Join the fight against Medicare fraud and abuse!
The PA-SMP has more than 80 volunteers in 30 Pennsylvania counties, who are age 62 to 93. Volunteers are Medicare beneficiaries or age 55+. No special education or career experience is required, just an outgoing personality. The most challenging, and rewarding, part of the job for many volunteers is speaking in front of groups. Training and ongoing support is provided. To learn more about becoming a PA-SMP volunteer, call CARIE at 1-800-356-3606.

So you’re retired and collecting Social Security, but you’d like to work a little and could use the extra income.  Can you do that without losing your Social Security?

In many situations, yes, but it depends on your specific circumstances, says Dan O’Connor, the Social Security Administration’s (SSA) Philadelphia/Germantown district manager. Depending on your age and how much you earn, your benefits may be subject to certain income limits, and tax withholding may apply to your added income.

For instance, if you’re 63, you can still work and earn up to $14,640 annually, without losing any benefits and without any withholding. In the year you turn 66, the threshold increases to $38,880 without jeopardizing your benefits. After 66, there are no earning limits at all, and your income until 70 may actually contribute to higher benefits. You will likely have to pay taxes on your added income, however.

Until the year when you turn 66, income beyond $14,640 will trigger withholding from your Social Security benefits at the rate of $1 for every $2 earned. That is taken out of your monthly Social Security benefits. As a result, you could receive no benefits for a few months.

During the year you reach full retirement age, your earning limit increases to $38,880; what you earn beyond that is withheld at $1 for every $3 earned. 

“You can get Social Security retirement or survivors benefits and work at the same time,” according to How Work Affects Your Benefits, published by the Social Security Administration.

“It’s an individual decision,” said O’Connor.

Age when filing claim

Your age when you file your first Social Security claim makes a difference in your monthly benefits and how much other income you can have. You can file as early as 62, or wait until 70. 

For people born between 1943 and 1954, “full retirement age” is 66.  Filing before age 66 reduces your benefits by as much as 25 percent of full entitlement annually.

If you wait to file at 66 or after, you will receive full benefits no matter how much you earn from working.  However, you may be responsible for taxes on this income.

For every month between 66 and 70 that you wait to claim your benefits while continuing to work, you add to your benefits when you do file your retirement claim. 

Earning limit shifts

If you’re younger than full retirement age, and already filed for benefits, you can still go back to work full-time.  Assuming you earn more than the limits, you may lose your Social Security for the year or so you’re back in the workforce before turning 66. But in that case, your benefits will increase after 66, to take into account those months in which benefits were withheld, O’Connor explained.

Benefits based on ‘high’

Your benefits are based on your highest 3 5 years of earnings, O’Connor said.  If you earn more after you start collecting your benefits than you did in earlier years, your record will be reviewed after you reach full retirement age and your benefits may increase.

If you’re still trying to decide when to retire and start drawing benefits, or how much you should work, you should consider a number of things, such as the amount of benefits you expect; the extent of other pensions or income; the income you expect from working; the age at which you retire; your needs; and your life expectancy. 

You can access your Social Security Statement, containing your earnings and estimated benefits, at www.socialsecurity.gov/mystatement.  The SSA also offers a Benefits Planner program (www.socialsecurity.gov/planners).  O’Connor says these may assist you in financial planning, and urges you do this “earlier, rather than later,” so your planning is informed and you can address errors in your earnings record. 

Spot those errors now

For example, O’Connor has seen situations when people employed in domestic work believed their employer had paid their Social Security witholding, but never received credits for those years. The sooner such errors are spotted, the easier they may be to fix, he said.

Internal Revenue Service rules govern taxes on your income.  Part of your Social Security benefits may be subject to taxation — even if you file at or after 66. This depends on how much other income and benefits you earn, and whether you file as single, jointly or separately from your spouse.   For IRS guidelines: www.irs.gov/publications/p554/index.html.

O’Connor recommends using the Retirement Planner and other Benefit Calculator tools on the SSA website to make your individual calculations and decide what retirement/work situation fits best for you.  www.ssa.gov/retire2/whileworking2.htm.

• you are a disabled widow or widower between age 50 and age 65, but have not applied for disability benefits because you are already getting another kind of Social Security benefit;
• you worked long enough in a government job where Medicare taxes were paid and you meet the requirements of the Social Security disability program and became disabled before age 65;
• you, your spouse, or your dependent child has permanent kidney failure;
• you had Medicare medical insurance (Part B) in the past but dropped the coverage; or
• you turned down Medicare medical insurance (Part B) when you became entitled to hospital insurance (Part A).

Financial services expert Tema Steele is fond of saying that her clients are like extended  family. Family is also at the heart of the mother-son business she runs in partnership with her son, Joel Steele.

A Philadelphia native, Tema Steele founded Steele Financial Solutions in 1981 after a career in banking management. She was a single mother struggling to raise her two sons, ages two and four, and to regain her own financial footing in those start-up days. “I was on food stamps at the time. I had nothing to fall back on,” she remembers. “But I had determination and drive, and failure was not an option.”

In the 30 years since this Cherry Hill business began, it has served an estimated 3,000 clients. Those clients have included many women who “following a divorce or death of a spouse, need to know they will be in good shape financially," Tema Steele says.

“The issue for all clients,” she continues, “isn’t just how much money you have, but what will it do for you. Your assets should be like a faucet. You should be able to turn it on and off, so the money is available for whatever you need.”

Her son, Joel, came on board as co-owner and partner at Steele Financial Solutions in 2002. (Her other son, Jay, is a professional musician.)

“My mom always wanted me to get into the business," Joel Steele remembers, "but initially I looked the other way.” Instead, he went on to create and operate a restaurant chain, Thinkers Grille. After the restaurants closed, he followed his mother’s example by becoming an agent with New York Life Insurance Company. At Steele Financial Solutions, the two collaborate on behalf of almost every client.

Tema Steele says she often focuses on both the financial and emotional factors surrounding clients’ money issues, honing in on clients’ retirement/life goals and what they want their money do to for them. Joel Steele is typically the analytical numbers cruncher, who focuses on the income-producing and tax-savings aspects of clients’ financial options.

