Long Term Care Insurance

If you are very rich you can afford to hire a care giver or live in an assisted living facility or nursing home.  If you are not rich your family will have to struggle with the reality of giving you care.

 

I enrolled in a Personal Finance class at my local community college (Pierce College, Woodland Hills, CA).  The description said, “learn the basics of investment strategies, The new Medicare RX plan, Long Term Care Insurance, financial planning, the law, as well as techniques to minimize taxes, and how to create an income in retirement.”  It turned out that two of the six classes I attended were sales pitches.  The other four provided very little in the way of new information or ideas.

 

One session was presented by a man who claimed to be a financial adviser.  His real purpose was to enroll class members with his firm that manages your savings.  The cost is just 1% of the value of your investments per year.  He would not consider anyone with less than $250K as a client.  So that is a mere $2,500 per year for the least eligible client.

 

Another session, my last, was a series of scare tactics to enroll with the presenter for long term care insurance.  This presentation was made by a woman who wore dark sun glasses during the entire presentation.  I felt like I was at one of those presentations at a local restaurant that includes a free lunch.  She cautioned the class to disregard Consumers Reports evaluations of this insurance.  After questioning her about the soundness of the insurance companies offering these policies, and being asked to be quiet by the class instructor, I left the room.  Reaching my house I, of course, immediately went to the Consumers Reports website.

 

Here is what I found on the CR website.

Sales pitches and their catches

To sell you on long-term-care insurance, agents may play fast and loose with the facts. These pitches are drawn from an insurance-industry publication and interviews with agents.

The pitch: You need to buy long-term-care insurance when you are young. More than 40 percent of people who need long-term care are under age 65.

The catch: Only 159,000 of the 238 million people under age 65, or less than 1 percent, receive nursing-home care.

The pitch: There is nearly a 50 percent chance that a person will require 24-hour care in a skilled-nursing facility.

The catch: 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.

The pitch: If you are over age 65, you don’t need inflation protection.

The catch: According to the most recently published figures, the average age of admission to a nursing home is 83, and costs are expected to rise more than 5 percent a year. At age 65, you face 18 more years of inflation.

The pitch: You’ll get into a better nursing home if you have insurance.

The catch: While some nursing homes may prefer to take residents who do not have to rely on Medicaid, there is no guarantee that those homes provide better care. To check on any nursing facility you are considering, visit the ConsumersUnionCenter for Consumer Health Choices Web site at www.consumersunion.org/health/nursing-rpt603.htm.

The Third and Final Debate

It was John McCain’s best performance.  He was sharp.  He was emotional.  He was convincing.  Barack Obama’s performance was not great but was good enough.  I would call this debate a tie.  Neither won this event.

 

John McCain had to convince sufficient numbers of voters to change their decision to vote for him rather than Barack Obama.  I do not think he accomplished his objective.  I am quite sure that his campaign staff will say he has turned the tide.  The polls will tell the story in the next few days.

 

Personally there are at least three reasons that I could not vote for John McCain.

 

  1. He is very old and there is a distinct possibility that Sarah Palin will become president.
  2. He opposes Roe versus Wade.  The over turning of that ruling would set this country back 35 years.  Before that ruling women were going to back alley doctors to obtain an abortion.  That is barbaric.
  3. The health care plan proposed by John McCain will result in higher costs to Americans.  This nation needs real care at affordable costs for everyone.

John McCain is a fighter as he proved in the Republican nominee selection process.  He will campaign vigorously into the evening of November 3.

Concerned with Race, Religion, and Ethnicity

Is there a Bradley Effect in recent polls showing Barack Obama’s lead of as much as 11%?  I do not know.  For those not familiar with the theory it is that participants in polls will lie about their willingness to vote a Black man.  Tom Bradley, was the Black mayor of Los Angeles.  He ran for governor of California in 1982.  Although many polls showed him significantly leading, he lost the election.

 

I fear that the theory has merit.  The reason is that there have been too many other Black candidates who narrowly won or lost after polling data showed a significant lead.  Douglas Wilder, former Virginia governor, is an outstanding example of someone who had polls showing a 9% lead but won by less than 1%.  Others include Harold Washington’s four-point victory in the 1983 Chicago mayoral race despite a double-digit lead in polls, and David Dinkins’ two-point victory over Rudy Giuliani in 1989 to be New York‘s mayor despite a 14-point margin in late polls.

 

I personally believe that voting polls are trend indicators at best.  It’s not just people not telling the truth but many people not wanting to participate in any poll.  I question the validity of polling when so many people consider poll taker questions an invasion of privacy.

