The future is uncertain and anything can happen. You may live a long and healthy life, only to die at the age of 102 while you are out on your daily jog, or you may suffer a stroke at the age of 62 and require long-term care to help you accomplish your daily activities. As a result, you need to start planning for long-term health care to ensure you do not suffer from an unexpected event that could leave you as a financial burden on your family.

Planning for long-term health care comes down to two factors: savings and insurance. If you have a large savings, you will be able to use it as a cushion while you get long-term care insurance to help pay your expenses, without dipping into your savings too much. When you get long-term care insurance, you will be paying the premiums for several years before you start to think about collecting benefits on it, but when you do you will have a wonderful monthly income that may leave your savings untouched.

You may have $50,000 saved up in the bank, or even more, but when you factor in all your expenses, especially the fact it can costs $5,000 a month to stay in a nursing home, your $50,000 disappears after only 10 months. If you have $500,000 saved up, then your savings will cover you for about eight years, but if you are 62 when you suffer a stroke that leaves you in need of daily care for 10 years, you are two years too short. However, if you have a plan that pays you $2,000 a month, you are able to extend your ability to pay for your nursing home and your home care by an another five years. That comes from only paying $40 a month or more into your premium!

It is incredibly important to start planning for long-term health care because when you are young, your premiums will be much less than when you are older. As well, nearly half of all individuals who collect on long-term care insurance plans are people below retirement age. Accidents can happen and you don’t want to be a burden on your family when you were an asset before. Planning your long-term health care through long-term care insurance programs means that will not happen and you will receive the care you need, while your family does not have to lose out financially.

Conclusion Long-term health care needs can happen to anyone, from the earliest age to the oldest. To ensure that you can afford the high costs of nursing and home care, you will need to start planning your long-term health care. This can be done through getting long-term care insurance policies that will give you the cushion you need to enjoy life in a nursing home, without having to worry about your finances. Savings will run out eventually, so you should prolong them as long as you can by planning your long-term health care with a long-term care insurance plan.

You should ask for help from an insurance representative who specializes in long term care insurance to answer any questions.

Insurance is a wonderful thing. It gives us the peace of mind knowing that someone has our back, and it provides us with the security we need in the event of an accident that can alter the course of our lives. Long-term care insurance is no different, but many feel they cannot get it because they do not know how they will afford long-term care insurance. The question then comes up about who can afford long-term care insurance.

Many will wait for their near retirement to get long-term care insurance, because at that point the prospect of needing help with activities that we take for granted are only a decade or more away. As a result, many of those who get long-term care insurance are past the age of retirement and they are the ones who pay into it.

However, it is important for the young to understand that long-term care insurance is incredibly important for them as well. Anything can happen in the future and nothing is certain. Nearly half of the people who collect on long-term care insurance are individuals who are below the age of 65. This is because accidents or illnesses that require an individual to seek help with day-to-day activities, even for only a few months, are needed at any age.

So, who can afford long-term care insurance? Well, the short answer is that everyone can. When you are young, you will be able to get long-term care insurance at reduced premiums because there is a much smaller chance you will need it before you are 70. However, if you wait until you are 65, you will pay more. You should look at paying for long-term care insurance the minute you can comfortably do so, and when you have enough finances and assets that you want to protect from a possible life-altering disability. You do not want to be in a situation where you cannot afford to pay your premiums, so you need to wait until you can afford to do so, without setting yourself back. Generally, at that point in your life, you will also have enough finances and assets that you will want to protect them in the event that you need long-term care.

Summary Long-term care is an important part of any future planning for an individual and their family. It will ensure that in the event you need long-term care, you will be covered by the long-term care insurance. However, not being able to afford long-term care insurance can be a problem, but there are so many options to go through with long-term care insurance, you should be able to find at least something that will assist you in the event you need it.

Try and get the insurance when you are younger because it will cost much less, but if you can’t, try and get it, even the lowest plan, at some point. Remember, even a little bit of long-term care insurance is better than none, so look into getting the long-term care insurance that will give you the peace of mind you need.

You should just ask for help from an insurance representative who specializes in long term care insurance to answer any questions.

With home foreclosures on the rise, those with money just sitting earning pennies in a Checkbook IRA account can put their money to work for them. Why is now a great time to be investing in the foreclosure market? There are three reasons.