While Steele Financial Solutions serves clients of varying ages, the firm has developed a particular niche in working with individuals 50+ to help them plan retirement strategies before and/or during retirement. Such strategies can include insurance, investments, bonds and other financial products.

“People 50 and up have the most amount of money, but, more importantly, they have the biggest number of decisions to make,” Tema Steele points out. “They stand to lose the most if they make poor financial decisions, like investment selections and pension options. The wrong move or even procrastination can result in tens of thousands of dollars in losses."

“All of our recommendations have to do with the individual’s risk tolerance, liquidity needs, growth or income objectives, expenses, and time horizons,” she continues. “People are afraid of outliving their savings, so they often ask if they can afford to retire.” 

Here’s Tema’s advice on how to a avoid two common pitfalls:  

·  "Leaving assets of a 401K plan with a former employer after retirement is not a good idea," she says. You may be better off taking this 401K money in a lump sum and investing it more appropriately for your situation. In addition, 401K plans often have hidden fees.

·   Electing a pension option without considering a lump sum distribution can pose another problem. In the event of the retiree’s death (and that of any spouse beneficiary), the retiree’s children would get nothing. “Consult with your retirement planner beforehand, because these decisions are irrevocable,” Tema Steele advises.

In addition to working together in their business, this mother-son duo co-hosts a radio show “Your Money Matters with Tema and Joel Steele” that airs on WVLT, “Cruisin’ 92.1” FM in Vineland, New Jersey on Sunday afternoons from 2 to 3 p.m.  

The secret to a successful family business partnership, says Tema Steele “is being on the same page. We both have the same goals. Sometimes things flare up a little, but we both want the same things and care about each other. We always work things out and keep moving forward.”

Click Here>> for more advice from Steele Financial Solutions.

Threats are another possible indication of a scam. Have you ever received a threat that your account would be closed if you didn't respond to an email message? The email message shown above is an example of this trick. Cybercriminals also may use threats that your security has been compromised. For more information, see Watch out for fake alerts.

Beware of links in email. If you see a link in a suspicious email message, don't click on it. Rest your mouse (but don't click) on the link to see if the address matches the link that was typed in the message. In the example below, the link reveals the real web address, as shown in the box with the yellow background. The string of cryptic numbers looks nothing like the company's web address.



Links might also lead you to .exe files. These kinds of file are known to spread malicious software.

Spoofing or masquerading as popular websites or companies is another technique scam artists use. There may be graphics in an email that appear to be connected to legitimate websites but which actually take you to phony scam sites or legitimate-looking pop-up windows. For more information, see Avoid scams that use the Microsoft name fraudulently.

Cybercriminals also use web addresses that resemble the names of well-known companies but are slightly altered. For more information, see Protect yourself from cybersquatting and fake web addresses.

Answer:
If you are receiving SSI, you automatically qualify for Medicaid in the State of Pennsylvania. If you are receiving SSDI, after two years you will be eligible for Medicare for as long as you are still eligible for SSDI.

Coupons Galore

Thousands of discounts and printable coupons are available to anyone with an internet connection and a printer, and there is no age requirement for these. Shopping online? Do a search for ‘free shipping codes’ before you place that order. Planning a shopping trip to the mall or supermarket? Check out the five best coupon-clipping websites, according to The Wall Street Journal’s Smart Money website: Coupons.com, CouponCabin.com, CouponMom.com, RetailMeNot.com, and SmartSource.com.
 
Bill Help

You can save a lot of money each month by looking for ways to lower your regular monthly bills, like mortgage and phone. If price increases are getting out of hand, research special offers for switching to a different company, or consider dropping unnecessary services or switching to a different package. Billeater.com offers more tips to help you save money on bills and allows you to compare services/costs. Topic-specific sections are dedicated to insurance, debt reduction, mortgage, banking, credit cards, and retirement.
 
Some other tips:

Prescription drugs are among the top costs for people age 50+. Take advantage of flat-rate $4 generic prescription plans offered by national retailers, including Target and Wal-mart. Drug stores, including CVS, Rite-Aid and Walgreens, also offer discounts on orders of a 90-day supply.  
 
Saving energy is just like saving money. Install a programmable thermostat in your home or apartment, and use it to regulate the temperature at different times of the day. Switching to compact fluorescent light bulbs and ENERGY STAR-rated appliances will lower your electric bill and help the environment, too. Make sure your home is well insulated to avoid energy leaks. For more tips on energy efficiency, go to energysavers.gov.

With gas prices steadily rising, fuel economy is on everyone’s mind. There are several ways to boost your car’s miles per gallon, without upgrading to a hybrid. By driving conservatively, you can decrease highway gas mileage by as much as 33%, according to Energy and Environment Analysis, Inc. Aggressive driving behaviors, such as rapid acceleration, hard breaking and speeding, wreak havoc on gas mileage. Today’s vehicles do not need to be ‘warmed up,’ so cut down on idling to reduce wasted fuel. Keeping your car well maintained with properly inflated tires, engine tune-ups, major engine repairs and correct grade motor oil can improve gas mileage by nearly 50%.
 
Senior Discounts Start at 50!

Want your senior discount? Go to SeniorDiscounts.com, which features more than 135,000 discounts. The website was created in 2000, when founder Doug Brown began to wonder where (besides the movies) he could put his age to work for him. The site’s goal is to help the mature community save money by finding and publicizing age-related discounts. In addition to discounts, articles and weekly newsletters with money-saving tips are featured. For those without internet access, a SeniorDiscounts Guide Book is available, which offers a printed version of the online database. Basic membership is free and includes access to the free newsletter, discussion boards, articles, and general information about discounts. Full access to the SeniorDiscounts database is available for a membership fee, starting at $7.95 per year. Premium Registration for $12.95, includes the printed guidebook.

