Archive for January, 2010 Page 2 of 3



How Retirees Saved the Banks

The New York Times, January 17th, 2009

If you’re a retiree who relies on interest income, you know that the
tap is running dry. In fact, many investors in certificates of
deposits, savings accounts and money market accounts are losing money
once taxes and inflation are subtracted from today’s extremely low
yields.

Less well known is that measly savings yields are
central to the government effort to buy time for the banks to earn
their way back to health. It is important to rebuild the banks. But
more attention must be paid to the collateral damage from that effort.

Here’s
what’s happening: By lowering the short-term interest rate it controls
to virtually zero and creating lending programs, the Federal Reserve
has enabled banks to borrow cheaply. The banks re-lend that cheap
money, but not necessarily to consumers and businesses. They can, for
example, lend it to back to the federal government by buying Treasury
securities, and earn a nice spread between their cost of funds and
Treasury yields.

At the same time, banks are awash in deposits,
much of it from investors who have pulled their money out of riskier
investments. With money rolling in, big banks don’t need to compete
with one another for savers, which further depresses the interest on
offer.

The result is presumably healthier banks and certainly poorer savers. Or, as William Gross, the legendary bond investor told The Times’s Stephanie Strom: “It’s capitalism, I guess, but it’s not to be applauded.”

The
situation is especially tough on retirees who depend on interest income
to supplement their Social Security. Some will have to spend their
capital to make ends meet. Some will probably take on more risk by
investing in stocks or bonds, or will have to live on less. Some, as
Ms. Strom reported, have taken out reverse mortgages to increase their
income — another example of how Americans’ wealth is being sapped.
Reverse mortgages allow people who are 62 and older to convert the
equity in their homes into cash, with the loans usually repaid by
selling the house after the owner dies.

Read more of this article.

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A pension scandal – CalPERS

SF Gate  – January 17, 2010

Allstate CEO sees flat economy, challenges ahead

KansasCity.com – January 17, 2010

When Thomas Wilson, chairman and CEO of Allstate Insurance Co., scans the
economic horizon, he sees a landscape that requires adaptation: Real estate
remains in the dumps, car sales are sluggish, the unemployment rate is
stubbornly high and the economy remains questionable.

“We don’t think there is any exact parallel to what this next decade will
look like,” said Wilson in an interview during a recent trip to the nation’s
capital.

Allstate and its competitors face daunting challenges. With fewer homes and
cars being sold, volume growth in insurance policies – 80 percent of Allstate’s
business – is no small task.

And as baby boomers near retirement age, insurers have expanded aggressively
into retirement products such as annuities. But now boomers are struggling, many
forced into unexpected early retirement, while others now expect to work longer
to make up for lost savings.

As CEO of the one the world’s largest insurers, Wilson occupies a unique
perch from which to view the U.S. economic storm. Here are some of the
plainspoken Michigan native’s views, edited into a question-and-answer
format.

QUESTION: Allstate recently conducted a “heartland’” poll that registered a
sour mood among consumers. What was troubling?

ANSWER: This time 48 percent of the people have said they actually spent less
and cut back on major purchases. Three months ago, about 70 percent said they
were probably going to spend less. So what you’re seeing is the concept turning
to reality. A third of the people had to dip into savings or retirement accounts
to make ends meet.

Q: You also found a dangerous erosion of trust?

A: Middle-class Americans just don’t believe in the business community or the
government, and they’re pointing fingers at both of them. It’s not just one of
them. Half of the people don’t trust corporations, unions or banks. If you ask
them, “How do you think politicians are doing?” 80 percent rank their
politicians as fair or poor. … I think that’s a problem because in a free
market and a democracy, you have to have people believing in institutions. This
ought to be a wake-up call.”

Q: How are consumers of insurance changing their habits?

