Click below:
http://duaineowings.googlepages.com/UnderstandingLifeInsSlideshow.pps
Sunday, December 23, 2007
Thursday, June 14, 2007
What kind of Life Insurance should I buy?
It's hard to really know what type of Life Insurance policy best suits your needs. Sort out some of the confusion with this quick guide:http://duaineowings.googlepages.com/HowMuchLifeInsuranceDoINeed.pdf
Thursday, February 22, 2007
Look Out for The Hidden 401 (K) Costs
Look Out for The Hidden 401 (K) Costs
When it comes to your 401(k), you probably don’t think about fees. After all, your employer foots the bill, right?
Wrong. Employees typically paid mutual-fund expenses, but now more are shouldering administrative expenses, which employers used to pay.
“Fees for 401(k) plans run anywhere from 10 basis points (0.01 percent) for IBM’s plan to 300 basis points (3 percent),” says Ted Benna, who created the first 401(k) plan in 1981 and is founder of the 401(k) Association, a Pennsylvania benefits consulting firm. At a Fortune 500 corporation, your fees are likely to be lower than what you would pay if you worked for a small company; 90 percent of plans cover fewer than 100 participants.
Depending on their size, fees can determine whether your nest egg looks like an ostrich’s or a sparrow’s. Say you invest $50,000 in a plan that charges a 0.5 percent fee, and you enjoy an 8 percent annual return for 30 years. You will retire with $437,748. Pay fees of 1.5 percent and you will have $107,000 less.
The fees are not always visible. Typically a broker will set up a company’s plan at no charge, bundling fees for administering the account with mutual-fund expenses. The broker stuffs the plan with higher-cost share classes, which drain money from employees’ accounts. “In essence the company shifts the costs of administering the plan directly to the employees,” explained Don Phillips, managing director of Morningstar, the Chicago-based mutual-fund research company.
HOW YOU CAN SAVE
• Choose funds with low expense ratios.
• Ask your human-resources department to disclose the total fees you are paying. One percent is reasonable, says Benna. If you don’t get a response, call the Employee Benefit Security Administration at 866-444-3272 to complain.
• If you left 401(k) accounts with an old job, particularly with a small company, consider rolling the money into your new employer’s plan or to an Individual Retirement Account to save on fees.
For additional information please give our office a call.
When it comes to your 401(k), you probably don’t think about fees. After all, your employer foots the bill, right?
Wrong. Employees typically paid mutual-fund expenses, but now more are shouldering administrative expenses, which employers used to pay.
“Fees for 401(k) plans run anywhere from 10 basis points (0.01 percent) for IBM’s plan to 300 basis points (3 percent),” says Ted Benna, who created the first 401(k) plan in 1981 and is founder of the 401(k) Association, a Pennsylvania benefits consulting firm. At a Fortune 500 corporation, your fees are likely to be lower than what you would pay if you worked for a small company; 90 percent of plans cover fewer than 100 participants.
Depending on their size, fees can determine whether your nest egg looks like an ostrich’s or a sparrow’s. Say you invest $50,000 in a plan that charges a 0.5 percent fee, and you enjoy an 8 percent annual return for 30 years. You will retire with $437,748. Pay fees of 1.5 percent and you will have $107,000 less.
The fees are not always visible. Typically a broker will set up a company’s plan at no charge, bundling fees for administering the account with mutual-fund expenses. The broker stuffs the plan with higher-cost share classes, which drain money from employees’ accounts. “In essence the company shifts the costs of administering the plan directly to the employees,” explained Don Phillips, managing director of Morningstar, the Chicago-based mutual-fund research company.
HOW YOU CAN SAVE
• Choose funds with low expense ratios.
• Ask your human-resources department to disclose the total fees you are paying. One percent is reasonable, says Benna. If you don’t get a response, call the Employee Benefit Security Administration at 866-444-3272 to complain.
• If you left 401(k) accounts with an old job, particularly with a small company, consider rolling the money into your new employer’s plan or to an Individual Retirement Account to save on fees.
For additional information please give our office a call.
Thursday, February 8, 2007
Dealing With A Disability
For those who have always had good health, it can be difficult to understand the challenges that people with health problems or disabilities face in their everyday lives. Even trying to imagine what your life would be like if something happened to you is tough. If you were to lose your eyesight or were unable to walk, for instance, what would you need in order to continue doing your job? Would you be able to continue in your chosen line of work at all, or would you have to change occupations to something more manageable? Because it's so scary to think about how you would handle your life if you were disabled, many people simply choose not to consider it unless it actually happens to them.
From a financial perspective, if you become disabled, there are a number of potential sources of support to help you adapt to your new circumstances. Although money may not be able to give you your old life back, it can help ease some of the burdens that often come with a disability, including high medical bills and reduced income. Knowing the potential resources you have may help you decide whether to take steps now to prepare for a possible disabling accident in the future.
