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March 11, 2010 What are the chances of becoming disabled?  According to Disability Insurance Resource Center - Every 19 seconds someone is injured in an Auto accident
- Every 17 seconds someone is injured at work
- Every 4 seconds someone is injured in some form of accident
  If you couldn't work, could you maintain your lifestyle? - 48% of mortgage foreclosures are caused by disability whereas only 3% are caused by death
- 7 out of 10 people between the ages of 35 and 65 will become disabled for three months or longer
- 61% of all workers are not protected in short-term disability benefits in the privatized industry
- In the year 2000 it was found that 82% of people do not have long-term disability insurance or believe their coverage is adequate
- For a 32 year old, a serious disability of 90 days or longer is 6.5 more times likely than death
- 50% of consumers have three months or less of their living expenses saved
- Suffering a disability is more likely than being in an auto accident, dying, or having a fire in your home
- 1 out of 7 employees will be disabled for five years or more before retirement
 Please consider getting yourself Personal Disability Income Insurance today |
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March 10, 2010 | One of the valuable services I can provide my clients is to help them plan for the future. It is rewarding to me, and valuable to them, to discuss goals and objectives and put a sound financial plan in place.   With the potential rollback of the existing Estate Tax laws,  I have started to work with my clients on reviewing their current estate plans with an eye toward the impact the 2011 changes might have. Whether you have an estate valued at $100K or $100M you can benefit from proper estate planning.  Maximizing value - Minimizing Taxes | | |  What Is Estate Planning?  Estate planning is the process of accumulating, preserving and distributing assets to achieve the financial goals of people during their lifetimes, and to provide for their heirs according to the estate owner's wishes at death. As such, estate planning is not a one-time event. Instead, it is an ongoing process designed to accomplish accumulation, preservation and distribution objectives, both during your lifetime and after your death.  Estate Planning Objectives:  - Accumulation Estate accumulation objectives involve accumulating assets and net worth during your lifetime by systematically channeling money into savings, insurance and investment plans.
 - Preservation Estate preservation objectives include protecting your ability to earn an income during your working years and planning to minimize and offset estate shrinkage at your death.
 - Distribution Estate distribution objectives deal with identifying and implementing the tools and techniques that will distribute estate assets to your heirs in an advantageous manner that is consistent with your wishes.
| |  What Can Be Learned from Public Probate Records?  You may be interested in what the public probate records of the estates of businessmen, attorneys, entertainers, accountants and even a President have to show. Name | Name | Gross Estate | Net Estate | Percent Shrinkage | | Franklin D. Roosevelt | $  1,940,999 | $  1,366,132 | 30% | | Henry J. Kaiser | $  5,597,772 | $  3,109,408 | 44% | | Edwin C. Ernst, CPA | $ 12,642,431 | $  5,518,319 | 56% | | Robert S. Kerr (U.S. Senator, Oklahoma) | $ 20,800,000 | $ 11,300,000 | 46% | | A.H. Wiggin (Chairman, Chase Bank) | $ 20,493,999 | $ 5,646,666 | 72% | | William E. Boeing | $ 22,386,158 | $ 11,796,410 | 47% | | Rick Nelson | $  744,357 | $  506,636 | 32% | | Elvis Presley | $ 10,165,434 | $ 2,790,799 | 73% | | Rock Hudson | $ 8,600.000 | $ 3,926,288 | 54% | | James S. Kemper (Insurance Executive) | $ 10,948,356 | $ 7,007,560 | 36% | | Nelson A. Rockefeller | $ 79,249,475 | $ 56,727,628 | 28% | | Conrad Hilton | $199,070,700 | $ 93,288,483 | 53% | | Source: Public Probate Records |  |  |  | Gross  cnkage If these people, who had access to the best advice money could buy, were not able to avoid the "unwanted heirs" (federal and state estate taxes an estate administrative costs), it will be difficult for the rest of us to avoid estate settlement costs.  Proper advance planning, however, can minimize the impact of estate settlement costs on the value of your estate. | |  How Much Do You Know About Estate Planning? True or False  - The unlimited marital deduction postpones the payment of federal estate taxes.
 - A married couple can give any individual up to $26,000 in gifts tax-free in 2010.
 - Federal estate taxes must be paid in cash, generally within nine months of death.
 - Federal estate tax rates are progressive, meaning that they increase with the size of the estate.
 - Your estate may have to pay state inheritance taxes.
 - If you die without a will, state intestacy laws will determine who inherits your property.
 - The federal estate tax is payable only if your taxable estate exceeds the unified credit equivalent, which was $3,500,000 in 2009.
 - The marital deduction does not apply to property you bequest to someone other than your spouse.
 - Under current law, the federal estate tax is scheduled to be repealed for only one year -2010 -and then reinstated in 2011 under 2001 tax rules.
 - Various estate planning techniques and tools can be used to reduce estate taxes.
