Give Thanks

This week’s CBTV show is entitled, “Give Thanks – By Fully Insuring Your Health for the Long-Term”

Of course, we’re talking about Long-Term care coverage this month. Here are some interesting parts of the show.

The Community Living Assistance Services and Supports Act, also known as the Class Act, was the vision of the late Massachusetts Senator, Edward “Ted” Kennedy.  The Class Act was designed to create a voluntary, government-run plan for long-term care insurance.  It would have allowed Americans to buy long-term care insurance through payroll deduction, and receive cash payments if they were later disabled, regardless of their age or a pre-existing health condition.  The Department of Health and Human Services had planned to implement the provisions of the program, including offering this coverage on a guaranteed-issue basis.  However, Health and Human Services Secretary Kathleen Sebelius announced on October 14^th, that the Obama Administration would not be able to implement the Class Act, because it was not financially feasible under current economic conditions.

November is National Long-Term Care Awareness Month, which serves as an annual reminder of how important this type of insurance is for all Americans.  Unfortunately, many people mistakenly believe that their employers health insurance plan or Medicare, if they’re retired, will cover these expenses. Not true! Medicare Part A does cover UP to 100 days of care in a skilled nursing facility, but beyond that, it’s at your expense!  Americans who reach age 65 have a 40% chance of entering a nursing home, and a 10% chance of remaining there for five years or more, according to the Department of Health and Human Services.  That means there’s a good chance that you, or one of your family members will require some form of long-term care in the future. 

The rising costs associated with health care and long-term care, is a growing problem in this country, and becoming more difficult for most Americans to afford.  The median room rate for a private nursing home rose 29% between 2005 and 2011, from $60,225 to $77,745 per year, according to the “Genworth 2011 Cost of Care Survey.”  Genworth has conducted this survey for 8 years, with the help of over 15,000 long-term care providers nationwide.  In addition to the high cost of long term care, Genworth also found that the average national median cost of licensed home health care services, which provide “hands-on” personal care, including bathing and dressing, is now $19 per hour.

Long-term care insurance is an important benefit you simply can’t afford to be without today. The odds are very high that you, or a family member, will require some type of long-term care in the future.

So, here are 4 important steps to take when planning how you will cover these long-term care expenses:

1) Educate yourself on long-term care coverage: There are a number of different ways to cover the cost of LTC today. Of course, there is the traditional LTC insurance policy, which requires an annual premium payment to keep the policy in force. But there are now hybrid LTC riders that may be attached to a life insurance policy or annuity policy. Each of these options are worth looking into.

2) Find out the cost of care in your state: Websites such as longtermcare.gov and genworth.com have interactive maps, that allow you to find out how much long-term care services cost in your state.  They will give you an idea of the costs for in-home care, assisted living, adult day care and nursing home care.

3) Calculate how much you need to save: There are online calculators available today that can tell you how much money you need to have for long-term care based on your age, where you plan to retire, the amount you plan to set aside, and the annual rate of return you expect to receive on your monthly savings.

4) Research facilities near your home: After shopping around for the best long-term care coverage you can find, get out and visit the nursing homes and assisted living facilities in your area, to find out what services they have to offer.  Also, get to know the staff and be sure you “feel the love.” You want to see and feel that they truly care for the residence who live there.

Planning ahead for long-term care is the only way to prepare yourself and family for unforeseen health concerns.  And to be truly prepared, you should work with a qualified long-term care specialist. Find a financial advisor who specializes in LTC coverage. You’ll be amazed at all of the options available today. Some of which don’t require you to pay an annual premium for a traditional LTC policy. So, find a specialist to work with!

Again, I would like to hear from you on this important benefit that each of us needs. Do you have a LTC insurance or coverage in place today? If not, how will you pay for it down the road? Until next week, Dump Debt, Invest Wisely, Believe in Yourself and Make it Happen!

Extreme Financial Planning

This week’s CBTV show is entitled, “Extreme Financial Planning: What Some People Are Doing to Keep the Money Rolling In!”

No matter where you live throughout the U.S., there has likely been a story in your local news about somebody who tried to get away with a crime – sometimes even murder – in an effort to make money.  One case that made national headlines recently, involved a woman from South Carolina named Susan Diane Hendricks, who was charged with killing four family members on October 14th.  Pickens County Sheriff, David Stone, called the quadruple murder a “horrendous act of evil,” and the reason given for Hendricks committing the crime, was to collect the life insurance money.  In another case, closed earlier this year, it was discovered that an 86-year-old man from Florida, Allan Dunn, had kept his wife’s dead body in a freezer for over 10 years. His reason?  To continue collecting her Social Security benefits.  Dunn told neighbors that since 2000, his wife Margaret was living in a nursing home.  Friends of the family eventually found Margaret’s body in a freezer on the back porch, after they had gone to the condo to get Allan’s final affairs, following his suicide.

