The recession is a huge learning curve and a big test for the government, economists and businessmen.

Recession is not an accident that just happens – like a car crash, it’s the culmination of a series of events.

Dealing with recession is dealing with the management of change. Recession is a change in the economy and if business and politicians can’t find new ways of coping, they will fall by the wayside.

The problem with recession is politicians and economists base policy on historical data – they know what has happened in the past and how people have reacted. For politician’s recession is a juggling act based on keeping the economy prospering while maintaining their popularity.

Sometimes, the two don’t go together. A parent still gives the child medicine needed to get better even if dosing the child makes the parent unpopular.

That’s the basis of our economic problems. Businesses want to make profit and politicians want popularity to stay in office. These two objectives don’t solve our problems; they undermine economics and make our lives worse.

What we need are new solutions. Saddling our children’s children with billions in debt is putting off decisions for someone else to deal with, not taking action and showing leadership.

The banks are manipulating the economy. They put us in this mess in the first place – and the government were happy not to regulate their actions while money poured in to the City. Now the banks have revealed their true face – a Dorian Gray portrait of greed – while stacking countless billions of taxpayers’ cash in their vaults.

Even after all that has happened in recent months, almost daily new depths of banking greed emerge – like the weekend’s revelations of the huge losses the Royal Bank of Scotland, Santander and HSBC have suffered in the $50 billion Wall Street fraud.

The people suffering are those working for Woolworth’s, the car firms and countless other small businesses who have lost their jobs or are on short time with no imminent prospects of life improving.

The past week is damaging the pound in the little man’s pocket.

• Taking the interest rate down to 2% is great for homeowners – but for pensioners living off their savings or looking to Buy an Annuity with their pension, the rate means after tax they receive about 1.5% on their savings – an income of £7,500 a year on a £500,000 pension pot.
• The property gravy train has hit the buffers – with prices 15% down on the year and forecasts that the worse is yet to come, millions who are relying as property as a pension and need to sell to clear their debts are facing a financial struggle
• Two million people are expected to be out of work by Christmas – the highest jobless total for 11 years.
• The Pound plunged to the lowest ever rate against the Euro – starting the week at 1.15 euros and ending at 1.11 euros. Performance against the US dollar was stagnant – with the Pound at $1.48 at the beginning of the week and $1.49 at the end.
• The City and Wall Street don’t seem to know which way to turn – the FTSE shifted up from 4049 to 4280 – a rise of 231 points – while the DOW staggered from 8637 to 8629, a change of eight points.

This article was written by eCommerce Associates for Bank — Accounts and our Finance Blog

eCommerce Associates
http://www.articlesbase.com/finance-articles/will-politicians-and-businesses-pass-the-recession-test-684355.html

What exactly is Equity Release?

The equity or value in your home is its open market value, minus any mortgage or other debt you have secured against it. Equity Release is a way of accessing the cash tied up in your home, without having to move out.

How do I get my money?

You usually receive your money as a cash lump sum, to use as you wish. This varies from plan to plan, and differs depending whether you opt for a plan that provides cash upfront, or an income plan.

Equity Release — Key Facts

• To qualify for Equity Release, you must be over a certain age. Age limits vary between companies, but for individuals in the UK you must be at least 50 years old
• You can get a cash lump sum, regular income, or both, to use as you need
• You can continue to live in your own home
• You may continue to be responsible for the maintenance of your home

The two main types of Equity Release product are Home Reversion Plans and Lifetime Mortgages.

HOME REVERSION EXPLAINED

What is Home Reversion?

A Home Reversion Plan allows homeowners to release a lump sum from their property, without concerns over future house prices, or the effects of roll up interest.

How does it work?

With a Home Reversion Plan (also known as home income plans) you sell all or part of your property to the plan provider. In return you get a cash lump sum or income. As you are selling your property in exchange for the equity released, the plan provider is taking the risk on future house prices.

Your home, or the part of it you sell, belongs to the buyer or reversion provider, but you are allowed to carry on living in it. This means you will be selling the legal ownership of your home but will be guaranteed the right to live there for as long as you wish, by way of a lifetime lease. In the case of joint applications, this is applicable to both parties, so that both your interests are fully protected.

The complexities of each scheme vary; for example you may be expected to remain liable for repairs to the property, or there may be restrictions that apply.

Your age is a primary factor in determining the allowable percentage released on the survey value of your home. Other factors, such as your gender and the estimated future value of your property, will also be taken into consideration.

