Health Insurance Will Your Former Employer Cut Back On Benefits

The AARP Bullletin newsletter for July August 2008 had an interesting short article on a growing benefits problem for retirees. They talk about companies that had committed to providing health insurance benefits for their retirees. The Equal Employment Opportunity Commission (EEOC) passed a regulation that permits companies to cut back on health insurance benefits when the former employee becomes eligible for Medicare at age 65. For many retirees Medicare plans are not equal to the benefits through their former employers plans. Understand that although employers have been given the right to modify plans not every employer will do so. However the economic pressure will continue to encourage employers to do so. Make your voice heard to your current and your former employers.

We all need to be planning to take care of ourselves for retirement income, retirement planning, health insurance and Long Term Care needs. The trend for companies to cut back on health benefits and pensions continues. I can help with planning and implementing your financial strategy.

www.columbusfinancialplanningpros.com

VA LTC Benefits VA Aid and Attendance Program

Under certain circumstance long term care coverage is provided
without cost to those of our veterans or their spouses who qualify.

Called the Aid and Attendance benefit, this program is an under-utilized
benefit that can provides upwards of $2o thousand per year to help
a veteran or the surviving spouse of a veteran pay for long term health
care costs including home health care, assisted living or even nursing
home expenses. The benefit is paid regardless of the need for care,
provided the veteran or spouse is older than the age of 65. There are
income and asset restrictions that apply so not all veterans are eligible.
Even if they do qualify a suppleemental LTC policy may make sense.

There are millions of veterans who served during WWII, the Korean
War, the Vietnam War, or the first Gulf War who fall into the category
of needing help with at least one activity of daily living (ADL). There is
no requirement that the veteran actually served in the war zone. It is
just required that they served in the US military during the time of the
conflict. I have two brothers one served in Vietam and the other did his
duty stationed in the US. Both of them may be eligible for coverage if
qualifying conditions are met. Neither has a military related disability
but they may qualify because they served during a period of war,
served a total of 90 days of active duty and received an honorable or
general discharge.

Neither Medicaid nor Medicare will provide a private nurse for home
care. The Aid and Attendance benefit may be available to help pay the
cost. This benefit may provide enough extra income to allow them to
pay for care while avoiding Medicaid spend-down. Reimbursement for
care does not require that care is to be provided by a licensed
professional. It may be provided by a friend or family. For more
information on the VA Aid and Attendance benefit visit you local VA
office, your veterans organization or go online,

www.vaaidandattendance.com
http://www.vaaidandattendance.com

We would be happy to help

www.columbusfinancialplanningpros.com

Does your advisor have skin in the Game

I was reading a number of industry articles and blogs today. One in particular struck a cord for me. It is a blog authored by Kim snider of Texas. http://kimsnider.blogs.com/
She was citing some work done by Kinnel who works for Morningstar.
She points out that many fund managers Don't have any skin in the game. That means that they are not buying what they are selling. The study showed that 59% of foreign stock fund manager had no skin in the game, 65% of Tax bond fund managers had no skin in the game, 70% of balanced fund managers had no skin in the game, 78% of muni fund managers studied had no skin in the game! WOW! How do you like those numbers!!!
I promise I will never sell a client a product I would not want to own or have my parents own!

Should you trust a financial fund manager that does not own a significant amount of the products that they manage. I would expand on that and apply it to brokers, insurance agents and advisors. Should you use any professional who doesn't put his skin in the game. I for one believe in what I offer my clients and have always put my skin in the game.

I thought it was great because it really made me think. Whats the difference between just being a salesman and being a really great advisor. A mere salesman is only concerned with selling you something. A great advisor or planner views themselves as a partner helping you grow your assets and meet your goals. I strive to be a great advisor. I view myself as a partner in helping you meet your goals. If you agree that that is what you want in an advisor I'd definitely be happy to speak with you about working together to HELP you meet your most important goals. For a great advisor its not just about the money. Frankly, I made more money before I became an advisor. You know what, I'm definitely happier doing what I am doing now! I spend a great deal of my time ,energy and assets on educating my clients. Sometimes it pays of financially and frankly sometimes it does not pay off. This is the way I would want to be treated so it is the only way I will treat my clients!!

