[USER]

I’d love to get alternating opinions on what I’m thinking about doing re: LTC insurance and retirement.

50-year-old female, divorced, no kids working at a job that is absolutely toxic sucking my soul making $150,000 a year.

Three years into 30 year mortgage, bought at 370K owe 275K, has gone up in value somewhat, I do not include anything over the 370K for my net worth purposes.
Investments roughly 1.1M: 900K retirement, 53K whole life policy, 201K after tax account.

I’d like to do something different with my last working years, involving a pay cut.

Being single with no kids, I am going to buy 100K LTC policy this year. I will 1031 exchange the 53K whole life policy.

Employer is threatening a pay cut. I was going to do a five year pay for the remaining 47K owed for the LTC, and thinking it would be fully paid for when I am 55 when I intended to go part time. But, the situation is so toxic I need to speed up my plan.

Thinking of paying for the LTC outright with the 53K from whole life, and taking 47K from my after tax account (currently 201K).

Two things I’d love alternative opinions on – do you think it’s a bad idea to pay for the LTC all at once from my after tax assets?

I spend about $50K on housing/car/gas/utilities. This does not include food and I eat out WAY too often. This can and will change.

Am I off base thinking in five years I can get a 25 hour/week job for benefits and some sort of side hustle to get to $80K and be ok?

My initial plan was to put my head down and get through the next five years maxing out all my retirement accounts, dealing with the stress.

But if he cuts my pay, I may need to do something differently sooner than expected.

Thoughts?

[Ludmila]

In my experience the more you earn the better work conditions. Many people can do low pay jobs so employers never care. Can you do some certificates or just try to find 200k/year.

It might be much better than 80k job. Especialy many people want to work part time.

Sahm, side kikers and such

[Scott]

I’ve never heard of doing a 1031 on anything besides real estate. Can that be done??

[Robert]

I would get with a good CPA to game out your options financially. I am unable to give you advice vis-à-vis LTC insurance because with my medical conditions I’m precluded from having such an insurance so I stopped looking into it.

Looking at your age and your numbers; I would keep working at that soul/sucking job.

As a woman, your life expectancy is 88 years of age, with a very good chance you’ll live into your 90s.

Meaning, even if you retire at 70; you can still have a good 20 to 25 years ahead of you; and possibly even longer; and you will need probably help during the last several years of your life.

If it were me; I would want to have 2 1/2 to 3,000,000 banked before I pulled the pin. But I’m just throwing that out as a general number.

[Kristen]

I think now is a good time to cash out some of your brokerage because I think there will be a market correction in the coming years, but you might have to pay capital gains taxes. You

[Fewee]

What are the benefits of that particular LTC policy? I have one that I will end up paying $50k over ten years. It has an inflation rider.

I’m risking that I won’t need it til I’m at least 80 and will give me a benefit of almost 500k over 6 years.

If I still don’t need it by then it will continue to increase in value.

I could have paid it off at a lower amount but found I could easily make that money yearly with my investments. So, I’m going to keep paying in over the next 10 years.

If I never use it a little more than the amount of my total paid premiums would go to a beneficiary.

[Laken]

Instead of cashing out the life insurance see if you can do a 1031 exchange and roll that money into a new life policy that has LTC included. You’d have to re-qualify.

Life insurance has changed and there are policies that have living benefits. Meaning you can access the death benefit early and use for LTC.

If your health doesn’t allow that, reposition some of your funds into an annuity that has the LTC rider.

If you would like to discuss it more, you’re open to dm me. Happy New Year!

[Author]

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