Long Term Care costs may be putting your retirement funds at risk.   

If you have lived into your sixth decade, you may be about to retire.  Healthy pre-retirees
look forward to an active future.  Prudent planning involves contingencies.  Something may
change with your health - being prepared is crucial to your financial and emotional status. 

Planning for old age may sound like giving up and admitting that you can not take care of
yourself.  There is a saying, “growing old is mandatory, it’s growing up that’s optional”. 

Many have not planned on being the old person who needs assistance – and this attitude
is dangerous to financial health because when reality hits,  it will be very expensive and a
drain on savings and assets.  You may become vulnerable but you do not want to think
about needing help and relying on the kindness of family because you do not have the 
funds to pay a professional for care.  It could happen.

Federal government statistics say half of us will need some form of long-term care during
our lifetime.  Please consider protection now, while you are younger than you will
ever be again and possibly healthier.  Long Term Care premiums are lower than when
you are older.  You may qualify for affordable preferred rates and in so doing assure
you can obtain and pay for quality care with the least burden to you and your family.  

A prudent person would plan to avoid running out of money and plan for the day their
health declines to the point where they need help caring for themselves.  The risk of
needing long term care and the cost of receiving that care is a significant risk you face.  

Living too long and needing care is a serious threat to your retirement. 

Please answer these questions and be honest with yourself:

* If you required care where would you like to receive it, in your home or at a facility?

* Who would you want to provide that care and how would you pay them?

* Have you shared your plans with your family?

* Which account would you spend first,  which asset would your sell to pay the bill?

* How would your lack of planning affect your family?

* Do you have a will, Living Will and Power of Attorney (POA)?

* What kind of legacy do you plan to leave to your family after your death?
   (I mean more than money…I mean what memories will you leave behind?)

Please meet with me now to discuss how LTC insurance can provide the money and
services to help you with the long term care that you may need in the future?

Thank you for your consideration.  Contact me

Rosemary A. Reid 

ROTH IRA

Understanding the ROTH IRA

The Roth IRA is the simplest - and potentially the most effective - sheltered
account imaginable:

* It has a tax structure unlike that of any other IRA: contributions are post-tax,
   but growth is  tax-free; once you put your money in, you never pay taxes again.

* Available to those with Adjusted Gross Income below $159,000 Married,
   $101,000 Single even if you have a 401(k).

* Maximum deposits for 2008 are $5,000 for those under age 50
   and $1,000 for catch-up amounts if over age 50.

* It is more flexible: since you have already paid taxes up front, there are no 
    minimum distribution  requirements at age 70 1/2.

* Since withdrawals are not reportable income, they will not affect your Adjusted
   Gross Income during retirement or interfere with taxation of Social Security
    benefits (if applicable).


ROTH IRA Basics

A Roth IRA is an Individual Retirement Account (IRA) that provides tax-free
growth.  The long-term power of tax-free compounding can help create true
financial security.

As with all IRAs, there are restrictions on your eligibility to contribute to a ROTH
IRA based on your income level and filing status. (stated above)

If eligible in a given year, then you have until the following April 15 to make a 
contribution.

If you are too busy to learn everything yourself, contact me.  
I have the information you need to make prudent decisions.


How much can I contribute to a Roth IRA?

Each year you can contribute any amount up to 100 % of your earned income 
or the annual contribution limit for that tax year, whichever is less.

You can make ROTH IRA contributions until April 15 for the proceeding tax
year.  Additional catch-up contributions to a ROTH IRA are available for people
who turn age 50 or older during the year.

Maximum Annual Contribution Limits:

Tax Year       Amount
2008              $5,000
After 2008, the limit will be indexed for inflation and increased in $500 increments.

Maximum Catch-Up Contribution Limits:

Tax Year           Amount
2006 and after   $1,000

Be prepared for a retirement that can last 30 or 40 years.  Your retirement 
will be very different than your parents’ retirement – be ready.


Can I make a ROTH IRA contribution for my nonworking spouse?

If you are eligible to establish a ROTH IRA for yourself, you may establish one
for your nonworking spouse.  The combined contribution limits for you and 
your spouse are 100% of your earned income or the annual contribution limit 
for that tax year, whichever is less.  Each spouse must have his/her own Roth
IRA.  Neither ROTH IRA can receive contributions exceeding the stated 
contribution limit for a given tax year.


Can I convert an existing Traditional IRA to a ROTH IRA?