 

Sadly, too many Americans are more concerned with race, religion, and ethnicity than their own well being.  This example from a John McCain rally is a most telling indicator.  It is so bad in this country that people were opposed to Mitt  Romney as the Republican nominee because his religion is Mormon.  I always thought Mormon is a religious sect just like Lutherans, Baptists, or Catholics.  What do we Jews know? 

 

God gave man the right to choose.  He chose to eat the apple.  I conclude that Americans have the right to choose John McCain.  Well, the selection of president may be a flawed process but the U.S.A. is still the best place in the world.  I many not be happy but I will accept the results.  Will those bigots accept the results if Barack Obama is elected? 

Fire In Los Angeles

The Santa Ana winds blow through mountain passes and canyon bordering on the northern side of the San Fernando Valley.  Porter Ranch is one of seven or eight communities that are impacted every year.  Those same winds cut through hills adjacent to Malibu with the same devastating effect.  This is not a new phenomenon.

  

Porter Ranch Fire
Porter Ranch Fire

 

The solution is to not build anything in those areas most impacted. However, you know Californians.  We just won’t listen to reason.  Most of the San Fernando Valley is covered with a blanket of smoke.  Mostly we love the climate.  It’s part of the price we pay for our mild climate.

 

Most of us, including my family, are on the Valley floor.  We heard lots of sirens and saw lots of fire trucks.  Thanks to our brave fire crews we are safe.

This Country Needs a Manufacturing Base

There is not a country in the world that has thrived without an agricultural, mining or manufacturing base.  Today those nations include China, Taiwan, Japan, Germany, Russia, and Iran, Brazil, and Canada.  The United States is part of that group too but this nation has seen a significant decline in its manufacturing.  Charlie Gibson on ABC News was reporting from Racine, Wisconsin when he pointed out that the town has always been a manufacturing town.  The problem is that the United States has been shedding manufacturing jobs for many years.

 

If you look at the GDP over the years going back to 1967 you find that manufacturing as a percentage of the total has continuously declined.  In that year manufacturing was 25.2% of GDP.  By 1987 manufacturing had declined to 17.1 %. That was not the end of the decline as it was down to less than 12% in 2005.

 

When I was in college in the early 1960s there were 30 million people in labor unions.  Today the number has declined to 15 million.  The reason is the shedding of manufacturing jobs.

 

Automobile manufacturing has been one of the industries that personifies American manufacturing know how.  The problem is that the Japanese, the Germans, and others have taken the lead from the American companies.  It’s no wonder.  The auto manufacturers in those countries have delivered cars with better quality and higher gasoline efficiency.  General Motors share of the U.S. market in 1954 was 54% and imports were play things for the rich.  The VW would not arrive in significant numbers until 1955.  We all know what happened next.  Japan developed superior quality control and that made the names Honda and Toyota synonymous with the word quality.  I remember asking an employee of mine in 1983, after he had completed his assignment, “Is that Toyota quality?”   

 

Unless the United States returns to its manufacturing roots and does it better than the rest our nation is in for a very difficult 21st century.   

 

John McCain – Accept The Will Of The People

John McCain is a decent man.  He his campaign themes have been “service” and “country first.”  Both of those themes are excellent.  Unfortunately Mr. McCain’s campaign rhetoric has become so incendiary that it has induced supporters at his rallies to call Barack Obama a “traitor,” “terrorist,” and a “liar.”

 

I noticed on a clip on Chris Matthews show that the yelling from the audience caused John McCain to grimace.  He clearly realizes that he needs to tamp down the anger his rallies have inspired.  The entire character assassination campaign methodology is becoming so toxic that it could lead mob violence and perhaps a real assassination attempt.

       

This is not what American election campaigns should be about.  John McCain needs to shut down the character assassination campaign immediately. He needs to focus his campaign on the issues that concern Americans like the economy, energy, infrastructure rebuilding, health insurance, etc.  If that means losing the election he should accept the will of the people.

Think about it…

Let me see if I have this straight…..

* If you grow up in Hawaii, raised by your grandparents, you’re ‘exotic, different.’

* Grow up in Alaska eating moose burgers, a quintessential American story.

* If your name is Barack you’re a radical, unpatriotic Muslim.

* Name your kids Willow, Trig and Track, you’re a maverick.

* Graduate from Harvard law School and you are unstable.

* Attend 5 different small colleges before graduating, you’re well grounded.

