Archive for the 'Long Term Care' Category

Is One Million Dollars Enough to Retire?

Got a million dollars for retirement?  Think it’s enough?  Think again.  A million dollars sounds like a whole lot of money to most folks, and it is!  But in today’s market, one million for your retirement fund simply may not cut it when you need your money to stretch for your entire retirement.  Why?  Let’s think about it.

The average lifespan of most people today is longer than any point in the past.  Living to age 90 isn’t that unusual anymore, especially with modern medicine.  If you retire at age 62 and live until age 90, that’s 28 years that you will need to fund.  Where you live and the lifestyle you want to maintain can significantly increase the amount of money you will need for retirement.  You also have to take into account the cost of medical care.  Do you have long term care insurance to protect you in case of an unforeseen medical expense?  One hospital stay has been known to throw many people into financial turmoil.

Social Security is unstable and is not enough to live on for many households.  It’s never too late to start preparing for your retirement by looking into Annuities and Long Term Care Insurance as options to help protect yourself.

What’s your retirement savings goal?  How far along are you and are you confident you will reach it?  Let us know your thoughts!

Use the NewRetirement Retirement Calculator to see how far away you are to reaching your goal!

Sign up for one of our newsletters.

Getting Paid to Be Your Parent’s Caregiver

Yesterday we talked about the trend of parents moving in with their adult children.  This trend will likely continue for some time and in many cases, the parent being home may create some extra work for the adult children.  Many times if the parent needs medical care, the adult child is forced to take time away from work or cut back drastically on hours in order to care for their parent.  This is why it’s important to point out that in some cases, the caretaker  may be able to receive compensation.

Recently, AARP highlighted some different ways that children can receive financial compensation for the care of their parents.  Much of it has to do with programs that are offered through the use of a Medicaid waiver.  Of course, Medicaid is not the most cash rich program currently, so the hoops that need to be jumped through may be quite large.  Another suggestion is to check the parent’s long-term care insurance policy, if they have it.  Some policies allow for a cash benefit for the use of in-home assistance.  And of course don’t forget – especially with tax time right around the corner – any deductible expenses the caregiver may have incurred to accommodate their parents needs.  Wheelchair ramps, safety bars or even the gas used to drive the parent’s to their doctors appointments may be deductible.

Do you have long term care insurance to protect you?  See how to select the best policy for you.

Will you be able to afford to stay in your home?  Use our retirement calculator to see how your retirement plan shapes up and you can improve it.

Sign up for one of our retirement newsletters.

New Year’s Resolutions

It’s that time of year again – Time to make those New Year’s Resolutions!  This year while you’re thinking about all the ways to improve yourself or your life in 2012, don’t forget to add improving your retirement plan to that list!

What do you plan on achieving this coming year to help strengthen your retirement?  Are you going to invest more money into your IRAs of 401(k)s?  Are you going to purchase a lifetime annuity to guarantee income later in life?  Or are you going to look into Long Term Care Insurance to make sure you are covered in case of unexpected medical costs?  There are many small adjustments that you can do to increase the health of your retirement plan.  You can use our retirement calculator to see what a small adjustment can do for you and how far your money will stretch.  We’ll be here in the New Year to continue to help with all of your retirement planning needs – Have a Happy New Year and see you in 2012!

Sign up for one of our retirement newsletters to stay informed during the year!

 

Super Brain Pill?

Recently, researchers from the Baylor College of Medicine discovered something that could change the game when it comes to treating Alzheimer’s.

It was found that mice produce a gene called PKR, just like humans do.  PKR is triggered once Alzheimer’s begins, but a new gene that blocks the PKR in mice has shown that it can not only reverse the Alzheimer’s but it can also create a state of “super memory.”  Since mice and humans have similar brains, researchers are optimistic that the effects being seen in the mice would be the same in humans.  A “brain pill” may be in the future for those suffering from degenerative brain diseases and could help change the lives of many many people around the world.

Learn more about Long Term Care Insurance to protect yourself from unexpected medical costs.

Sign up for one of our retirement newsletters.

Preparing for Long Term Care is a Necessity

Did you know that the average monthly base rate for nursing homes in the U.S.  is around $3,300? In California, the price is even higher averaging around $6,500 a month.  It has been estimated that half of the population in the Bay Area would not be able to afford more than three months of nursing home care.  Who could at over $200 a day!