Disability insurance
One way to protect against the potential financial impact that a disabling injury may have is to obtain disability insurance. In general, there are two ways you can get a disability insurance policy: as an employee benefit from your employer, or directly through an insurance company. Although group policies tend to be somewhat less expensive than obtaining private insurance directly, many employers don't offer disability insurance to their employees. A study by the Actuarial Foundation showed that only 36% of all full-time employees had access to long-term disability insurance through their employers.
Disability insurance falls into two categories. Short-term disability insurance will pay you a certain percentage of your salary if you become temporarily disabled due to serious illness or injury. Depending on specific policy provisions, there may be a delay of several days before coverage begins, and the maximum length of time that you can receive benefits usually ranges from 13 to 26 weeks. The main purpose of short-term disability insurance is to replace lost income while you recover from a temporary illness or injury; the key is that you generally expect to recover fully from whatever happened to you.
The other type of insurance is long-term disability, which covers permanent disabilities and provides benefits that can extend for periods of years or even decades. Like short-term disability insurance, a long-term policy replaces a percentage of your salary if you can no longer work because of an illness or injury. If you are permanently disabled and unable to work in any capacity, then depending on the type of coverage you have, a long-term disability policy may pay benefits until you turn 65. If your disability allows you to work but forces you to take a job that pays substantially less than your previous job, then you'll receive benefits based on the reduction in income that you suffered due to your disability.
As the first part of this article discussed, an unexpected illness or injury that leaves you disabled can be devastating both personally and financially. If you're unable to continue working in your previous job, it can be extremely challenging to deal with the partial or total loss of income that may result. It's important to know what financial resources are available to help you adjust to new circumstances.
While private disability insurance offers much-needed replacement income to disabled people, there are other programs administered by state and federal government agencies that offer additional services and funding to the disabled. In addition to replacement income, these programs offer medical care, job training, and assurance that employers will treat you fairly and in accordance with laws protecting disabled workers.
SSI and SSDI
The Social Security Administration has two programs that provide benefits to disabled people. The first, Social Security Disability Insurance or SSDI, is available to anyone who meets the eligibility requirements related to work history. In order to qualify for SSDI, you need to have earned enough money over the course of your career to have collected 40 credits. Most workers earn four credits per year, so the requirement generally involves having worked for at least 10 years. However, if you become disabled at an earlier age, then the number of credits needed is reduced.
Applying for SSDI involves a long process that can take several months before you find out whether or not your claim is approved. Once you're approved, you'll start receiving benefits six months after the date you were disabled. The amount you receive depends on your work history and is determined using the same type of calculation that Social Security uses to determine the benefits you'll receive when you retire. From time to time, your case will be reviewed to verify that you remain disabled; if you are able to work and earn more than a certain limit, then your benefits may stop.
The other program, Supplemental Security Income or SSI, provides assistance to disabled people with little or no income or other financial resources. The application process is somewhat similar to that for SSDI, although the necessary documentation differs because of the different requirements of each program. The maximum benefit changes from year to year; during 2006, the maximum monthly benefit was $603 for an individual and $904 for a couple. In some cases, state governments add an additional benefit.
Medicare and Medicaid
In addition to financial support, disabled people may also qualify for federal or state health benefits under Medicare or Medicaid. Although Medicare generally covers people over 65, it also provides coverage for younger people with certain types of disabilities. In particular, if you qualify for Social Security disability benefits for at least 24 months, then you may be eligible for Medicare even if you're not yet 65.
Medicaid, on the other hand, provides benefits only to people with little or no income or other financial resources. In general, people who are eligible for SSI benefits are also likely to qualify for Medicaid.
Legal protection
Along with financial and medical assistance, there are a number of laws designed to make it easier for disabled people to find jobs and to remain employed. The best-known of these laws is the Americans with Disabilities Act, or ADA, which includes a number of provisions designed to protect disabled people from discrimination. In general, the ADA prevents employers from basing hiring decisions on whether or not a person is disabled. If a disabled person would be able to perform the essential functions of a particular job, then employers must make any reasonable accommodation necessary for the person to perform those functions. For instance, if a disabled person needs special work equipment, the employer must provide it, unless doing so would place an undue hardship on the employer.
People who suffer a disabling illness or injury face a huge challenge in adjusting their lives to their changed condition. However, there is help available for disabled people, both in dealing with the financial aspects of their disability and the social and emotional ramifications of being disabled. Although it isn't always easy, people who become disabled can make a smooth transition back to being financially and physically self-sufficient.
Thanks to the Motley Fool and this post by:
By Dan Caplinger
February 6, 2007
http://www.fool.com/personal-finance/general/2007/02/06/dealing-with-a-disability.aspx
From a financial perspective, if you become disabled, there are a number of potential sources of support to help you adapt to your new circumstances. Although money may not be able to give you your old life back, it can help ease some of the burdens that often come with a disability, including high medical bills and reduced income. Knowing the potential resources you have may help you decide whether to take steps now to prepare for a possible disabling accident in the future.