If you’re 50 or older, you are eligible to join AARP and take advantage of a wide range of benefits, discounts, and timely information. For just $16 a year, members also gain expert advice on topics ranging from travel to caregiving. Discounts are offered to more than 500 online retailers and 15,000 restaurants nationwide. The Fitness & Wellness program provides discounts on gym memberships, personal trainers, Walk at Home DVD’s and more. Travel discounts can include savings on car rentals, cruises, hotels and tours. AARP’s Auto Insurance Program from The Hartford claims to save members an average of $384. Money-saving discounts are also available for other insurance products, financial services and even home security systems.

Discounts are also available from AAA and other membership-based organizations. When in doubt, ask if a senior discount is available. You have nothing to lose, and extra money to gain!  

That's Entertainment! (and shopping, pampering, and so much more) 

Love going to the theater, or the museum, but can't afford the price? Sign up for Funsavers at phillyfunguide. Every Thursday you'll get an email with half-price offers to performances and exhibits at venues throughout the region.

LivingSocial and Groupon are two other great resources for savings. You sign up for the city where you live, and every day you'll receive offers of great discounts on shopping, services, products - you name it. The deals are only good for one day, so you'll want to keep close tabs on your emails. Recent deals have included half-price house cleaning, massages, garden center credits and spa treatments.

Special Offers for Low-Income Seniors

The application deadline for Pennsylvania’s Low-Income Home Energy Assistance Program has been extended to April 15. If you or someone you know needs extra help paying for home heating or energy bills Click Here>> to see if you qualify.

People who receive government assistance, including Medicaid and SSI, may qualify for a free cell phone with 250 free voice minutes each month through Assurance Wireless’ Lifeline Program. For more information to see if you qualify, call 1-888-898-4888 or Click Here>>

• Link to a legitimate charity from a reputable website, such as that of “charity watchdog” Charity  Navigator, which evaluates the financial health of over 5,500 of the nation’s largest charities; or the Better Business Bureau’s Wise Giving Alliance
• Do not send money to a foreign bank account overseas.

Timothy Hilbert,  CPA, of the Kreischer Miller accounting firm in Horsham, Pa., advises checking out the IRS Publication 78, a list of 501c(3) organizations eligible to receive tax-deductible charitable contributions. The list is frequently updated to include new organizations and to delete/revoke organizations which are no longer considered qualified. The Pennsylvania Bureau of Charitable Organizations   also lists recognized charities within the state and posts local and national charity fraud alerts.


Hilbert also cautions, that “The more pressure you get from the caller, the more likely it’s a ruse. The greater the sob story, the greater caution to use.”  He offers some additional tips to help you direct your charitable gift wisely:  

•   Avoid requests from those claiming to be victims or family members of disaster victims.
•   Avoid telemarketer solicitations unless you are sure of the caller.
•   Do not  give out personal information such as your credit card account, checking account, or Social Security number over the phone. While legitimate charities may also ask for an immediate  credit card payment, it’s preferable to  request that a solicitation be mailed to you or request an address to mail your check to.
•    Telemarketing calls for donations, even if legitimate, usually involve paid solicitors. At the very least that is an inefficient way of running a charity, says Hilbert, and you are better off initiating a donation directly.

The charity watchdog organization Charity Navigator uses a charity’s website and its data from the newly expanded IRS Form 990 to rate charities by evaluating two broad areas of financial health: their organizational efficiency in terms of overhead and expenses, and their organizational capacity, the extent to which the charity is sustaining its programs and services and whether it can continue to do so. It also issues an overall rating, reflecting the charity’s performance in both areas. Among the indicators for organizational efficiency are fundraising efficiency — the amount a charity spends to raise $1. Charities are rated up to four stars in any given category, including the overall rating.

RESOURCES


Click here for Charity Navigator’s link to three-and-four-star charities for Japan earthquake and tsunami relief.

Click here  for some additional charitable giving tips from the Federal Trade Commission.

Philadelphia Corporation for Aging’s Stop Senior Scams website   offers tips to recognize and avoid charity scams and other forms of financial abuse.

Consult a tax advisor to determine if the settlement will be taxed.

Consult your insurance company or agent to find out if there are other options, such as a policy loanl or if you can change your premium.

Determine if the settlement will impact your eligibility for any government benefits you currently receive. Check with the government agency itself.

•         Your or your spouse is 65 years or older OR
•         You are a widow/widower 50 years old or older AND your spouse was at least 65 years old at the time of his or her death.

•         You are single/widowed and your 2009 income was less than $23,5000 OR
•         You are married and your 2009 combined income was less than $31,500.

•         You must own and occupy the property as your primary residence AND
•         Your Real Estate Tax bill for that property will be increasing.

The stranger who knocked on the older woman’s door wasn't wearing a mask or carrying a gun. In fact, he looked perfectly respectable, even sympathetic. He told her that her son was in trouble and needed $300 immediately.

When the woman said she had no cash on hand, the man offered to take her to her bank to make a withdrawal. There was no time to lose, he urged. He drove her to the bank and waited outside while she withdrew the money, then drove her back home.

When the woman’s son called later that day to check on her, she worriedly asked him if he was all right. “I’m fine,” he assured her. “Why are you asking?” Then she told him the story.

Financial exploitation is the fastest rising form of elder abuse, according to Joe Snyder, director of older adult protective services at Philadelphia Corporation for Aging and former president of the National Adult Protective Services Association (NAPSA). That “relative-in-distress” call is one of the more popular senior scams out there, says Snyder, now NAPSA’s public policy chairman.

The Medicare Savings Program can help qualified individuals with premiums and expenses for Medicare Part B (medical insurance) and also Part A (hospital insurance) in certain cases.

“We encourage Medicare beneficiaries to consult with an APPRISE counselor to find out if they are eligible for these programs,” says Bruce Bornmann, program manager for Philadelphia Corporation for Aging.  APPRISE is a federally funded health insurance counseling program for adults 60 and over. Philadelphia Corporation for Aging coordinates the APPRISE program in Philadelphia. 

“Consultations are free, and counselors can assist with applications, including helping consumers file applications immediately online,” Bornmann explains.  “People have everything to gain by meeting with an APPRISE counselor and, in doing so, may also learn about other benefit programs for which they may be eligible.” 

For more information, including APPRISE office locations, click here, or call the Philadelphia Corporation for Aging Helpline at 215-765-9040. 
  
