Now, let me absolutely clear… I have no intention of making fun at or treating lightly the devastation and agony of those suffering  the debilitation from long term infirmities.

Chronic illness and mental senility are horrible predicaments that are becoming more prevalent as our aging population expands demographically.

But… the increasing cost associated with long term care is growing far too quickly and well beyond the reach of the average family.  Consequently, when someone comes up with a witty approach to solving the high cost for LTC, we need to pay heed.

I’m not sure who wrote this, but I think it’s funny.

“No nursing home for me.  I’ll be checking into a Holiday Inn!”

“With the average cost for a nursing home care costing $188.00 per day (and that’s on the low side), there is a better way when we get old and too feeble.

“I’ve already checked on reservations at the Holiday Inn. For a combined long term stay discount and senior discount, it’s $59.23 per night.

“Breakfast is included and some have happy hours in the afternoon.

“That leaves  $128.77 a day for lunch and dinner in any restaurant we want, or room service, laundry, gratuities and special TV movies.

“Plus, they provide a spa, swimming pool, a workout room, a lounge and washer-dryer, etc. Most have free toothpaste and razors and all have free shampoo and soap.

“$5 worth of tips a day you’ll have the entire staff scrambling to help you. They treat you like a customer, not a patient.

“There’s a city bus stop out front and seniors ride free. The handivan will also pick you up (if you fake a decent limp).

“To meet other nice people, call a church bus on Sundays.

“For a change of scenery, take the airport shuttle bus and eat at one of the nice restaurants there.  While you’re at the airport, fly somewhere.  Otherwise, the cash keeps building up.

“It takes months to get into decent nursing homes.  Holiday Inn will take your reservation today. And, you’re not stuck in one place forever — you can move from Inn to Inn, or even from city to city.

“Hey… want to see Hawaii?  They have Holiday Inn there too.

“TV broken?  Light bulbs need changing?  Need a mattress replaced?  No problem. They fix everything and even apologize for the inconvenience.

“The Inn has a night security person and daily room service. The maid checks to see if you are ok.  If not, they’ll call an ambulance . . . or the undertaker.

“If you fall and break a hip, Medicare will pay for the hip and Holiday Inn will upgrade you to a suite for the rest of your life (at least that’s what I’ve been told by my lawyer).

“And no worries about visits from family. They will always be glad to find you and probably check in for a few days mini-vacation.  The grandkids can use the pool. What more could I ask for?”

Many thanks to Holiday Inn for letting us have some fun. Incidentally, they run a fine operation and we definitely recommend that you stay with them whenever you travel… especially if your family is with you.

It all depends on whether or not you have the guts to take action before the main street media begins to spread the word.

The videos below were recorded in May 2011 and they discuss the extraordinary rise in the price of silver… not only what has already taken place, but what is about to occur.  There are 4 videos and they should be watched in sequence.

“Nothing in the world has the potential to multiply your net worth like silver.”  – Ted Butler, The World’s Most Intelligent Silver Analyst

“Once in a lifetime opportunity” is a phrase sometimes expressed too lightly, but I assure you this is exactly just such an opportunity. You do NOT want to miss this.

Another oft used phrase is “you can lead a donkey to water… but you can’t make him drink”.

Please… don’t be a donkey!

Video #2

Video #3

Video #4

Unless required by law (e.g. homeowner’s or automobile insurance), the purchase of any type of insurance is primarily related to cost versus perceived benefit. Our human tendency is to gravitate towards immediate gratification rather than be overly concerned about future possibilities.

Those of us under the age of 50 seldom think about the possibility of needing care as we mature. And, those of us over 50 like to believe we will never be in a position wherein we require professional care giving. Oh sure, we might need the aid of a cane or portable walker, but it is unthinkable that we would ever need help to eat our food, or go to the bathroom.

Ironically, even when we witness first-hand the impact this tragedy has on others, indeed, even our own loved ones… we tend to ignore the possibility that we, too, might need care in the future. More times than not, the cost associated with owning a long term care policy will override the more rational consideration to offset the cost of receiving professional care.

Most policies are intricate and difficult to understand. They are modular in nature and offer numerous combinations of benefits. For example, receipt of the benefit can begin immediately upon qualification or it can be postponed for a period of time, which will decrease the premium. Also, the benefit can be for relatively short periods of time or it can be much longer (even lifetime), in which case the premium will be more expensive.

