Are you considering
buying a long-term care insurance policy? Hopefully you’ve done your homework
to make sure such a plan is right for you. And don’t forget … premiums are sure
to rise … simply because long-term costs continue to rise.
According to the
insurance giant Genworth, the average annual cost of a semi-private room in the
U.S. $80,300; and a private room will run you $91,250. The 5-year annual growth
for both is 4 percent.
One idea is to set
aside money in an account that includes quality dividend-paying stocks or
mutual funds to help pay for any premium hikes. The average dividend yield for
the S&P 500 is approximately 2 percent. Bonds, bond mutual funds, or real
estate investment trusts (REITs) could boost that yield even more. Contact your
financial advisor on the best way to structure this account.
Would you like other funding
ideas for your long-term care needs? Then
click here to get a copy of A Boomer’s
Guide to Long-term Care. It’s available for immediate download to your
Kindle or in a paperback version.
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