CalPERS plans 85% rate hike for long-term-care insurance

When we get old it’s difficult to perform everyday tasks. For those of us who are alone there is no one to help with making meals, bathing, and the other assorted things that are part of daily living.

I have written about this before. https://coastcontact.wordpress.com/2008/10/16/long-term-care-insurance/. There has been an issue about the climbing rates for this type of insurance and the fact that many insruance companies have raised the monthly rate for those already enrolled.

Now CalPERS (California Public Employees’ Retirement System), the second largest organization offering long term health care insurance, will be raising their rate by 85% in 2015. The article in the Los Angeles Times advising of the planned rate increase tells of a retired 82 year old man who calculates his new rate will be $785 a month.

As I wrote in my previous commentary this is insurance that only the rich can afford. As Consumers Reports advises “One percent of those ages 65 to 74 live in a nursing home, 4 percent of 75- to 84-year-olds, and 19 percent of those age 85 and older.”

If CalPERS can’t control costs what makes you think your insurance company can do the job? That agency has more than 148,000 policyholders in its long-term-care program.

Golden Years – A Tale of Madness and Greed

A story from Businessweek magazine.

One Nevada man prepared for everything but the inevitable

By Devin Leonard

Walter Samaszko Jr. was not a guy who wanted company. He covered the windows of his house in Carson City, Nev., with cardboard so the neighbors couldn’t see inside. He made the postman stick the mail through the slot in his garage rather than coming to the front door. He was so good at keeping people away that when he died of heart failure at age 69 in June, nobody noticed until his house began to smell. Someone called the sheriff’s department. A hazmat team removed Samaszko along with part of the floor he was stuck to.

That’s when everybody found out why he hadn’t been more sociable: The dour, white-haired recluse had been hoarding $7 million worth of gold coins, most of them hidden in the crawl space beneath the house. Some were in an old washing machine. There were British sovereigns dating back to the 1840s, Austrian ducats, and South African Kruggerands. But mostly Samaszko had collected rolls and rolls of $20 American gold pieces, the kind with double eagles on them. He also had $12,000 in cash, a stock account worth $165,000-and $200 in the bank.

The person who discovered Samaszko’s secret was Jeri Vine, a local real estate broker hired to clean up his house. She spent five days combing through his possessions. Samaszko had been prepared for the worst. He owned several guns, gas masks, and survivalist manuals. His cupboards were filled with canned The person who discovered Samaszko’s secret was Jeri Vine, a local real estate broker hired to clean up his house. She spent five days combing through his possessions.

Samaszko had been prepared for the worst. He owned several guns, gas masks, and survivalist manuals. His cupboards were filled with canned tuna fish. He had a lot of Johnny Mathis tapes. Vine threw most of it out. “We had like a 33 yard dumpster on the driveway,” she says. “I filled that thing.”

On the fourth day, Vine opened a metal ammunition box in the garage. It was full of gold coins in plastic cases. She called Alan Glover, the public administrator of Carson City. “Alan, get over here immediately!” she told him. “There’s so much money it’s unbelievable.” The sheriff’s department returned to the house, this time with metal I detectors. It took Glover and three attorneys two days to count all the coins. With the help of a numismatic expert, they determined that Samaszko’s clutch was worth $7 million. The gold is being stored in a vault in Reno until a local probate court judge decides its fate.

Samaszko may have been prepared for a societal collapse, but not for his own end. He had no will. Nor did he have any children. Glover was able to locate a first cousin, Arlene Magdanz, a part time teacher in San Rafael, Calif., who hadn’t seen him in years. Glover expects the probate court to release the fortune to Magdanz after the IRS extracts its cut. (He estimates the federal government’s take will be about $800,000.) The tale of the elderly recluse who turned out to be a millionaire became a brief sensation, with Vine and Glover appearing on the Today show.

Vine eventually sold Samaszko’s house for an undisclosed price. Some prospective buyers just wanted to see if there was any more gold hidden there. “One guy had his contractor friend go underneath the house,” Vine says. “I told him we went through that place with a fine-toothed comb. Never heard from him again.”