A: They feel like they’re being forced to take more risk because of the
economic box they’re in. So when they come to us, they are raising their
deductibles because they don’t have any money (to pay higher premiums). It’s
clearly impacting their purchasing behavior. Sort of, “I’ve got to manage my
budget so I have to write the check, but I’d rather not.” I think they’re
feeling that they’re being forced to take on more (out-of-pocket) risk when they
don’t want to.

Q: Customers are signaling a break from the past?

A: They look forward, and they see it’s not going to be the same (as it was
before). Nobody is telling me there is going to be a whole bunch of new jobs,
nobody is saying they’re going to raise wages. They don’t see that, and they
haven’t seen that really over the last decade. That’s why they are saying this
(recovery) is going to be different.

Q: You’re not too bullish on chances for a sharp rebound?

A: I think the economy has stopped shutting down, but you are seeing people
getting by with less on what are “postponable” purchases. So there are certain
parts of the economy which aren’t doing well. I don’t think car purchases are
going to get back to 16 million (vehicles annually) any time soon. But they’re
not going to stay at 10 million. Just if you look at the number of cars that
break, get old, fall apart, they’ve got to be replaced.

Read more of this article…

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Couple’s big age difference affects retirement planning

Los Angeles Times - January 17, 2010

Dear Liz: My husband is quite a bit older than I (about 18 years). When
we married, we agreed that we should put all our savings into joint funds and
into his retirement accounts. Our thought was that since I’m younger, we’d have
much earlier access to retirement money by funneling it into his retirement
accounts (as opposed to mine), and that it was unfair for me to sock away money
that he may never have access to.

Intellectually it feels like the fair
way to go, since we both work and are equally responsible for our family’s
finances. The money we’ve been putting in his retirement accounts will
ultimately belong to both of us. But emotionally, I feel anxious about not
having my own accounts. Should I just work this out in therapy (joking) or am I
right to be concerned? What would you advise for a couple like us with an age
difference?

Answer: You are likely to outlive your husband
by at least two decades. Rather than focusing on early access to retirement
funds, you should be making sure that money lasts for a lifetime: your lifetime,
not just his. By the way, considering your own needs is not unfair — it’s
sensible. A loving husband wouldn’t want to leave you old, alone and
impoverished.

You may not need a session with a therapist, but you should
definitely have a meeting with a fee-only financial planner who can review your
situation and make sure the needs of both of you are considered.

Wife
needs to build own credit

Dear Liz: I applied for a 10-month,
interest-free loan at an appliance store to purchase a washing machine and was
refused. We own our house, have no outstanding debt and pay our credit cards in
full each month. I’m worried that if something happens to my husband and I want
to buy a car or whatever I need, I won’t be able to get
credit.

Answer: If you were turned down for credit, you should
have been given free access to the credit report the lender used to make its
decision. In any case, everyone in the United States can get a free look at
their credit reports from the three bureaus once a year at www.annualcreditreport.com. You
should peruse the reports to see whether there are any obvious errors, such as
accounts that aren’t yours or late payments when you paid on time.

The
problem could be that all the credit you have is in your husband’s name. If
that’s the case, you should begin building your own credit. If you’re already an
authorized user on his cards, see if the credit card issuers will report the
accounts to your credit reports as well as his. Opening a credit card account in
both your names, as joint account holders, also can help build your
history.

Credit card users must know rules

Dear Liz:
As a customer service representative for a credit card company, I enjoy your
articles on the credit card industry. But I wish you would do an article from
the credit card companies’ point of view. While I agree that many credit card
practices are unfair, a lot of the customers I speak to are oblivious to basic
credit card rules. Many people do not understand why they cannot charge on an
account that has not been paid in three months, or why they get a late fee when
they fail to pay on time. Just like a store raising prices to cover the cost of
shoplifting, credit card companies make their policies based on their worst
customers, not their best ones. If you are a great customer and usually pay on
time, just call and the fee may be waived. Credit cards are a confusing
business. You are good at helping consumers know their rights, but I think they
need to know their responsibilities.

