Your Money

Figuring Out Your Finances

It pays to plan ahead for retirement.

(NAPSA)-When it comes to major lifestyle changes, planning ahead can ease financial stress. And no event requires more early preparation than retirement.

According to experts, retirees should give plenty of thought to matters such as health coverage and seek a combination of income and asset protection to ensure their savings will last throughout retirement.

John Haver, senior vice president at Mutual of Omaha, offers the following information to help retirees plan well for their financial future (additional information can be found at mutualofomaha.com):

Health Coverage
Many people age 65 and older choose Medicare as their health coverage.

However, even with Medicare, out-of-pocket costs such as deductibles, coinsurance and co-payments can add up. That's why some 10 million Medicare participants also choose a Medicare supplement insurance policy to fill many of the gaps in coverage. Medicare supplement insurance even works with Medicare to automatically process claims, which means participants don't have to worry about submitting claims themselves.

Guaranteed Source of Income
When a steady paycheck is gone, retirees often find they miss the dependability of an income to cover monthly expenses. A single premium immediate annuity (SPIA) can help. This is an insurance product that can guarantee a source of income in exchange for a lump sum premium payment. You can select an SPIA to provide income for a certain number of years or even for the rest of your life.

Asset Protection
According to Haver, retirees need to plan for long-term care needs. With longer life expectancies, the likelihood of needing some sort of long-term care ser_vices increases. And, with the cost of such services on the rise, self- funding long-term care is unrealistic for most people.

"Long-term care insurance protects your assets so you don't have to watch your life savings whittle away. It provides coverage for all types of services whether at home, in an assisted living facility or a nursing home," Haver said.

Learn More
For more information, visit mutualofomaha.com.

The $225,000 Question: How Will Boomers Pay For Long-Term Care?

A good time to plan for long-term care is in your 40s or 50s.

(NAPSA)-Have an extra $225,000 stashed away in your retirement account? If you're like most baby boomers who've already taken a hit to their nest eggs in the last year or so, the answer is: You must be kidding.

And yet, as the boomer generation continues to age, the sobering reality is they're going to have to find a way to pay for the long-term care many will need when they're no longer able to do such everyday tasks for themselves as eating, bathing and dressing.

Not to mention what happens if they're more seriously impaired by conditions like Alzheimer's disease.

That $225,000 figure? That's approximately what a typical 2 1/2-year nursing home stay costs today, based on John Hancock Life Insurance Company's 2008 Cost of Care Study. And receiving care at home doesn't exactly come cheap either-with round-the-clock assistance costing as much, if not more, than many nursing homes.

Some of the most common ways to cover that tab are: paying out of pocket (see $225,000 retirement account question); relying on government programs like Medicaid that come with their own sets of limitations and can require you to first exhaust your savings; and long-term care insurance.

LTC insurance coverage helps protect your savings by paying for care in a wide range of settings-including nursing homes, assisted-living facilities, adult day-care centers, and your own home-and (depending on the particular policy you choose) also provides access to care-provider information and provider discounts. "When consumers compare the cost of the coverage with the potential cost of care, they begin to understand the real value offered by long-term care insurance," says Marianne Harrison, president of John Hancock Long-Term Care Insurance, adding that even a small amount of customized coverage is better than nothing.

Of course, as experts have often noted, there's more at play here than just dollars and cents. No one, after all, wants the emotional turmoil that comes with winding up being a burden on their family members.

Think about it: Would you rather remain independent for as long as possible or ask your daughter to move in-or even maybe kick in the money to help you through a long-term care event?

The optimum time to plan ahead and "help protect yourself and your loved ones," says Harrison, is in your 40s or 50s. The first step might involve talking to your financial planner to see which LTC insurance plan best fits your needs, or asking your employer whether LTC insurance is offered as part of your benefits package. Consumer advocates also recommend making sure you choose a company with experience in the field and strong financial ratings-that way you'll know the coverage you buy today is available whether you need it in six months or in 30 years.

Save While You Sleep

You may sleep better under a down comforter, knowing you're saving money and energy.

(NAPSA)-Here's comforting news: Down and feather bedding can save you money and energy.

You can save as much as 10 percent on your heating bill, according to the U.S. Department of Energy, by lowering the thermostat by 10û to 15û for eight hours a day. You can still stay cozy, however, with help from down, considered the best insulator on earth

When buying and caring for a down comforter, remember:

• Sewn-through construction keeps the down from shifting
• A shell of 100 percent cotton and at least a 230 thread count will prevent down from escaping.
• Oversized comforters drape better.
• The higher the fill power, the more insulating ability. Look for a number of 525 or higher.
• Shake out comforters regularly to prevent the down from bunching up.
• Look for the American Down and Feather Council's Seal of Approval, showing the manufacturer is committed to truth in labeling.

For more information on buying or caring for down bedding, visit www.downandfeather.org.

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