• Retirement Planning
• Long Term Care Insurance
• Investments
• Revocable Living Trusts
• Medicare Part D -
  Prescription Drug Coverage
• Medicare Advantage
• Probate Facts

Topics to consider when planning for your retirement:

• Succession Planning- How to pass your assets on to your beneficiaries in the most expedient and cost effective way possible


• INCAPACITY PLANNING- Arranging for your affairs to be handled if you are not able to take care of them yourself
  
• MEDICAID PLANNING- Whether you are planning for the future or facing an immediate situation, we can provide options to protect your assets from the devastating cost of a nursing home stay. Long Term Care insurance may be an option, although there are strategies that may not require insurance.
  
• Income Taxes- Most retirees pay more income tax than they need to. We provide strategies that may reduce or even eliminate unnecessary taxes. One advantage of these strategies is reducing, or possibly even eliminating, taxes on your social security income.
  
• State Inheritance Taxes- Identifying and making plans to address your potential state inheritance tax liability as well as how it will be addressed by your beneficiaries.
  
• Federal Estate Taxes- Identifying your potential federal estate tax liability and ensuring that your heirs can meet that obligation without reducing their inheritance.
  
• INVESTMENT PLANNING- A primary goal is protecting your retirement savings. We will design an investment strategy that allows you the greatest returns possible while maintaining guarantees. (No risk to your principle)

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Long Term Care Insurance
Long Term Care Questions and Answers:

What is Long Term Care/ Home Health Care Insurance?
Long Term Care Insurance is designed to pay for all or a portion of the costs associated with being confined to a skilled nursing facility. Integrated policies will pay for assisted living facilities, on-going health care in your own home, and adult day care. Home health care policies generally only provide benefits for care provided in your home.

Why Would I Need Long Term Care?
To protect the assets you have worked so hard to accumulate. Extended nursing home stays can be very expensive. In Indiana the average cost for a nursing home stay is $141 per day. This is over $4,230 each month. That is over $50,000 each year. With no Long Term Care most of this cost will be paid out of pocket or by selling off assets. The cost of Home Health Care can be up to $20,000 or more per year.

Will Medicare Pay for Nursing Home or Home Health Care?
Medicare is limited as far as what and how long it will pay for skilled care. Generally, if you are confined to a Nursing Home you can expect Medicare to pay the following:

An additional limitation is these benefits are only available if you were confined to a hospital for at least three days immediately prior to entering the nursing home. Additional limitations apply to Home Health Care and Medicare pays nothing for custodial or personal care.

How Likely is it I Will Need Long Term Care?
Approximately 51% of all Americans 65 or older will need Long Term Care. Health problems like Alzheimers, Cancer, Heart Disease, Strokes, Respiratory Problems and injuries are leading causes of Long Term Care needs. In many cases, individuals can receive at least some of the care they will need in their own home, in fact, 85% of all Long Term Care is received at home, in an Assisted Living Facility or an Adult Day Care.

Are All Policies the Same?
No! Not all policies offer the same benefits and coverage. Here are some of the things to look for in a policy:

-Long Term Care and Home Health Care Policies will require that you are unable to perform a specific number of Activities of Daily Living (ADL's) before you become eligible for benefits. ADL's include walking, bathing, toileting, dressing, eating, transferring, and continence. Ask what the policy requirements. Ask what the Policy requirements are before you buy.

-Make sure any policy that you are considering includes benefits for Assisted Living Facilities, Adult Day Care, and Home Health Care. You will pay a little more for an integrated policy but it will be money well spent.

-A good rule of thumb is that no more than 7% of your annual income should go toward your premium and you should have at least $75,000 in assets (excluding your home and car). Paying premiums should not adversely affect your lifestyle.

-The longer you wait to purchase a Long Term Care Policy the more it will cost you. Ideally you will want to purchase your policy before age 65, it will be even less expensive before age 60.

Choosing the right Long Term Care Policy can be very important to your financial well being. If you would like to discuss your needs with a licensed agent please Contact Us.

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Investments
Another area to be considered in the retirement planning process is investments. As you probably realize, the investment options available are unlimited. However, just because there are an unlimited amount of investment options does not mean that there are an unlimited number of investments that are right for you! (Please read our legal disclaimer)

It is important to first identity what your goals and priorities are. Next, try to find investment vehicles that fit those criteria. An investment that sacrifices some of your goals should not be used. Even worse is deluding yourself with investments that do not meet any of your goals and priorities.

It is very likely your priorities and goals are similar to those of the majority that we work with, such as: Guaranteeing that your principle is protected for when you need it
Guaranteeing that you have the needed income to enjoy retirement
Desire to earn the greatest return possible – safely
Accessing your tax deferred money in the most advantageous way
Avoid being taxed on money you are not using
To pass on what you have not used to your beneficiaries

Safety is the most important issue when we are talking about the money of retirees. Most retirees depend on “un-earned” income to provide for their retirement living. If they lose a portion of this money, it is likely they would not be in a position to work some overtime to compensate for lost income. For most, it is simply gone and they have to hope they live long enough to regain the losses.

Many people feel they have to give up one set of goals in order to achieve another. For instance, those not satisfied with making saving account returns on their money, may feel their only option to make greater returns is to have their money in stocks, mutual funds, or variable products. This requires giving up guarantees and safety. Those who want safety, may feel they have to forgo the possibility of greater returns.