 

You hope to stay in your home for the foreseeable future, but it’s becoming a problem.

Real estate taxes, insurance, mortgage payments, maintenance, needed repairs are beginning to strain your budget, already stressed by a shaky economy.

This is one case where the cliché “You’re not getting any younger” may be a plus. If you’re 62 or older, you may qualify for a reverse mortgage. It’s a loan you won’t have to pay back until you no longer live there. 
 

If you’re married, both of you must live in the home. It’s strongly recommended that both of you apply. If only one person obtains the reverse mortgage and then dies, the survivor must pay off the mortgage. But if both are listed as borrowers, as long as the home is the principal residence of one, the requirement is met. The loan amount is based on the house’s appraised value, the younger partner’s age and the current interest rate.

The Home Equity Conversion Mortgage Program, as it’s called, is backed by the Federal Housing Administration and regulated by HUD, the U.S. Department of Housing and Urban Development. The borrower may choose to receive a lump sum, monthly payments or a line of credit.

Key qualifications, questions
To qualify, you must be at least 62 and generally have at least 50 percent equity remaining in your home. It must be considered your principal residence (where you reside at least six months of the year).

Sounds great, doesn’t it? And it is, for many people.

“The program is as good as it’s ever been,” said Walt Gephart, of Acre Mortgage, citing recent changes that have reduced or eliminated fees connected with reverse mortgages. “In Philadelphia a lot of seniors are struggling to make ends meet.”

Don Graves, 10-year reverse mortgage specialist at Wells Fargo, asks prospective borrowers four questions:
• Do you want to stay in your home?
• Do you need more money?
• Is this the best alternative for you?
• Will you be able to pay real estate taxes, homeowners’ insurance
and upkeep expenses, after you do the loan?

Graves cautions prospective borrowers to do their homework before committing themselves. “It [the program] has recently attracted a few bad guys,” he said, “and unfortunately, they have targeted many Philadelphia seniors.”

HUD safeguards
HUD has established some safeguards. Borrowers are required to meet
with a counselor, who will lay out possible alternatives and problems. For example, getting such a loan could affect your eligibility for Medicaid and other government benefits.

Approved counselors are available through CCCS, Consumer Credit Counseling Service of Delaware Valley (1-800-989-2227), which is offering free one-on-one counseling through June 30, thanks to a recent grant. The normal charge is $125, according to Patricia Hasson, president of CCCS.

“A reverse mortgage can enable a senior to age in place and provide an
important source of additional income in the event of an emergency,” she said.

How to decide
Although most lenders have been reducing or eliminating origination fees in a shaky economy, reverse mortgages are still expensive. There’s the cost of an appraisal, mortgage insurance and interest on the unpaid balance, which can significantly reduce the amount of home equity.
So how to decide whether the program is for you?

A good place to start is the HUD website, where you can download a booklet, Use Your Home to Stay at Home, or call the National Council on Aging, 1-800-510-0301, to request it.

This will advise you of other options like home equity loans and the financial implications of a reverse mortgage.

To find out how much you might be able to borrow under the program, visit the finance section of AARP's website and scroll down to Mortgages.

The amount can vary widely, depending on borrower’s age, zip code and the value of the home. The limit is $625,500, but most are considerably lower.

Cathy Green was a reporter and copy editor for the Philadelphia Bulletin, and is now a part-time copy editor at the Philadelphia Tribune.

 
Here are some key protections the Act does provide, as noted on the Federal Reserve website:  


45 days notice before credit card companies can increase interest rates; change certain fees (such as annual fees, cash advance fees, and late fees) that apply to consumers’ accounts; or make other significant changes to the terms of their card. (There are some exceptions to this, such as if consumers have a time-limited introductory rate or a variable rate tied to an index.)


Information must be posted on the consumer’s monthly credit card bill about the length of time it will take to pay off the balance if minimum payments are made and how much would need to be paid monthly to pay off the balance in three years.


Payments over the minimum must be directed toward the highest balance first.


Rates cannot be increased for the first 12 months after an account is opened.  (There are some exceptions to this, such as the variable and introductory rates described above.)


Increased interest rates will only apply to charges in effect after the rate increase, not to prior balances.

Consumers must opt in for over-the-limit transactions and fees. Otherwise, over-the-limit transactions may be refused.


Credit cards must be mailed or delivered at least 21 days before the bill is due. Payment cut-off times before 5 p.m. on the due date are illegal.


Consumers under 21 will need to prove they are able to make payments or must have a co-signer in order to open an account.

CCCS’ Patricia Hasson also note that under the Act, card issuers are restricted from opening a new account unless the company  first considers the consumer’s ability to repay under the terms of the agreement. “To satisfy this requirement,” she says, “creditors will likely begin using income estimation models supplied to them by credit bureaus.”  She advises that consumers review their credit reports – consumers are allowed one free credit report every 12 months from each of the three reporting bureaus — and correct for any inaccuracies.    
 
 

A husband and wife in their late 60s consulted a financial planner for the first time when deciding whether to sell their current house and stake their money into a retirement home down South. But once they started talking, it turned out they had some very different ideas which they had never shared with one another.  

Financial planner Jacquelyn Basso, CPA, said she wound up having a far-ranging conversation with them.

“It became the couple’s whole vision of their retirement,” she said. “They were living on a fixed income. What would their future expenses look like? What were their assets? Was there a possibility that they might outlive these assets, and did they need to reallocate  them? What about planning for long term care and health insurance?  And did they intend to spend all their money or have money to leave a legacy?

"It turned out the two of them had very different opinions about that last question, which they had never discussed or planned for before,” said Basso, who chairs the Pennsylvania Institute of Certified Public Accountants (PICPA) Personal Financial Planning Committee. 
  
 
In its booklet entitled, “What You Should Know About Financial Planning,” the Certified Financial Planner Board of Standards, Inc.  defines financial planning as “the process of meeting your life goals through the proper management of your finances.”