But, this is just the basic foundation of the benefit structure. You can select a policy that pays only for nursing home care or you can also include day care centers, assisted living facilities, or care provided in the privacy of your own home.

You can pay extra to guarantee that your benefit will increase each year based on a fixed cost of living adjustment and you can even pay extra to have your premium refunded should no benefit ever be paid to you.

It is easy to become confused when trying to decide what to buy. Too many components from which to choose make it hard for of most seniors to commit to the purchase of a long term care policy. What’s more, there is a common tendency on the part of the prospective buyer to try and purchase a policy that will cover 100 percent of the costs associated with care giving.

For example, if the average cost of nursing home care in your vicinity is $8,000 per month and you can’t afford the premium for a policy that provides $8,000, then you might use this as an excuse to not secure any benefit at all. You would be smarter to buy what you can afford and integrate other assets in your long term care planning.

It’s apparent that as a nation we are living longer. And, the longer we live, the more apt we are to need some assistance in our old age. Long term care is provided for a multitude of age related disabilities… not just senility and Alzheimer’s.

Planning for its eventuality makes a great deal of sense. This doesn’t automatically mean you must buy an insurance policy, but it does imply you should take time to consider the consequences that might be placed upon you and your family should you become a victim.

And, contrary to what many people believe, Medicare and private health insurance programs do not pay for the majority of long term care services that most people need… such as help with dressing or using the bathroom independently.

For over 25 years, Ted has single-handedly challenged the responsible government entities to carry out their sworn duty to eliminate the illegal activity taking place within the COMEX trading institution.

And, over for 25 years they have chosen to ignore his straight forward and absolutely correct analysis that squarely accuses those crooks who are responsible for the longest ongoing manipulative theft in the precious metals marketplace.

Although Ted does not provide individual financial advice, anyone who has followed his thorough and accurate opinions (and taken timely action) over the last decade has made an extraordinary amount of money by buying silver.

What does “home business” mean to you? If you restrict your answer to the old concept of the Amway distributor, then you are missing the point – big time.

Unemployment is at an all-time high despite the multi-trillion dollar stimulus fiasco. The trend today more than ever is to work from home.

Some companies are even giving their employees the opportunity to work from their home rather than occupy expensive office space.

What’s more, stay at home Moms and Dads are common place… as is the senior citizen who must find an additional source of income.

Most people who have made lots of money on their own understand the importance of small business ownership… even that first lemonade stand.

Not bound by traditional investing, they use personally controlled businesses to enhance their financial position.

Owning a successful small business greatly increases your odds of becoming wealthy and staying wealthy.

More than ever, your long-term economic survival should include a source of income over which you maintain absolute control.

Developing a home business can help you retire more comfortably… have fun with your family… and sleep peacefully every night without worrying about money problems. Managing personal finances will be much more predictable.

Starting your small business – even at home – can be tricky, unless you take time to analyze and research exactly what you want to accomplish… in other words your written goals.

There are numerous niches from which to choose:

• local business consultant
• webmaster or webmistress
• eBay/Online auction seller
• hard goods creator/artisan/crafts
• information publisher
• affiliate or network marketer
• sales or referral agent
• food preparation/recipes
• day care for kids or dogs
• graphics artist
• landscape designer
• home design consultant
• manufacturers representative

Your greatest success will come by doing something you really enjoy. But, unless there is a good demand for your product or service… you will have difficulty. Just enjoying what you do won’t make you any money.

Some topics are always popular like losing weight… financial information… self-help… health and fitness.

Did you know people will actually pay for information that is readily available free of charge?

This is because gathering information takes a lot of time… and, most people don’t want to use their time this way.

Instead, it’s easier to pay someone else to do it for them… someone like you for instance.

So, if you’re willing to do enough research to become somewhat of an expert on a certain subject… there’s no reason to believe people wouldn’t buy from you to get the information they want.

You simply have to find out which subjects large numbers of people are querying the search engines for… and create a system to steer them your home business operation.

This, of course, is a pipe dream.

And, even for those who have a better understanding of what is involved in making relatively sound investment choices… a rude awakening often awaits their fate.

What you know intellectually about stocks… bonds… mutual funds… commodities… real estate… or any other investment product isn’t worth a hill of beans when compared with your ability and willingness to respond rationally to the ever-changing perception of the market.

The critical question is: How will your personal behavior respond to the behavior of the market as a whole?

This essentially determines the degree of success you will have with your investments. Managing personal finances rationally is the only way to insure survival in the rough… even cruel… times just ahead.

