How to Self-Insure for Long-Term Care in Early Retirement

Lucas and Luna tackle a fear many early retirees quietly carry: the cost of long-term care. With a 65-year-old couple facing a median $260,000 in future care expenses, they break down the self-insurance strategy. Using a Monte Carlo simulation based on a 1.2 million dollar portfolio, Lucas shows how a dedicated long-term care bucket funded by a one-time 5% allocation—$60,000 in a low-cost 60/40 fund—can cover 90% of scenarios without derailing retirement spending. They discuss the trade-offs compared to traditional insurance and the importance of a legal plan, including a trust and power of attorney. This episode offers a concrete, actionable framework for listeners who want to retire early without being undone by a catastrophic care event. #LongTermCare #EarlyRetirement #SelfInsurance #PortfolioStrategy #MonteCarloSimulation #RetirementPlanning #HealthcareCosts #FinancialIndependence #FIRE #Aging #AssetAllocation #RiskManagement #PersonalFinance #Finance #Podcast #FexingoBusiness #BusinessPodcast #RetirementExpenses Keep every episode free: buymeacoffee.com/fexingo