August 17, 2016
Hazards of Financial Advice Columnists
In "Money Talks" (8/10/16) Dave Ramsey advises that an elderly woman with $1.5 million in assets needs long term care insurance! OMG! First of all, details are lacking on her age, projected longevity, health, family situation and possible plans for how she might prefer to receive care. Futher, Ramsey fails to acknowledge the continuing problems in the LTCI industry (see other items in this blog describing the problems), including dramatically rising premiums. There was no discussion of the nuances that need to be considered before making such an expensive decision. Moral of the story: beware simplistic answers, regardless of how famous the person giving the advice. This kind of decision requires a detailed analysis of the family's finances and the preferences of the woman in question.