How to invest money for long-term care

I’ve written about how to decide how much to set aside for long-term care expenses for people who have decided to forgo insurance. But where and how should those funds be invested? Where to invest for long-term care You don’t have to maintain a separate account for your long-term care fund, but you do need to let your loved ones know of its existence. The question is, which account makes the most sense, from a tax perspective, as a receptacle for out-of-pocket long-term care costs? A health savings account might look like the obvious choice. Withdrawals from an HSA to cover qualified healthcare expenses are tax-free, and most long-term care expenses would qualify. There are a couple of drawbacks, however. One is that annual contribution limits—in 2026, they’re set at $4,400 for people with single coverage and $8,600 for those with family plans—might impede the ability of people over age 50 to build up a significant bulwark in the HSA between now and retirement. (Once you’re covered by Medicare, you can’t be covered by a high-deductible health plan; additional HSA contributions are also off limits.) It’s still well worth investing in an HSA if you have access to one, but you might …