Any secured loans or mortgages must be paid off on the sale of your house, so a Home Reversion Plan may be unsuitable for anyone wishing to leave the equity in their property as an inheritance for their next of kin.

Is it right for me?

A Home Reversion Plan can be a useful way of releasing equity from your home, especially if you do not want the stress of moving or downsizing, but you must be sure that it is right for you and suits your particular circumstances and needs.

It is important to remember that with Home Reversion you no longer own your home (even if you only sell part of it). Depending on the particular plan, you may have to maintain the home while you live in it. You’ll also be under a secure tenancy, so will have to follow all of the terms of the lease. If you choose a rent-back option, you will have to make regular rent payments.

LIFETIME MORTGAGES EXPLAINED

What are Lifetime Mortgages?

With Lifetime Mortgages, you take out a loan that is secured on your home. There are a number of different kinds of Lifetime Mortgages available:

A Roll-up Lifetime Mortgage

“Rolled up” means interest is added to the loan over a set period of time, for example, every year. The loan gives you a lump sum or regular income and you are charged a monthly or yearly interest, which is added to the loan. When your home is eventually sold, the amount that you originally borrowed, including the rolled-up interest, is repaid.

A Fixed Repayment Lifetime Mortgage

With this kind of Lifetime Mortgage you get a lump sum, but do not have to pay any interest. Instead of paying interest, when the home is sold, you have to pay the lender a higher amount than you originally borrowed. That amount is agreed in advance with the lender. The lender then uses this higher sum to repay the mortgage when your home is sold.

An Interest-only Lifetime Mortgage

With an interest-only Lifetime Mortgage you get a lump sum upfront and pay a monthly interest on the loan, which can be either fixed or variable. The amount that you originally borrowed is then repaid when your home is sold.

A Home Income Plan

With Home Income Plans the money you borrow is used to buy a regular fixed income for life (also called an annuity). This income is used to pay off the interest on the mortgage and the rest is yours to use as you wish. The amount that you originally borrowed is repaid when your home is sold.

Shared Appreciation Mortgages

Some Lifetime Mortgages include a shared appreciation element. This means that the lender has a share in the value of your home.  These kinds of plan are now less popular and less frequently available.

When taking out a Lifetime Mortgage, you can choose to either borrow a lump sum or to opt for a drawdown facility. A drawdown is suitable if you want to release occasional small amounts rather than one big loan upfront, as it means you only pay interest on the money that you actually need at the time.

How does it work?

Like a normal mortgage, you borrow money that is secured against your home. Your home still belongs to you and is not sold as part of the Lifetime Mortgage.

With the exception of roll-up schemes and fixed repayment Lifetime Mortgages, you will have to pay interest on the loan each month. When you die or move out of your home, the property is sold and the money from the sale is used to pay off the loan. Anything left after the loan has been repaid goes to your beneficiaries.

Is it right for me?

This depends on your age and personal circumstances. Lifetime Mortgages can be a flexible way of releasing equity from your home, but you must make sure it suits your particular situation.

There are a number of things to consider:

• With a Roll-up Lifetime Mortgage the interest you owe can increase quickly. Eventually this might mean that you owe more than the value of your home, unless you have a no-negative-equity guarantee from the lender.

• A Fixed Repayment Lifetime Mortgage is a better deal if you live much longer than the lender thinks you will. But if the home is sold much earlier than you originally planned, you will get a worse deal.

• With Interest-only Lifetime Mortgages with variable interest rates, the interest rate may rise faster than your income.

• A Home Income Plan only results in a small income after the interest has been paid. These kinds of plan are usually only suitable if you are older.

Remember that you will be expected to ensure that your home is in good condition and remains well maintained. You may need to set aside money to do this when first entering into the plan.

What does it cost?

For both Lifetime Mortgages and Home Reversions, you will have to pay for the following:

• An arrangement fee for setting up the plan
• Legal fees
• Valuation fees
• Buildings insurance

With Lifetime Mortgages some of these costs can be added to the loan so you pay less upfront, but you will pay interest on any amounts added to the loan.

Things to think about!

Remember, it is important to be aware of the different products available and the positive and negative points of each type of plan. As with any big decision, you need to explore all the options available to you first. It is recommended that you seek advice before deciding on what route is best for you. 

As it is an important decision about your home and your future, it is also recommended that you consult your family if you are considering any Equity Release product. 