Answer: Your point is well
taken. Paying on time is an important responsibility, and one that became easier
with the Credit Card Accountability Responsibility and Disclosure Act of 2009,
which banned arbitrary deadlines, such as considering late a payment that
arrives after 1 p.m. on the due date. (Any payment received by 5 p.m. on the due
date is now considered to be on time.)

Card issuers also are now
required to mail statements at least 21 days before the due date (up from 14)
and to make the due date the same day each month, rather than moving it from
month to month. If the date falls on a Saturday, Sunday or banking holiday, the
due date is moved to the next business day. These rules should make it easier
for responsible users to avoid late fees.

See the original article here.

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‘Phased retirement’ is a growing trend that may not work for everyone

NJ.com, January 13th, 2009

David Spence, 68, of Dallas, was the national sales manager for a
company that manufactures awards for the golf industry. He had planned
to cut back his hours as he neared retirement, but the sour economy
interfered.

“The phased retirement wasn’t official, but the idea was I would
build a division for them from a sales standpoint, then I would start
cutting back,” he said.

But the company ran into financial problems and laid Spence off in 2008.

Now a growing trend, “phased retirement” allows workers to cut back their hours but still earn income.

“It’s a program — formal or informal, or even self-created — to
gradually ease into retirement, rather than doing a straight stop,”
said Richard W. Jackson, a retirement planning counselor at Schlindwein
Associates in Dallas.

Phased retirement is getting a boost from the sluggish economy, as
many people have discovered they can’t afford to retire as soon as
they’d hoped.

“The economic situation has moved this to the forefront more than
would otherwise have been the case,” said Cynthia Mallett, vice
president for corporate benefit funding at MetLife. But a phased
retirement is not for everyone, and there are financial factors to
consider in deciding whether you can afford to do this.

Obviously, the primary financial benefit of taking a phased
retirement is that you continue to get a paycheck, which can lessen the
need to draw on your retirement savings, allowing the money to grow
further.

On the other hand, when you reduce your work hours and salary, that could have a direct impact on your employee benefits.

Read more of this article.

About
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Professional
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3 ways to shed credit card debt in old age

Bankrate.com, January 13th, 2009

Dear Debt Adviser,
My parents are 88 years old and 86 years old. They are physically and
mentally fragile, but still living in their home with the assistance of
home aides provided by Medicare. My mother had a credit card that she
maxed out at $20,000, which my father is struggling to pay. The interest rate
is somewhere around 30 percent and the card issuer has not been
receptive to lowering the rate. My dad is paying $600 a month, which
represents the interest only. What can they do?

Their home equity has been drained through a reverse mortgage.
They barely have enough money to make it with their Social Security
checks and the little retirement my dad receives. The $600 would go a
long way toward helping them make it. Should they look into bankruptcy?
Can they just walk away from the debt? My dad has been religiously
paying the bill (which is not in his name) out of concern for his
excellent credit score. We have had to help them fill the voids here and there. At 88, he will not be buying anything or trying to secure credit and they are really struggling. Please give us some advice. Thank you.

– Dianne

Dear Dianne,
You asked a good question: “What can they do?” I can see that you are concerned, and maybe a little overwhelmed, about how they handle their finances. A reverse mortgage
can be a great tool that uses home equity in a very legitimate and
efficient way and can help many seniors stay in their homes long after
they would have otherwise had to move. My suggestion is to ask them
what they want to do, if anything. Both are involved because the credit card debt is in your mom’s name and your dad is paying for it.

Here are some options all of you can discuss:

Lower the interest.
The high rate of interest being charged is bumping up the monthly
payment on your parents’ credit card debt. Lowering the interest rate
to 10 percent would free up about $200 per month and lessen the need
for you to supplement their income. To get the rate lowered,
your mother or someone with her power of attorney could call the card
issuer and make the request. Due to the fact that the bill has been
paid on time and as agreed for some time, the issuer may be willing to
comply. Explain her financial circumstances and I suggest that the
caller have a payment
amount in mind that she can afford. It’s better to ask for what you
want than to have the lender guess. They always guess too high!