In 2010, CLASS, which stands for Community Living Assistance Services and Supports Act, was put into law as part of the new federal health care law.  The objective is to help create a long term care option that workers can purchase to help them with medical care further down the road.  CLASS will be available to all employed persons that are age 18 or older.  After enrollment, workers will pay a monthly premium that is based on their age – older people will pay more than younger people.  CLASS is completely paid for through worker funded premiums – not taxpayer money.  So the success of CLASS depends on a wide enrollment in the program.  Currently though, $50-$75 a day is the estimated daily payout that can go towards in home care when the time comes.  Preparing for long term care should be a necessity just like having a 401(k) with your employer.  Educating yourself on CLASS or purchasing your own long term care plan is something that needs to be looked at quite seriously.

Long Term Care is expensive.  See how not having a plan can affect your retirement.

Read more on long term care insurance, here.

Sigh up for one of our newsletters.

A New Way to Kill Cancer

A year ago, a man by the name of William Ludwig had given up on Chemotherapy.  He had leukemia and no treatment seemed to be working anymore – he felt like his time was up.  In an effort to possibly add an extra six months to his life or to simply contribute to the study, Ludwig agreed to have a billion of his virus fighting T-cells removed from his body to be injected with new genes that could potentially program the cells to attack his cancer.  After the procedure, nothing seemed to happen but 10 days later, his blood pressure dropped and his temperature rose to dangerous levels.  He was put into the ICU and his family was told to say their goodbyes.  But a few weeks later, his stats returned back to normal and his leukemia was completely gone.  And now, a year later, there is still no sign of the disease that was once close to taking his life.

Of course this treatment is still in testing and is not available to patients outside of these studies.  There are high risks for the treatment and it is still considered dangerous, but there is a very real possibility that this could be the beginning of the cure for cancer and many other diseases.  Read the full article here at the New York Times Website.

Protect yourself by ensuring you can cover the costs of any unplanned medical costs by purchasing Long Term Care Insurance.

See how having Long Term Care Insurance can affect your retirement plan.

Sign up for one of our retirement newsletters.

 

Over The Counter Danger?

“I trust my heart to ________.”  Can you finish that sentence?  A large portion of people can say “Lipitor” with no hesitation.  Lipitor is the world’s most-prescribed drug and is worth more than $11 billion in revenue to it’s company Pfizer.  But that may not be the case for long.  Pfizer’s patent on Lipitor is getting ready to expire in November and Pfizer is scrambling to make sure it does not become a generic drug that will allow for a cheaper version of the drug to be produced.  One solution?  Have it become an over the counter medicine.

Usually when expensive prescription drugs become available over the counter (think ibuprofen, and many allergy medicines), it’s a great thing for consumers.  But this time around, it’s not looking that way.  Lipitor is used to treat high cholesterol and reduces the level of “bad” cholesterol.  The problem is, elevated levels of the bad cholesterol are asymptomatic – there’s no way to know if you have it without taking a blood test.  And currently, these types of blood tests can only be given by physicians.  If people don’t know their cholesterol levels and are giving themselves the wrong dosage, they can easily harm themselves.

Do you think making this drug available over the counter is good for the public?  Or do you think this move could do more harm than good?

Prescription drugs are expensive – make sure you have enough money saved to purchase your medications AND still retire!

Protect yourself with a long term care plan.

Sign up for one of our retirement newsletters!

Taking Care of Your Parents

In a recent study, it was found that the percentage of adults taking care of their elderly parents has tripled in the past 17 years.  For these caregivers, it means poorer health and lower wages than their counterparts who are not caring for an elderly parent.  On average, a caretaker that is 50 or older loses around $308,880 in lost wages, pensions and Social Security benefits over their lifetime.  50 and over also happens to be the time when workers are making the most money they’ve ever earned and it will be very hard for the to play catch up to lost wages.

It was also found that caregivers are more prone to health problems and they are more likely to partake in harmful activities such as drinking heavily, smoking and skipping health screenings.  Are you or someone you know having to take care of an elderly parent?  How are you dealing with it?

Read the full article, “Toll of Caring for Elderly Increases,” here.

Want to protect yourself or a loved one with Long Term Care Insurance?  Find the best policy here.

Sign up for one or more of our informational newsletters!

A New Credential for Home Care Aides

The New York Times, February 25th, 2011

When the Direct Care Alliance first offered the test that would lead to
becoming a credentialed “personal care and support professional,” Maria
Frank, a 60-year-old home care aide in Nazareth, Pa., signed up.