It’s easy to see why Samaszko’s death and the revelations that followed fascinate people. How many of us would have kept $7 million in a crawl space and not touched it? It makes you wonder what other secrets died with him.

Life After Retirement

Huell Howser passed away last night. He was the homespun host of public television’s popular California’s Gold travelogues. He obviously enjoyed producing the programs he presented. I actually found his presentations irritating because of the corny dialog he used. He wrote it and he enjoyed presenting it. He retired in November 2012.

Howser is not the first well known and widely loved personality to die shortly after retiring. Andy Rooney was the ever loved curmudgeon who ended every 60 Minutes program with some silly but interesting observations. He died within a few weeks of his retirement. Remember Edgar Bergen the ventriloquist? He was the father of Candice Bergen. He too died within weeks of his retirement. I am sure there are other well known people who died shortly after retirement.

Still, I know some veterans of WWII that are alive and well who drive cars, play cards, argue about everything, watch television, and are living happily ever after.

So my question is: does being in the lime light impact your life after retirement or is it that those who really love their jobs face an early death upon retirement?

I believe it’s the latter. My own father worked until the age of 70. He would have worked even longer if his employer had not said “We think it’s time you retired.” He was not a happily retired man. He struggled finding things to do. He lived 16 years after he retired.

I on the other hand never loved any of my work. It was work not fun. I do not miss getting up at 5:30am. I do not miss angry bosses. Actually my son was 18 when he said, “You have hated every job you ever had.” Wow! That hurt but it was true.

So since I have no regrets about not working maybe I will live to 100. I hope so!

Social Security Now Called ‘Federal Benefit Payment’

Have you noticed, your Social Security check is now referred to as a “Federal Benefit Payment”? It’s not accurate!

Not only did we all contribute to Social Security but our employers did too. It totaled 15% of our income before taxes.

If you averaged $30K per year over your working life, that’s close to $180,000 invested in Social Security.

If you calculate the future value of your monthly investment in social security ($375/month, including both your and your employer’s contributions) at a meager 1% interest rate compounded monthly, after 40 years of working you’d have more than $1.3+ million dollars saved. This is your personal investment.

Upon retirement, if you took out only 3% per year, you’d receive $39,318 per year, or $3,277 per month.

That’s almost three times more than today’s average Social Security benefit of $1,230 per month, according to the Social Security Administration (Google it – it’s a fact). And your retirement fund would last more than 33 years (until you’re 98 if you retire at age 65)!

I can only imagine how much better most average-income people could live in retirement if our government had just invested our money in low-risk interest-earning accounts. Instead, the folks in Washington pulled off a bigger Ponzi scheme than Bernie Madoff ever did.

They took our money and used it elsewhere. They “forgot” that it was OUR money they were taking.

They didn’t have a referendum to ask us if we wanted to lend the money to them.

And they didn’t pay interest on the debt they assumed. And recently, they’ve told us that the money won’t support us for very much longer.

But is it our fault they misused our investments? And now, to add insult to injury, they’re calling it a “benefit,” as if we never worked to earn every penny of it.

Just because they “borrowed” the money, doesn’t mean that our investments were a charity!

Let’s take a stand.

We have earned our right to Social Security and Medicare. Demand that our legislators bring some sense into our government – Find a way to keep Social Security and Medicare going, for the sake of that 92% of our population who need it.

Then call it what it is: Our Earned Retirement Income. 99% of people won’t forward this.

Will you?

You are the 47 Percent

By Joel Mathis in the Los Angeles Daily News, September 23, 2012

Are you married? Have a job? How about a kid or two? Did you get a tax refund last year because your status as a working parent made you eligible for an Earned Income Tax Credit?

Congratulations: Mitt Romney thinks you’re a welfare-addicted bum.

See, when Romney talks about that 47 percent of Americans who don’t pay income taxes, he’s talking about you.

You may not think that’s true, because of course you pay plenty of taxes – there’s the payroll tax that comes out of your check every week, the fee that goes to pay for Social Security. And of course, the world is a maze of taxes for you: Every time you fill up the gas tank or buy a birthday gift for the kid, the price is a little higher because of the extra few cents that goes to the state or local governments.