Life’s transitions, such as   buying a home, paying for a child’s college education or planning for retirement, are some key impetuses for financial planning. In particular, Basso said, the vision of retirement planning is changing. “In the past, most retirees could look forward to guaranteed monthly retirement income for life from a defined benefit pension plan and Social Security,” she says. Now such defined benefit pensions are increasingly a minority, yet the life expectancy post-retirement can be 30 years or more. “Many people are now depending on their 401Ks for retirement income, but they are not saving enough.” 

The current recession has heightened the need to evaluate personal financial directions in the face of many declining home and investment values and widespread, often prolonged unemployment.  However, financial planning is really for anybody anytime, Basso stresses. Even those at lower income levels can benefit by at least some aspect of financial planning, such as having a budget, she advises.  While goals can be narrowly defined and short-term, ideally, financial planning is a life plan, this professional points out, using an acronym she coined to describe it: “BRITRE”— budget, risk management (insurance), investment planning,  tax planning, retirement planning, and estate planning. 
 

Financial planners can be accountants, estate planners, insurance agents, investment advisers, or stock brokers and are regulated in terms of the services they provide.   Many have earned the Certified Financial Planner, Chartered Financial Consultant (ChFc), or Personal Financial Specialist (CPA/PFS) designation. Financial planners may work on salary; fixed or hourly fees; commissions on the products they sell; or a combination of fees and commissions.  Often, they collaborate with professionals outside their sphere of expertise to create and implement clients’ financial plans.

The U.S. Securities and Exchange Commission advises that when hiring a financial planner, “you should know exactly what services you need, what services the planner can deliver, and any limitations on what he or she can recommend. In addition, you should understand what services you're paying for, how much those services cost, and how the planner gets paid.” 

More information, including how to check whether your prospective financial planner holds the credentials he or she claims or has ever been disciplined for unlawful/unethical professional conduct, is available through the Certified Financial Planner Board of Standards, Inc. booklet, “Questions to Ask when Choosing a Financial Planner.”

Information on personal financial planning, including how to find a local CPA financial planner,  is also available from the Pennsylvania Institute of Certified Public Accountants. 
 

The weeks after a spouse's death are weeks of grief. And they can wreak havoc on your finances.
You may be particularly vulnerable after your spouse dies, so you should avoid making financial decisions for a while, experts agree.

When widows and widowers are ready, it's best to talk to a financial advisor who is not a relative, is a good listener and doesn't push clients into decisions.  And if there are any legal questions, see a lawyer.

The only way to make sure your money and property go to the right people upon your death is to work with an estate planner to write a will, says Katherine Weiss, managing attorney at SeniorLAW Center.

Some possible problems
 
There are many problems that can arise.  Perhaps a woman owns the house she and her husband live in, but she dies and his name isn't on the title. Suddenly, he has lost both his wife and his home.

Or maybe a financial advisor convinces an 80-year-old widow to put the couple's savings into a lifetime annuity that guarantees payments for the rest of her life. This may not make sense for the widow, but it means a commission for the advisor.

SeniorLAW Center's Weiss describes one case in which a retired city of Philadelphia employee received a pension and assumed his wife would receive it upon his death. But when he died, she learned she wasn't eligible for pension payments because they married after the husband had retired, and had a common-law marriage before that. (One of the volunteer attorneys at SeniorLAW Center, an independent nonprofit center providing legal services for older Pennsylvanians, was able to secure pension payments for the widow, Weiss adds.) 

 
Assume nothing
 
You might think your estate will be passed on to your spouse when you die, but this isn't always the case, Weiss says. Sometimes, children from a prior relationship are entitled to benefits, and sometimes, seniors assume their relationship is a common-law marriage when it isn't.

According to Philadelphia Legal Assistance, no new common-law marriages were recognized in Pennsylvania after Jan. 1, 2005. To be considered married, couples had to have stated their intent to be married and presented themselves in public as married before that date.

Whether you are married or not is an important distinction because Social Security benefits and pensions are awarded differently to couples in different situations, Weiss says, so it's important to understand the rules behind each set of benefits.  She says couples who aren't sure about their legal marital status should meet with a lawyer.

Set aside the documents
 
After you plan your estate, advises Catherine Seeber, principal at Wescott Financial Advisory Group, you should put important documents in a binder, along with your will.

Examples of documents to include would be a net worth statement, life-insurance policies, financial papers showing ownership of a business or property, a power of attorney, a list of the contents of any safe-deposit boxes and extra keys to those boxes. Detailed wishes for a funeral should be included.Widows and widowers in tough financial positions may contact SeniorLAW Center's intake line (215-988-1242) for information and referrals.

While the end 2009 is fast approaching, there’s still time to save on this year’s taxes. There are a lot of opportunities out there, says James J. Newhard, a Paoli-based CPA, and a member of the Pennsylvania Institute of Certified Public Accountants.

Among them, he advises, is charitable giving, “a win-win all the way around.” There are also potential tax savings available by accelerating some payments and deferring others, Newhard says.

Some possibilities for consideration are listed below. Check with your tax/financial adviser about what is right for your situation and whether you qualify for these tax benefits. For more information, visit www.irs.gov or www.picpa.org. (Many frequently asked questions of CPAs can be found at: http://www.picpa.org/ask/public/search.aspx)


Charitable Giving
Stock: Even in this recession, you may have one or more stocks whose value increased.  Donate appreciated stock to a qualified charity to avoid paying capital gains tax and lower your taxable income.


Cash:  If you have the means and intention to donate cash to charity, do it before year-end to add to your deductions.


Used cars, clothing, furniture or other property can also be donated to qualified charitable organizations to reduce your taxable income and lower your tax bill.  You will need to itemize and substantiate the fair market value of the goods or property you donate and keep any written acknowledgment you receive from the charity. Information on car valuation is available from the Kelley Blue Book (www.kbb.com). For information on valuing other items, visit www.irs.gov or ask your tax professional.


Home Energy Improvement Tax Credits
If you purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment for existing homes, you can receive a tax credit for 30% of the cost, up to $1,500, for improvements "placed in service" from January 1, 2009, through December 31, 2010. While this calls for fast action if you want a tax credit for 2009, “it’s to the vendors’ advantage to accommodate the request and deliver as quickly as possible,” Newhard says. For more information on federal energy tax credits, visit www.energystar.gov. State and local tax benefits may also be available; check with your tax adviser.


