How close is LTC? It looks you have a policy that will cover some of it.It appears my problem going forward if we have the LTC situation I mentioned and I am worried about liquidity.No recommendations, just what a fellow 100% fixed person is doing.I have read this forum for a long time and decided to take the leap.
We are in our early and approaching mid 70’s.
A big plus for us is our SS covers all of our non discretionary spending with some left over.
We are fortunate to have no debt.
We are both highly risk adverse.
We have almost 2 million spread out between IRA’s, Roth’s Taxable, MYGA’s and IBonds.
We also have a paid off home.
We are invested in CD’s, Treasuries, Municipals, Agencies and MYGA’s.
I see us adding to our portfolio each year which helps with inflation because we are currently generating about $80,000 and spending maybe a quarter of it because of travel.
We have a few older issues maturing soon which will be reinvested at much higher rates.
I generally try to invest in the safest higher yielding instrument going out 3 to 5 years but am flexible on that depending on circumstances and which account it is located in.
We have an excellent LTC plan that currently provides $355,000 max for each of us with a 5% inflation kicker. I realize that amount can go quickly if one of us has a lengthy Alzheimer’s situation.
At our ages and we do not have family histories of living into the 90’s, I feel comfortable knowing outside of a horrible LTC outcome, we should grow our portfolio going forward with no stock market worries. Even if fixed income is down to 2% in 5 years we are still generating more than we spend.
I have been thinking about buying TIPS with our upcoming maturing bonds and CD’s while rates are still good.
Would appreciate any help with my blind spots and thinking.
Thanks if you took the time to read this!
I'm all CDs and T's. For now I'll pass on agencies and MYGAs because CDs and Ts are safer.
For munis, I would only go with AAA/AA funds or ETFs like BMBIX, MUB, or VWIUX. I no longer own any munis.
For single state munis, I'd beware of anything but Vanguard. Why? Usually expenses kill the state advantage.
TIPS are very useful. I have a TIPS ladder from ages 77 to 97.
Overall by the end of 2025 I plan to become 50% TIPS (not short), 25% intermediate nominals, and 25% short nominals. All individual. Fund and ETFs have expenses....yuck.
When rates change, my tune might change.
Bottom line: You're in a good spot. You have no need to take risk.
Any tips,no pun intended, on that aspect?
I have 112,000 coming in September from a maturing MYGA.
I also have our IBonds that provide no income unless I sell them.
You have the resources to take care of it. It's a matter of being able to get to the money.
IBonds are easy to cash.
MYGAs...I'm not an expert. I'd rather have individual treasuries, CDs, or even low expense ETFs of funds holding treasuries or TIPS.
One usually pays by the month for LTC places, so you probably have time to work things out.
We are in the same age group as you with no signs of needing LTC, but that can change quickly. I plan to be all individual treasuries including TIPS and CDs by this time next year...probably 50% TIPS...not short, 25% intermediate, and 25% short. I could use interest to pay a good part of a LTC bill, and I could easily cash TIPS or nominal treasuries to pay the rest.
LTC is a concern but I'm not overly concerned. I'll cross that bridge when I get there. I'm like you in that my financial house is in order. LTC may or may not happen. I'm just posturing to make my resources last for the next 20 years.
Statistics: Posted by hudson — Sun May 26, 2024 9:03 pm