Remember that Equity Release is not right for everyone. Do your?Homework, seek legal advice, and explore all the options available to you.

Make sure that a particular plan is suited to your own circumstances and needs before you proceed.

Jenny Austin
http://www.articlesbase.com/finance-articles/equity-release-explained-669412.html

The question is this: you can afford monthly deposits of $200 into an account that pays 5.7% compounded monthly. how long will it be until you have $7,000 to buy a boat?

I used the formula FV=PMT([(1+i)^n-1]/i) but couldnt figure out how to solve for n. Please help me

first month 200x.057=11.40 (interest) ……….211.40 (balance)
second month 211.40x.057=12.05+200 …….. 423.45
third month 423.45x.057=24.14+200…………. 647.59
fourth month 647.59x.057=36.91=200 ………… 884.50

can you see how it goes? keep going like this and you will reach $7000
I am sure there is a shorter way to find your answer, but you can at least see how this works.

Welcome to your competition’s worst nightmare! Imagine an insurance selling system so penetrating it will:

1. Separate you from the crowd as the undisputed expert in your field

2. Pre-sell your prospects, making the appointment just a matter of finishing up the paperwork

3. Generate stacks of warm leads from your target neighborhood and demographic

4. Cost you less than direct mail or telemarketing and present you as a true professional

5. Make you ask yourself, “Why didn’t I do this in the first place?”

Picture yourself appearing in your own custom scripted, half-hour Cable TV Infomercial, the undisputed expert in your field, speaking directly to your ideal prospect in a soft pre-sell interview format. Your viewing audience is selected with the accuracy of a surgeon’s hand by the cable channel airing your show. For less money than you thought possible, you position yourself as the expert in your field, you generate truckloads of warm, pre-sold leads, and you send your competition running for therapy.

Once your TV Infomercial Insurance Selling System leaves our production studio, you air it as often and as many times as you like. You target your show to attract health, life, annuity, home, auto, any kind of insurance prospect. The national average cost for prime time viewing (7:00 PM thru 11:00 PM) on local cable channels in most markets is an unbelievably low $150 to $200 per half-hour program. This is less cost-per-thousand-exposure than you spend annoying people with junk mail or telemarketing.

A Bizarre Secret

Let me tell you the most bizarre secret I’ve learned in my 40 years of sales. I’m just going to toss this out to you, and when you hear it you’ll think, “Oh, I already know that. That’s just too simple to work.” Most people dismiss it as being too simple. Maybe that’s why most insurance agents (90%) fail within eighteen months.

Here’s my secret: People buy things from people they (a) like, and (b) admire. What’s more, people can’t help but like the people they admire most. In fact, the more they admire you the more they like you and want to buy from you. Therefore, if you have an insurance selling system that positions you as the “expert” in your field, people will be irresistibly drawn to you and want to do business with you.

Remember the first closing technique you learned in “How To Sell Insurance 101” about assuming the sale? Just being the expert is a ridiculously easy way to not only assume the sale but compel your prospects to assume the sale, too. The subconscious dialog in your prospect’s mind is, “I naturally assume you’re going to let me buy this policy from you… aren’t you?”

You’ll be flabbergasted to know that you can become the “expert” in your field much easier than you think. Also, there are probably few, if any, insurance agents promoting themselves as expert in your local market, and fewer than few with their own TV Infomercial Insurance Selling System. This prime location “real estate” in your hometown cable channel is probably yours for the taking.

When you appear on TV you set yourself apart from all other insurance agents. Your image is larger than life. After all, only experts are good enough to appear on TV. Your image skyrockets because you rise above the dog-pile of telemarketers and junk mailers fighting for leads. Your prospects come to you, ready to hear more, willing to take your advice, able to do business. You’re the expert. You’re on TV!

How It Works

You come to our production studio in Tucson, Arizona, where we do all taping, editing, pre- and post-production work. Our job is to make you a Star. We use only top professionals from camera operators to makeup artists. I’ve been in the insurance business for decades and understand the problems and frustrations producers go through in the field. This is no ordinary insurance selling system. We go to great lengths to separate you from the pack of agents your prospects typically send packing.

The 30-minute interview format is proven to be the most credible, convincing and friendly TV show format. You have time to delve into concepts in a way your future clients can really understand. You reveal your personality in an audio-visual dimension as an invited guest in their living room. You’re one of the family. You show how you are different, better, more knowledgeable, more comfortable and caring than other agents.