Accelerating Deductible Expenses:
Consider paying deductible expenses in December rather than in January. Some examples:
Send in your January mortgage payment during December to reap the tax benefit for 2009.


If have a stock that dropped in value this year, it may be beneficial to sell it at a loss to help offset capital gains you may have incurred in other areas, such as mutual funds.  (Up to $3,000 of capital losses in excess of gains can offset other ordinary income – any losses in excess of the allowable threshold may be carried forward to the next tax year.)


If you are self-employed, accelerate the estimated payment for your quarterly state and local taxes due in January by paying them in December.

Deferring Taxable Expenses
Consider deferring any year-end bonus until January, if possible, so it will not be taxable until 2010.


Required minimum distributions from traditional IRAs or retirement accounts were suspended for 2009. (Traditionally retirees were required to take the minimum annual distribution at age 70 and ½.) Therefore, retirees (or beneficiaries of deceased plan participants/IRA owners) can postpone receipt of this taxable income until 2010.

Can you afford to buy long-term care insurance? Can you afford not to? If you buy it, will it be enough? What other options exist?


These questions begin to nag, as we edge closer to retirement age, or watch our loved ones wrestle with them. The U.S. Department of Health and Human Services estimates that about 70 percent of individuals over age 65 will require at least some type of long-term care services during their lifetime; and more than 40 percent will need care in a nursing home for some period of time.  

What about Medicare and Medicaid?
Many people believe—wrongly—that Medicare will pay for long-term care. Medicare pays only for up to 100 days of skilled nursing care under very specific circumstances, following a hospital stay. It does not pay for what would be considered “assisted living” or custodial care, such as assistance with eating, bathing, dressing and toileting, even if those services are provided in a nursing home.  If you have an extremely low income and limited assets, and if you require a nursing home level of care, Medicaid may pay for care either in your home or in a nursing facility. But Medicaid does not pay for assisted living services if they are all that is needed.
 
The best plans go awry
My father and stepmother planned for their future as best they could. They bought long-term care insurance (LTCI), which they paid on for 10 years. They then bought in to a continuing care community (CCRC), plunking down more than $200,000 as an “entrance fee” and paying almost $4000 in monthly fees. (These seem like very high numbers, and they are – until you consider that one year in a nursing home costs close to $90,000.)
 

They had barely settled in to their apartment when catastrophic illnesses hit both of them.
My father died before the 90-day waiting period for the long-term care insurance had passed; my stepmother now resides in the nursing facility. In just nine months, they spiraled downward from moving into the independent living apartment, to assisted living, to nursing care.
 

To buy or not to buy?
Was the LTCI a good investment? Did they make a good move, buying into the CCRC? Well, yes and no. Both are a gamble. In my father’s case, he paid out far more than he would have, given the short duration of his need for nursing care. On the other hand, my stepmother is guaranteed care for the rest of her life, with no increase in her monthly fee; and she can get some money back, through her long term care policy.

 
One important factor to bear in mind is that you have to be healthy at the outset, to be able to buy long term care insurance; likewise, you must be healthy to be “admitted” to a continuing care retirement community. So in both cases, getting started early can be key. But the bottom line is really – what is your bottom line? 


 
Here are some comparative numbers of various kinds of care, from in-home, to assisted living, and continuing care communities - and the reimbursement from a basic long term care policy:

Care Provider or Product	Daily	Monthly	Annual
In-home care costs* (for 6 hours/day, 7 days/week of care – depending on the situation, an individual might need only one hour a day – or could need more than the example here)	$120*	$3720	$44,000
Assisted living costs* (24-hour care)	$120	$3720	$44,000
Nursing home costs*	$240	$7440	$89,280
LTCI costs**	$1284 and up
LTCI pays**	$150	$4650	$55,800
CCRC (studio apt - buy-in of $61,000/ $80,000 and up)***	$2,400/ $1,400	$16,800 - 28,800 up
CCRC (one-bedroom for two people -buy-in $185,000/$210,000 and up) ***	$3400/2400 (for two)	$28,800 - $40,800 up

* Based on Genworth Financial 2009 Cost of Care Survey 
 
**According to the U.S. Department of Health and Human Services,  the annual premium for a basic policy providing up to $150/day for facility care with a 90-day waiting period and a 3-year limit or lifetime maximum of about $165,000.Cost ranges from $1284 if purchased at age 50 to $2448 at age 65, and up.
 
***Two examples are given; lower buy-in correlates with higher monthly cost, and vice versa. Costs are based on CCRCs in the Philadelphia area – see below for clarification

 
The pricing above is based on true costs for CCRCs in the Philadelphia area, which generally include all utilities, maintenance, taxes, security, scheduled transportation and at least one meal per day. Some include up to three meals, housekeeping, linen service, and  comprehensive health services. As a result, there is a wide range of pricing options, and consumers should research carefully exactly what is included.

 
Consumers should also bear in mind that there is a significant trade-off between the cost of buy-in and monthly cost. For example, at one facility, a studio apartment would require an $80,000 buy-in and monthly payment would be  $1400; while buy-in at another facility would be lower, at $61,000 – but monthly payments would be higher, at $2,400. So if you have sufficient funds for the higher initial outlay, but want to limit your monthly costs, you would likely choose the option with the lower monthly payment, unless the services included differ greatly.

 
There’s another “wrinkle” in the equation – some facilities offer a continuum of care, but on a “pay as you go” basis. So, for example, you might pay an entrance or community fee of as little as $6,000, and monthly rates of $3,000 for two people in a one-bedroom apartment. But if you later need assisted living services, the cost goes up to $3,775 a month for one person; plus the cost of care, which ranges from $500 to $1,100 per month. If there are two people, there is an additional basic monthly fee of $800 for a second person not in need of assisted living services; more if services are needed. Nursing care is higher still.

