Interesting facts about Long Term Care

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One of the most common questions I get when preparing financial plans for people near retirement is about long term care insurance.  As I talk with my clients, I hear two concerns almost universally…first, what happens if I never need to use the insurance, and second, the coverage seems very expensive.  As with many financial products, long term care insurance can be a great product for the right person in the right situation.  I found a very interesting article today ...

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Roth versus Traditional IRA – the hidden assumption

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It’s almost tax day, and as usual we are seeing a lot of articles about whether people should use a Traditional IRA or a Roth IRA.  The difference between the two options is when you pay taxes.  When you use a traditional IRA, you get a tax deduction today and all the earnings in the account grow tax free until you take the money out.  When you withdraw the money, it is taxed as ordinary income.  With a Roth IRA, ...

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Dividend Investing

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In the last year or so, I have seen a renewed interest in “dividend investing”.  Dividend investing means that people select what stocks to buy based primarily on the amount of dividends that the company pays as a percentage of the price of the stock.  This is called the Dividend Yield.  Before getting into more details, let me define some terms and concepts:

What are dividends and why do companies give them?  A dividend occurs when a company distributes a share ...

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Are Indexed Annuities bad products?

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Recently, some articles have called Indexed Annuities “terrible ideas” for senior citizens.  Proponents disagree and feel these are the perfect solution for people who need market returns but don’t want to take market risk.  Click here to read a  Bloomberg article on this topic.

First, a primer…an Indexed Annuity is a type of deferred annuity.  In theory, the purchaser gets to put their money in the stock market, realize some of the gains as the market goes up, but ...

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Bond funds versus individual bonds

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Individual bonds and bond funds have many similarities.  They are both major components of the fixed income portion of your portfolio, both pay interest to their investors on a regular basis and both carry similar risks (call or email me with questions on the risks).  Below are some of the major differences:

A)  The current value of an individual bond in your portfolio does not impact the payments you receive, so its value at any point in time is only of ...

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