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Often, this concern arises from personal anecdotes, LTC cost data, and misconceptions about government coverage.

What you should know: To address this issue, previous podcast guest Christine Benz proposes creating a "long-term-care bucket" within your retirement portfolio, separate from the spendable portfolio. This dedicated fund can help provide greater confidence while allowing you to spend or gift other assets more freely. The considerations for setting up this bucket are as follows:

📌 How Much to Allocate: Consider local LTC costs and expected care duration, with adjustments for income sources like Social Security

📌 How to Invest: Younger retirees may invest more in stocks for growth, while older retirees might prioritize conservative investments with inflation protection due to rising LTC costs

📌 Where to Hold the Funds: Traditional tax-deferred accounts, such as IRAs, are recommended due to their alignment with most retirees’ asset distribution and potential tax advantages when LTC expenses exceed the deductibility threshold

📌 If you’re unable to fully fund a dedicated LTC bucket: Alternatives like using home equity or planning for Medicaid coverage later in life are options