Surely Romney’s talking about somebody else?

Somebody who sits at home and waits for a government check they didn’t earn?

Nope. He’s talking about you.

See, to get to that 47 percent number, Romney has to include folks who actually work but didn’t officially pay income taxes because they didn’t earn enough, or because they qualified for the Earned Income Tax Credit.

Nearly two-thirds of Romney’s laggardly 47 percent paid payroll taxes.

And to state the obvious: You generally have to be on a payroll to pay the payroll taxes. You have to have a job.

Now: Romney obviously wasn’t taking you into account when he said that 47 percent is “dependent on government” and “entitled to health care, to food, to housing, to you-name-it.”

Which is the problem: Romney wasn’t taking you into account. He and the rest of the Republican Party have been so solicitous of so-called ‘job creators” that they’ve treated job doers rather shabbily. It’s something to think about when you vote in November.

Reduce the Risk of Becoming a Victim of Financial Elder Abuse

Advise sent to me from a law office.

Five Tips to Help you Reduce the Risk of Becoming a Victim of Financial Elder Abuse

1. Choose a Caregiver with Caution

Do not assume that by hiring a caregiver through a bonded agency you are guaranteed to get someone who has been checked. There is no current law requiring mandatory background checks for in-home caregivers in California

2. Keep an Inventory of All Jewelry

Jewelry is the number one item that is stolen from homes occupied by elders. Not only should your jewelry be kept in a locked drawer, you should have photographs of rare, valuable, or sentimental items in a separate location. In the event of theft, such photographic evidence will be useful in tracking down the missing jewelry at a pawn shop.

3. Every Home Should Have a Shredder

Every piece of mail containing your name, address and any other identifying information should be shredded before being discarded. The most effective type of shredder is the crisscross cut shredder. Even envelopes with your name and address should be shredded. Never throw away old checkbooks from closed accounts or bank credit card application forms. There is no danger in over shredding.

4. Protect Your Incoming and Outgoing Mail

Never allow incoming mail to sit in an unsecured mailbox where the public has access. Mailbox theft is rampant. Similarly, never leave outgoing mail in an unsecured mailbox with the red flag raised as this simply provides as easy alert to the thief who is “cruising” the streets. Consider either purchasing a locked mailbox or renting a post office box from your local post office.

5. Obtain a Credit Search on Yourself at Least Two or Three Times a Year

Identity theft is rampant. The only way to have peace of mind is to obtain a credit search on yourself periodically from one of the three major credit bureaus – Experian, Equifax and TransUnion. This will enable you to discover whether someone has applied for, or obtained, a credit card in your name.

10 Things You Should Know About Social Security

From AARP Money Newsletter

Social Security provides benefits to 55.4 million Americans. Among beneficiaries age 65 and older, 22 percent of married couples and 43 percent of unmarried people rely on Social Security for 90 percent or more of their income. And 54 percent of married couples and 73 percent of unmarried persons in this age group receive 50 percent or more of their income from Social Security.

Sign up for the AARP Money Newsletter.

Is Social Security just for retired workers? No. As of December 2011, 15 percent of beneficiaries were disabled workers; 9 percent were dependents of workers and 11 percent were survivors (such as widows and widowers and children).

At what age can I start collecting Social Security benefits? Workers can begin receiving benefits at age 62, but your benefit will be greater if you wait until your full retirement age (currently 66) or later. Widows, widowers, surviving children, the disabled and children of the disabled can start collecting earlier. Full retirement ages are based on the year of your birth.

How do I sign up for Social Security benefits? Apply for Social Security benefits online, at your local office or by phone at 800-772-1213. To collect your full retirement benefits, apply to the Social Security Administration (SSA) three months before you wish to receive your first payment.

How long do I need to work to become eligible for benefits? If you were born in 1929 or later, you need to work at least 10 years to become eligible for Social Security. The SSA determines eligibility with a system of credits. Basically, you earn up to four credits for every year worked, and you need a total of 40 credits to qualify for Social Security.