Disability insurance
One way to protect against the potential financial impact that a disabling injury may have is to obtain disability insurance. In general, there are two ways you can get a disability insurance policy: as an employee benefit from your employer, or directly through an insurance company. Although group policies tend to be somewhat less expensive than obtaining private insurance directly, many employers don't offer disability insurance to their employees. A study by the Actuarial Foundation showed that only 36% of all full-time employees had access to long-term disability insurance through their employers.
Disability insurance falls into two categories. Short-term disability insurance will pay you a certain percentage of your salary if you become temporarily disabled due to serious illness or injury. Depending on specific policy provisions, there may be a delay of several days before coverage begins, and the maximum length of time that you can receive benefits usually ranges from 13 to 26 weeks. The main purpose of short-term disability insurance is to replace lost income while you recover from a temporary illness or injury; the key is that you generally expect to recover fully from whatever happened to you.
The other type of insurance is long-term disability, which covers permanent disabilities and provides benefits that can extend for periods of years or even decades. Like short-term disability insurance, a long-term policy replaces a percentage of your salary if you can no longer work because of an illness or injury. If you are permanently disabled and unable to work in any capacity, then depending on the type of coverage you have, a long-term disability policy may pay benefits until you turn 65. If your disability allows you to work but forces you to take a job that pays substantially less than your previous job, then you'll receive benefits based on the reduction in income that you suffered due to your disability.
As the first part of this article discussed, an unexpected illness or injury that leaves you disabled can be devastating both personally and financially. If you're unable to continue working in your previous job, it can be extremely challenging to deal with the partial or total loss of income that may result. It's important to know what financial resources are available to help you adjust to new circumstances.
While private disability insurance offers much-needed replacement income to disabled people, there are other programs administered by state and federal government agencies that offer additional services and funding to the disabled. In addition to replacement income, these programs offer medical care, job training, and assurance that employers will treat you fairly and in accordance with laws protecting disabled workers.
SSI and SSDI
The Social Security Administration has two programs that provide benefits to disabled people. The first, Social Security Disability Insurance or SSDI, is available to anyone who meets the eligibility requirements related to work history. In order to qualify for SSDI, you need to have earned enough money over the course of your career to have collected 40 credits. Most workers earn four credits per year, so the requirement generally involves having worked for at least 10 years. However, if you become disabled at an earlier age, then the number of credits needed is reduced.
Applying for SSDI involves a long process that can take several months before you find out whether or not your claim is approved. Once you're approved, you'll start receiving benefits six months after the date you were disabled. The amount you receive depends on your work history and is determined using the same type of calculation that Social Security uses to determine the benefits you'll receive when you retire. From time to time, your case will be reviewed to verify that you remain disabled; if you are able to work and earn more than a certain limit, then your benefits may stop.
The other program, Supplemental Security Income or SSI, provides assistance to disabled people with little or no income or other financial resources. The application process is somewhat similar to that for SSDI, although the necessary documentation differs because of the different requirements of each program. The maximum benefit changes from year to year; during 2006, the maximum monthly benefit was $603 for an individual and $904 for a couple. In some cases, state governments add an additional benefit.
Medicare and Medicaid
In addition to financial support, disabled people may also qualify for federal or state health benefits under Medicare or Medicaid. Although Medicare generally covers people over 65, it also provides coverage for younger people with certain types of disabilities. In particular, if you qualify for Social Security disability benefits for at least 24 months, then you may be eligible for Medicare even if you're not yet 65.
Medicaid, on the other hand, provides benefits only to people with little or no income or other financial resources. In general, people who are eligible for SSI benefits are also likely to qualify for Medicaid.
Legal protection
Along with financial and medical assistance, there are a number of laws designed to make it easier for disabled people to find jobs and to remain employed. The best-known of these laws is the Americans with Disabilities Act, or ADA, which includes a number of provisions designed to protect disabled people from discrimination. In general, the ADA prevents employers from basing hiring decisions on whether or not a person is disabled. If a disabled person would be able to perform the essential functions of a particular job, then employers must make any reasonable accommodation necessary for the person to perform those functions. For instance, if a disabled person needs special work equipment, the employer must provide it, unless doing so would place an undue hardship on the employer.
People who suffer a disabling illness or injury face a huge challenge in adjusting their lives to their changed condition. However, there is help available for disabled people, both in dealing with the financial aspects of their disability and the social and emotional ramifications of being disabled. Although it isn't always easy, people who become disabled can make a smooth transition back to being financially and physically self-sufficient.
Thanks to the Motley Fool and this post by:
By Dan Caplinger
February 6, 2007
http://www.fool.com/personal-finance/general/2007/02/06/dealing-with-a-disability.aspx
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