Single taxpayers and married taxpayers filing jointly can convert a Traditional 
IRA to a ROTH IRA.  To be eligible for a conversion, the modified Adjusted 
Gross Incomes (AGI) of single or married taxpayers must be no more than 
$100,000.  The conversion sum does not count toward the $100,000 modified
AGI maximum.

* Beginning in 2010, conversion does not have a $100,000 income maximum.

* The distribution from the Traditional IRA will be subject to federal income
   tax for the year in which the Traditional IRA is converted

* The 10% premature distribution penalty will not be imposed.

* A conversion must take place by December 31 of the year you wish to convert. 
  You are not allowed to convert a Traditional IRA to a ROTH IRA for a prior year.

Married persons filing separately cannot convert a Traditional IRA to a ROTH IRA.


Rehearsal for the day you retire can be less stressful if you practice
living on retirement income for the next two months to see what it 
means to you and your budget.

Let me help match the right solutions to your particular situation.


Links:

http://www.socialsecurity.gov/planners/calculators.htm
Social Security Benefit Calculators.

http://www.ssa.gov/retire2   Soc Sec Adm Retirement Planner.
Use this in conjunction with the Social Security Statements 
that have been delivered from the Soc Sec Adm as of late.

http://www.ssa.gov/retire2/otherthings.htm
 Determine the Effect of  Early Retirement.

http://www.ssa.gov/pubs/10035.html
SSA On-Line Publication No. 05-10035, January 2008.
Retirement Benefits.

http://www.ssa.gov/pubs/10084.html
SSA On-Line Publication No. 05-10084, August 2007.
Survivors Benefits.

http://www.fpanet.org/journal/   Journal of Financial Planning.
Past Issues and Articles.

http://www.pensionresearchcouncil.org/
The Wharton School at the University of Pennsylvania.
Generates debate on key policy issues affecting pensions 
and other employee benefits

http://www.analyzenow.com/   Analyze Now!
Disseminates inexpensive retirement planning tools 
to educate the user about the realities of retirement planning.

http://www.ncpssm.org/maryjane/
Ask Mary Jane - Your Social Security Information Resource.

http://www.aarp.com      AARP.
Health & Wellness; Legislative Issues; Leisure & Fun; Life Transitions;
Research & Reference; etc.

http://www.aarp.org/finance  AARP
Financial Planning and Retirement.  Eight sessions.

http://www.seniors.gov   Access America for Seniors.
Government programs related to older Americans.
Federal Interagency Website offering consumer information 
from various government agencies.

http://www.cms.hhs.gov/default.asp?fromhcfadotgov=true   Medicare & Medicaid.
This agency takes care of the operations of the Medicare and Medicaid programs.

http://www.medicare.gov   Medicare.
Plan benefits and rates.

http://www.medicare.gov/medicarereform/drugbenefit.asp   Medicare Part D
Prescriptions

http://www.reverse.org   Reverse Mortgates.
The National Center for Home Equity Conversion, an independent
authority on reverse mortgages, hosts this comprehensive site.
It tells you what you need to know to get cash out of your house
without selling it.

http://www.moneycentral.msn.com/content/Insurance/AssessYourNeeds/P35992.asp?Printer
Retiring?  Here’s the insurance you still need.

http://cybresllc.com/favorites/senior.htm    Senior Citizen Advice

http://www.smartmoney.com/print/index.cfm?printcontent=/retirement/ira/index.cfm?story=tapping
Tapping Your IRA Penalty-Free.

Bargain Financial Advice.
A Consumer Reports article.

http://www.moneycentral.msn.com/content/Retirementandwills/Retireearly/P88419.asp?Printer
Steps Toward Early Retirement.

Your Longevity IQ.
An AARP article.

www.2young2retire.com . Retirement Planning For The 21st Century.
Case histories and other resources for and about late-life career changers.

www.adultmentor.com  Dick Haid, Adult Mentor.
Workshops,conferences, courses and publications on retirement planning from
a veteran coach.

www.fiveoclockclub.com  The Five O’Clock Club.
Network of career coaches.

www.retirementjobs.com  Retirement Jobs.
For those over age 50 and looking for a job.

www.seniorjobbank.com  Senior Job Bank
For those over age 50 seeking a job.

www.retiredbrains.com  Retired Brains.
Helping older workers to find jobs.

www.seniorsforhire.com  Seniors4Hire.
Helping seniors over age 50 find jobs.

www.bizstarters.com  Biz Starters.
For entrepeneurs over 50.