Must I stop working to collect Social Security benefits? No, you can receive benefits while working. But, if you are younger than the full retirement age (currently 66) and earn more than a certain amount, your monthly benefits will be temporarily reduced. Once you reach full retirement age, however, your benefits will be increased to make up for what was lost.

If you’re turning 66 in 2012, the amount you can earn without a reduction in benefits is $38,880. If you’re younger than 66 for all of 2012, the amount you can earn without a reduction in benefits is $14,640. After you reach your full retirement age, you keep all of your benefits no matter how much you earn.

What’s the maximum monthly Social Security benefit? For a worker retiring in 2012 at the full retirement age of 66, the highest monthly amount is $2,513. In December 2011, the average monthly Social Security benefit for a retired worker was about $1,229.

Join the Social Security community group.

Can I receive Social Security benefits based on the earnings of a former spouse? Yes, as long as you were married for 10 years and you aren’t remarried. If so, you’re eligible to claim Social Security benefits under your ex-spouse’s earnings if they turn out to be higher than your own.

How can I boost the amount of my Social Security check? Bottom line: The longer you wait to start collecting after you become eligible at 62, the higher the amount you will receive. For each year you delay, your Social Security benefits will increase between 7 percent and 8 percent annually up to age 70, depending on your year of birth. (See for yourself: Try the AARP Social Security Benefits Calculator.)

How should I receive my Social Security payments? Your best bet is to sign up for direct deposit into your bank account. Paper checks can get lost in the mail. The Department of Treasury plans to do away with paper checks altogether by 2013 in favor of direct deposit and debit cards.

When someone dies, how does the Social Security Administration know? The SSA receives reports of beneficiary deaths from family members, funeral homes and other government agencies. You should inform the SSA as soon as possible when a person dies.

When You Retire Will the Money be There?

No one cares more about your savings and investments more than you. You need to become an expert on the kinds of investments that you are comfortable with holding. Don’t let a financial adviser take control of your funds. No matter what he/she says, they do not understand your true wishes and needs. They will not be the one in pain if those savings are lost.

The unpleasant reality is that most of us do not save enough money for our retirement years. The reason is obvious. The cost of living takes our paychecks. It’s not a new situation. This has been a fact for all of history. It is the reason that Social Security was created in the 1930s. That insurance provides sufficient income in retirement years to prevent starvation. It is only enough to pay for food, housing, and other basic necessities.

The problem is that Social Security has become the only income resource for many retired Americans. (401(k) plans have not become the outstanding resource that many believed would occur. The reason is they are not a mandatory savings plan. It is a voluntary program. The average balance in all 50 million (401(k) accounts is just over $60,000 according to the Employee Benefit Institute. Even people within 10 years of retirement have saved an average of only $78,000, and more than a third have less than $25,000.

I still hear financial gurus saying that you should be receiving 10% or more on your savings. I know such investments do exist but they are not well known. Those that do pay that level of return are high risk securities that most people are not prepared to take. Even Vanguard’s High Yield Corporate Bond Fund pays 6.75%.

Even if you savings are small there are magazines you can view in the library and sites that do not charge anything. My favorite is Morningstar. You do not have to subscribe to obtain much of their information.

Start today thinking about where your income will come from when that day comes when you want to say “It’s time for me to retire.”

The Social Security Time Bomb

Rather than focusing on our broken political system this article is focusing on a solution to the Social Security time bomb. Only yesterday the Social Security Trustees said that the system will not have sufficient funds for the promised payouts in 2033.

Regular ongoing monthly Social Security benefits started in January 1940. Despite what some will claim we are experiencing longer lives. The system was counting on almost everyone dying within ten years of retirement. The problem for the program is that too many are living into their 80s and 90s.

The Democrats have not faced the reality of longer lives. The Republicans have but their solutions are unacceptable to most of us. Interestingly it was George W. Bush who tried to resolve the issue but the two parties seem bent upon disagreement even when they know there is a solution.