Read more of this article.

About
Reverse Mortgages:
  Learn all about reverse mortgages at
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Professional
Financial Advisors:
 
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you at NewRetirement.com.

Annuity
Advice for Retirement:
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Merrill Lynch Affluent Insights Quarterly Survey Finds New Retirement Sensibilities and Priorities Emerging Among Affluent Americans

Bank of America, January 14th, 2009

Bank of America today announced findings from the latest Merrill Lynch
Affluent Insights Quarterly, a survey of the values, financial
priorities and concerns of affluent Americans and the challenges and
opportunities they face. Focused largely on issues related to
retirement, the second in this series of quarterly surveys reveals that
many affluent Americans are rethinking their vision of retirement and
offers lessons learned from retirees and what they wished they had done
differently when planning for retirement.

Surprisingly, given the opportunity to do it all again, roughly half
(51%) of retired respondents indicated that they would have focused
more on their “life goals” and less on “the numbers” and on hitting a
specific nest egg dollar amount when planning for retirement, while the
remaining respondents (49%) indicated that they would have focused more
on “the numbers.”

Retirees who wished they had focused more on their “life
goals” indicated that they would have spent more time determining how
they wanted to live in their retirement years (38%) and based their
retirement income needs not just on a number that would sustain them
but on one that would help them live their ideal lifestyle during these
years (13%). Additionally, 8 percent would have created a plan to
better support their philanthropic missions. Among those who indicated
that they would have focused more on “the numbers,” 23 percent wished
they had started working with a financial advisor earlier in life and
18 percent would have given up more luxuries in order to reach their
retirement goals. Among all retired respondents, three out of 10 (31%)
worked with a financial advisor when planning for retirement, though,
in hindsight, more than half (55%) wished they had started doing so
sooner.

“Helping our clients plan for retirement will continue to be
a core focus for our business in the years ahead,” said Sallie
Krawcheck, president of Bank of America Global Wealth & Investment
Management. “Our experienced Financial Advisors work closely with
clients to better understand their lifetime aspirations. Through this
personal approach, coupled with a sophisticated portfolio of financial
solutions, we strive to help clients minimize the complexity and
uncertainty associated with retirement, allowing them to concentrate on
what matters most.”

Read more of this article.

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Professional
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DALBAR Announces Its 2009 Service Award Winners in Financial Services

Yahoo Finance - January 12, 2010

Today DALBAR released the 2009 winners of its annual Service Awards. For twenty
years, DALBAR has conducted rigorous testing of service delivery and, each year,
identified those mutual fund, broker/dealer, annuity, life insurance and
retirement plan providers that are able to deliver industry-leading service to
their customers.

The winners of this year’s award have emerged from an increasingly
competitive field and represent the service leaders within the financial
services industry committed to delivering the highest tier of service to their
customers.

A win in 2009 marks the eighteenth award for Putnam Investments and
the fourteenth for The Hartford. Evergreen Investments, now
a fully owned subsidiary of Wachovia Bank, a Wells Fargo Company, is also an
industry service leader with 12 consecutive years of award winning
experience.

BlackRock, Goldman Sachs, New York Life Bank and B/D Annuity Svc
Center
and Transamerica Funds have also been very consistent in
providing excellent service by each earning the DALBAR Service Award for the
tenth time.

Other firms that achieved excellence in service
include: AEGON/Transamerica, Allstate Insurance Company, Ameriprise Financial
Services, Inc., Genworth Financial, The Guardian Insurance & Annuity
Company, Inc., The Hartford Life Annuities, The Hartford Mutual Funds, John
Hancock Annuities, John Hancock Signature Services, JPMorgan Funds, Lord, Abbett
& Co., New York Life Insurance, New York Life Investment Management Service
Company, Pacific Life, Primerica Shareholder Services, Prudential Financial,
Prudential Retirement, RS Investments, SunAmerica Annuity and Life Assurance
Company, Sun Life Financial, and Transamerica Capital
.

