“Even with a good financial plan in place, I guess someone who doesn’t plan for possible extended or long-term care costs may be obligated to withdraw savings, cash in stocks, or liquidate assets regardless of good or bad market timing. I wonder what our tax advisor would say.”
Jackson, who uses the same CPA as Doug, remarks, “Nothing that I would want to hear!”
Having your savings and accumulated assets blow up probably wouldn’t make for a pretty tax picture. It leaves you vulnerable and dependent on family and friends, or government, state, and/or community services. Expecting help from outside resources comes with emotional complications for both the giver and the receiver. It can mean that someone else or an entity may control your care. That’s an unsettling prospect.
Looking into funding vehicles early in your career while there is ample time to accumulate funds is smart. One way to contribute funds to retirement income is with a Health Savings Account (HSA). An HSA is specifically designed to help pay for medical care costs and, under certain circumstances, long-term care insurance premiums. According to their personal summary, Jodi and Jackson both have HSA accounts.
Paying for extended or long-term care expenses is an income problem that can have serious asset, investment, and personal preference consequences.
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