We begin with a pre-production interview session to identify and rehearse 10 to 20 key questions and answers. When you are ready, we roll cameras with me interviewing you in an easy, conversational dialog of the same familiar topics. We edit out awkward pauses, tongue twisters or mistakes, making you a polished professional, expert guest. If you need an insurance selling system that targets a certain demographic or client type, i.e. retired Seniors, high-risk drivers, new homeowners, small business owners, we will flavor the show to cover topics of interest to them.

In the editing room we pepper your show with appropriate testimonials, which may be stock footage or reenactments of your actual customers. We repeat “grabbers” often throughout the show to catch channel changers who may be surfing for anything of interest to watch. We display your telephone number frequently and suggest you offer a giveaway (we have Free Special Reports on several interesting subjects) “to the first 25 callers.”

You’re not pitching The Clapper here. Your TV Infomercial Insurance Selling System and everything about it is tastefully produced, professionally orchestrated and smacks of the high quality of an Oprah, Dr. Phil, or Larry King Live show.

More Bang For Your Marketing Buck

Feel free to use our in-house media buying services. There is a long learning curve to the cable TV industry. Knowing the ins and outs can make a world of difference to your marketing campaign. Most insurance agents are happy to leave this busywork to professional media buyers who are intimately familiar with cable networks. We are happy to handle this for you at no cost to you. Our insurance selling system includes service after the sale. We will negotiate time slots, best rates, market penetration – everything you need to get the most out of your marketing dollars.

Another way to get more bang for your marketing buck is to upload your 30-minute TV Infomercial Insurance Selling System onto your website. Visitors to your website can get to know you in a way that shows you as credible and professional, yet an agent who is personable and approachable. You may also want to order our Special 200 Mini CD Package. We dub your show onto mini CDs with custom labels for you to use as client leave-behinds, referral generators, or the ultimate “drop-dead cool” business card.

The national average cost for a half-hour prime-time cable TV program is between $150 and $200, with larger markets more, smaller markets less. You may want to begin running your show five nights per week to see how it pulls, then adjust the scheduling as your need for leads dictates. The cost for us to produce your custom half-hour TV Infomercial Insurance Selling System is less than you might imagine. Most people guess the price to be $20,000 to $25,000. It should be, but it’s not. Please contact me by clicking on my bio below.

Gary Le Mon
http://www.articlesbase.com/sales-articles/tv-infomercial-insurance-selling-system-84268.html

Welcome to your competition’s worst nightmare! Imagine an insurance selling system so penetrating it will:

1. Separate you from the crowd as the undisputed expert in your field

2. Pre-sell your prospects, making the appointment just a matter of finishing up the paperwork

3. Generate stacks of warm leads from your target neighborhood and demographic

4. Cost you less than direct mail or telemarketing and present you as a true professional

5. Make you ask yourself, “Why didn’t I do this in the first place?”

Picture yourself appearing in your own custom scripted, half-hour Cable TV Infomercial, the undisputed expert in your field, speaking directly to your ideal prospect in a soft pre-sell interview format. Your viewing audience is selected with the accuracy of a surgeon’s hand by the cable channel airing your show. For less money than you thought possible, you position yourself as the expert in your field, you generate truckloads of warm, pre-sold leads, and you send your competition running for therapy.

Once your TV Infomercial Insurance Selling System leaves our production studio, you air it as often and as many times as you like. You target your show to attract health, life, annuity, home, auto, any kind of insurance prospect. The national average cost for prime time viewing (7:00 PM thru 11:00 PM) on local cable channels in most markets is an unbelievably low $150 to $200 per half-hour program. This is less cost-per-thousand-exposure than you spend annoying people with junk mail or telemarketing.

A Bizarre Secret

Let me tell you the most bizarre secret I’ve learned in my 40 years of sales. I’m just going to toss this out to you, and when you hear it you’ll think, “Oh, I already know that. That’s just too simple to work.” Most people dismiss it as being too simple. Maybe that’s why most insurance agents (90%) fail within eighteen months.

Here’s my secret: People buy things from people they (a) like, and (b) admire. What’s more, people can’t help but like the people they admire most. In fact, the more they admire you the more they like you and want to buy from you. Therefore, if you have an insurance selling system that positions you as the “expert” in your field, people will be irresistibly drawn to you and want to do business with you.

