My Idea for Long Term Care

Long term care is a very uncomfortable topic to talk about. The reality is most of us will need long term care at some point. And it will come sooner than you think. About 70% of people over 65 need long term care services. Seriously? That’s less than 15 years away for me. 2039 will be here in a blink of an eye.

I had a tough time writing this post. When I was researching LTC, I couldn’t finish any of the articles and video clips. This topic is not fun… Instead of sharing a bunch of statistics and options, I’ll just share my idea for long term care. Don’t worry, this will be a short one.

Self Funding

My plan for long term care is self funding. This means I’ll save up and pay for long term care out of pocket. I’ll use my parent’s health as a guideline.  

My mom was self-sufficient until she was about 70. At that point, she was diagnosed with dementia and needed some assistance. My dad was her primary caretaker. It was easy in the beginning, but became very difficult later. Her condition worsened and she passed away when she was 75. That’s quicker than average, but not unheard of.

As for my dad, he is currently 78 years old. He is relatively healthy and can take care of himself.

Here is my plan for both scenarios.

Scenario 1 – No dementia

In the first scenario, hope for the best and assume I won’t have dementia.

Most people prefer to live at home and hire an in-home helper when they need assistance. Currently, this costs around $6,000/month. Eventually, they will need to move to an assisted living facility. The median monthly cost of a nursing home is about $9,000 per month.

Let’s assume 10 years of assisted living at home and 3 years in a nursing home. That’ll be about a million dollars each. I don’t think we will spend that much. Mrs. RB40 and I can take care of each other in the beginning. We probably need to budget about $1,500,000 for both of us. We should be able to afford that. Staying in the US is one option.

Alternative

However, I have an alternative idea. I plan to find a nice active retirement community in Thailand and embrace it. Here is one I saw recently. You can use the closed caption for English translation.

The location is great (at the beach) and the facility seems nice. When you need more assistance, you can move into the long term care wing. Room prices start at $60,000. I’m not sure how much they charge for long term care and other essential services, though.   

There are more communities like this under development in Thailand. Their population is aging quickly and the demand for nicer retirement communities is increasing. The median age in Thailand is 40.1 years old, which is older than in the US (38.5). If I can find the right community, I’ll move there in my 60s. It’ll be way more affordable than a comparable facility in the US.

I found another one! Here is a luxury 50+ community under development – The Aspen Tree. A one bedroom condo costs about a million dollars for one resident. This price is for a lifetime leasehold plus all the essential services. It sounds expensive, but it’s for a lifetime of care and services. For 2 people, it’ll cost around 1.3 million dollars. The Aspen Tree is located near the Suvarnabhumi  Airport in Bangkok. That’s great because I want to travel while I’m healthy. I’ll go check this place out the next time I’m in town. The big question is the long term management. Will the program be functioning well in 2060? What happens if the company (Magnolia Quality Development Corporation) goes out of business? The Aspen Tree is just a section of a huge 160-acre project – The Forestias. There will be offices, condos, a hotel, a town center, markets, a shopping mall, a forest in the middle of the project, a pavilion, and other facilities. It sounds like a city within a city.

Scenario 2 – Dementia

I hope I don’t get dementia. It’s a terrible disease. However, I have a plan. If I get dementia, I don’t want to wait until I’m completely helpless. Mrs. RB40 will take me on a one-way trip to Switzerland before that happens. Here is a story on NPR that made a big impression on me. It’ll be tough, but I’m sure she can do it for me. I’m assuming Mrs. RB40 will be healthier and live longer than me.

Alright, what do you think about my ideas? I would enjoy living in an active 50+ community. Why not embrace it early? What’s your plan for long term care?

image credit: Nik

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Joe started Retire by 40 in 2010 to figure out how to retire early. After 16 years of investing and saving, he achieved financial independence and retired at 38.

Passive income is the key to early retirement. This year, Joe is investing in commercial real estate with CrowdStreet. They have many projects across the USA so check them out!

Joe also highly recommends Personal Capital for DIY investors. They have many useful tools that will help you reach financial independence.