According to the National Insurance Crime Bureau (NICB), “questionable claims” are pulled for closer review and investigation, based on one of more indicators of possible fraud.  For example, common indicators for vehicle fraud, include faked damage, questionable vehicle theft and suspicious fires or arson.  The Bureau released its “questionable claims referral reason analysis” for the first half of 2011 in August, which examined six different insurance categories, including property, casualty, commercial, workers’ compensation, vehicle and miscellaneous.  The number of “questionable claims” in these six categories rose 18%, between the first half of 2009 and 2011. Jim Quiggle, the Director of “Communications for the Coalition Against Insurance Fraud,” said the poor state of the economy has had a direct impact on the increase in questionable claims. Quiggle said the average fraudster makes small-time claims, such as supposedly losing an engagement ring and reporting the loss, even though it’s later found at a pawnshop.

There are two ways to look at the rising numbers for questionable claims.  First, it would seem that more people are turning to crime as a way to help themselves out financially.  But, the second part of this equation, involves insurance companies that are investigating more of these cases, to make sure these criminals are caught and brought to justice.  Such is the case of 72-year-old, Jonella Howard, who was looking for $300,000 in compensation, following a slip-and-fall accident in a Florida supermarket.  However, store video showed Howard moving her foot back and forth on the floor, where the liquid appeared to be spilled.  She then fixed her hair and sat down on the floor, and then called for help, after her supposed “fall.”  Howard now faces up to 35 years in prison if convicted. 

Unlike most “white collar” crimes involving financial fraud, which are committed by seasoned professionals, those guilty of “insurance fraud” tend to be average people that have become desperate to make a buck.  But, to be so desperate as to freeze a loved one’s body, or even kill someone, is well beyond “extreme” financial planning.  It’s been said that money is the root of all evil, and in these crazy cases that certainly appears to be true!  Organizations like the “Coalition Against Insurance Fraud” and the “National Insurance Crime Bureau” were formed to protect businesses and consumers from criminals who commit these heinous acts, which can also lead to a rise in your insurance premiums.

I would like to hear from you on this important topic. Have you witnessed anyone engaging in a fraudulent activity for financial gain? Were you shocked and surprised that they would consider attempting such a deceptive move? Did they get caught or is it still continuing on?

Until next week, Dump Debt, Invest Wisely, Believe in Yourself and Make it Happen!

 -Matt

http://www.ChecksandBalances.TV

http://www.facebook.com/ChecksandBalancesTV

http://www.twitter.com/MatthewJRettick

Victory for Our Veterans!

This week’s CBTV show is entitled, “A Victory for Our Veterans! Good News for Those Who Served Us Well.”

“Home for the holidays” will likely never mean as much to our military men and women, as it will when the remaining 40,000 troops stationed in Iraq, finally return home.  President Obama made the announcement on October 21^st that the final withdrawal of all troops would take place before the end of the year, putting an official end to “Operation Iraqi Freedom,” which was launched in response to the September 11th terrorist attacks on our country. More than $800 billion dollars has been spent on the Iraq War since 2001, with nearly 4,500 service men and women killed, and more than 30,000 injured.  This Veterans Day, lets honor not only these troops, but all who served our country well, and give them the recognition and benefits they rightfully deserve. 

The withdrawal of our U.S. troops from Iraq has been a gradual process, and many of them are still transitioning to their lives back home.  Fortunately, the federal government has put several benefits in place to help aid in this transition, ranging from free health care, dental coverage and family support, to education and employment services.  The U.S. Department of Veterans Affairs offers combat veterans who fought in Afghanistan and Iraq, five years of cost-free health care after the date of their discharge or release.  Veterans can also receive free outreach services, such as counseling, while readjusting to civilian life, at any local vet center.  Other benefits include the Post-9/11 GI Bill, that provides troops who have at least 90 days of service on or after September 11, 2001, with financial support for education and housing. 

