Don’t Go Broke in a Nursing Home

Mr. Losavio is giving a workshop at Amber Terrace Assisted Living Tuesday January 12, 2016 at 4:00pm and 6:30pm and Thursday January 14,2016 at 4:00pm an 6:30pm.  Amber Terrace Assisted Living is located at 8585 Summa Ave., Baton Rouge, LA 70809.  Seating is limited so call ahead and reserve your seat 1-800-426-6104.

WORKSHOP

Mr. Peter. J. Losavio, Jr.  is giving a workshop “Don’t Go Broke in a Nursing Home” on Thrusday November 12th , 2015 at 4:00 and 6:00 pm at Sunrise of Baton Rouge 8502 Jefferson Hwy., Baton Rouge, LA 70810.  To attend please call 1-800-426-6104 to reserve your spot.

Don’t Go Broke in a Nursing Home

Mr. Peter J. Losavio, Jr. will be giving a seminar at the Zachary Branch Library Conference Room Tuesday October 20th @ 4:00pm and 6:00pm and Tuesday October 27th at 4:00pm and 6:00pm.  To attend this seminar call 1-800-426-6104 to reserve your seat.

Medicaid Estate Recovery: Barrier to Medicaid Enrollment

With more people becoming eligible for Medicaid, one question repeatedly comes up: “will receiving Medicaid coverage jeopardize my family home?” Depending on the circumstances, the answer can be complicated. But states can do much to make it less complex.

The fact is that states can recover against the estates of some Medicaid beneficiaries, but only after the beneficiary passes away, and only in certain circumstances. Federal law actually requires that states try to recover from the estates of Medicaid beneficiaries who received nursing facility services and/or home and community-based services when they were age 55 or older. In other words, federal law sets the floor for Medicaid estate recovery by states.

Complicating matters is that states have the option to recover for more than what is federally required. States may recover from individuals age 55 and older for any items or services covered under the state’s Medicaid plan. California is one of just a few states that has taken the option to recover for all covered services provided to individuals age 55 and older. Currently, a bill is moving through the state legislature to limit recovery to only what is federally required. Last year, a similar bill received unanimous support from the California legislature, but was vetoed by the governor due to budgetary concerns.

It is important to keep in mind that there are exceptions to when a state can recover and from whom it can do so. For example, Medicaid estate recovery cannot occur during the lifetime of a surviving spouse or when there is a surviving child under age 21 or a blind or disabled child of any age. Also, states must establish procedures for waiving estate recovery when it would cause an undue hardship. Yet many states do not have clear undue hardship policies, leading to increased denials and making it difficult for family members to figure out who qualifies for a hardship waiver and in which circumstances.

State policy makers should also realize that, for the next couple of years, states will not keep recovered claims for the Medicaid expansion population and after 2016 will still keep only a small amount. When states recover from the estates of former Medicaid beneficiaries, they return to the federal government the portion that represents the federal share of expenditures on an individual’s Medicaid covered services. Since services provided to the Medicaid adult expansion population are 100 percent federally funded for the first three years (2014-16), and almost fully federally funded thereafter, states will have to return to the federal government the full amount collected (and in future years close to the full amount). States are essentially serving as a collection agency for the federal government.

Many have identified estate recovery rules as a potential barrier to enrollment in Medicaid. Individuals may be hesitant to enroll in Medicaid because they own a home that they want to leave to their adult children when they pass away. Advocates must urge states to limit estate recovery to what is federally required, and advocate for clear exceptions policies to ensure that individuals and families feel comfortable enrolling in Medicaid and getting the care that they need.

The Lifestyle Choices That Affect Alzheimer’s Risk

There are no guarantees when it comes to aging, but a new study helps clarify the lifestyle choices that affect our risk for Alzheimer’s disease, for better and for worse. The team from the University of California, San Francisco culled thousands of previous studies on Alzheimer’s risk and protective factors, and arrived at 323 studies that provided high-quality data. They found, as other studies have, that there are some key elements that are largely within our power to integrate or avoid, in order to reduce the risk of the brain disease that affects some 5 million people in the U.S. today.
The factors that appear to be protective against Alzheimer’s include many of the things that we already know to be good for us: Eating a healthy diet; healthy intake of folate, vitamin C, and vitamin E; coffee consumption; fish consumption; light-moderate drinking; and staying cognitively active. There were also some links between medications and reduced Alzheimer’s risk, including estrogen, cholesterol lowering drugs (statins), blood pressure meds, and anti-inflammatory drugs (NSAIDs).
The nine factors associated with higher risk of developing Alzheimer’s were:
• Obesity
• Depression
• Carotid artery narrowing
• Low educational attainment
• High levels of homocysteine (a compound that builds up, in part when B vitamin levels are low)
• High blood pressure and low blood pressure
• Frailty
• Current smoking (in the Asian population)
• Type 2 diabetes (in the Asian population)

Many of the connections have been known for some time, but it’s helpful to have them confirmed by newer, large-scale analyses. Keep in mind, of course, that the study only arrives at correlations between these factors and Alzheimer’s – it doesn’t prove that one or more actually cause or prevent the other. And genetic factors still play a strong role in the development of Alzheimer’s. But the researchers say that assuming causality is at play, if the population avoided the nine risk factors listed above, up to two-thirds of Alzheimer’s cases could also be avoided. That’s quite a high percentage. We may not be able to do all good things for ourselves all the time, but when it comes to the brain, the more we can do, the better.