Feel free to visit the website. Take our survey and let us know how we could help you!
www.columbufinancialplanningpros.com

Struggles saving for retirement and college

A recent Putnam Investments Reseach Study has confirmed what many of us already know. In the absence of a true pension plan at work saving for a young childs college education at the same time we are trying to save for our own retirement is a daunting challenge! To make matters worse, almost 50 private lenders and non profit lenders have quit writing student loans in the past year. Some of this is aggravated by the bank lending mess we are currently in. Some of todays headlines suggest that the mortgage lending mess is not yet at the bottom.

Now more than ever we need to be able to look at all possible avenues for obtaining college funding. We need to be thinking scholarships and grants first, followed by maximizing our eligibility for Need Based Financial Aid. Some forms of Financial require repayment and some do not require that the money be repaid.

Several dozen extremely well endowed colleges and universities are prepared to guarantee that if you are admitted. you will be able to graduate Student debt free. You will still have to contribute the Expected Family Contribution (EFC) but after that the College or University is prepared to kick in enough Financial Aid or Work Study income to allow the student to graduate without student loans.

There are perfectly legal techniques that we can often use to increase a students eligibility for Need Based Financial aid. That is one of the services that we offer our clients.

Interest Rate highlights and Long Term Disability

Two topics for today

Several Interest Rate updates to add
several new interest rates for various terms of product have just been added. These are guaranteed rates for the full term. Contribution minimums apply, and early withdrawal rules also apply.
4 year term 5.0% per year
6 year term 5.3% per year

Disability Risk and how to pay for it
I just came across a recent summary of a study sponsored by the Life foundation.
Long Term Disability is considered to be a disabling injury or illness making it impossible for a worker to work for a period of 90 days or longer. Short Term Disability is defined as an injury or illness making it impossible to work for a period of less than 90 days. between 35-40 % of workers have some form of short term disability coverage and only about 30% of companies employees have access to LTD coverage. Not all eligible employees have elected this coverage.

Out of 140 plus million employees in the US only about 5-6% have comprehensive Long Term Disability income policies in place through work or through private policy purchase of Long Term Disability (LTD) coverage. Many employees have coverage through Workers Compensation which will provide coverage for a work related injury but provides no benefit for illness or non work related injury. These facts mean that most employees have no protection or at best inadequate coverage for Disability risk.

Employers take note this is a desirable benefit. Providing coverage can actually help the company save money on their Workers Comp premium. Employees take note. tell your boss or HR department that you would be interested in a benefits package including some LTD coverage. Especially in a group setting this coverage is relatively modest in cost.

On a recent visit to a Hospital based Rehab facility visiting a family member I met several young patients one as young as 25 years old. They were not disabled due to a work place accident and therefore were not eligible for Workers Comp.

Policies are available to cover a period from 2 years, 5 years or up until the patient reaches age 65. One of our clients wanted coverage to age 65 but with his medical history we were able to get him coverage for a maximum of 5 years. Some occupations are difficult to get through underwriting. Occasionally by working with multiple carriers we can get coverage for hard to insure occupations.

www.columbusfinancialplanningpros.com
polarisfinancialservices@gmail.com

Planning for Retirement

Hewitt Associates has just completed a study where they project that a retiree will need 126% of their pre retirement income in order to maintain their quality of life into retirement. This is a long term projection factoring in inflation, increasing lifespan and increasing medical costs in retirement. This number is higher than most of the other studies indicated. The exact number needed is subject to interpretation or estimation but what is certainly clear is that workers are not saving nearly enough to provide for a comfortable retirement. Social Security is likely to meet no more than about 30% of a retirees income needs. This assumes that the post babyboomers or late boomers will have any solvent SS benefits available at all. This gets even worse as income rises. 2/3 or retirees are saving less than 80% of their income needs. Only about 1 worker out of 5 will be able to retire comfortably without needing to significantly alter their standard of living.
The remaining 70-100% of income needs to come from savings, investments,IRA's, 401K or pension plans or equity harvested out of their home utilizing reverse mortgages.

We help clients determine where they are today and improve the picture for their future.

www.columbusfinancialplanningpros.com

VA Education benefits

July 3 2008 Subject improvement in Education benefits for Veterans

Veterans having served in the military after sept 11, 2001 are entitled to an improved VA education benefit for college funding. This will cover college cost for up to 4 years of education. The maximum reimbursement will be based on the cost of a year in the most expensive public school in your state of residence. Additional money will also be available for housing and for books.
If you have completed school yourself you may be able to share this benefit or part of this enhanced benefit with your spouse or your children. The benefit period expires 15 years after you leave the military.
Contact your VA center for additional clarification or details.

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