There are not enough ways we can thank our troops for the sacrifice they have made for our country, and they certainly deserve more than just government benefits.  They deserve our everlasting support and should be welcomed with open arms when they return home.  While government programs are in place to aid our veterans in their transition back to civilian life, they can always use more help to support these initiatives, so consider volunteering your time or donating to their causes.  Veterans Day is an annual federal holiday that was put in place to remember those who have served our country.  It falls on November 11^th, which is the anniversary of the date World War I ended, in 1918.  This year, American families who still have loved ones serving in Iraq will be celebrating the end of “Operation Iraqi Freedom.”  On this Veterans Day, take the time to appreciate those who have served us, and pay them the respect they’ve earned, for defending our freedom.

I would like to hear from you on this week’s important topic. Do you have a family member serving in our military?   What ways do you show your support of our young men and women in uniform? Until next week, Dump Debt, Invest Wisely, Believe in Yourself and Make it Happen!

-Matt

http://www.ChecksandBalances.TV

http://www.facebook.com/ChecksandBalancesTV

http://www.twitter.com/MatthewJRettick

Rock Solid Retirement

This week’s CBTV show is entitled, “Have You Created a Rock Solid Retirement Plan? If Not, Don’t Wait Another Day!”

For the first time in 3 years, 55 million Social Security recipients will see their monthly benefits increase.  Starting in January 2012, the Cost-of-Living Adjustment, or COLA, will return, with a 3.6% increase in Social Security benefits.  Low inflation prevented the COLA from increasing benefits over the past two years, which was the first time this happened since “inflation-tied increases” were enacted in 1975.  While the Cost-of-Living Adjustment is a much-needed raise for retirees receiving Social Security benefits, it’s estimated that approximately 75% of recipients won’t realize the full effect of this increase.  This is mainly due to an expected increase in Medicare Part B premiums, which are automatically deducted from these checks before the government mails them.  So, even though recipients will “technically” be getting more in benefits, most retirees will not “actually” see a significant increase.

Social Security is a major source of retirement income, if not the sole source for millions of retirees.  However, it’s important to remember that Social Security is a “benefit” and should be considered as just one component of a comprehensive retirement plan. The future of Social Security is uncertain. The program continues to run at a deficit, and without some major changes by Congress, trust fund reserves are expected to be exhausted by 2036.  But, that’s only part of what is becoming a growing problem.  Which is this - the 3.6% increase in Social Security benefits for 2012, isn’t even keeping up with the current annual CPI-W inflation rate of 4.4%, or the “main” CPI of 3.9%!  In fact, since the Cost-of-Living Adjustment was first introduced in 1975, the annual increase has been less than the annual rate of inflation more than half the time. 

As we all know, government benefits will not cover every expense you will have in retirement, which means you must create your own comprehensive financial plan, to make sure you cover all the expected and unexpected events in life. 

So, here are 4 key elements of a comprehensive retirement plan:

1)     Develop an Income Plan:  You must know how much money you will need to live comfortably in retirement, which is typically 70% of your pre-retirement salary.  From there, you need to know what financial resources will be available to you in retirement, and then how to withdraw those funds in the most tax-advantageous manner. You should also create a reliable income stream that will last throughout your retirement years, such as a lifetime income annuity.  

2)     Buy Long-Term Care Insurance: Nursing home facilities can cost more than $80,000 per year, and health insurance, Medicare or disability insurance will not cover this expense.  While long-term care insurance can be expensive, the cost of long-term care is much more expensive. The possibility of a mental or physical disability only increases with age, which is why LTC insurance becomes an increasingly important benefit for all of us! 

3)     Create an Estate Plan: An estate plan should be developed as early as possible, to reduce the financial burden on your family.  This includes creating a will, living will and possibly a trust, naming an executor of your estate, and setting up a durable power of attorney to appoint someone to handle your financial and medical affairs, if you are unable to do so in the future.

4)     Purchase Life Insurance: There are a variety of life insurance policies to consider today, but the main objective of life insurance is to protect your family against the loss of income, if you pass away.  Life insurance provides financial security to your beneficiaries, and is another great way of guarding against the unexpected.

These 4 key components are essential for anyone putting together a comprehensive retirement plan.  They can provide retirees with extra benefits and security, that go above and beyond what you will receive through Social Security or a pension, and can protect you against life’s unexpected surprises! 

I would like to hear from you on this week’s important topic. Have you crafted a retirement plan that will see you through to the end? Have you protected yourself from the unexpected events in life? Let me know. Until next week, Dump Debt, Invest Wisely, Believe in Yourself and Make it Happen!

-Matt

http://www.ChecksandBalances.TV

http://www.facebook.com/ChecksandBalancesTV

http://www.twitter.com/MatthewJRettick