 
Conclusion
As stated at the beginning, the bottom line is – what is your bottom line? The numbers above offer a glimpse at the shape of things, but in the end the only way to determine what is best, and most affordable, for you, is to research the various options.  It’s also worth noting that the figures presented here are for the Philadelphia area; less costly care is available in other parts of the state, and the nation.
 
In the end, short of having a crystal ball, it’s impossible to know how your health may change, and what care you might need. But there are steps you can take to be prepared.

 
Following are some resources to help with the planning process:  


The official government website for Medicare and Medicaid provides a variety of valuable planning tools, for comparing medicare prescription drug and health plans, evaluating home health agencies, and planning for long term care needs, among others. 
 
U.S. Department of Health and Human Services website provides an explanation of long term care insurance, cost estimates and information on other options for financing care, and provides an extensive list of links to other resources. 
 

Consumer Reports offers an overview of the pros and cons of long term care insurance, and myths versus facts of common sales pitches. 
 
The National Association of Insurance Commissioners website offers consumer guides that provide a very thorough explanation of long term care insurance (and other types of insurance) and provides links to state insurance departments. 
 
The Gilbert Guide web pages offer extensive search capabilities, by zip code and type of facility, which provides a good starting point. However, the information on facilities is not necessarily accurate, so it’s advisable to contact the facilities directly. This site also provides articles on  topics including financial and legal matters, caring for someone with Alzheimer’s Disease and how to find home care.
 
The Pennsylvania Health Care Association, provides guidelines for choosing a Personal Care/Assisted Living facility or nursing home and a search function to locate facilities by county. 
 
The Genworth Financial 2009 Cost of Care Survey  provides cost comparisons, broken down geographically, which can help locate affordable alternatives if moving is an option.

Some Medicare plans are beling eliminated for 2010, but alternatives are available. APPRISE, the state health insurance assistance program, will present information sessions at various locations in Philadelphia during November and December.  Enrollment has begun, and runs through Dec. 31.

Participants should bring their Medicare card, other insurance cards and a complete list of medications; and any letters they have received about their current coverage.

Click here to find an information session.

APPRISE is a service of the PA Department of Aging that offers free and impartial information and assistance with Medicare benefits. In Philadelphia, the APPRISE program is coordinated through Philadelphia Corporation for Aging. 

Extensive information on Medicare insurance and prescription plans is also available at medicare.gov. You can find plans in your area and compare enrollment costs, copays and coverage, to determine what plan is best for you. The site also includes a broad range of  information to help planning, including a long term care planning tool; quality comparisons of nursing homes; information on hospital outcomes; and results from a survey of patients about the quality of care they received during a recent hospital stay.

For additional information on APPRISE, PACE, PACENET and other benefit programs, visit PCA's website.

Energy conservation workshops
The Energy Coordinating Agency of Philadelphia (ECA) is offering energy conservation workshops in every neighborhood this fall and winter. Participants learn how to save energy and receive free literature and materials, such as window weatherization kits.
 
“Workshops can be at senior centers or churches,” Robinson says, “but we are very flexible and will schedule them at any location and at any time including weekends.”
 
To schedule a workshop for your group, you may contact Colette Davis at ECA, 215-609-1046.

Weatherization assistance 
Thanks to the American Revitalization and Recovery Act (ARRA), ECA is able to weatherize many more homes through the Weatherization Assistance Program  (215-609-1476)  this year, and also to put more than twice as much money into each home.
 
“The limit has increased from $3,000 to $6,500 per home, and we hope to do things we’ve never been able to do before,” says Liz Robinson, ECA’s executive director. In addition, the eligibility level has expanded to 200 percent of the poverty level ($44,124 for a family of four).
 
ECA is now able to replace inefficient old furnaces with high-efficiency condensing furnaces. Through this, Robinson adds, “in combination with air sealing and insulation work, we are hoping to achieve much higher energy savings, on the order of 40 to 50 percent, compared to 20 to 25 percent in the past. Our goal is to restore affordability for a lot of people.” 
  
Hoping to weatherize about 1,500 homes this year, ECA is getting a list of high energy users from utility companies and informing them they are eligible. First come, first served. The Weatherization Assistance Program for low-income families is funded by the federal Department of Energy and the Department of Health and Human Services

Energy AuditsAvailable
Through Home Performance with Energy Star, a national program overseen by the Environmental Protection Agency, ECA provides free energy audits to help families that do not qualify for the Weatherization Assistance Program to make their homes more energy efficient. ECA’s website, www.ecasavesenergy.org, includes a table of federal tax credits available for installation items such as high-efficiency furnaces, Energy Star appliances and Energy Star windows.
 
“Tax credits have increased significantly,” Robinson points out. “For example, you can get a credit of up to $1,500 for installation of a high-efficiency furnace. First, insulate your home to reduce leaks or air infiltration, Robinson advises, and then install smaller equipment. “Equipment made today is much more efficient,” she says. 
  

Neighborhood Energy Center Services and Locations
ECA has 14 Neighborhood Energy Centers (NECs) — one-stop shops for low-income energy services. Trained counselors help families obtain grants and utility payment agreements. They assist with applications for emergency assistance to the Low Income Home Energy Assistance Program (LIHEAP), provide budget counseling and conservation and home repair programs that offer more permanent solutions to the problem of energy affordability, such as ECA’s Weatherization Assistance Program (WAP). 
  
ECA will sponsor a conference on LIHEAP and other energy programs Thursday, Nov. 19, at Friends Center, 1501 Cherry St. To register, you may contact Lorraine Horton at ECA, 215-609-1047. 
 
Neighborhood Energy Centers
• ACORN Housing, 215-765-1221
• Carroll Park Community Council Inc., 215-877-1157
• Center in the Park, 215-848-7722
• Congreso de Latinos Unidos Inc., 215-763-8870
• Diversified Community Services, 215-336-3511
• Friends Neighborhood Guild, 215-923-1544
• Greater Philadelphia Asian Social Services, 215-456-0308
• New Kensington Community Development Center, 215-427-0350
• Nicetown Community Development Center, 215-329-1827
• The Partnership Community Development Corporation, 215-307-4917
• Southwest Community Development Corporation, 215-729-0800
• Strawberry Mansion, 215-235-7505
• United Communities Southeast Philadelphia, 215-467-8700
• We Never Say Never Assn., 215-452-0440 
 

Thousands of eligible veterans and their families are not taking advantage of the U.S. Department of Veterans Affairs (VA) health and pension benefits to which they may be entitled.

