It's a pretty depressing thought, sure, but we're all going to die one day. Unfortunately, none of us can say how and when we'll die. That's why it's a good idea to purchase long-term care insurance. This specialized form of insurance covers the cost of health care that extends long beyond a typical hospital stay.
On the surface, buying long-term care insurance doesn't seem to have much to do with saving for retirement. Remember, however, that smart saving also involves spending at times. With long-term care insurance, you're actually buying a policy that protects your retirement savings. Having to spend your nest egg on long-term care -- which can easily reach into the tens and even hundreds of thousands of dollars, depending on the quality and length of the care -- is not what you've been saving up for throughout your career.
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- Chatzky, Jean. "Jean Chatzky's top 10 retirement tips." MSNBC. June 21, 2005. (Accessed March 9, 2009.)http://www.msnbc.msn.com/id/8111372/
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- Lewis, Michael. "How banking fees corrupt Wall Street." Bloomberg. April 18, 2002. (Accessed March 9, 2009.)http://rogueeconomistrants.blogspot.com/2008/09/michael-lewis-on-banking-fees.html
- "Good ways to get started cutting back." Federal Deposit Insurance Corporation. Winter 2008/2009.http://www.fdic.gov/consumers/consumer/news/cnwin0809/cuttingback.html
- "Savings fitness: a guide to your money you're your financial future." U.S. Department of Labor. (March 9, 2009)http://www.dol.gov/ebsa/pdf/savingsfitness.pdf
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- "Understanding and comparing 401(k) fees." NADART. (March 16, 2009) http://www.nadart.org/Portals/0/Library/PDFs/401kfees.pdf
HowStuffWorks looks at the FIRE movement (financial independence, retire early) and finds out how adherents retired so early.