Self-Directed IRA LLC / Checkbook IRA: 3 Reasons to Invest in Foreclosures Now

Prices are Low Now: Every real estate investor will tell you that to make money investing in foreclosures, you need to find good deals. What is defined as a “good deal?” A simplistic answer is a good deal is one where you make money. Making money in real estate is all about equity; buying homes that have equity.

Why are so many foreclosures happening right now? Actually, two reasons: a recession and adjustable rate mortgages (ARMs). As ARMs adjust up and more people lose their jobs, more lose their homes. This makes homeowners and/or banks more negotiable on price.

Banks Don’t Want to Be Property Mangers: Banks are not in the business of managing property. They want homeowners to do that. So, as they become inundated with more and more foreclosures, they’re doing everything they can to sell them as fast as possible. Why don’t’ banks want to be landlords?

If they don’t sell them, they have to maintain them, eg, cut the grass, remove furniture left behind by previous tenants, deal with broken windows from vandals, etc. In short, the longer a property sits empty, the more it costs the bank. So they’re really losing money in two ways. One, in lost mortgage payments; and two, by having to carry the upkeep until it’s sold. If you have money sitting in your Checkbook IRA account, now is the time to put it to work.

Long-Term Gain: Using your Self-Directed IRA LLC / Checkbook IRA account funds to purchase foreclosures now will pay off in the long run. Especially if you buy and hold properties. Real estate is a cyclical market. Meaning, what goes down will eventually go up again. When the market starts to sizzle again, you’ll be perfectly situated to take advantage of the smart investments you make now.

Mutual funds are a hot commodity with investors and financial institutions. They are so popular, in fact, that today there are more mutual funds in existence than there are individual stocks. If you are considering investing in a mutual fund but don’t know anything about them, then get ready to learn by reading what questions other people have had about mutual funds.

What is Some of the History of Mutual Funds?

Mutual funds actually go all the way back to the Netherlands in the early 1800s. Mutual funds were then called an investment trust (which most still are today). Mutual funds came to America in 1889 with the New York Stock Trust. Many mutual funds in America were started in Boston, which was a financial center of some renown back in the 1800s.

Top Mutual Fund Questions Of 2008 - What Is An IRA?

Back in 1975, in the United States the IRS code was changed to allow people to contribute up to $2000 per year to an IRA (Individual Retirement Account). IRAs became very popular and many IRA’s are invested in mutual funds.

Top Mutual Fund Questions Of 2008 - What Is A No-Load Fund?

A “load” is a sales fee charged when you buy or sell a mutual fund - the fee is charged by the mutual fund company. A no load fund is one that does not carry such a sales fee.

What Makes a Mutual Fund?

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities. When you invest in a mutual fund, you are buying shares of the mutual fund and thus you become a shareholder of the fund.

What Is An Index Fund?

This type of fund tracks one of the stock market indexes, whether it is the Standard & Poor’s 500 Stock Index, the entire stock market index, or some other performance measure of a like group of stocks.

What Is Net Asset Value?

For most of the funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day. Net Asset Value (NAV) is the value of a share in a mutual fund and is calculated by dividing the total value of the fund, less the fund’s liabilities, by the number of shares currently issued and outstanding.

Top Mutual Fund Questions Of 2008 - What Is A Public Offering Price?

A Public Offering Price (POP) is nothing more than the net asset value plus a sales commission. Open-end funds sell shares at the POP and redeem shares at the NAV, and so process orders only after the NAV is determined. Closed-end funds may trade at a higher or lower price than their NAV; this is known as a premium or discount, respectively. If a fund is divided into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by different classes.

With all the options out there for saving for retirment, the question is asked whether it is a good idea to start a Roth IRA - and if so, when.

The Importance Of Starting An IRA

Certainly, starting an IRA is a crucial move and a good idea for anyone who is getting older - and that is everyone! Retirement age will creep up on you before you know it, and starting an IRA is an easy way to increase your retirement savings. On the other hand, it is never too late to start saving for retirement.

Starting the best type of IRA for you requires an understanding of the choices available - a traditional IRA or a Roth IRA. Both have advantages.

Regular IRAs

Traditional Individual Retirement Accounts have been around since 1981. Taxpayers can contribute up to $4,000 per year of earned income into an IRA. These contributions are tax deductible in the year they are made. Taxes on the earnings on the account holder’s contributions are deferred until they are paid out to the account holder, which cannot happen until the account holder reaches the age of 59 and one-half years.

