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Haley is 57 years of age. She is planning for future long-term care needs. She knows that yearly nursing home costs in her area are
Haley is 57 years of age. She is planning for future long-term care needs. She knows that yearly nursing home costs in her area are currently $69,000, with prices increasing by 5 percent annually. She also is willing to assume a six year LTC need. If she currently has $50,000 saved to help offset future LTC costs, how much will she have saved (before taxes) at age 73? Assume that she can earn 8 percent on savings (before taxes).
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