For non-qualified funds advisors have been using a strategy that utilizes an annuity and permanent life insurance. This strategy has been around for many years and if health conditions permit it is most likely the best leverage and tax advantage. Most life insurance agents will not be knowledgeable enough to handle this unless they have been in the business for a long time or specialize in estate planning.

It would be recommended to consult your attorney and tax advisor before using such a strategy.<?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

If you are in MD,PA, or CA feel free to contact me.

Although I agree with Bernard about the objectivity of an independent. However as with any product if your focus is more limited in scope there may be a higher familiarity with more of

the intricate details of a product, and most of the time an independent doesn’t mean that they will use everything that is available to them. The captive may be more suited to smaller investor. Bottom line if the advisor has your best interests in mind it probably won’t matter that much to the average investor. If the advisor does have you best interest in mind it won’t matter what capacity they work in.

Some people are spenders by nature, and for spenders the most difficult thing is to set aside money for the intangible(emergency funds, retirement, future needs, ect.) Start by making your intangible tangible. For example you may want to go shopping for the things you want in retirement (SHOPPING NOT BUYING). The internet is a good place for this, pick the dream house, fill it with furniture, park a dream car in the driveway, and so on. Now list all your bills and expenses and rank their priority from most important to least important. Now fit your goal into your priorities . This will help with a couple of things, first the discipline to shop and not buy, and second you will answer your question why you haven’t saved in the past and it will help you save in the future, by setting your personal priority to your savings goal. A couple of other things that will help is to put your saving in a place that is not immediately accessible. If you have money in a savings at the same bank you have your checking then it makes it really easy to just transfer the money anytime you want to. If you want to keep the funds at the same institution try setting up a rule that you have to go into the location in person in order to move the money. You’ll find that you are less likely to move the money. Be sure to set some short term goal as well as long term ones.

Dennis’s solution would be great if we lived in this fictitious world where banks are offering 3% CD and this somewhere that you can invest and guarantee 12% return over 20 years existed. The last 20 years the DOW has averaged between 6-7% (DOW Oct,1st 1991 was 3069 DOW Oct 3rd 2011 was 10,655) Maybe try a few facts before launching personal attacks next time. I never said that term insurance is bad just be able to see the value of both types of insurance.

What kind of care would you like to receive? Would you like to stay in the comfort of your home as long as passable? How about giving the loved one that has decided to care for you a break? Do you want to leave your spouse or loved one broke? There are many reasons to not rely medicaid, but it is a good tool to have if there is nothing else. If you have the state partnership in your state you should learn more about it.

The question is a little difficult to answer in regard to LTCi if you are looking for the cheapest type of LTCi then most of the time a rider on a life or annuity policy is the cheapest way to go. LTCi has many variables: How long do you want the elimination period to be, how long do want the insurance company to pay for care, what type of care do you want them to provide( home care or facility only), how much do you want them to pay per day/month. Those are just a few of the variables to consider. With those things in mind every insurance company is going to be a little different and the options will vary by state, so I would highly recommend having a one on one conversation with a professional in your area. I personally have seen policies as basic as: Facility only, 1 year elimination period, daily reimbursement of $50.00, two years of care, and max benefit of $36,000. As far as qualifying for LTCi insurance. Most companies will do an interview, check your MIB report, and possibly order an attending physicians report. I’ve never had a client ask for the minimal level of care in the worst facility available, so that’s what makes this question so difficult. If your trying to figure out the most frugal way to provide care for yourself or your loved one. The best way is to seek a professional with a financial planning background and specializes in long term care. It should also be coordinated with an attorney and tax adviser. Caution a financial adviser is not necessarily a financial planner.

Pro: Provides guaranteed income for specified period of time (10yr,15, 20,25, lifetime). Can be very useful in a medicaid spend down situation. It can also be very useful for estate planning and longevity planning situations. The total payout can be much higher then simple withdrawals over time.