Remember the first closing technique you learned in “How To Sell Insurance 101” about assuming the sale? Just being the expert is a ridiculously easy way to not only assume the sale but compel your prospects to assume the sale, too. The subconscious dialog in your prospect’s mind is, “I naturally assume you’re going to let me buy this policy from you… aren’t you?”

You’ll be flabbergasted to know that you can become the “expert” in your field much easier than you think. Also, there are probably few, if any, insurance agents promoting themselves as expert in your local market, and fewer than few with their own TV Infomercial Insurance Selling System. This prime location “real estate” in your hometown cable channel is probably yours for the taking.

When you appear on TV you set yourself apart from all other insurance agents. Your image is larger than life. After all, only experts are good enough to appear on TV. Your image skyrockets because you rise above the dog-pile of telemarketers and junk mailers fighting for leads. Your prospects come to you, ready to hear more, willing to take your advice, able to do business. You’re the expert. You’re on TV!

How It Works

You come to our production studio in Tucson, Arizona, where we do all taping, editing, pre- and post-production work. Our job is to make you a Star. We use only top professionals from camera operators to makeup artists. I’ve been in the insurance business for decades and understand the problems and frustrations producers go through in the field. This is no ordinary insurance selling system. We go to great lengths to separate you from the pack of agents your prospects typically send packing.

The 30-minute interview format is proven to be the most credible, convincing and friendly TV show format. You have time to delve into concepts in a way your future clients can really understand. You reveal your personality in an audio-visual dimension as an invited guest in their living room. You’re one of the family. You show how you are different, better, more knowledgeable, more comfortable and caring than other agents.

We begin with a pre-production interview session to identify and rehearse 10 to 20 key questions and answers. When you are ready, we roll cameras with me interviewing you in an easy, conversational dialog of the same familiar topics. We edit out awkward pauses, tongue twisters or mistakes, making you a polished professional, expert guest. If you need an insurance selling system that targets a certain demographic or client type, i.e. retired Seniors, high-risk drivers, new homeowners, small business owners, we will flavor the show to cover topics of interest to them.

In the editing room we pepper your show with appropriate testimonials, which may be stock footage or reenactments of your actual customers. We repeat “grabbers” often throughout the show to catch channel changers who may be surfing for anything of interest to watch. We display your telephone number frequently and suggest you offer a giveaway (we have Free Special Reports on several interesting subjects) “to the first 25 callers.”

You’re not pitching The Clapper here. Your TV Infomercial Insurance Selling System and everything about it is tastefully produced, professionally orchestrated and smacks of the high quality of an Oprah, Dr. Phil, or Larry King Live show.

More Bang For Your Marketing Buck

Feel free to use our in-house media buying services. There is a long learning curve to the cable TV industry. Knowing the ins and outs can make a world of difference to your marketing campaign. Most insurance agents are happy to leave this busywork to professional media buyers who are intimately familiar with cable networks. We are happy to handle this for you at no cost to you. Our insurance selling system includes service after the sale. We will negotiate time slots, best rates, market penetration – everything you need to get the most out of your marketing dollars.

Another way to get more bang for your marketing buck is to upload your 30-minute TV Infomercial Insurance Selling System onto your website. Visitors to your website can get to know you in a way that shows you as credible and professional, yet an agent who is personable and approachable. You may also want to order our Special 200 Mini CD Package. We dub your show onto mini CDs with custom labels for you to use as client leave-behinds, referral generators, or the ultimate “drop-dead cool” business card.

The national average cost for a half-hour prime-time cable TV program is between $150 and $200, with larger markets more, smaller markets less. You may want to begin running your show five nights per week to see how it pulls, then adjust the scheduling as your need for leads dictates. The cost for us to produce your custom half-hour TV Infomercial Insurance Selling System is less than you might imagine. Most people guess the price to be $20,000 to $25,000. It should be, but it’s not. Please contact me by clicking on my bio below.

Gary Le Mon
http://www.articlesbase.com/sales-articles/tv-infomercial-insurance-selling-system-84268.html

If you are out shopping for long term care (commonly abbreviated as LTCI or LTC), I’m going to encourage you to take a look at a way of providing long term care benefits that is probably new to you. On the other hand, if you are in the crowd that thinks they will never need long term care, I would also suggest you evaluate this line of thinking.

Dick and Jane are both age 65, recently retired and models of good health. They have ignored the long term care subject until recently. They just put Jane’s mother, who is 88, into a nursing home. Talk about sticker shock! She is in a nice place, but Dick and Jane are not 100% certain that her assets will allow her to stay there for the rest of her life.

