Long-term care is an uncomfortable topic to talk about. The truth is that most of us will need long-term care at some point. And it will come sooner than you think. About 70 percent of people over the age of 65 need long-term care services. Really? That’s less than 15 years for me. 2039 will be here in a heartbeat.
I had a hard time writing this post. When I was researching long-term care, I couldn’t finish any of the articles and videos. This topic is not fun… So instead of sharing a bunch of statistics and options, I’m just going to share my thoughts on long-term care. Don’t worry, this will be short.
Self-financing
My long-term care plan is self-funded. This means I will save money and pay for long-term care out of my own pocket. I will use my parents’ health as a guide.
My mother was independent until she was 70. At that point, she was diagnosed with dementia and needed some help. My father was her primary caregiver. It was easy at first, but then it became very difficult. She got worse and died when she was 75. That’s faster than average, but not unusual.
My father is now 78 years old, in relatively good health and able to take care of himself.
Here is my plan for both scenarios.
Scenario 1 – No dementia
In the first scenario, I hope for the best and assume that I will not develop dementia.
Most people prefer to live at home and hire a home aide when they need help. This currently costs around $6,000 per month. Eventually, they will need to move to an assisted living facility. The average monthly cost of a nursing home is around $9,000 per month.
Let’s say we each live 10 years with assistance at home and 3 years in a nursing home. That would total about $1 million. I don’t think we’d spend that much. Mrs. RB40 and I can take care of each other at first. We’d probably need to budget about $1.5 million for the two of us. We should be able to afford that. Staying in the US is one option.
substitute
But I have an alternative idea. I plan to find a nice active retirement community in Thailand and embrace it. Here’s one I saw recently. You can use the English translation.
The location is great (on the beach) and the facilities look nice. When you need more help you can move to the long term care wing. Room rates start at $60k. I’m not sure how much they charge for long term care and other basic services.
There are more similar communities under construction in Thailand. The population is aging rapidly and the demand for better retirement communities is growing. The median age in Thailand is 40.1, which is older than the median age in the United States (38.5). If I could find the right community, I would move there in my 60s. The cost would be more affordable than a similar facility in the United States.
I found another community! This is a luxury community under development for those over 50 – aspen treeA one-bedroom apartment costs around $1 million for a single resident. This price includes a lifetime lease plus all basic utilities. It may sound expensive, but it includes lifelong care and services. For two people, it would cost around $1.3 million. Aspen Tree is located near Suvarnabhumi Airport in Bangkok. This is great because I like to travel and I am healthy. I will go check this place out next time I am in town. The big question is long-term management. Will the program work well in 2060? What will happen if the company (Magnolia Quality Development Corporation) goes out of business? Aspen Tree is just one part of a massive 160-acre project – The Forestias. There will be offices, apartments, a hotel, a city center, markets, a shopping mall, a large forest, a pavilion and other facilities. It feels like a city within a city.
Scenario 2 – Dementia
I hope I don’t get dementia. It’s a terrible disease. However, I have a plan. If I do get dementia, I don’t want to wait until I’m completely disabled. Mrs. RB40 is going to take me on a one-way trip to Switzerland before that happens. Here’s the plan: Story on NPR This made a big impression on me. It will be tough, but I’m sure she can do it for me. I assume Mrs. RB40 will be healthier and live longer than me.
Well, what do you think of my ideas? I would like to live in an active community with seniors over 50. Why not take advantage of this idea early? What is your plan for long-term care?
Image credit: Nick
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Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have several projects across the USA, so check them out!
Joe also highly recommends Personal Capital for do-it-yourself investors. It has many useful tools that will help you achieve financial independence.
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