If your wife is asking about it she has a concern and if she has a concern there is probably a need. Age is a determining factor in the premium that you will pay, but the bigger factor is health. Think of it this way: Insurance is’t exciting, you can’t drive it, you can’t wear it, it is a promise put in writing by an insurance company. The major feature of any insurance is peace of mind. All the current insurance you own is a peace of mind. If your in an auto accident you have peace of mind knowing you won’t go to jail for not having it, your car will be replaced, and any one that is injured will be cared for. With life insurance you are purchasing peace of mind. Knowing that the people you love will be cared for by you. The bigger part is the person that you care for has peace of mind. Now you don’t get in an accident and then ask for insurance. Unfortunately with life insurance many people do just that they wait till they are, in some way, faced with their own mortality. It may be a health condition, the death of a friend their age, a near miss auto accident, or they have a health condition that shortens their life expectancy.

A fixed differed annuity is a financial tool that offers a fixed rate of savings. They typically offer higher rates of return then CD’s. It can either help you build savings or it can protect your savings. Keep in mind that an annuity is an insurance contract. What are you insuring? Income. An example is when someone is about 10 years from retirement they may not want to be exposed to market risks or they may want to reduce the market exposure they are at. The fixed deferred annuity will guarantee a fixed rate of return and make the promise of a option to convert the principal and interest to an income stream. This can be very helpful when faced with the possibility of out living your savings.

Term or temporary insurance should be used as just that. It’s best used to cover a specific debt, or obligation that is temporary. However do not be duped into this idea that Term is the cheaper way to go, do the math. When in fact a UL solution is effectively cheaper if you are looking at terms of 20-30 years. A term should never be used for estate planning, final expenses, pension max solutions, ect.. Quick example: Let’s say that you pay $25.00mo. for $100,000 face 20yr Term. The total cost of the term policy $6000.00. At the end of the term you either walk away or renew depending on your situation 20 years from now. Now let’s say we took out a UL and your premium for $100k is $75.00 the total premium for the same 20 years is $18,0000, but you have a guaranteed minimum of $15,000 cash value. If you walk away in the 20th year your effective total cost for insurance was only $3000.00 or $12.50 a mo. Oh, a couple of things to think about, if you fall on hard times you may be able to stop making payments and keep the policy in force by using the cash value. Also at the end of 20 years you can continue at the same premium if you need to instead of renewing at a much higher rate. Now an average young family will typically have somewhere between 1-3million in need. Obviously from a cash flow standpoint a UL for the full amount usually is not feasible or appropriate. Since their need should diminish over time if they are able to accumulate assets. A well qualified professional will help you determine a good strategy for balancing the two.

Start by contacting the insurance agent who sold the policy. If they aren’t available contact the insurance company directly. The agent should give the sensitivity and personal touch that is deserved during a difficult period. That agent may also be able to tell you about other policies that may be overlooked. <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

Long Term Care is one of the toughest area for domestic partners. The cost of long term care can easily be over $50,000 per year. The Medicaid rules for a married person and single or domestic partner are much different especially when it come to real estate. The transference of qualified funds are also much different. The best thing to do is have a meeting with your Financial Advisor/ Long Term Care Insurance specialist , Attorney, and Tax advisor. Together they will come up with the best solutions. Individually they may be a little biased but together they should prove well worth the investment. If you have a small estate an Insurance professional( liquid assets) or attorney(hard assets) may be your best solution. <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

Your advisor should be someone that you can trust and they should be able to explain (to your satisfaction) the reason for the annuity. If this is not the case I would start by interviewing other advisors. What is the purpose of the annuity? Without knowing what type of annuity or the purpose it would be hard to suggest any hard questions. Ask questions that pertain to liquidity (how you can access the money and when). <?xml:namespace prefix = o ns = “urn:schemas-microsoft-com:office:office” />

While I would certenly encourage you to consider life insurance (many, many, many reasons). To answer the question directly: The next type of insurance I would talk about is disability and critical illness. You didn’t mention that you already have them, and assuming you have no children. Always think of building a solid foundation for your present then look to future needs. If you can’t work then you can’t pay the bills all the other insurance will go out the window along with life insurance if you can’t pay the bills. Disability insures your income if you can’t work due to injury.