  The answer to all of these questions is YES! How did you do? | |  What Is the Estate Planning Impact of the 2001 Tax Act?  The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001) made numerous changes to the three federal taxes on transfers of assets from one person to another -the gift tax, the estate tax and the generation-skipping transfer tax. These changes are phased in from 2001 to 2010.  For estate planning purposes, the complicating factor is that the entire Act will automatically terminate, or "sunset," at the end of 2010 unless a future Congress extends its provisions.  If the Act sunsets, 2001 tax rules will then apply in 2011, as if the EGTRRA 2001 had never become law. | |  The Choice Is Yours... Plan Now...or...Pay Later!  Spending a little time and money NOW in planning your estate can yield substantial benefits...  Ø      You have the opportunity to arrange your estate in such a way as to minimize taxes and estate settlement costs, leaving more of your assets to your family.  Ø      You are able to accomplish your goals and objectives for the disposition of your assets.  Ø      Your family can continue to benefit from your knowledge and experience, even after you are gone.  The alternative is to let others -- the courts, attorneys -- do your estate planning after your death.  The end result of this choice is usually increased costs, delays and frustration for your family. | | | Some of you have already put your trust in me by allowing me to help you with your personal and commercial insurance needs. Others, I have not yet had the pleasure to serve. Please consider spending a few minutes with me discussing and reviewing your existing plans and desired results. It costs you nothing and I will come to you. | |
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March 8, 2010 | The rising cost of health care in the United States has become one of the primary risks to a financially-secure retirement. With health care costs expected to continue increasing faster than inflation, the time to plan for your future health care needs is now...before you retire. | | | Your ability to enjoy a financially-secure retirement can be enhanced by planning for future needs such as: | Long-Term Care Services:  Are you familiar with the variety of long-term care services available? If it becomes necessary, what type of long-term care services would you prefer? How will you pay for any needed long-term care services? | |
Advance Directives:  Have you communicated your medical care wishes in the event you suffer a catastrophic medical event? Have you named someone else, a spouse or other family member, to make medical decisions for you in the event you are incapacitated?
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Paying for Health Care in Retirement:  Do you know what your out-of-pocket health care costs might be after you retire? Are you aware that Medicare, while it covers many health care costs, has significant limitations? Are you familiar with the various types of insurance that can help pay health and long-term care costs not covered by Medicare?
|   | | The Need... Healthcare In Retirement   | Did You Know... - In 2004, men reaching age 65 had an average additional life expectancy of 17.1 years, while women reaching age 65 could expect to live an additional 20.0 years on average. (Source: A Statistical Profile of Older Americans Aged 65+, U.S. Department of Health and Human Services, July 2008)
- While estimates vary, a couple retiring at age 65 without private health insurance from a former employer can expect to pay significant out-of-pocket health care costs during their retirement years.  Fidelity Investments, for example, estimates that a 65-year-old couple retiring in 2009 will need about $240,000 to cover medical expenses in retirement, a 6.7% increase from the 2008 estimate of $225,000.  The estimate does not include costs of dental care, long-term care or over-the-counter medicines. (Source: The Rising Cost of Health Care and Your Retirement, Fidelity Investments, 2009)
- At age 65, people face at least a 40% lifetime risk of entering a nursing home at some point in their lifetime and about 10% will have a stay of five years or longer. (Source: AHIP, A Guide to Long-Term Care Insurance, 2004)
- The average daily rate in 2009 for a private room in a nursing home was $219, an increase of 3.3% from 2008. (Source:Â 2009 MetLife Market Survey of Nursing Home, Assisted Living, Adult Day Services, and Home Care Costs)
- The average length of a nursing home stay is about 2.4 years. (Source: CDC/NCHS Health Care in America, Trends in Utilization; U.S. Department of Health and Human Services; January 2004)
- At an average daily rate of $219, an average nursing home stay of 2.4 years currently costs about $192,000.
| | | | If you would like assistance in planning for your health care needs in retirement, please contact my office. | |
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February 22, 2010 | | If you have already made the important financial decision to purchase life insurance or feel that you are covered by a policy provided by your employer, you should still consider having a periodic review to assess the health of that policy in light of your current life stage.  Did you know that your life insurance premiums are based on your age?  You will never be younger than you are right now, so your rate may never be lower! If you have been thinking about buying life insurance, call me today. I can assess the health of your current policy and run some illustrations on any additional coverage needed to restore the purchasing power of your life insurance program as a result of inflation and or significant changes in your life since you made your initial investment to protect your family's financial future.  The Numbers Don't Lie  Even if you have $1 Million worth of Life Insurance -  if your plan is to simply have that replace a steady income stream for your surviving family and not satisfy any existing debt or final expenses, do you realize what that will provide if invested at a reasonable market interest rate of say 5%?  $50,000 per Year For 20 Years | | Do You Still Think You Have Enough?   Failing to consider the impact of inflation could result in a gradual erosion of the purchasing power of your life insurance program.   Impact of Inflation in 2009 on $100,000 of Life Insurance  | Insurance Purchased | Annual Inflation Rate Since Year Purchased * | Needed in 2009 to Equal the Purchasing Power of $100,000 of Life Insurance | Additional Life Insurance Needed in 2009 to Maintain Purchasing Power of $100,000 of Life Insurance | | 1980 | 3.8% | $294,933 | $194,933 | | 1985 | 3.1% | $208,069 | $108,069 | | 1990 | 3.0% | $175,351 | $75,351 | | 1995 | 2.7% | $145,207 | $45,207 | | 2000 | 2.9% | $129,342 | $29,342 | | 2005 | 3.3% | $113,868 | $13,868 |  * Based on the Consume Price Index - All Urban Consumers (C-U) - December to December; Base Period: 1982-84 = 100  No adjustments have been made for changes in financial obligations, loans, income, standard of living, number of dependents, etc. The additional life insurance amounts illustrated above simply restore the original purchasing power of a $100,000 life insurance program. | | | When you die or lose someone you love and don't have a proper life insurance plan in place - you lose the life that they or you built. Life Insurance is designed to help maintain that life you built, long after you're gone. At Farm Family, we take a personal interest in protecting what you value most.  Life Insurance Provides Peace Of Mind  Call me today and get yours! | |
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