There are many ways to prevent the loss of the future purchasing power of an IRA, which is one of the most valuable assets of many Americans. One of the ways to protect an account is to purchase a long-term care (LTC) insurance policy to protect the IRA account from loss due to the cost of a long-term care event. A yearly withdrawal from the IRA to pay for a long-term insurance policy will protect the account holder and his beneficiaries should an LTC event occur. The cost of the policy will determine the amount of the withdrawal each year, but could insure and protect an IRA account from costs of $150,000 - $200,000 a year for a typical nursing home.
The long-term care policy could provide tax-deductible protection for all forms of nursing home, home health care needs, and any other forms of services, such as assisted living facility care, that a person may need at any time. A policy for the spouse as additional protection is also highly recommended.
Stay tuned. We will have more IRA tips in future Blogs.