These benefits range from healthcare and disability benefits to monetary assistance for personal care and adult day services, respite services for family caregivers, and housing in VA retirement, assisted living and nursing home facilities.

Most veterans of the Vietnam War are 60 or over, most Korean War veterans are over 70 and most World War II veterans are 85-plus, well within the range where aging support services may be needed, Ronald Pennypacker points out. He is director of the Governor's Veterans Outreach and Assistance Center (GVOAC) in Boyertown. One of five centers in Pennsylvania, it serves veterans in Philadelphia, its suburbs, and Berks, Lehigh and Northampton counties.

Of an estimated 1.2 million veterans in Pennsylvania, Pennypacker notes, "only a small percentage ever sought help from the VA."

Many put their service behind them after they leave the military, and don't pay attention to what future benefits may be available, says Pennypacker, whose office makes regular outreach visits to provide information and counseling.

Pride is often an issue, he adds. "Many vets don't want to take something from those who may need it more. I tell them that Congress provides VA benefits based on need. They should take advantage of this because the funding is there for them."

You see, when squirrels gather acorns and nuts for the long winter they hide them either in one huge hole or, as the common gray squirrel does, in several hundred different places, exercising behavior known as "scatter hoarding" (what investment advisors would call portfolio diversification).  The purpose of the hoards is to allow the squirrels to rest quietly in their nests during the winter, leisurely cracking nuts while watching reruns of American Idol, without ever having to shovel the walk or put up with unpleasant commuting conditions. Snuggled together, they leave their nests only as necessary to "carry out" from their various food caches (presumably the ones that don't deliver).
 
I started wondering how squirrels  calculate their "Number." In other words, how does a particular squirrel figure out how many acorns and nuts he needs to maintain his standard of living during his season of "retirement"-- and can we borrow this instinct to help us calculate when we can stop hoarding and head home to our own comfortable nests.
 
I proceeded to research the subject in the way all of the finest academicians do; I Googled  "squirrels gathering nuts." The result was disappointing.  Rather than relying on some extraordinary scientific phenomenon, it appears, (according to Almanac.com), that squirrels simply "...gather food until there's no more to gather.  They are rather greedy." (Yet another parallel to humankind, but not what I was hoping to find.)  Okay, so the squirrel doesn't know any more than we do when it's time to get out of the rat race, even though he is, more-or-less, a rat.
 
It's amusing to try to imagine how the squirrel might handle the unanticipated loss of a significant portion of his portfolio of savings as a result of a forest recession or other Act of God.  Would he immediately cut back on berries and nuts and switch to fungi, twigs and bark?  Put the second nest up for sale? And is there such a thing as a bailout for squirrels and, if so, what would that look like? Would "They" somehow replenish the caches of squirrels who had imprudently loaned their hoards to other, unreliable squirrels? And if so, exactly who would "They" be? (Those are trick questions. The truth is there is no "They" since squirrels have no federal government to fall back on, which is bad news for them but then again, they presumably keep 100% of their income.)
 
The most impressive information I unearthed about the squirrel is that, though his brain is roughly the size of a walnut, when spring arrives he is generally able to locate approximately 50% of the hundreds of places where he hid his hoard of nuts the previous fall! I'm sure you can guess where I'm heading with this.  How can this rodent, with his teeny hippocampus, remember where he hid all those nuts six months earlier when you and I can't remember half the time which section in the mall parking lot we left our giant SUV an hour ago (even though we didn’t hide it under several layers of dirt). Come to think of it, perhaps the average squirrel is slightly more intelligent than mankind.  After all, his investment loss ratio is roughly equivalent to what mine has been over the last year, and his fees are definitely a lot lower.
 
At the end of the day, sadly, it does not appear there is much we can learn from the ubiquitous squirrels that share our backyards, parks and the occasional attic.  But there is one pretty important lesson we humans could certainly teach those squirrels, and they would do well to listen up.  It goes like this: when you're standing on your hind legs in the middle of a road and you see four large round black rubbery things rolling towards you at an alarming speed, don't just stand there staring - drop the nuts and run!
 
Alisa Singer's humorous essays have been published in magazines and newspapers across the country and in Canada. She is also an author, painter, practicing corporate lawyer, wife and mother. She can be
contacted at ASingerauthor@gmail.com

In case of an illness that leaves you incapacitated, only you should decide what you want done, or not done. This is where an advance directive, sometimes called a living will, comes in.  At what stage of life should you start thinking about these matters?
 
“Certainly, in your 40s by all means,” said attorney Risé Newman, whose practice in Center City Philadelphia includes estate and property law. “If you’re in your 20s or 30s and unmarried, you should make your healthcare wishes known.”
 
A financial power of attorney becomes increasingly important as people age, she said. With a financial power of attorney, the appointed agent has the power to step in, when needed, to handle financial affairs. No matter what your situation, having such an arrangement prevents the need to have a guardian appointed.
 
Under Pennsylvania law, financial powers of attorney and living wills are “very thorough,” Newman said. They indicate whether your wishes must be followed, or the designated person has discretion to respond to changing circumstances.

A Pennsylvania law, Act 169, establishes criteria for advance healthcare directives and provisions for carrying them out if you become incapacitated.You may designate an agent, someone to have a healthcare power of attorney,who will see your wishes are carried out if you are unable to express them. A living will becomes effective in the event you become incapable of communicating medical treatment instructions,and you are in an end-stage condition or are permanently unconscious. Health care power of attorney gives your agent the power to speak for you only when you are unable to speak for yourself; you need not be in an end-stage condition or permanently unconscious.
 
This agent should know just what you want done. Should your doctor try every procedure possible to preserve life, just enough care to keep you comfortable,or anything in between? Be sure your doctor has a copy of the document, and knows the person you designated.