* If you spend 3 years as a brilliant community organizer, become the first black President of the Harvard Law Review, create a voter registration drive that registers 150,000 new voters, spend 12 years as a Constitutional Law professor, spend 8 years as a State Senator representing a district with over 750,000 people, become chairman of the state Senate’s Health and Human Services committee, spend 4 years in the United States Senate representing a state of 13 million people while sponsoring 131 bills and serving on the Foreign Affairs, Environment and Public Works and Veteran’s Affairs committees, you don’t have any real leadership experience.

* If your total resume is: local weather girl, 4 years on the city council and 6 years as the mayor of a town with less than 7,000 people, 20 months as the governor of a state with only 650,000 people, then you’re qualified to become the country’s second highest ranking executive.

* If you have been married to the same woman for 19 years while raising 2 beautiful daughters, all within Protestant churches, you’re not a real Christian.

* If you cheated on your first wife with a rich heiress, and left your disfigured wife and married the heiress the next month, you’re a Christian.

* If you teach responsible, age appropriate sex education, including the proper use of birth control, you are eroding the fiber of society.

* If, while governor, you staunchly advocate abstinence only, with no other option in sex education in your state’s school system while your unwed teen daughter ends up pregnant, you’re very responsible.

* If your wife is a Harvard graduate lawyer who gave up a position in a prestigious law firm to work for the betterment of her inner city community, then gave that up to raise a family, your family’s values don’t represent America’s.

* If you’re husband is nicknamed ‘First Dude’, with at least one DWI conviction and no college education, who didn’t register to vote until age 25 and once was a member of a group that advocated the secession of Alaska from the USA, your family is extremely admirable.

OK, much clearer now.

Who Is In Charge?

If ever there was a case of ineffective government it is the AIG scandal.  After bailing out that company with $85 billion the government had to provide another $37.8 billion loan.  To add insult to injury AIG held a $400,000 party at a very expensive California hotel resort.  Oh well it’s just to motivate the sales people so it’s OK.  It has been reported that another party of the same size will occur next week.

 

Our Congress has authorized $700 billion to be spent on a “recovery plan” which really is a bail out of our financial markets.  Where will all that money go?  Well it won’t be to the taxpayers and it won’t be to the homeowners with loans they can’t afford.  We the people have had a gun held to our heads.  They tell us if we don’t support this insane plan it will impact our savings, our banks, and we might lose our jobs.

 

The election is just 27 days away and neither Barack Obama nor John McCain has offered a coherent plan to resolve our economic problems.  Barack Obama was on ABC’s Nightly News and told Charlie Gibson that he would give us the confidence to succeed just as FDR did.  The difference is that FDR offered specifics in the form of real action.  Obama simply said we will try different things until we find the ones that work.  Wow! How inspiring!

The Town Hall Debate That Did Not Happen

The second McCain-Obama debate was very disappointing.  Rather than offering a plan to revive the economy they restated their previous proposals for tax cuts and health care.  Both of them used the same words they have used before in previous speeches and discussions. 

 

There was exactly one new proposal and that was offered by John McCain (he insisted that it was his new idea).  He proposed buying defaulted mortgages at discounted rates and enabling the impacted home owners to keep their homes.  The Associated Press reported that the authority to buy individual home mortgages is in the just passed $700 billion bill so it isn’t really a new idea.

 

The dismissive “that one” remark by John McCain definitely displayed the intense dislike, possibly hatred, he holds for Barack Obama.

 

This debate provided no new insights about either man.  Thankfully there were no character assassinations.  John McCain looked older than he has in recent appearances.  Perhaps that was because Barack Obama looked young.

 

This debate was boring and uninformative.

A Pundit Depression

During this election season everyone has an opinion.  Just watch CNN.  The number of “experts” in the current season seems to be growing daily.  There are so many of them that they are crowded around two tables.  I thought Bill Schneider was their primary commentator but wait a minute there is Jack Cafferty but wait minute what about David Gergen.  Oh I forgot Gloria Borger, Campbell Brown, and Jeffrey Toobin.  I haven’t even mentioned the commentators who clearly support the Democrat or Republican with blind faith.

 

If you change the channel to Fox News or MSNBC you get their lineups of commentators who must amount to another few dozen.

 

What will happen to all of these people after November 4?  I do not know.  I watch them hoping to hear another idea rather than the same comments using slightly different words.  It’s like watching “Ground Hog Day” over and over.  I think I will spend more time watching Comedy Central’s Daily Show with Jon Stewart and The Colbert Report.