Menu
Share
Share this story
Close X
 
Switch to Desktop Site

How a long-term-care plan protects your assets

Q: In October, you quoted a financial consultant David Bendix, who recommended that an elderly retired couple use 2 percent of their $150,000 in assets to pay for long-term-care insurance. That works out to $3,000. It makes no sense to me, since they are going to be living on a limited income. What am I missing here?
M.D., via e-mail

A: Admittedly, long-term healthcare plans may not be for everyone, "but in New York state alone, long-term care expenses now run over $100,000 a year," says David Bendix, president of Bendix Financial Group, in Garden City, N.Y. That amount is far more than the $3,000 the couple would pay each year for the care plan, he says.

About these ads

"The couple last October were worried about their own long-term healthcare. So they had a special need to be met," Mr. Bendix says. "Using 1 to 2 percent of your assets for such a care plan can make a lot of sense in protecting finances, and ensuring one's dignity as one gets older."

"If you want such a plan, start it off as early as possible, say in your 50s, to hold down total costs." Bendix recommends.

Q: My credit-card company charged me a stiff penalty because my payment arrived past the due date, even though I mailed the bill over a week early. It seems unfair to penalize me for a mistake by others, such as the US Postal Service.
J.C., Los Angeles

A: "Call your credit-card company and ask if they will remove the penalty this time because of the delayed mailing," says a spokesman for one bank that we contacted in the New York area. Some card companies will give you the benefit of the doubt.:

Q: I recently received my income statement for my mutual-fund investments for the second quarter of 2002, ending in June. They were down. But a friend has just told me that I should check with my investment company, since they have probably fallen even more since June 30. I did, and was shocked at my losses in July. Why was I not told of these even deeper losses? How do I find out what's happening with my accounts?
G.F., Seattle

A: Mutual-fund houses typically send out quarterly statements. To find out what is happening to your funds on a more regular basis, call the fund company's toll-free 800 number to check on your account balances. Most major fund companies also maintain websites that allow you to check your accounts online.


Follow Stories Like This
Get the Monitor stories you care about delivered to your inbox.