The Other Major Type of IRA - Roth

Roth IRAs are much newer than traditional IRAs - they have been around since 1998. Single taxpayers who earn more than $116,000 and married taxpayers who earn more than $169,000 cannot contribute to a Roth IRA. So if you earn that much and you are asking yourself, “Should I start a Roth IRA?” the answer is definitely no because you cannot. For both single and married taxpayers who earn more than $101,000, there are phased reductions in the amount an individual can contribute to a Roth IRA.

If you aren’t stopped from having a Roth IRA because of the earnings test, the answer to the question, “Should I start a Roth IRA?” is most certainly yes. Unlike a traditional IRA, the contributions an account holder makes to a Roth IRA are not tax deductible in the year in which they are made. By contrast, the amounts of contributions, and the income they earn, are not taxed during the account holder’s lifetime.

Even if you earn well under the income limit now, it is entirely possible or even probable that you will reach the earning limit during your career, and then you will wish you had taken advantage of the Roth IRA when you had the chance to do so. Unless tax laws change significantly, a Roth IRA is one of the best investments you can make. So repeat three times after me: I should start a Roth IRA. I should start a Roth IRA. I should start a Roth IRA.

Investments In Your IRA

Remember that any IRA is only worth what the investments inside of it are. Think of your IRA as an envelope that holds your retirement investments. What you choose to put inside the envelope is up to you.

Diversification is important. Most financial advisers suggest a blend of bonds, small capital stocks, large capital stocks, and mutual funds made up of shares in domestic companies and international companies. However, a mutual fund can also hold other kinds of investments.

The conventional wisdom is that you should invest more conservatively as you near retirement. That is because investments are cyclical over long periods of time, based on the national economy. You don’t want to be caught short at retirement time or have to work longer than you had planned to because an economic downturn cycle occurred when you happened to reach retirement age.

Should I Start A Roth IRA? Yes!

The benefits of a Roth IRA over a traditional IRA are enormous: limited contributions vs. no limit on contributions; deferred tax on earnings vs. no tax on earnings. There is virtually no downside to starting a Roth IRA.

Whether you call it a self-directed IRA account or a checkbook IRA account, what is means to you is options. As in, getting a bigger return on your retirement account dollars by investing in real estate.

But, for some, the more options that are presented, the more confusing it becomes. However, it shouldn’t be. Like any other investment account, all you have to do is ask yourself a series of questions to determine your real estate investment strategy.

Self-Directed IRAs: 3 Real Estate Investment Strategy Questions to Ask

Investor Risk Compass: We all have an inherent risk compass, especially when it comes to money. Some of us are extremely conservative, some of us are avid risk takers and many of us fall somewhere in between. Knowing your risk compass before you begin investing your checkbook IRA funds into the real estate marketing will help you to make smarter decisions.

Is retirement looming, or in the distance? This question is designed to highlight which options you can safely take advantage of with your self-directed IRA account funds. Like any other type of investment, some real estate options are riskier than others. The closer retirement is, the less time you have to recover from mistakes. So, you may want to consider safer options like buying and holding property (eg, for rental income).

What type of income do I want/need during retirement? Many don’t actually sit down and calculate the numbers to see how much they’re going to need overall to support a retirement lifestyle that may last 20, 25 or 30 years or more. The answer to this question will in essence tell you what can and should invest in to get the biggest and safest return on your investment.

There are quite a few more lessons to add to this list. But answering these three will go a long way towards helping you to formulate an investment strategy for your self-directed IRA account monies.

Retirement can come at any age.  It doesn’t have to be at age sixty-five.  People retire earlier for many reasons.  But, there are benefits to waiting until that magic number to officially hang up your work clothes.

Some people will have many jobs in their lifetime.  For baby boomers, it was more the norm to have one job and stay there for thirty years.  After thirty years with a state or federal job, you can draw a pension.  Some people retire then.  

Companies with employees that are approaching the retirement age may offer incentives to them to retire early.  By doing so, a company can lower its overheads and hire two people fresh out of college for less than it was paying one older employee.

Many baby boomers are working longer than their younger counterparts.  Even if they have thirty years in, they are continuing to work until the government appointed retirement age.  To their way of thinking, there are benefits in doing so.

People are living longer.  This is a good thing.  Where retirement used to last for ten or fifteen years, it is now lasting twenty to thirty years.  A person can be retired almost as long as they have worked.  As such, more money is needed for expenses.  These expenses include medical care, housing considerations, and leisure activities.  Did you know that the age that seniors can start drawing their social security is sixty-two years of age?  You might say that that means you can cut three years off of your working life.