Consequently, they have been out looking at long term care for themselves. They figure they can afford to insure a portion of what it might cost them if they ever need some form of LTCI, so they are looking at a benefit of $3,000 a month. The premium is around $4,200 a year.

Here’s a new concept that Dick and Jane must become accustomed to now that they are retired. They both had good jobs during their working years. If they ever wanted to buy anything, it was just a question of looking at their income to see if they could swing the purchase. Pretty straightforward.

Now that they are retired, most of their expenditures are going to come from investment returns on the assets they have accumulated, not income from working. So they need to understand the difference between premium cost and opportunity cost. Here’s what I mean…

If they elect to buy this $4,200 a year long term care policy, the money has to come from somewhere. Chances are it’s coming from the interest earned on perhaps a CD or an annuity. But there is an opportunity cost associated with paying the premiums from earnings on any asset.

Let’s say they are going to pay this $4,200 from the interest on a CD they own which is earning 5.4% interest. Since interest is taxable, and assuming they are in a 15% tax bracket, they would have to have $91,300 in that CD to produce $4,200 after tax to pay the premium.

They can’t spend the $91,300. It can’t grow. Basically, they have “committed” $91,300 of their assets to pay the premium on their LTC policy. That’s the one “job” of this $91,300. The premium may only be $4,200 a year, but the opportunity cost is $91,300.

Let’s take a look at another of their alternatives. It’s called asset based long term care. How it works will unfold as I provide the example and contrast below.

One approach to asset based long term care involves re-positioning $91,300 of Dick and Jane’s CD to a combination long term care/life insurance policy plan with an insurance company. Here’s what moving this money does for them…

The money on deposit with the insurance company grows at interest, but it is tax-deferred interest so the insurance company will not send them 1099s every year for an amount they have to pay tax on like the bank is required to do. In 10 years, assuming current rates, the $91,300 will grow to $127,000; in 20 years $161,000. The CD, remember, does not grow, as its job is to spin off interest to pay the annual $4,200 premium on the traditional LTCI plan.

If either Dick or Jane needs any form of long term care, the insurance company plan will pay them $3,900 a month for 50 months–$900 a month more than the traditional plan.

But here’s the real kicker.

If Dick and Jane never need long term care, then the camp that doesn’t buy it would have been right. If Dick and Jane bought the traditional long term care plan, in 10 years they would have paid out $42,000 in premiums and about $7,400 in taxes on their CD interest in order to net out the required premium. That’s a total of $49,700. The $91,300 portion of their CD would still be $91,300.

However, if Dick and Jane never need long term care, chose the asset based long term care plan and both die, for example in 10 years, the outcome is different. They have paid no annual premiums and the life insurance company will pay about $198,000 tax free to their kids.

Which sounds like a better plan?

Robert D. Cavanaugh, CLU
http://www.articlesbase.com/insurance-articles/opportunity-cost-and-your-long-term-care-decision-121661.html

It’s no surprise that the price of healthcare in America is rising, and quickly. Since 1995, the cost of medical care in the U.S. has risen 40% and is showing no sign of slowing down.1 That kind of sticker-shock can be difficult to comprehend, even for those with solid retirement plans. It’s a trend that some insurers are trying to abate.

One of the largest medical costs today is long-term care. Caring for someone who cannot take care of themselves, whether they need an in-home companion, or round-the-clock care, can be devastatingly expensive. In fact, the average cost of a one year stay at a nursing home, is almost $70,000.2 And that’s why long-term care insurance is available. Its goal is to reduce that financial burden.

As with every product, long-term care insurance has its pros and cons but a large number of Americans haven’t even considered this product as part of their overall retirement planning. That’s why recently more insurance and financial companies have begun offering long-term care insurance with a variety of other benefits and options.

Cost
One of the biggest complaints against some long-term care policies has been their price tag. While most policies can potentially save their holders a great deal in medical costs, they can still be expensive.

In an effort to increase the use of the insurance, some insurance companies are beginning to reduce their rates on policies by as much as 15%. Some companies may also start adding a “shared care” element to their policies. In theory, that would allow someone who ran out of long-term care benefits to begin using their spouse’s benefits.

Confusion and Availability
Some people are simply confused about what the insurance is and how you can purchase it. So in an attempt to clear up some of the confusion, companies are beginning to simplify their policies and the process to buy the insurance.