Most likely, you know already that you have to accept some risk when learning how to invest. But, what may not be as evident is that even the riskiest investment can be controlled.

Let’s use the technology crash (2000-2002) as an example. Investors were mesmerized by the extraordinary increase in stock prices from 1998 to early 2000.

Everything techie seemed to be making money. It appeared to the casual and the experienced investor that there was no end in sight for profit. But, without having a predetermined defensive plan that would automatically protect them in a down market… most of these investors suffered dearly.

Was this due to lack of awareness… hypnotic spell… greed… wishful thinking? Or, maybe a little bit of each.

It doesn’t matter. People who thought they knew how to invest just sat and stared as the value of their stocks soared skyward.

And, they kept sitting there even when the markets reversed course and plummeted into a dark hole.

Fortunes were made… and abruptly lost… because people who had yet to master the basics of how to invest believed foolishly that the downward spiral would stop.

But… it didn’t!

Although 2003 showed some improvement, it was too weak. And, both 2004 qnd 2005 were uneventful.

So… was it wrong to invest in technology stocks? Of course not.

But, it was wrong to commit money without first understanding how to invest using a predetermined course of action to protect your profits and limit your losses.

The Number One Rule… Don’t Lose Money Needlessly!

For instance, if a share price goes from $10 to $20, you should commit to sell if the price slides back to $15.

In other words, if the price gives back 25% of its gain… then, it’s time to sell.

No exceptions!

In this example, you would make 50 percent instead of 100 percent. This assumes, of course, you would have sold when the price grew 100 percent.

The fact is most investors would not do this… that is, sell at that particular time.

Instead, they would get greedy as human nature sets in. After all, if you can get more later rather than settle for a reasonable profit now… why not?

This may be human nature… but it usually leads to unnecessary losses.

The point is to remind us that our behavior is seldom… if ever… rational when dealing with investments.

For those investors who only experienced rising markets… corrections were disastrous. Although market cycles can be somewhat predictable… the broad movements tend to be reactionary.

Even the current devastation was predictable. We just didn’t want to believe what was right before our eyes. And, the train wreck that awaits us as we enter 2011 will destroy what little is left in many retirement plans and IRAs.

The public at large still ignores the problems facing us as a nation. But, if you will pay attention and learn how to invest with the right mindset… you can separate yourself from the pack.

There is no lack of advertising (and sometimes browbeating) from the debt industry. Whether you are coerced into debt consolidation or debt settlement… sometimes you wind up at the short end of the stick.

Debt consolidation is when you combine your debts into a single loan, or perhaps a repayment plan. You can actually do this on your own directly with those holding your debt, or by using a counseling service.

Settling your debt is when you pay an agency to act on your behalf and try to negotiate a big reduction in the total debt. It is vital that you understand ahead of time just how this strategy will likely damage your credit.

Below you will find a simple debt reduction strategy that systematically eliminates your debt completely… and in a relatively short period of time.

The objective of the strategy is, of course, to relief you from the burden of debt.  But, equally important is that by doing so you will automatically increase your net worth… a huge improvement to your overall situation.

What you own minus what you owe is referred to as your net worth.  It’s the total difference between your assets and your liabilities.

Here’s a simple illustration:

Home Value = $400,000           Mortgage balance = $200,000
Investments = 100,000             Credit cards = 20,000
Auto = 45,000                                Auto loans = 30,000
Savings = 15,000                           Bank loan = 5,000
You Own = $560,000                 You Owe = $255,000

Net worth = $305,000

You can increase your net worth one of two ways… own more things or have less debt.

In our example, you have $255,000 of debt.  Most people pay less attention to the mortgage and car loan balances because they consider them to be rather normal in maintaining a lifestyle.

Credit card companies charge between 12 to 29 percent (forget those slick, short-lived introductory teasers) and the bank loan is probably around 6 percent.

Now, ask yourself.  Which is faster?  Create $255,000 (in other words, own more) … or reduce $255,000 of debt?

In both instances, the result is the same because your net worth will have increased by the same amount.

To make $255,000 in 15 years, you’d have to invest over $7,000 every year for 15 years and make a minimum 8 percent rate of return.

Where can you find a guaranteed rate of return this high in today’s marketplace?

No where!

On the other hand, you can reduce $255,000 of debt in only 13 and 1/2 years by adding $100 extra each month to your minimum debt payment.

