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February 18, 2009

Back to Basics


While we wait for the economy to improve, there are steps you should consider so you can gain control of your financial recovery.  Account values are much lower than this point last year.  Many of us now find ourselves with a wealth gap.  What do you have in place to cover the drop in value of your accounts should something happen to you or your spouse?  Now is the time to find out.  How?

Start by having a financial advisor work with you on your financial plan. You need, and deserve, someone who will look at your total financial picture and put together strategies that first protect you from further risk, and second, get you into position for the economic recovery.  This takes a holistic approach that goes way beyond just portfolio management.  The relationship I am talking about is an ongoing coaching and money-mentoring relationship.  One where you have someone you can count on in good times and bad.  Someone who will work with you to insure that you take advantage of the opportunities, and protect you from the dangers the future presents.

To protect you against potential dangers, get an analysis on all your existing life insurance policies from a Money Concepts’ advisor.  Often, people have a number of life insurance policies purchased years ago with old rates.  By consolidating those old policies into a new policy with a lower rate, you may be able to increase your coverage without increasing your premium.  Many people are able to increase their coverage by 40% to 50%.

Another issue that can make matters worse is the need for long-term care, either at home or at a facility.  With account values low, many people are looking at long-term care insurance as an important part of their personal economic recovery program.  The average long-term care insurance premiums range from $200 to $400 per month.  The premium is determined by a number of factors including your current age and the type of coverage requested.  You can purchase types of plans that offer the option for a managed care facility and/or home healthcare.

A cost-benefit analysis usually shows that it is well worth the money. Under today’s circumstances, with lower account values, it makes it all the more important.  Those without it risk using up all their assets while creating a burden on family members.

Do not count on the government for help.  While the State’s Medicaid program provides a safety net, you are required to first use up yours and your spouse’s funds before they provide any assistance.

*        What is your wealth gap?

*        Have you had those policies reviewed?

*        Do you have long-term care insurance?

*        What does it cover?

*        Are the costs reasonable?

These are all the questions you should review with your Money Concepts advisor.  Give them a call today to get the answers to these questions and more.