However, listen to this.  A person who retires at sixty-two will not receive their full social security benefit.  You know that statement that is sent out each year to you that tells you what you would earn per month if you kept the same earnings until retirement?  This is your full retirement, but that is not what you will receive if you retire at sixty-two.

For baby boomers, in order to receive 100% of the retirement benefit owed to them, they would have to work until they are sixty-six!  Even those people who turn sixty-five this year will have to wait an additional ten months to receive a full benefit.  

Retiring early will mean a twenty-five percent reduction in the benefit received from social security.  This will continue for the entire time that you are retired.  Just four fewer years and you lose a quarter of the money that you would otherwise be getting.  

There is a bright spot.  You can continue to work those four extra years but you can’t make over a certain amount of money.  This sounds okay if you have saved accordingly.  A full time worker can go part-time for four years and still be eligible for full social security benefits when they turn sixty-six.

There are benefits to working after age sixty-five.  You can continue to work but at a more leisurely job until the benefits of social security kick in for you.

Description:  This book will leave  nothing to chance as you learn about and begin to build your retirement future.  Filled with answers to questions everyone has makes very informative reading.  Very easy to use and understand.

Review:  Retirement, oh yea, that’s something I’ll think about when I’m older.  Have you ever heard yourself say that?  I used to all the time and now it’s almost time for me to retire and I have no idea what to do or where to start.  I do now with this book.

This book is wonderful for anyone at any age.  It answers all the big questions everyone has about retiring.  It helps you to determine what you need when you retire.  Not just money wise but in every aspect of retirement.

One area in this book helps you discover your own dreams.  It guides you into taking a look at where you want to be when you retire.  It gives you guidance in how to turn these dreams into reality during your retirement.  

Helping you know the difference between 401(k), IRA’s and other types of retirement funds are a part of this book also.  I wasn’t sure which way to go or what would be best for my needs. This book helped me determine what these types of things were all about.  It even gave me some ideas about investing, along with some tips on financial advisors.

Being ready to retire can be a frustrating battle from beginning to end but having help like this book offers can keep those stress levels down.  Now that I have this book, I feel much better about my financial future as I move into my retirement.  I’m ready and willing to face it with a smile.

The options for retirement are growing. It used to be that workers depended on their pension after working thirty years or more for a company. These days, employers offer retirement benefits to employees, and employees can also find other options on their own. For the self-employed person, a Keogh is an option for retirement saving.

What is a Keogh plan? A Keogh is a tax-deferred way of saving for retirement if you work for yourself. It operates in a way that is similar to an employer’s retirement plan. You put money in it and it’s invested in a way that is determined by the account holder to grow their money. Keogh plans can be of two types: defined contribution and defined benefit.

A defined benefit plan is when the account holder contributes a certain percentage of money to the plan on a regular basis. For most, it is deducted on a monthly basis from their paycheck. If they get paid twice a month, the amount is split between two paychecks. The amount that you hope to receive from the plan when you retire is based on what you have put into it.

A defined contribution plan is one based on money put into an account for you. This can be based on the profits of the company. When the company makes a profit, money is distributed into the plan accounts. This plan can also be based on money contributed to employee accounts, regardless of whether the company made a profit or not. This type of defined contribution is called a money-purchase pension.

For defined contribution plans, a limit of $30,000 exists. No more than that can be contributed to the plan. With a defined benefit plan, the maximum annual amount is around $100,000. This amount is based on a retirement at sixty-five years of age.

I know it sounds complicated. This is one of the disadvantages of a Keogh. Like other more conventional retirement plans, there are penalties assessed if the money is withdrawn before retirement age. The Keogh plan does not apply to retired business owners. If you are no longer active in the business, even though you may get profits, you cannot set up a Keogh retirement plan.

Every disadvantage also has an advantage. Even a plan like this has a few. The funds that are put into a Keogh plan are tax deferred until they are withdrawn. The amount is deducted from gross income and not the net. If you contribute early during the year, the money has time to accumulate over the year. Some business owners can’t assess how much they make until near the end of the year, but contributions are still allowed at this time.

A person who owns more than one business is not limited to one Keogh plan. A Keogh plan can be started for each business a person owns. Self-employed people who also work a regular job can open a Keogh for their business.

Look at all of your options for retirement. Determine if they will help you to maximize your retirement funds.