She didn’t need the certificate to land a job; she’d been on the job
for more than two decades, and for the past 13 years had cared for the
elderly through Home Instead, the national home care franchise. It was
mostly for her own satisfaction that she wanted to pass the test.

“It was hard,” reported Ms. Frank. “It’s a pretty long test.” Two
hours, to be precise. But like 80 percent of the first 100 workers who
took the test in a pilot project, she passed. Her certificate — her
first professional credential — is in the mail.

The Direct Care Alliance,
which represents hands-on employees who care for the elderly and
disabled in facilities and in people’s homes, sees this credentialing
process as key to elevating the home care work force. “These workers
have a lot of knowledge and skills, but they don’t have a way to prove
it,” said Helen Hanson, professional development manager at the
alliance. “The credential is a way to show employers and prospective
employers their professionalism.”

For the elderly and their families, finding competent, caring home
care aides can be a daunting task. Do they go with someone advertising
on Craigslist, hoping her references are reliable? Or hire through an
agency, trusting that it has thoroughly vetted its employees? They’ll
pay more for agency people, but the workers themselves will take home
much less, and agency rules — many prohibit aides from driving their
clients, for instance — may not dovetail with an elder’s needs. Yet
hiring independently, unless an aide is already well known to the
community, can be a scary prospect.

Even the nomenclature is confusing: there are personal care
attendants and home care aides and home health aides. (And one wishes
that the alliance hadn’t selected such a mouthful — “personal care and
support professional” — for its new credential.)

But this is a field that resists standardization. Training and
certification requirements for home care aides remain a hodgepodge.
Thirty-five states regulate home care agencies and set varying
requirements for their workers, said Bill Dombi, vice president for law
at the National Association for Home Care and Hospice, which has also
operated a certification program (currently suspended) for Medicare home
health aides. But 15 have no regulations for agencies. And very few
states regulate individual caregivers at all.

So a national credential for home care workers makes sense. The
welter of state regulations may limit the usefulness of the Direct Care
Alliance’s new testing program, said Marla Lahat, executive director of
Home Care Partners, a nonprofit agency in Washington. Employers must
still hire only a certified nursing assistant to comply with state laws.

But she thought the alliance’s credential could be a big help to
independent aides who don’t work for agencies or to workers in states
without such regulations. “They can say, ‘I’m not just a baby sitter or a
housekeeper. I have skills. I passed a test,’ ” Ms. Lahat said.

Read more of this article.

Long Term Care Insurance:
  If regulation forces standards on long term care givers, then costs are liable to increase even further, making advanced planning even more necessary.  Consider the benefits of long term care insurance at NewRetirement.com

What is CLASS, and will it work?

Center for Retirement Research at Boston College, February 12th, 2011

Long-term care is the major uninsured expense for
most retirees. Neither private health insurance nor
Medicare covers long-term care expenses, although
Medicare provides for care in a skilled nursing facility
for up to 100 days following hospitalization. Longterm
care insurance is available in the private market,
but few people purchase plans due to high premiums
and limited benefits. As a result, many turn to family
members for care or are forced to deplete their
resources to qualify for Medicaid to pay for nursing
home care.

Although not yet commonly known to the public,
the new health care reform legislation establishes a
voluntary, long-term care insurance program known
as the Community Living Assistance Services and
Supports, or CLASS. CLASS is designed to overcome
the major problems in the existing system, which
forces families of those needing long-term care to
impoverish themselves, places an enormous burden
on relatives caring for loved ones, and supports institutionalization
over home care. This brief explores the
potential for CLASS to solve the nation’s long-term
care challenge.

This brief proceeds as follows. The first section
discusses how families currently cover the burden of
long-term care. The second section describes CLASS
and compares it to private insurance. The third section
identifies adverse selection – that is, participation
mainly by the less healthy – as the major stumbling
block facing CLASS. The fourth section presents a
simple actuarial model to demonstrate the sensitivity
of the premiums to the health and age distribution
of participants. The final section concludes that the
program faces enormous challenges, but a number of
programmatic changes and a major advertising campaign
could improve its chances of success. Without
adjustments, adverse selection will create a death spiral
of rising premiums and declining participation.

Read more of this article.

Long Term Care Insurance:  CLASS is designed to enable greater access to Long Term Care Insurance by the general public.  Such programs can potentially be a life saver should it become necessary for you to obtain long term health care.  Consider your options at NewRetirement.com



NewRetirement Blogs Home