The major beneficiaries of our decision to plan ahead for our long-term care expenses is of course our family. In many cases, the person who needs care may be cognitively impaired or so frail that they don’t understand the impact that their need for care is having on their family. The themes of ”family” and “legacy” consistently surface when people are asked why they chose LTC insurance as their plan.
The benefits of having long-term care insurance include:
1. Protection of Assets: A need for long-term care is normally paid for with cash, most often from assets accumulated for retirement. Paying for long-term care with these funds can compromise a safe and secure retirement. Purchasing LTC insurance assures that our principle will not be invaded. It allows a retired couple to more freely enjoy retirement without being concerned that a long-term care need by one spouse will alter a well-planned and secure retirement for the other spouse.
2. Maintain Independence: People who purchase LTC insurance are guided by a need to ensure their independence and financial security and retain as much control as possible over their lives. The thought of having to rely on children or friends for lifetsyle decisions and personal care is out of the question.
3. Secure High-Quality and Affordable Care: As our society ages, the demand for high-quality care will skyrocket. Those who can guarantee payment with private funds- by using their own assets or by receiving benefits from an LTC insurance policy- may have greater access to the level of care they desire.
4. Maintain Current Living Arrangements: LTC insurance may also allow us to obtain the quality of care we need at home, without relying heavily on family and friends.
Chapter 9 of my book “How to Plan for Long-Term Care” will help you to determine if Long-Term Care Insurance is right for you.
The media may be downplaying any recovery in the economy with it’s gloomy forecasts, but the finanicial planning community continues to remain optimistic, according to the latest quarterly research from Russell Investments.
“Right now, the news headlines seem to reinforce everything that’s going wrong, but financial advisers who are more experienced are seeing a substantial amount of optimism,” said Kevin Bishopp, director of practice management for Russell’s private client services business. As an example: When asked about growth projections for 2011, three-quarters of respondents said they envision revenue growth of at least 10%, while only 3% of respondents expected no a growth in revenue this year.
Of course it’s hard to know whether this optimism is based on reality, or is related more to the attempt at bolstering the image of the financial planning industry. For one thing, the quarterly survey of 800 financial advisers was conducted before the unfolding disaster in Japan. However, the survey was conducted in the midst of the political unrest that swept across Africa and the Middle East.
Unfortunately, while advisers maintain a rosy picture, many of their clients aren’t quite as optimistic. When asked what their clients think about the capital markets over the next three years, advisers said 36% are optimistic, while 50% are neutral and 15% are pessimistic.
Mr. Bishopp indicated some concern that most advisers expect revenue growth this year to come from business expansion, mostly in the form of new clients. The point he believes a lot of advisers are missing is that many of their present clients could be draining resources and revenue from the business.
In anticipation of baby boomers turning 65 this year, businesses that provide home health care and home services are on the increase. Unfortuneately, regulators have not been able to keep up with the growing industry.
There are about 2 dozen states in the US that do not regulate home-care companies, while just a handful require licenses for companies that provide nonmedical services. This hodgepodge of inconsistent rules puts vulnerable people at risk of financial exploitation or physical abuse. Even in states that require licensing, people in the industry say the costs of complying with regulations are so high, and the chances of getting caught so low, that it’s just not worth it.
According to a report by the Senate Special Committee on Aging “addressing elder abuse in home-based care settings is becoming a growing concern.” Much of the worry centers on how thoroughly companies vet workers before sending them into people’s houses. As an example, after seven states began requiring comprehensive background checks for caregivers, 4.3 percent of the 220,000 applicants were disqualified because of a history of serious crimes. In the words of one provider, ”In California, you need a license to catch a trout, but you do not need a license to give a senior a bath in their own home.”
According to Inside Elder Care, knowing your home care provider does background checks is just the beginning. Not all background checks are the same and not all companies exclude potentially dangerous applicants based on the same criteria. They suggest you also ask the following questions:
- How many years back in the person’s history does the check cover?
- Does the check reflect both criminal and civil records?
- Does the company check licensing status across state jurisdictions?
- Are credit reports run?
- Are Department of Motor Vehicles records obtained?
- Are gaps in employment history verified?
- Do they make the phone calls to references or are they outsourced?
- Is evidence of education provided and confirmed?
- What criteria does the company use to deny employment? What offenses are tolerated?
Choose the provider with the most stringent background checking protocol. If the provider cannot answer these questions, find another provider.
Radiation sickness is damage to your body caused by a very large dose of radiation often received over a short period of time (acute). The amount of radiation absorbed by the body — the absorbed dose — determines how sick you’ll be. Common exposures to low-dose radiation, such as X-ray or CT examinations, do not cause radiation sickness.