“Earning this award fully underscores the commitment of these companies to
their customers, even when faced with new and different pressures as has been
the case throughout 2009″, said Csilla von Csiky, Managing Director at
DALBAR.

The awards are based on systematic testing of customer service throughout the
year. DALBAR conducts thousands of tests to measure how financial companies
respond to the needs for service from their customers. Companies that exceed a
variety of industry benchmarks after one year of testing earn the DALBAR Service
Award. The following table provides a list of all firms that were recipients of
DALBAR’s 2009 Service Award for each category.

DALBAR 2009 Service Award Winners

Mutual
Funds
    Financial
Intermediaries –

Post-Sale
    Post-Sale-Continued
  • BlackRock (10)
  • Evergreen Investments (12)
  • John Hancock Signature
    Services (2)
  • JPMorgan Funds (9)
  • Lord, Abbett & Co. (7)
  • New York Life Investment Management
    Service Company (9)
  • Primerica Shareholder Services (7)
  • Putnam Investments (18)
  • RS Investments (6)
  • Transamerica Funds (10)
  • Allstate Insurance Company (2)
  • Ameriprise Financial Services, Inc.-Annuities (3)
  • Ameriprise Financial Services, Inc.-Mutual Funds (3)
  • Ameriprise Financial Services, Inc.-Insurance (3)
  • Ameriprise Financial Services, Inc.-Managed
    Products and Brokerage (3)
  • BlackRock (9)
  • Evergreen Investments (5)
  • Genworth Financial (4)
  • Goldman Sachs (10)
  • Hartford Life Annuities (1)
  • The Hartford Mutual Funds (1)
  • John Hancock Annuities (2)
  • Lord Abbett & Co. (4)
  • Pacific Life (7)
  • Putnam Investments (13)
  • Sun Life Financial (5)
  • Transamerica Capital (7)
 

Financial Intermediaries

Pre-Sale

Annuities Retirement
Plans
  • Evergreen Investments (7)
  • JPMorgan Funds (9)
  • Putnam Investments (13)
  • AEGON/Transamerica (6)
  • Genworth Financial (3)
  • The Guardian Insurance & Annuity
    Company, Inc. (9)
  • New York Life Bank and B/D
    Annuity Svc Center (10)
  • New York Life Insurance (7)
  • Pacific Life (9)
  • Prudential Financial (9)
  • Putnam Investments (13)
  • SunAmerica Annuity and Life Assurance
    Company (4)
  • Transamerica Capital (7)
  • The Hartford (7)
  • Prudential Retirement (1)

NOTE: The numbers in parentheses represent the number of times the
organization has earned the Service Award.

The Mutual Fund, Annuity and Retirement Plan categories represent service
provided to consumers of these products. The Financial Intermediary categories
represent service provided to professionals who advise investors.

DALBAR, Inc., the nation’s leading financial services
market research and consulting firm, is committed to raising the standards of
excellence in the financial services industry. With offices in both the US and
Canada, DALBAR develops standards for, and provides research, ratings, and
rankings of intangible factors to the mutual fund, broker/dealer, life
insurance, property and casualty, and managed account industries. They include
investor behavior, customer satisfaction, service quality, communications,
Internet services, and financial professional ratings.

See the original article here.

About
Reverse Mortgages:
  Learn all about reverse mortgages at
NewRetirement.com

Professional
Financial Advisors:
 
 Find out what a financial advisor can do for
you at NewRetirement.com.

Annuity
Advice for Retirement:
   Evaluate and compare annuities at
NewRetirement.com

NewRetirement
Retirement Calculator:
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New Kid In Town: Axa’s Hybrid Variable Annuity

Financial Planning - January 11, 2010

At a time when many variable annuity providers have been simplifying and
streamlining their products, Axa Equitable Life Insurance Co., in New York, is
heading in the other direction. The company’s new Retirement Cornerstone
variable annuity is essentially two annuities in one package.

