Advisers Warn $500,000 Long-Term Care Costs Can Undercut 401(k) Retirement Plans
Updated
Updated · ourweekly.com · Jul 2
Advisers Warn $500,000 Long-Term Care Costs Can Undercut 401(k) Retirement Plans
3 articles · Updated · ourweekly.com · Jul 2
Summary
$500,000 in potential long-term care costs can derail retirement security, Stephen Dissette said, warning that Medicare generally does not cover custodial care and urging workers to plan funding well before retirement.
Ages 55 to 72 are the key tax-planning window, Brigette Engstrom said, because choices on Roth conversions, Social Security timing and withdrawals can shape taxes and income for the next 20 years.
Engstrom framed 401(k)s as paying tax on a larger "harvest" later, noting required minimum distributions can force withdrawals whether retirees need the money or not.
Both advisers urged a shift from growth-only investing to asset protection, diversified income and tax-advantaged tools such as HSAs and hybrid annuities as retirees face taxes, volatility, longevity and inflation.