Most cases of radiation sickness have happened after nuclear industrial accidents, such as the 1986 nuclear reactor accident at a power station in Chernobyl, Ukraine.
The initial signs and symptoms of treatable radiation sickness are usually nausea and vomiting. The amount of time between exposure and when these symptoms develop is an indicator of how much radiation a person has absorbed.
After the first round of signs and symptoms, a person with radiation sickness may have a brief period with no apparent illness, followed by the onset of new, more serious symptoms.
In general, the greater your radiation exposure, the more rapid and more severe your symptoms will be.
The initial signs and symptoms of treatable radiation sickness are usually nausea and vomiting. The amount of time between exposure and when these symptoms develop is an indicator of how much radiation a person has absorbed.
After the first round of signs and symptoms, a person with radiation sickness may have a brief period with no apparent illness, followed by the onset of new, more serious symptoms.
In general, the greater your radiation exposure, the more rapid and more severe your symptoms will be.
The initial signs and symptoms of treatable radiation sickness are usually nausea and vomiting. The amount of time between exposure and when these symptoms develop is an indicator of how much radiation a person has absorbed.
After the first round of signs and symptoms, a person with radiation sickness may have a brief period with no apparent illness, followed by the onset of new, more serious symptoms.In general, the greater your radiation exposure, the more rapid and more severe your symptoms will be.
Radiation sickness itself doesn’t cause long-term medical problems for those who survive the illness. However, the radiation exposure that caused the immediate radiation sickness does significantly increase a person’s risk of developing cancer later in life.
Radiation sickness treatment is aimed at preventing further radioactive contamination, managing organ damage, reducing symptoms and managing pain.
Some radiation sickness treatments may reduce organ damage caused by radioactive particles. Medical personnel would use these treatments only if you’ve been exposed to a specific type of radiation. These treatments include the following:
- Potassium iodide. This is a nonradioactive form of iodine. Because iodine is essential for proper thyroid function, the thyroid becomes a “destination” for iodine in the body. If you have internal contamination with radioactive iodine (radioiodine), your thyroid will absorb radioiodine just as it would other forms of iodine. Treatment with potassium iodide may fill “vacancies” in the thyroid and prevent absorption of radioiodine. The radioiodine is eventually cleared from the body in urine.
- Prussian blue. This type of dye binds to particles of radioactive elements known as cesium and thallium. The radioactive particles are then excreted in feces. This treatment speeds up the elimination of the radioactive particles and reduces the amount of radiation cells may absorb.
- Diethylenetriamine pentaacetic acid (DTPA). This substance binds to metals. DTPA binds to particles of the radioactive elements plutonium, americium and curium. The radioactive particles pass out of the body in urine, thereby reducing the amount of radiation absorbed.
Source of information: mayoclinic.com
In the past, when financial advisors were more concerned with pushing investment products than servicing their clients, the distinction between a good financial advisor and a bad one were not all that clear. However, as baby boomers approach retirement age, they are looking for advisors who can offer them more than just an investment package.
A white paper produced by the Wealth Management Exchange emphasizes the growing differences between the abilities of financial professionals and offers guidance on how to search for a qualified one. Here are the qualities deemed most important when looking for a financial advisor:
Trust: Since the goal of your advisor is to enhance and preserve your wealth, you want to make sure that your advisor is working in your best interests, and without any conflicts of interest.
Ethical Behavior and Integrity: With your advisor having access to your personal finances and records, you want to make sure that your adivsor keeps your information private. A cursory background check of the advisor can be done with the Securities and Exchange Commission (SEC), and the Financial Industry Regulatory Authority (FINRA).
Professional Competence, Expertise, and Knowledge: Check the advisor’s credentials to ensure that he has received the training he needs to be knowledgeable.Are they a Certified Financial Planner (CFP), or a Chartered Financial Analyst (CFA), or have other credentials that require applicable education and exams?
Performing due diligence on a prospective financial advisor can be time consuming. The National Alliance of Objective Financial Advisors (NAOFA) was established to match the wealthy with America’s top advisors who have been pre-screened by the Alliance. Learn more by going to www.objectivefinancialadvisors.com
In the aftermath of the housing bust, the National Taxpayers Union reports that as many as 60% of properties in the U.S. are assessed at a higher amount than their current value. One of the reasons for this is the delay in updating assessements, which don’t necessarily occur with changes in the housing market. Properties are typically assessed only once every two to three years, according to an NTU survey of assessors, and sometimes the cycle is longer. So while home values may drift down, their assessments remain unchanged.
At the same time, in many area’s, property taxes are heading up due to budget shortfalls at the local level. This fiscal year saw a shortfall of $94 billion,with the result that many municipalities were spreading the pain among taxpayers. Pete Sepp, a spokesman for the NTU says that in the most recent election cycle, voters concerned about budget shortfalls approved increases in property tax rates — especially in California, Michigan and Ohio .