“We’ve seen over the last year a lot of takeaways in the variable annuity
space,” said Steve Mabry, senior vice president of annuity product development
at Axa Equitable. “We wanted a whole new design concept.” The annuity includes
two distinct accounts, or “sleeves.” One caters to investors’ desire to maximize
their investment performance, while the other is designed to protect their
assets. Retirement Cornerstone provides a wide range of investment choices for
investors to try to recoup some of their losses from the market crash, while
using a lifetime income guarantee to protect a portion of their assets, Mabry
said.

Axa Equitable’s new hybrid product appears to be unique, said Doug
Dannemiller, a senior analyst at research firm Aite Group. The closest existing
annuities to it might be those that have a variable annuity sleeve and a fixed
annuity sleeve, he said. The company is “playing to the different elements
advisors like,” Dannemiller said.

Indeed, advisors prefer to have lots of investments to choose from, and
Retirement Cornerstone’s long-term accumulation account gives them that, he
said. It offers some 90 investment portfolios from between 20 and 25 asset
managers. The offerings include a wide range of investments including sector
funds covering areas like energy, biotech and real estate, Mabry said.

Consumers, on the other hand, like guarantees, Dannemiller said. And those
guarantees are available within the product’s downside protection account. It
provides a guaranteed income benefit option that invests in asset allocation and
index portfolios. The account also provides a hedge against rising interest
rates. Its “roll-up” rate allows the account’s income benefit to increase as
interest rates climb. The rate is declared annually at a percentage point above
an average of the 10-year Treasury rate. It is applied to the benefit base,
which is used to calculate the guaranteed minimum income.

The initial rate of 5% can rise as far as 8%, but will not fall below 4%,
according to the company. The downside protection account offers 11 investment
options in the form of index and asset allocation funds, Mabry said. Investors
will work with their advisors to determine the best way to split assets between
the two sleeves, he said.

Among the other features of Retirement Cornerstone are tax-free transfers
among investment portfolios and the ability to sweep cash tax-free from the
long-term accumulation account into the downside income protection account.

From Axa Equitable’s perspective, Retirement Cornerstone appears to have a
risk management advantage. The number and types of investments within the
protected portfolio give the company “a better handle on what the investor has
guaranteed, and therefore the ability to manage or hedge that risk very
tightly,” Dannemiller said. That is in line with the industry’s current focus on
setting the appropriate price for the market protections provided within
variable annuities, he added. The base contract for Retirement Cornerstone costs
130 basis points of assets, and the guarantee costs 80 basis points, according
to Mabry. Expenses related to the investments themselves are an additional
layer, he said.

AXA Equitable’s new product comes at a time when variable annuity providers
are doing lots of tinkering with their offerings and in some cases coming out
with new products.

Earlier this year, Sun Life Financial Distributors Inc., in Boston,
eliminated several versions of its living benefits. And, MetLife Inc. introduced
a simplified variable annuity over the summer that it dubbed the Simple Solution
Variable Annuity.

Driving much of the change is the strain that the market crash put on
providers of the guaranteed income riders. In response, many of those providers
have eliminated guarantees or raised their prices. Some have speculated that
those changes have weakened the demand for variable annuities. Second-quarter
figures from research firm Kehrer-Limra showed that variable annuity sales rose
17% in the quarter compared with the first quarter. That was well behind the
55.9% gain posted by mutual funds. The disparity is striking because sales of
the two products usually move in tandem.

See the original article here.

About
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  Learn all about reverse mortgages at
NewRetirement.com

Professional
Financial Advisors:
 
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you at NewRetirement.com.

Annuity
Advice for Retirement:
   Evaluate and compare annuities at
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NewRetirement
Retirement Calculator:
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Facing End-of-Life Talks, Doctors Choose to Wait

The New York Times – January 11, 2010

It’s a conversation that most people dread, doctors and patients alike. The cancer is terminal, time is short, and tough decisions loom — about accepting treatment or rejecting it, and choosing where and how to die.

