Live till your 95 and you’ve got yourself a FV $1,327,960 bird in the bush…
I’m not letting myself get fooled by a Money Illusion… Inflation will take much of that gain away, but it will still be about 3.5% real if inflation is 3%.
The Clark Podcast talks about Longevity Insurance today… he likes them, Great minds think alike! (I think he takes cues from this community what topics to bring up on his broadcast)
This is something to solidly think about. And there’s a solution that’s almost impossible for me or anyone else to get anyone to consider. It’s what’s known as Longevity Insurance. The way it works is when you’re going into Retirement or you’re approaching Retirement or you’re already retired, you figure out, okay, I gotta have so much money to make it to age 80 or age 85 or whatever the number is. And those are the two most common for what I’m gonna talk about. And so you have this money that would be okay to exhaust completely by age 80 or 85 because then you can buy Longevity Insurance policy that pays you a check every month for living longer than what you might’ve expected.
So If, you buy it starting at age 80 for 80 plus the number of years you live, you live to a hundred for the next 20 years, it’s gonna pay you every single month a good amount of money, 85 If, you wait till then, then it’s gonna pay you a lot more money per month, every month going forward. And so there’s no free lunch here. The way it works is you buy one of these policies, make sure it’s from a really solid insurance company, rated eight plus or eight plus plus by am best you buy one. Usually people buy it in their sixties and then it starts paying at 80 or 85 Most common So, it pays you so much because it’s a roll of the dice.
So many people who buy these pass away before they turn that age. So the insurers keeping all that money. And then if you’re somebody who lives longer than they expect, then you trigger that policy payment starting at 80 or 85 and you’re getting a really hefty check from the years the insurance company was able to make money on your money that you already paid them to buy this Longevity Insurance. So you get that plus you get additional money because so many other people didn’t make it. So the policies can be really generous. The insurance company can make money, your money earned money and then your money has more money because of all the people who didn’t make it.
Now I don’t know, anybody will never know, right? Because they’re going who’s like, oh man, I never should have bought that policy because I’m not gonna live long enough to benefit from it. So what the whole purpose of this is to not outlive your money. And that’s why I love these. I have a briefing on Longevity Insurance how it works, how you buy one policy at Clark dot com, but it is a solution to a real problem and that we’re living longer than people thought we would. But a lot of us as we get later in our years, we’re not tooth be told is healthy as it would be fun to live with And. it requires more expenses, more care potentially. And the Longevity Insurance is there to help you through that time of your life. So Krista, how long would you If you to close your eyes and think how long do you think you’re gonna live? Because you eat all this healthy food all the time and you exercise like a maniac.