Think about that for a minute.

To increase your net worth by $255,000 you have to invest over $7,000 each year for 15 years. Then, you hope and pray you’ll get no less than an 8 percent average every year.

Or… you can come up with only $100 each month to reduce 100% of your debt (to include your mortgage) in only 13.5 years — guaranteed!

Take a look at this debt reduction chart.  You will need an Adobe Reader, which is probably already installed on your computer.  If you don’t have it… go to adobe.com for a free download version.

Once you open the chart, print out a copy and lay it in front of you.  Notice how clear the instructions are to follow.  This strategy is not only simple, it is powerfully effective.

In every instance, it is faster and more reliable to eliminate your liabilities than to increase your assets.  Why?

Because the interest you pay on your debt is excessively higher than the guaranteed interest you can earn.

By following the debt chart and adding an additional $100 each month to the minimum payment requirement, you can dramatically compound the effect of your payments and expedite the complete elimination of all your debt.

It’s a lot easier to come up with $100 extra each month than it is to find over $7,000 each and every year for the next 15 years.

This debt elimination strategy works every time… every time!  It is mathematically sound and can only fail if you fail to stay the course.

Managing personal finances is not difficult, but you must first reduce… better yet eliminate… your outstanding debt.  Good luck!

Like most things… moderation should apply. Unfortunately, for most people it doesn’t work that way.  Maxing out a credit card is pretty common these days.

The Annual Percentage Rate (APR) is a primary indicator for the cost of credit and is expressed as a yearly rate. It must be disclosed before you accept any obligation for payment.

The card issuer also must disclose the periodic rate. This rate is applied to your outstanding balance to determine the finance charge for each billing period.

Some credit card deals permit the issuer to change the APR when interest rates change. Make sure you understand how these variable rates work before you become obligated.

A grace period lets you avoid finance charges by paying your balance in full before the due date. Knowing whether a credit card gives you this option is important if you plan to pay your account in full each month. This is especially true if you plan to transfer an account balance from an old card onto a new one.

Try to avoid those sneaky little charges (actually they’re not so little anymore) for such things as cash advance, late payment or exceeding your credit limit.

Recent legislation was supposed to make everything more user friendly, but like most government intervention it did exactly the opposite of what it was intended to do… help the consumer.

And, here’s an interesting twist… some companies even charge you for not using your card. For example, when your account has been dormant for a certain period of time.

Don’t be lazy… read the fine print and, if you don’t understand how your balance is calculated, ask the card issuer. A written explanation about your credit cards must also appear on your billing statement.

Personal finance management is challenging. Don’t make it more difficult by abusing the real intent of using credit cards… namely convenience.

Your emotions… not your logic… will help you answer that question because it’s damned near impossible to put a price on the human lifetime value of a husband, wife, mother or father.

If you died today, how much money would your family need right now to pay your debts and continue to enjoy their current standard of living?

First, itemize all of your debt obligations to include your mortgage if you have one. How much of this burden can your loved ones handle when you’re gone?

Second, what about your lost income? How much in current dollars will disappear when you die? How much in future dollars?

What type of education do you want for your kids? If you live to a ripe old age you might be able to fund the schooling out of your earned income while you’re alive. But…

Can your family afford to pay for this without that income?

And, what about household emergencies? Will there be enough savings for your family to dip into when the car breaks down… or the frig needs to be repaired?

No one likes to think about their own mortality. But, if you don’t consider this now while you’re healthy enough to qualify for life insurance… the consequences might be devastating for your loved ones.

Which brings us to the only reason you should buy life insurance… and that’s because you love someone.

Never buy a policy as an investment and don’t for a moment think it will be a practical education fund. And for heavens sake, don’t let the hustlers convince you it’s a sound retirement supplement.

The smart thing to do is integrate life insurance considerations within the overall scope of personal finance management.

Life insurance is income tax free cash that is guaranteed to be available at precisely the time it will be needed the most… when the breadwinner is gone.

It comes in a variety of types to include term, whole, variable and universal… plus many convolutions. The income tax free cash (the death benefit) is paid once the eligible beneficiary submits a claim to the life insurance company together with an original death certificate.

Books have been written and arguments abound among so-called professionals as to the best type of life insurance… but, the truth of the matter is there is no one best type. The only one that will do your loved ones any good is the policy that is actually in force at the time of your death.