Alice G. Walton ,CONTRIBUTOR

What Employers Need to Know about the Affordable Care Act

The health care law contains tax provisions that affect employers. The size and structure of a workforce – small or large – helps determine which parts of the law apply to which employers. Calculating the number of employees is especially important for employers that have close to 50 employees or whose work force fluctuates during the year

The number of employees an employer has during the current year determines whether it is an applicable large employer for the following year. Applicable large employers are generally those with 50 or more full-time employees or full-time equivalent employees. Under the employer shared responsibility provision, ALEs are required to offer their full-time employees and dependents affordable coverage that provides minimum value. Employers with fewer than 50 full-time or full-time equivalent employees are not applicable large employers.

For more information on these and other ACA tax provisions, visit IRS.gov/aca.

BEWARE OF REVOCABLE LIVING TRUST

Many consumers are executing Revocable Living Trusts. They are being sold on this product on the promise to avoid a succession and probate.

Revocable Living Trusts do help the person avoid succession and probate. But, that’s all it does and this benefit may not be as valuable as one might initially think.

Some Revocable Living Trusts are expensive and may costs as much as a small uncontested non problematic succession. So the financial benefit that you get, may not be as great as you think.

What is important to remember is what Revocable Living Trusts do not do! Revocable Living Trusts are revocable. This means you can remove any property you put into that trust at any time.

Since you can remove the property from the trust, there is no asset protection. If you owe money, your creditors will be able to seize whatever assets you placed into the trust.

Also, you obtain no tax advantage to creating a Revocable Living Trust. You will continue to pay your taxes the same way you always have paid them.

Finally, placing property in a Revocable Living Trust does not shelter it from government entities for you to pay for your long term nursing home care. Medicaid and the Veteran’s Administration will count all property placed into a Revocable Living Trust just like you own it. There is a five (5) year look back period for Medicaid and there may also soon be a look back period with the Veteran’s Administration. You may be missing out on an opportunity to shelter your assets while you are healthy by placing your assets into a Revocable Living Trust.

To obtain additional information on legal and innovative estate planning strategies, you should always consult an experienced estate planning attorney. Kent S. DeJean

7 Questions to Ask Yourself Before Deciding to Retire

Few Americans save enough for retirement. Whether due to financial issues or a lack of foresight, a lot of people either don’t give much thought to retirement or are unable to save up enough to help them fund their elder years.

In fact, only 13 percent of people who haven’t retired yet say they’ve given a lot of thought to financial planning for retirement, according to a survey conducted by the Federal Reserve Board. Nearly 40 percent say they have given little to no thought to retirement planning.

Mapping out your retirement takes more than asking yourself, “When should I retire?” Consider these seven questions to help you better plan for financial and personal obstacles in retirement.

Read: What Retirement Without Savings Looks Like

1. What kind of lifestyle do I want?

Before figuring out how much money you need to retire, you need to consider what sort of lifestyle you want to have in retirement, said John Sweeney, Executive Vice President of Retirement and Investing Strategies at Fidelity.

Do you want to stay in your current home or downsize? Will you want to move to a bigger city or someplace warmer? Maybe you want to travel the world.

No matter how you envision your retirement, you’ll need to plan ahead to fund it. Depending on your goals, you might need to save more than you originally planned. If you’re married, you’ll need to speak with your spouse to make sure your retirement plans are aligned.

2. What will my expenses in retirement be?

Sweeney said most people can expect to spend about 85 cents in retirement for every dollar spent before retirement. Depending on your health, however, you might need to save more to cover medical expenses. If you have a chronic condition or mobility issues, over time you might end up needing to spend more money to maintain your quality of living.

To help you project rough estimates of your retirement costs, you can use an online retirement income calculator. With a financial planner, you can get a detailed cash-flow analysis and help managing taxes.

3. Will I have enough savings to cover my expenses?

Less than half of all workers say they’ve ever tried to calculate how much money they will need to save to live comfortably in retirement, according to The 2015 Retirement Confidence Survey conducted by the Employee Benefit Research Institute. Scott Bishop, Director of Financial Planning at STA Wealth Advisors in Houston, recommends comparing your current monthly expenses with how much income you’ll have in retirement.

If your retirement savings can’t sustain your mortgage, insurance and other typical costs, you might want to reconsider your current savings plan. You will also want to calculate your Social Security benefit to determine how it will affect your monthly budget. When considering whether you’ll have enough income in retirement, assume you’ll be in retirement for 25 years and have access to four percent of your savings annually.