We all know that many people are relying on the system as their only source of income. Cutting benefits for the poorest is not a reasonable solution.

There are a few things we can do:
1. Establish a “means test” that would deny benefits to those with higher retirement income.
2. Raise the maximum taxable contributions from the current level.
3. Raise the retirement age.

To do these things will require courage. That is lacking in our representatives.

Senior Discounts

Just an FYI on some discounts available to some folks over 55:

Keep this list. Send a copy to your Senior friends. As I was waiting in line behind an older gentleman at Wendy’s recently, I heard him ask for his senior discount.
The girl at the register apologized and charged him less. When I asked the man what the discount was, he told me that seniors over 55 gets 10% off everything on the menu, every day.
Being that age myself, I figured I might as well ask for the discount too. As I waited for my turn, I thought about the consequences of doing so.

If the employee asked me for I.D., it could be embarrassing having to show my license. But if she didn’t ask for proof, I would get depressed that I really did look “old” and that I didn’t need to prove it.

Since I always like to save money, I boldly asked for the discount, and sadly she just rang up the discount (even though I am convinced I don’t look a day over 54).

Anyway, this incident prompted me to do some research, and I came across a list of restaurants, supermarkets, department stores, travel deals and other types of offers giving various discounts with different age requirements.

I was actually surprised to see how many there are and how some of them start at the young age of 50.

This list may not only be useful for you, your friends and family.Hmmmm, Dunkin Donuts gives free coffee to people over 55. If you’re paying for a cup every day, you might want to start getting it for free.

Restaurants
Applebee’s: 15% off with Golden Apple Card (60+)

Arby’s: 10% off (55+)

Ben & Jerry’s: 10% off (60+)

Bennigan’s: discount varies by location

Bob’s Big Boy: discount varies by location (60+)

Boston Market: 10% off (65+)

Burger King: 10% off (60+)

Captain D’s Seafood: discount varies on location (62+)

Chick-Fil-A: 10% off or free small drink or coffee (55+)

Chili’s: 10% off (55+)

CiCi’s Pizza: 10% off (60+)

Culver’s: 10% off (60+)

Denny’s: 10% off, 20% off for AARP members (55+)

Dunkin’ Donuts: 10% off or free coffee (55+)

Einstein’s Bagels: 10% off baker’s dozen of bagels (60+)

Fuddrucker’s: 10% off any senior platter (55+)

Gatti’s Pizza: 10% off (60+)

Golden Corral: 10% off (60+)

Hardee’s: $0.33 beverages everyday (65+)

IHOP: 10% off (55+)

Jack in the Box: up to 20% off (55+)

KFC: free small drink with any meal (55+)

Krispy Kreme: 10% off (50+)

Long John Silver’s: various discounts at participating locations (55+)

McDonald’s: discounts on coffee everyday (55+)

Mrs. Fields: 10% off at participating locations (60+)

Shoney’s: 10% off Sonic: 10% off or free beverage (60+)

Steak ‘n Shake: 10% off every Monday & Tuesday (50+)

Subway: 10% off (60+)

Sweet Tomatoes: 10% off (62+)

Taco Bell: 5% off; free beverages for seniors (65+)

TCBY: 10% off (55+)

Tea Room Cafe: 10% off (50+)

Village Inn: 10% off (60+)

Waffle House: 10% off every Monday (60+)

Wendy’s: 10% off (55+)

White Castle: 10% off (62+)

Retail And Apparel

Banana Republic: 10% off (50+)

Bealls: 20% off first Tuesday of each month (50+)

Belk’s: 15% off first Tuesday of every month (55+)

Big Lots: 10% off

Bon-Ton Department Stores: 15% off on senior discount days (55+)

C.J. Banks: 10% off every Wednesday (60+)

Clarks: 10% off (62+)

Dress Barn: 10% off (55+)

Goodwill: 10% off one day a week (date varies by location)

Hallmark: 10% off one day a week (date varies by location)

Kmart: 20% off (50+) Kohl�s: 15% off (60+)

