I manage my own investments, but decided to have a meeting with an advisor since there was no obligation. I will be 61 in a month, retired, no pension, no kids, heirs etc and have about $1.1 mm in assets with about 35% in tax deferred investments. No debts, live pretty frugally, in good health for now and withdraw about 3.2% of portfolio. I am thinking of taking SS at 67 and will get approximately $1400/month.
I told the advisor I was concerned about long term care since I have no LTC insurance and was thinking of a deferred annuity. He suggested putting $200,000 into a variable structure contract with an income guarantee, fee around 1.3%, could get around 6%. At present, I am not paying federal tax but pay state tax of 5.1%, so I was a little concerned about tax consequences of withdrawing $200,000. I believe I can have about a $37,000 gain without incurring federal tax so would that mean I would pay about $1900 in total to state on the gain?
Another thing he told me is that I do not have to be concerned about getting a reduction in SS in 2034 if the government does nothing about SS finances by then. He said ONLY people 41 years and younger would take a hit. Is that true? I thought we would ALL be looking at about a 22-25% reduction if NOTHING is done.
I was looking for feedback. Also, what are some of the best alternatives to LTC?
Thanks