Companies are also teaming with more employers to add long-term care coverage to the list of employee benefits. This is similar to the way that group life insurance has become a staple of many companies’ benefits plan.

Return on Investment
One final criticism comes from people who purchase long-term care policies and end up never needing them. While this is an obvious risk you take when purchasing any insurance, companies are now working to increase the benefit of having the insurance.

Long term care policies are also becoming more flexible and more able to tailor policies to an individuals needs and are working to become more of an investment option, in some cases they may even combine an annuity feature.

With all of the improvements and added features of long-term care policies, more Americans may begin to take another look at this product. And while long-term care insurance isn’t for everyone, it may be a great addition to your retirement plan. You should always work with a financial professional before purchasing the insurance. Long-term care insurance may be worth considering, as the cost of medical care doesn’t seem to be slowing down any time soon.

Robert Valentine
http://www.articlesbase.com/non-fiction-articles/longterm-care-insurance-offers-more-choices-64805.html

Financial advisors are trained professionals in a highly-regulated industry. Like doctors and lawyers, financial advisors must be licensed and undergo continuing education. Unfortunately, financial advisors are salespeople, and many put their role as salesmen ahead of their roles as fiduciary professionals.

Here are some tips to make sure that you find a person who is a credit to the investment industry, not a cheap salesman in a fancy suit.

Experience or Youth – Which is Better For You?

How experienced is your financial advisor? If he or she appears to be older, this does not necessarily answer your question. Many people become financial advisors after being displaced from another career.

Experience is important, but don’t necessarily disqualify a would-be financial advisor for being new to the industry. Many more experienced financial advisors develop bad habits over the course of a career, and may not be up on the newest trends.

Older financial advisors may be more conservative in their recommendations, which may or may not be appropriate for you.

If your financial advisor is experienced, ask for some references. A good financial advisor with happy clients will be eager to provide them. A shady one will skirt the issue. It will be easy to tell.

If your financial advisor is new to the industry, ask him or her what score they received on the Series 7 exam. More experienced brokers will undoubtedly find such a question offensive, and it is less relevant for them.

But newer financial advisors are there for one of two reasons – 1) They have strong sales skills, which is good for the company but probably not for you. 2) They have strong investment knowledge, in which case, they may be a better financial advisor for you than their other, more experienced counterparts.

The Series 7 exam is a comprehensive test of a new financial advisor’s investments knowledge, which a full 33 percent of would-be brokers fail and has a median score of just 73 percent. Look for a new financial advisor with a score of at least 85 percent – they are not easy to find, but they know their stuff.

Interview Your Prospective Financial Advisor

Set up a face-to-face interview with at least four financial advisors from different firms. First, take note of their phone demeanor. Does the person sound like a professional?

Does she seem eager to meet with you or expect you to qualify? A true investment professional is interested in helping people, whether they are worth $500 million or $5,000. Only cheap salespeople from disreputable firms refuse to work with people of modest means.

When you meet the financial advisor, take note of his company’s office. Does it seem professional and well managed? Professionals take pride in their work and conform to industry standards. In the investment world, this means everyone is in professional business dress and things are orderly.

During the interview, determine whether the broker is truly trying to assess your needs or simply trying to sell you products for which he earns a high commission.

Never buy mutual funds from a broker – you can pick mutual funds for yourself. Funds sold by brokers include sales charges, whereas funds you can buy on your own typically do not. Also, be highly skeptical of annuity products.

Finally, when you have narrowed your search down to your favorites, Google their employers. If there have been any securities law violations by the firms, take this into account when making your decision.

A perfectly good advisor can work for a firm with a bad apple or two, but if there are multiple violations, particularly from the executive level of the firm, then the company probably does not practice the best business ethics and it is most likely advisable that you take your business elsewhere.

William Smith
http://www.articlesbase.com/non-fiction-articles/how-to-find-good-qualified-financial-advisors-79076.html

We all look forward to the day when we can give up work – but to ensure your retirement is comfortable you will need to prepare for it carefully.

Putting a proportion of your earnings towards a pension may seem like a drag right now, but realistically you will need to save for as long as possible to gain a decent income in later years. Not only this, but there are substantial benefits to saving into a pension – you’re not taxed on contributions and there may be additional extras such as life insurance or lump sums included in your scheme.

These days people are investing more and more in private pension schemes and long term savings – the state pension is likely to become negligible with an ageing national population.