When is the right time — if there is one — to bring up these painful issues with someone who is terminally ill?

Guidelines for doctors say the discussion should begin when a patient has a year or less to live. That way, patients and their families can plan whether they want to do everything possible to stay alive, or to avoid respirators, resuscitation, additional chemotherapy and the web of tubes, needles, pumps and other machines that often accompany death in the hospital.

But many doctors, especially older ones and specialists, say they would postpone those conversations, according to a study published onlineMonday in the journal Cancer.

It’s not entirely clear whether these doctors are remiss for not speaking up — or whether the guidelines are unrealistic. Advice that sounds good on paper may be no match for the emotions on both sides when it comes to facing patients and their families and admitting that it will soon be over, that all medicine can offer is a bit of comfort while the patient waits to die.

Dr. Nancy L. Keating, the first author of the study and an associate professor of medicine and health care policy at Harvard, said not much was known about how, when or even if doctors were having these difficult talks with dying patients. But she said that her research team suspected that communication was falling short, because studies have shown that even though most people want to die at home, most wind up dying in the hospital.

The researchers surveyed 4,074 doctors who took care of cancer patients, instructing them to imagine one who had only four to six months left, but was still feeling well. Then the doctors were asked when they would discuss the prognosis, whether the patient wanted resuscitation or hospice care, and where he or she wanted to die.

The results came as a surprise: the doctors were even more reluctant to ask certain questions than the researchers had expected. Although 65 percent said they would talk about the prognosis “now,” far fewer would discuss the other issues at the same time: resuscitation, 44 percent; hospice, 26 percent; site of death, 21 percent. Instead, most of the doctors said they would rather wait until the patients felt worse or there were no more cancer treatments to offer.

They were not asked for their reasoning, but Dr. Keating offered several possibilities. One is that doctors may disagree with the guidelines, which are based on expert opinion rather than data.

“Or they may not be comfortable discussing it,” she said. “These conversations are time-consuming and difficult. Some doctors may feel patients will lose hope. It’s easier to say, ‘Let’s try another round of chemotherapy,’ instead of having a heart-to-heart discussion.” Training may also be a factor, Dr. Keating said. Medical schools spend more time on end-of-life issues than they did in the past, and the greater willingness of younger doctors to broach the subject may reflect that change.

Dr. Daniel Laheru, an associate professor at the Kimmel Cancer Center at Johns Hopkins and a specialist in pancreatic and colorectal cancers, said he was not surprised by the study.

“The natural tendency is not to provide more information about this than you have to,” he said. “It’s such an uncomfortable conversation and it takes such a long time to do it right.”

He added, “People come to us with hope, and if you kind of yank that away from them right away, it’s very unsettling.”

A terminal diagnosis plus the grim details of “do not resuscitate” orders and hospice care may be too much for a patient to hear in one day. Dr. Laheru said he tried to prepare patients on their first visit for the idea that during later visits they would discuss different possible outcomes.

“They don’t always hear that part,” he said.

Dr. John Boockvar, a neurosurgeon at NewYork-Presbyterian/Weill Cornell Medical Center who treats many patients with malignant brain tumors, said he favored postponing such discussions until the end was drawing close. During his own late father’s illness with leukemia, he said, his family was upset by an oncologist who brought up end-of-life issues early.

“As a patient and a family member, I don’t know if I would have wanted to hear a doctor say, ‘In 18 months we’ll be dealing with hospice or end-of-life discussions — do you want to have that discussion now?’ ” Dr. Boockvar said. “I don’t know what the emotional benefit is to the family. I don’t think it’s been studied.”

As a doctor treating patients who are terminally ill, he went on, he did not hesitate to discuss end-of-life issues. But he said, “As the time approaches, there’s usually ample time.”

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