Modell’s Sporting Goods: 10% off

Rite Aid: 10% off on Tuesdays & 10% off prescriptions

Ross Stores: 10% off every Tuesday (55+)

The Salvation Army Thrift Stores: up to 50% off (55+)

Stein Mart: 20% off red dot/clearance items first Monday of every month (55+)

Grocery

Albertson’s: 10% off first Wednesday of each month (55+)

American Discount Stores: 10% off every Monday (50+)

Compare Foods Supermarket: 10% off every Wednesday (60+)

DeCicco Family Markets: 5% off every Wednesday (60+)

Food Lion: 6% off every Monday (60+)

Fry’s Supermarket: free Fr’s VIP Club Membership & 10% off every Monday (55+)

Great Valu Food Store: 5% off every Tuesday (60+)

Gristedes Supermarket: 10% off every Tuesday (60+)

Harris Teeter: 5% off every Tuesday (60+)

Hy-Vee: 5% off one day a week (date varies by location)

Kroger: 10% off (date varies by location)

Morton Williams Supermarket: 5% off every Tuesday (60+)

The Plant Shed: 10% off every Tuesday (50+)

Publix: 5% off every Wednesday (55+)

Rogers Marketplace: 5% off every Thursday (60+)

Uncle Guiseppe’s Marketplace: 5% off (62+)

Travel

Alaska Airlines: 10% off (65+)

Alamo: up to 25% off for AARP members

American Airlines: various discounts for 65 and up (call before booking for discount) Amtrak: 15% off (62+)

Avis: up to 25% off for AARP members

Best Western: 10% off (55+)

Budget Rental Cars: 10% off; up to 20% off for AARP members (50+)

Cambria Suites: 20%-30% off (60+)

Clarion: 20%-30% off (60+)

Comfort Inn: 20%-30% off (60+)

Comfort Suites: 20%-30% off (60+)

Continental Airlines: no initiation fee for Continental Presidents Club & special fares for select destinations

Dollar Rent-A-Car: 10% off (50+)

Econo Lodge: 20%-30% off (60+)

Enterprise Rent-A-Car: 5% off for AARP members

Greyhound: 5% off (62+)

Hampton Inns & Suites: 10% off when booked 72 hours in advance

Hertz: up to 25% off for AARP members

Holiday Inn: 10%-30% off depending on location (62+)

Hyatt Hotels: 25%-50% off (62+)

InterContinental Hotels Group: various discounts at all hotels (65+)

Mainstay Suites: 10% off with Mature Traveler’s Discount (50+); 20%-30% off (60+)

Marriott Hotels: 15% off (62+) Motel 6: 10% off (60+)

Myrtle Beach Resort: 10% off (55+)

National Rent-A-Car: up to 30% off for AARP members

Quality Inn: 20%-30% off (60+)

Rodeway Inn: 20%-30% off (60+)

Sleep Inn: 20%-30% off (60+)

Southwest Airlines: various discounts for ages 65 and up (call before booking for discount)

Trailways Transportation System: various discounts for ages 50 and up

United Airlines: various discounts for ages 65 and up (call before booking for discount)

U.S. Airways: various discounts for ages 65 and up (call before booking for discount)

Activities And Entertainment

AMC Theaters: up to 30% off (55+)

Bally Total Fitness: up to $100 off memberships (62+)

Busch Gardens Tampa: $3 off one-day tickets (50+)

Carmike Cinemas: 35% off (65+)

Cinemark/Century Theaters: up to 35% off

U.S. National Parks: $10 lifetime pass; 50% off additional services including camping (62+)

Regal Cinemas: 30% off

Ripley’s Believe it or Not: @ off one-day ticket (55+)

SeaWorld Orlando: $3 off one-day tickets (50+)

Cell Phone Discounts

AT&T: Special Senior Nation 200 Plan $29.99/month (65+)

Jitterbug: $10/month cell phone service (50+)

Verizon Wireless: Verizon Nationwide 65 Plus Plan $29.99/month (65+).

Miscellaneous

Great Clips: $3 off hair cuts (60+) Super Cuts: $2 off haircuts (60+)