And, therein lies the rub because you don’t know when you will die. As far as the life insurance company is concerned you are part of a bigger picture that includes thousands of others who are pooled together in a risk sharing environment.

From a premium expense perspective, term insurance is typically the least expensive, but this is NOT always the case. When you are relatively young the premium is more than likely affordable… however, as you age the price goes up… and up… until perhaps you won’t be able to afford it anymore.

Even premiums that are guaranteed to remain level for 20 or 30 years will expire at some point in time. And, what if you haven’t died by then and want to renew the policy? The price (if, indeed, it is even available) will be astronomical.

Some people say that when that happens you will have matured into a category of people who can now go without having any life insurance protection. Theoretically, your bills have been paid and your kids are on their own.

Of course, we know this is foolish because everyone has their own circumstances… and circumstances do change.

The need for income tax free cash at the time of someone’s death will likely always be there for those who are left behind.

Understanding life insurance is not always easy. Although the basics are pretty straight forward, the science of numbers behind the scenes can be complex and rather intimidating to the lay person.

If you can find a credentialed, long-standing life insurance agent who will speak with you intelligently and without hyping you into a purchase… take advantage of his or her knowledge.

Always look for the lowest premium… but, don’t make your decision about life insurance based solely on price.  Make sure you understand the long-term ramifications.

The answer is a moving target because both federal and state governments are desperately trying to find as much tax money as they can… since they are quickly going broke. Now, I know that statement may sound somewhat far fetched, but it’s true.

The point is that even though current tax law defines what and how personal assets are taxed at death… our laws are made from sand that surely shifts as time passes. However, there are some aspects that seem to survive over the years… and those are what we will focus on right now.

There is a basic premise that anything titled exclusively in your name (except your primary residence) will be subject to tax upon your death. I know this doesn’t seem fair, but taxes never are. So, for example, if you have a car that is driven by both you and your spouse, its value will be taxed when you die if the license registration is only in your name.

Likewise, if each of you has your own checking or savings account, it will be taxed when one or you die. In other words, legally the ownership of things falls totally on the grave of the registered owner of any asset.  The trick is to either have joint ownership or (where permitted) title the accounts as “pay on death” or “transfer on death”.

There Are Both Federal and State Death Taxes

By the way, federal regulation is typically followed by most states, but not always so. Therefore, you need to understand how things are taxed in your state. This is especially important in community property states.

Personal residences generally pass without tax to the surviving spouse by virtue of a special exemption. Also, revocable living trusts can hold title to certain assets and, consequently, remove legal ownership from you personally. Nevertheless, you can be the grantor trustee and control everything while you are alive. When you die, your surviving spouse (if you wish) can automatically become the surviving trustee and carry on legally without any disruption or death tax consequence.

Retirement accounts (such as 401k, pensions and IRAs) are technically owned by you even though you maintain control over the investment decisions. When you die, your appointed beneficiary will receive the assets without being subjected to taxes on death. Income tax, of course, will be due upon liquidation or distribution based on certain guidelines.

Another beneficiary transaction involves life insurance. Your appointed beneficiary will receive the death proceeds without either death or income tax provided the policy has been set up properly. One thing to keep in mind is that if you have appointed your spouse as beneficiary and he or she dies before you do, it is vital that you appoint someone as secondary beneficiary. Otherwise, you risk having the death benefit be subjected to income tax… which destroys one of the best benefits of life insurance death proceeds.

It’s no secret that there are numerous places to go on the Internet to find free and discounted legal forms. For example, it is common these days to find a place to get a will drafted for about $20. While many of these services are valuable, nevertheless, some states have very strict regulations and may not honor such a will. Getting some professional advice is important.

Are Death Taxes The Same As Estate Taxes?

There is a lot confusion these days listening to our illustrious congressmen banter about discussing the pros and cons of death taxes… sometimes referred to as estate taxes. This just feeds the trough for lawyers to confuse you about buying their software driven wills and trusts packages sometimes costing you thousands of dollars.

The average guy or gal on the street does not require anything fancy.  Basic rule of thumb is to:

• Get a living will to legally direct whether or not you wish to be kept alive on a feeding tube.
• Have a basic will so the courts will ensure your assets go to whomever you wish them to go.
• Use a revocable living trust to remove high value assets from your name in order to avoid probate costs (money down the proverbial rat hole), as well as ensure a smooth transition to your loved ones.

But, what are death taxes and how they affect your particular situation is not something you need to spend too much money on unless you happen to have a very sizeable estate.