State Pension

At present, the basic pension for a single person is £82.05 a week. This depends on you having made sufficient National Insurance Contributions over your working life. Even if you have paid off your mortgage by the time you retire, would this be enough for you to live on? Bear in mind that the age when you can claim your pension (currently 65 for men, 60 for women) is highly likely to rise in the near future, and keep on rising.

Company Pensions

Employers are likely to offer some form of pension scheme. The terms and details of these vary from company to company, but usually fall into one of two basic types: ‘final salary’ schemes, based on your salary and how long you’ve been paying into the pension; and ‘money purchase’ schemes, which depend on the amount contributed into the fund. When you retire, you then Buy an Annuity – a type of insurance which will pay you a regular income. A money purchase scheme can be more flexible, but slightly more risky.

Personal Pensions

These schemes offer a lot of flexibility, and there are several different ways to invest, including investment trusts and unit-linked schemes that depend on share prices. Personal pensions operate in roughly the same manner as company pensions, only you have more control over your investment. Currently there are limits on the contributions you can make to personal pensions, but these are set to change in 2006.

The rules on pensions are changing all the time, and are likely to undergo radical changes in the next few years. For up to date advice, check the Pensions Advisory Service at www.pensionsadvisoryservice.org.uk

Joseph Kenny
http://www.articlesbase.com/finance-articles/savings-accounts-retire-in-style-33305.html

Over the past several years, many people have made big profits in the real estate boom-at least on paper, before calculating the capital gains tax owed. Now that the real estate market is leveling off, and even predicted to dip, many property owners are beginning to realize that once taxes are paid, the remaining balance is far less than they anticipated.

However, with strategic implementation of a powerful, tax-efficient selling resource, there is finally a way to sell real estate, including both primary residences and investment properties, and not pay exorbitant capital gains on real estate. The solution is called a Private Annuity Trust, an investment strategy that allows you to not only defer capital gains taxes, but to protect your remaining assets via a trust, transfer wealth to beneficiaries without taxation, and create a lifetime of income from the value in your property.

How a Private Annuity Trust Works
When an individual sells a property, he or she is responsible for paying the capital gains tax on the sale within a number of months. However, the rules are different for a Private Annuity Trust.

By transferring title of your property into a Private Annuity Trust, and having the Private Annuity Trust sell the property to the new buyer, you receive a contract that will pay you lifetime income and are thus able to defer up to 100% of your large capital gain over your entire lifetime.

Through the trust, the capital gains tax is deferred until the time that payments are made to you. Because the Trust issues a regular stream of payments over your entire lifetime, the taxes owed are also divvied up and paid in small increments over time. Additionally, the money in the trust is invested in a conservative, diversified portfolio until the moment it is paid out.

How is the Private Annuity Trust Different from a 1031 Tax-Free Real Estate Exchange?
With a 1031, you must buy another “like-kind” investment property in order to avoid paying capital gains tax. You must name the new property you plan to buy in 45 days, and the new property must cost at least as much as what you sold the old property for. If you choose not to reinvest, the government expects you to hand over the capital gains tax and depreciation recapture tax immediately; meaning you’ll be hit hard right when you’re ready to finally reap the fruits of your real estate investments.

There are plenty of heart wrenching stories about real estate investors who banked their entire lives on retiring with the profits from their investments, only to find that they would not be able to live the lifestyle they envisioned after the taxes were paid.

On the other hand, with the Private Annuity Trust, properties are sold through the trust and capital gains on real estate are deferred. You can use your lifetime income stream to fund your retirement, invest in another property on your own timeline, or use them any other way that you see fit, all while Trust assets have the opportunity to grow, are protected from creditors and lawsuit judgements, and taxes are deferred.

If you’ve spent your valuable time researching investments, fixing up properties, and managing the stress of the real estate game, you certainly don’t want to lose almost a third of your profits to the federal and state government. You’ve most likely planned your future, your goals, and your dreams around the money you thought you’d have when you sold your properties and losing a chunk of it can be depressing, to say the least.

If you’ve been putting off selling your assets in an effort to avoid paying capital gains on property tax, you owe it to yourself to talk to a professional about a Private Annuity Trust and see how this strategy may work with your particular situation.

Christine Harrell
http://www.articlesbase.com/finance-articles/how-to-defer-capital-gains-on-real-estate-sales-with-a-private-annuity-trust-59849.html