also came up in [my forthcoming book How to Retire](. On the investment front, [this Dan Sotiroff piece about simplifying a portfolio]( caught my eye. Dan’s point, borne out by [our team’s annual research on portfolio diversification]( is that you don’t have to reach for expensive alternative investments to achieve diversification; the classic portfolio mix of stocks and bonds can be just as effective. I also enjoyed [this discussion about a cash-alternative ETF]( that purports to be more tax-efficient than conventional cash investments. Alpha Architect 1-3 Month Box ETF BOXX has attracted a lot of investor assets over its short life, so it was helpful to hear about the strategy’s mechanics as well as potential risk factors. Finally, one of the most interesting conversations we’ve had on The Long View just aired: our chat with Supercommunicators author [Charles Duhigg](. While the topic doesn’t relate directly to money or investing, listening and communicating ideas to others is essential to our jobs, relationships, and life satisfaction. I picked up some concrete tips from this talk and I’ll bet that you will, too. With warm regards, Christine [How Likely Are You to Need Long-Term Care?]( Examining the facts on the average incidence and duration of long-term care needs and who’s most likely to have a severe, sustained long-term care need. [Read More]( Share: [facebook]( [twitter]( [linkedin]( ADVERTISEMENT [media]( [media] [Charles Duhigg: How to Have Better Conversations With Clients]( The author of Supercommunicators shares practical strategies for more productive communication. [Listen Today]( [BOXX ETF: Cashlike Returns Without the Tax Bill]( Unboxing the Alpha Architect ETF’s approach to a popular option trade. [Watch Now]( [Why Simpler Has Been Better for Portfolio Diversification]( Broader asset class exposure doesn’t always pay off. [Find Out More]( [How to Simplify Your Investment Portfolio]( Basic stocks and bonds are still the workhorses of long-term investments. [Maximize with Basics]( [The Bucket Approach to Building a Retirement Portfolio]( A diversified portfolio with various time frames can help you meet your income needs during retirement. [Learn More]( Get Top Stock Picks and Market Insights Every Week on The Morning Filter. Every Monday morning, Susan Dziubinski sits down with Morningstar Chief U.S. markets strategist Dave Sekera to discuss what's on his radar, new Morningstar research, and stock picks or pans for the week ahead. [Watch Now.](morningstar/streams?utm_source=eloqua&utm_medium=email&utm_campaign=newsletter_improvingfinances&utm_content=56133) Stay connected: [twitter]( [facebook]( [linkedin]( [instagram]( [YouTube]( [Apple News]( [View online]( | [See all newsletters]( | [Share your feedback]( [Unsubscribe]( from this newsletter. Or update your [email preferences](. © 2024 Morningstar, Inc. All Rights Reserved. 22 W. Washington St. Chicago, IL 60602