Fortunately, there are investments out there that are specifically designed for individuals in this situation. Annuities are a type of investment that have the potential to satisfy your desire for higher returns while maintaining guarantees similar to those of CD’s and savings accounts.

A good retirement plan addresses all your investment goals while offering every opportunity for safety and guarantees. While there are multitudes of investments available today, we only recommend those that offer 100% protection for our clients.

~ Look for investments that offer higher returns without sacrificing safety or guarantees ~

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Revocable Living Trusts
There are many ways people try to avoid the probate process. Some have been directed to do things such as re-title their home jointly with their children (joint tenancy), or gift their home outright to their children. Others have been told that they can make a will that, if worded correctly, will bypass the probate process on its own. Some people feel that they do not need to do anything until one spouse has died. These are a few of the ways that people try to avoid the probate process. As you will learn, there are numerous reasons to avoid such inadequate strategies. Unfortunately, many do not get all of the needed information, or do not know what questions to ask. These individuals find out, the hard way, the pitfalls associated with the aforementioned strategies. (Please read our legal disclaimer)

Today, under current Federal and State laws most anyone can eliminate costly court and legal fees with proper planning that makes use of legal documents which may include a Revocable Living Trust. The Living Trust has been praised by our nations leading financial planners, and reported in publications such as The Wall Street Journal, Money Magazine, Business Week and others because it can eliminate the costly and lengthy probate process. Your estate may go directly to your heirs without going through the courts. It may eliminate legal fees that reduce your estate.

A Revocable Living Trust may seem complicated and lengthy, but when you work with an attorney that specializes in this area, it can be a smooth and painless process. Our planners will be glad to refer you to an attorney who specializes in this area, or you may choose to use your own attorney. A living trust does not change HOW you conduct business in your life. You maintain complete control of you estate at all times.

Some of the benefits of a using a Revocable Living Trust are:

• There may be minimal costs to settle your estate at death


• Your estate may be settled much more quickly


• Many of the details of your estate may remain private


• In the case of your incapacity, you already have someone in place to manage your affairs


• You have the option to prepare for the unexpected such as how an underage beneficiary would receive an inheritance


• You may have better options available for your federal estate tax exemptions

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Medicare Part D - Prescription Drug Coverage
The new opportunities available through Medicare Plan D prescription drug plans also mean new complications for many seniors who struggle to choose the most advantageous plan, or obtain benefits they are entitled to. To discuss your Medicare prescription drug benefits or plan with us call our office today.

Prescription drug plan providers have bombarded people with advertisements claiming to have the right plan. It is important to consider many factors and over time re-evaluate if your prescription needs change.

Medicare Advantage and Medicare Part D are two entirely separate plans. It is important to know and understand the difference. They may be offered together in one policy, but they are distinctly different.

Prevent frustration and save money by discovering which Medicare prescription plans are most beneficial to your overall situation. Contact us to learn about premiums, deductibles, co-pays, prescription drug benefits, and other aspects of Medicare prescription drug coverage.

You were advised to make a decision before May 1st, 2006. If you did not chose the Drug Coverage at that time or if you did, but still have questions about your decision call us today. Over the past year we have helped hundreds of families pick the plan that is best for their individual situation.

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Medicare Advantage
Information Coming Soon.

Probate Facts
One area of planning that falls under the category of "retirement and financial planning" is Succession Planning. (Please read our legal disclaimer)

Succession Planning is arranging for your estate to be passed on to those you desire at the time of your death. Many people give no thought to how their estate is going to get to their beneficiaries. Some statistics have stated that 75% of Americans do not have written instructions on how to distribute their estate at their death. This results in terrible situations for your beneficiaries to deal with.

The court process that oversees the distribution of an estate at death is called PROBATE. Probate can be expensive, time consuming, public, and can open the way for families to dispute. In the case of incapacity, a person may have a “living probate” situation, more commonly referred to as a guardianship. This process may be quite cumbersome and even embarrassing. Living probate (guardianship) is the court overseeing the care of the estate of an incapacitated individual.

An estate going through probate remains "open" for a period of time. This allows time for anyone that feels they deserve a portion of your estate to file a claim against it. This time varies, in our area of the country the average length of probate averages 9 months to 1˝ years.

There could be hardships resulting from the probate process. The person that is dealing with the probate court, typically one of your family members, may find it very time consuming. You then may have the added concern of monetary cost. Probate costs average 6% to 7% of the gross size of your estate. According to AARP research, this costs Americans over 14 billion dollars each year. This is money that a family works their whole life to accumulate. Their intention at death is that it would pass on to their heirs. There is also the issue of privacy. The size of your estate, who you owed money to, and who received the balance of your estate may all be public record. Probate may also serve as an avenue Medicaid uses to recover money spent on someone's behalf at the time of their death.

Many people are shocked when they realize all of the pitfalls associated with probate. They have been told their whole lives that if they have a will and keep it updated, everything will be fine. Others have been told that unless you have millions of dollars, you do not to worry about probate. The reality though, is that estates totaling $50,000 may well end up in a probate process. This means that the majority of Americans that have a will may be facing a probate situation at their deaths. However, many are quite relieved to learn that with proper planning all of this can be avoided. Plan a free consultation today to see what can be done for you.

"Probate is slow, costly and outdated"
-Quote From AARP

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