VA updates long-term care information

Back on December 14, 2010, I wrote about long-term care planning for veterans. And I included an excerpt from my book, A Boomer’s Guide to Long-term Care.

The Department of Veterans Affairs just updated their website’s section on long-term care. So if you or someone close to you is a vet, you might want to check it out.

Have a good weekend,

George

Double-check who you’re giving money to

We are truly blessed to live in such a great country where we are free to pursue the American Dream. And we don’t hold back when it comes to sharing with those who are less fortunate. I wrote about this on June 7. But sometimes we let emotions dictate who gets our money and don’t check important details as much as we should.

Take for example the not-for-profit status of charities …

You would likely assume that an organization claiming to be a non-profit is one. But suppose it isn’t. Suppose it has lost its special status with the IRS. It happens.

In fact more than 435,000 charities in the U.S. have lost their non-profit status with the IRS. So if you gave money to one of those in this group, you’d stand to lose any tax deduction you had taken.

The charity could be in big trouble too. It would have to pay back-taxes and certainly lose any goodwill it had built up for its cause.

Charities often lose their exempt status for failing to file tax returns for three consecutive years. Some because of sloppy bookkeeping, some because of outright fraud.

So before you drop the check in the mail to that charity that has touched your heart, make sure its status is current with the IRS.

The IRS has a real simple form right here. Just fill in a few blanks and you’ll know in the blink of an eye if the organization is eligible to receive your tax-deductible contributions.

Have a safe and happy Fourth of July!

George

How you can profit from Obamacare

Yesterday, I wrote about how Obamacare is bound to hit middle-America the hardest. There is a way, though, that you can make the best of this move to socialized-medicine …

With fewer uninsured patients to treat, the three healthcare sector REITs I’m tracking (highlighted below) could see increased cash flow from the government under Obamacare.

The market apparently agrees … HCN upped almost 1% on the news. So I suggest you keep a close eye on this group.

The REITs in the e-FinancialWriter portfolio are humming right along … up 31.04% since inception.

REIT	Sector	Blog date	Price	Closing price 06/29/12	Return to date %	Dividend yield %
PSA	Self storage	3/14/2010	90.75	144.41	59.13	2.84
VTR	Health care	12/30/2010	52.87	63.12	19.39	3.79
HCP	Health care		36.81	44.15	19.94	4.44
HCN	Health care		47.53	58.30	22.66	4.99
IAECREIN:CN	Canada	9/27/2011	19.45cn	24.43cn	25.61	0
ZRE:CN	Canada		16.29cn	20.05cn	23.08	4.99
INVRLPRA:CN	Canada		5.45cn	5.51cn	1.08	1.74
NNN	Retail	1/29/2012	27.18	28.29	4.08	5.44
Index return since inception*					31.04
Avg 12-mo return of REITs in portfolio*					18.50
Avg dividend yield of REITs in portfolio					3.53
12-mo return S&P REIT index as of 5/31/12*					3.49
12-mo return S&P 500*					1.68

Source: Bloomberg

*Does not include dividends paid

Goes to show you that even in a down market, the right real estate can add value to your portfolio.

If you have trouble seeing the chart, just in zoom in with your web browser.

Enjoy the rest of your weekend!

George

P.S. I’m on Twitter. Follow me at http://twitter.com/efinancialwrite for frequent updates, personal insights and observations on how to have a healthy retirement.

If you don’t have a Twitter account, sign up today at http://www.twitter.com/signup and then click on the ‘Follow’ button from http://twitter.com/efinancialwrite to receive updates on either your cell phone or Twitter page.

Court’s ruling a wakeup call for Boomers

It’s official … Obamacare is here to stay. Of course, if Romney wins on November 6, it might get repealed. But that also depends on who controls Congress.

So what does this mean for Boomers?

Here’s my take:

The wealthy—

They’ll still be able to afford insurance premiums, no matter how high they get. And if their favorite docs stop accepting insurance — something I expect many will do — the wealthy will dip a little deeper into their own pockets.

The poor—  

They’ll likely have better access to medical care. They won’t have to go to emergency rooms for minor illnesses. And they might be encouraged to take more preventive steps, such as annual physicals.

The average Joes, like you and me—

We’ll get hit the hardest. Small employers will drop group health insurance, and our premiums will rise. Care will be tougher to get because more people will pile into waiting rooms. Read some of the horror stories from Canada and the UK to get an idea of what we’ll face.

Until we vote on November 6, there isn’t much we can do about this. It is what it is.

