Weekly Questions 7/26/2013

By Steve Savant, syndicated financial columnist and host of the weekly talk show, “The Business Insurance Zone”

At What Age Should You Consider Long Term Care Insurance?

There are a couple of ways to purchase long term care insurance (LTCi). The first is early on when you’re healthy. But others say you should start seriously considering LTCi no later than age 50. The LTCi market of insurance companies has decreased considerably. There are about six real players left in the brokerage community. The price tag generally drives the LTCi sales, but policy definitions should be the deciding factor when premiums are relatively equal.

Is 401K Plan A Retirement Plan?

A 401K Plan is an ERISA sanctioned qualified plan that allows pretax contributions into this employer sponsored retirement plan. For 2013 contributions you can contribute up to $17,500 and if you’re over age 50 you can contribute up to $23,000. Keep in mind that some employers match your contribution to some degree, so it may be something to consider.

Does Obamacare Require Everyone To Have Health Insurance?

The word “require” is the operative word here. Because Obamacare is ultimately means tested, many Americans will not pay for health care. Some will have their premiums mitigated, again through means testing. Those who choose not to pay for health care will be subject to a penalty when they file their IRS 1040. Keep in mind that this is a federal program. Half the country pays no federal taxes, i.e. any overrun costs from Obamacare will fall on American federal tax payers.

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