In retirement, you’ll want to revisit your withdrawal percentage, adjusting for your actual spending, said Bishop. Your retirement portfolio, which should include numerous asset types, should also be structured to outpace inflation. Sweeney recommends you have a mix of stocks — about 55 percent — in your early years of retirement to maintain growth, and fixed income, such as bonds, to guard against market volatility.

4. What impact will taxes have on my retirement income?

Taxes don’t disappear when you stop working. In fact, your tax bill can take a big bite out of your retirement income.

Up to 85% of your Social Security benefits might be taxable if you have income in addition to your benefits. Withdrawals from tax-deferred retirement accounts, such as traditional IRAs and 401(k)s, are also taxed. So, if you need $5,000 a month to cover expenses in retirement, you might need to withdraw up to $6,000, said Bishop.

Higher-income taxpayers will have to pay taxes on profits from the sale of stocks, bonds, mutual funds and other investments not held in tax-deferred retirement accounts. States have their own rules for taxing retirement income, so depending on where you live, you could be hit with an above-average tax bill.

The states that impose the highest taxes on retirees include California, Connecticut, New York, Oregon, Rhode Island and Vermont, according to a 2014 analysis of state taxes conducted by Kiplinger, a publisher of business forecasts and personal finance advice. A financial planner can help you figure out how taxes will impact you in retirement and what strategies you can use to minimize your tax bill.

5. Where will I get my health care?

Chances are your employer won’t continue providing health care coverage for you in retirement. Only 28 percent of companies with 200 or more employees offer retiree health coverage, according to the 2013 Kaiser/HRET Survey of Employer-Sponsored Health Benefits.

You are eligible for Medicare when you turn 65. You likely won’t need to pay a premium for Medicare Part A, which covers inpatient hospital stays, care at nursing facilities, hospice care and some home health care. If you want extended health benefits, however, you’ll need to pay a monthly premium for Medicare Part B, which covers most doctor and outpatient services. Medicare Part B typically costs around $104.90 each month.

If you retire early, you’ll have to get an insurance policy on your own. Couples who retire at 62 can expect to pay $17,000 a year for health insurance premiums and out-of-pocket costs until they’re eligible for Medicare, according to Fidelity. A retiree can expect to pay an average of $220,000 in medical expenses over the course of their retirement.

You also need to factor in long-term medical care, which could wipe out your retirement savings if you’re not prepared. The median annual cost of care in an assisted living facility is $43,200, and the average cost of a private nursing home room is more than double that, according to the Genworth 2015 Cost of Care Survey. To curb these types of costs, you can look into long-term care insurance.

6. How much debt do I have?

The more debt you carry into retirement, the more retirement income you’ll need to pay off what you owe. When you’re deciding when to retire, you need to figure out how long it will take to pay off your existing debts. You should pay off any high-interest debts that aren’t tax-deductible first, such as credit card balances, said Bishop. If you have good credit, refinance any high-interest debt that’s tax-deductible, such as a mortgage, to get the lowest rate possible.

7. Am I emotionally ready to retire?

Ask yourself what you will do once you retire. If you don’t know — and most people don’t — you might have a problem, said Bishop. Around 22 percent of people surveyed by the Federal Reserve Board say they plan to stop working entirely in retirement.

You need to figure out before you retire whether you want to continue working in some capacity. If you initially choose not to work in retirement, you might have a harder time becoming employed after being out of the workforce for a while.

Deciding to retire, much less knowing how to map out a retirement plan, takes work and careful thought. Consider meeting with a financial planner to help you determine how to decide when to retire and to create an action plan for retirement. Knowing how and when you will retire will allow you to look forward to retirement.

FREE BOOK AND SEMINARS

Peter Losavio of Losavio & DeJean will be presenting five (5) free seminars entitled “Don’t Go Broke in a Nursing Home”. This seminar will provide information regarding long term and crisis planning for you or your loved one’s nursing care needs. If you wish to attend, please call 1-800- 426-6104. Attendees will receive a free book co-written by Peter Losavio as well as free telephone consultations and a discounted initial office conference. The schedule for these five (5) free seminars are as follows:

Tuesday July 21, 2015 at 4:00 pm at the East Baton Rouge Library on Bluebonnet Blvd, Baton Rouge, La.;

Saturday July 25, 2015 at 10:00 am at the East Baton Rouge Library on Bluebonnet Blvd, Baton Rouge, La.;

Tuesday July 28, 2015 at 4:00 pm at the East Baton Rouge Library on Goodwood Blvd, Baton Rouge, La.;

Thursday July 30, 2015 at 4:00 pm at the East Baton Rouge Library on Goodwood Blvd, Baton Rouge, La.;and

Saturday August 1, 2015 at 10:00 am at the East Baton Rouge Library on Goodwood Blvd, Baton Rouge, La..

Call soon since seating may be limited! Hope to see you there!