Sally,65, is a retiring teacher. She has pension income of $40,000 per year. She has Social Security income of $20,000 a year. She has about $50,000 liquid in the bank and her home is paid for, with a value of $300,000. Sally has $250,000 in her 403b plan through the county/state.
Sally's Term life insurance expired 5 years ago. She does not have long term care insurance.
Sally would love to leave an estate for her daughter. She can live easily on the $60,000 income that she has coming in. However, she is concerned:
1) What if her $250,000 IRA money lose value in a down stock market?
2) What if she needs to use nursing home for long term care, which costs $250 a day easily?
What could Sally do to to make sure she would NOT become a burden to her daughter, and leave a legacy to her daughter tax free, and still live the lifestyle she hopes to?
In our next blog post, we will share the case design that with one stone that kills two birds.