The (F)Law of Averages

The (f)law of averages challenges a dangerous assumption we see far too often in retirement planning: The use of average life expectancy as a reliable planning target.  The question is: If you make it to retirement - are you already above average - and if that’s true, how do we use that in our planning?  I share six key takeaways from the article: Life expectancy is an average, not a prediction The mode — not the mean — may be more useful for planning  Life isn’t neat and tidy Even “complete” life expectancy isn’t safe to use Relying on life expectancy is a planning shortcut — and not a good one The better tool is the survival curve After that, I answer a listener question: Can you really self-insure for long-term care and use the tax code to make your dollars go further? One listener heard about using the medical expense deduction to offset the cost of care — and wants to know which types of care actually qualify. So, what does qualify? Resource: Article by Jeffrey Dellinger in Advisor Perspectives:  Life Expectancy: The (F)Law of Averages  Connect with Benjamin Brandt Get the Retire-Ready Toolkit: http://retirementstartstodayradio.com Subscribe to the newsletter: https://retirementstartstodayradio.com/newsletter Work with Benjamin: https://retirementstartstoday.com/start Follow Retirement Starts Today in: Apple Podcasts, Spotify, Overcast, Pocket Casts, Amazon Music, or iHeart  Get the book! Retirement Starts Today: Your Non-financial Guide to an Even Better Retirement