FEDERAL TAX ADVANTAGES
As of 2010, the federal government does not offer a tax credit to owners of long-term care (LTC) insurance but it does offer a tax deduction. The rules for your federal income tax deduction is determined by your filing status.
Individuals (Non-Self-Employed) Use Form 1040 schedule A: Individuals may deduct LTC Insurance premiums as a medical expense on their federal tax return, but only if they itemize on Form 1040 Schedule A. Your total amount of medical expenses added to the allowable amount of your LTC insurance premium must exceed 7.5% of your adjusted gross income. The amount in excess of 7.5% can then be deducted from your adjusted gross income.
Self-Employed Individuals, S Corporations, and LLCs: These entities can deduct LTC insurance premiums for policies purchased for owners and others. The deduction is taken as a health insurance premium expense, so the premium is deductible regardless of whether or not you itemize deductions. However, premiums are subject to self-employment tax. Again, there are limits to the tax deduction based on the age of the policyholder.
C Corporations: This entity enjoys the most favorable tax break. The company can fully deduct it’s portion of the premiums it pays for employees as a reasonable business expense. If the employee pays part or all of the premium, the employee is subject to the rules for “non-self-employed individuals.
STATE TAX ADVANTAGES
Unlike the federal government, some states do offer a tax credit. When they do, the credit is usually a percentage of the total premium paid.
Chapter 9 of my book “How to Plan for Long-Term Care” will help you to determine if Long-Term Care Insurance is right for you.
American International Group Inc (AIG), one of beneficiaries of the controversial TARP bailout program, reported $11 billion in profit in the fourth quarter of 2010, $10 billion in earnings for the year. In 2008, AIG reported a $100 billion loss after cashing a government check that kept the company from collapsing.
AIG made $16.60 a share during the fourth quarter. Shares rose $0.59 to $41 in after hours trading on Thursday.
The quarter included gains totaling around $13.5 billion from businesses and assets that AIG sold. Of the $182 billion that the government offered to AIG, $50 billion has yet to be paid back.
“We completed several key restructuring milestones in the quarter and we remain focused on long-term growth and building value at our ongoing insurance operations and other businesses,” said CEO Robert Benmosche. “We remain extremely grateful to the taxpayers and have made significant progress since January 2010 towards independence from this support.”
The U.S. Treasury Departments may be able to sell off its AIG shares at a profit this year. It’s not clear whether AIG’s core business will continue to show a profit without asset sales in the future.
This Week’s Top 10 Performing Stocks
For the week ending February 25, 2011.
| Change | Closing | Company (Symbol) |
| + 151.4% | 6.26 | Blue Dolphin Energy Co. (BDCO) |
| + 131.3% | 5.02 | Royale Energy Inc (ROYL) |
| + 61.4% | 12.85 | Mexico Energy Corp (MXC) |
| + 33.6% | 8.00 | Qingdao Footwear (QING) |
| + 33.3% | 7.00 | Design Within Reach Incorporated (DWRI) |
| + 32.3% | 8.60 | SonomaWest Holdings Inc (SWHI) |
| + 31.8% | 5.53 | PROLOR Biotech Inc (PBTH) |
| + 31.6% | 7.20 | Pyramid Oil Co (PDO) |
| + 25.6% | 7.14 | ATA Inc (ATAI) |
| + 11.5% | 28.53 | Autochina International Ltd (AUTC) |
IRS eases up on delinquent taxpayers
During the recent economic downturn, the number of liens on property by the Internal Revenue Service has increased substantially. The IRS filed over 1 million liens this last budget year compared to 426,000 liens in 2001. On Thursday, they announced new plans to give struggling taxpayers some help by reducing the number of property liens and making it easier for small businesses to enter into payment plans.
The IRS intends to double the amount of back taxes a person can owe before facing a lien from $5,000 to $10,000. They will more easily allow liens to be withdrawn once taxes are paid or once certain installment plans are implemented. For some that meet certain income and debt requirements, their debt can be settled for less than they owe. Small businesses with large delinquent tax bills up to $25,000 are eligible for 24 month installment plans, previously only $10,000.
Doug Shulman, the IRS commissioner, says that the changes will “help people trying to get right with their taxes and we think it strikes the right balance to protect the interests of the government.” Shulman expects the number of liens to be reduced by “tens of thousands,” though the number is uncertain. The number of liens filed tend to rise when the economy struggles.
“A federal lien is an important tool for the IRS. It gives us legal claim to a taxpayer’s property for unpaid tax debt, which protects the government’s interest,” Shulman said. “But we also recognize that this tool must be used judiciously.”