So let’s talk about …

Long-term care

Don’t expect Obamacare to give you any help with long-term care expenses. The CLASS Act entitlement was Obamacare’s first casualty and a huge embarrassment. I shouted from the rooftops over and over how this just would not work! Eventually someone in the administration woke up and quietly pulled the plug on it, hoping not to draw much attention. 

And as with healthcare the wealthy will simply write a check for their long-term care expenses, and the poor were already covered by Medicaid. So guess who is stuck in the middle again? Yeap, you and me.

But at least with long-term care you have some ways to assure you can receive the best care possible in case your health changes, without wiping out your nest egg. Insurance and Medicaid-planning are two examples.

This week’s ruling was indeed a wakeup call … hardworking Americans who have saved diligently all their lives must assume greater responsibility for their futures. The time to do that is now.

Have a good weekend,

George

U.S. Ranks #1 in Generosity

Some refreshing news came out this morning that should put a smile on your face …
It seems that last year, Americans were ranked as the most giving people in the world in terms of donating our time and money to not-for-profit causes. That’s up from fifth place the year before.

Here are the findings: 65% of us donated cash, 43% gave time, and 73% helped a stranger.
Thailand led the pack in cash gifts: 85% of its residents opened their wallets. And the UK came in with 79%.
However, the Brits and most of the rest of the world are about half as likely to donate their time to charities as Americans, thereby boosting us to the #1 spot.

You can see the complete breakdown in the Huffington Post.
This should tell the occupiers and the wealth-distribution movement out there that despite personal and economic hardships, American's remain steadfastly committed to each other and their communities. 

And the simple truth is: For a greedy, capitalistic society, we aren’t so bad after all.

Best wishes,

George

Has your long-term care planning hit a roadblock?

Did you finally decide to take a big step in long-term care planning? Good for you!

But when you tried to buy insurance did the company reject you because you have a severe health issue, such as cystic fibrosis, diabetes, cancer, Parkinson's, multiple sclerosis, or osteoporosis? 

United Security Assurance Company just might have a solution for you ...

The company has a plan that expands traditional health requirement guidelines and is designed for individuals who have previously been or who would otherwise be turned down for long-term care insurance.  

This plan is now available in Pennsylvania, Iowa, Kentucky, Florida, Illinois, Missouri, Nebraska, North Dakota, Ohio, Pennsylvania, South Dakota, Texas, and Washington. 

I’m not endorsing the company or its insurance plans. You’ll have to check them out on your own. Click here to find an agent near you. But at least now you know there could be a viable option for paying nursing home costs.

Best wishes,

George

P.S. I’m now on Twitter. Follow me at http://twitter.com/efinancialwrite for frequent updates, personal insights and observations on how to have a healthy retirement.

If you don’t have a Twitter account, sign up today at http://www.twitter.com/signup and then click on the ‘Follow’ button from http://twitter.com/efinancialwrite to receive updates on either your cell phone or Twitter page.

Survey reveals Boomers’ failure to prepare for long-term care

A survey by John Hancock early this year discovered that many people close to retirement are ill prepared for the possibility of needing long-term care. And that could lead to a life-changing event that they had never imaged.

It seems that while making sure they will be able to afford good care is important, they cannot bring themselves to the point of addressing the issue.

The odds of ever needing long-term care are high … 35% and 55% depending upon definitions for someone 65-years-old.

The average cost for a semi-private room in a nursing home: About $75,000 a year. And if it increases 4% a year, you’re looking at more than $164,000 a year in 20 years.

If you are turning age 65, you are entering the high-incidence years for needing long-term care. So it’s obvious that with this level of risk and cost, you should not ignore planning for it.

Here are a few key points the John Hancock survey found:

The majority of people know there is a significant likelihood they will need long-term care at some time in their lives. Only 6% believe this eventuality is not at all likely. And 52% agree that it is irresponsible not to plan for your own long-term care needs. Yet only 15% have a plan on how to pay for it.

The majority think long-term care insurance is the best way to handle the cost, although 89% don’t own a policy.

Less than a third felt they understood Medicaid. But more than half hope to qualify for the government program.

Three-quarters of the survey respondents expect that the benefits covered by Medicaid will be cut back within the next 10 years. Moreover, for most people it is important they receive good quality care in a nursing home, and three-quarters do not expect this level of care in a Medicaid-approved facility.

To sum it up, consumers know the risk of their health changing as they age is high. They don’t want to be a burden to loved ones, they want the best care possible, and they want to preserve what they’ve worked a life time to accumulate.

But … they aren’t taking action.

Best wishes,

George