http://www.bnet.com/5799-19702-0.html?type=18 Blog Recent Discussion Activity http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/stealth-inflation-for-retirees/2507/#18753_90909 Some great articles on this website<br>Ilook forward to coming back to read some more of your work<br><br><a href="http://www.annuitysupermarket.com/enhanced-annuities.html" >Enhanced Annuities</a> Tue, 17 Nov 2009 02:10:17 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/stealth-inflation-for-retirees/2507/#18753_90909 2009-11-17T02:10:17Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/solo-401k-offers-big-tax-savings-for-self-employed/2418/#18319_88612 Great idea. I plan to look it into soon. Thanks. Tue, 03 Nov 2009 15:40:23 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/solo-401k-offers-big-tax-savings-for-self-employed/2418/#18319_88612 2009-11-03T15:40:23Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/how-to-handle-long-term-care-premium-increases/2386/#18065_87354 I'd like to provide some insight to your comments. First, the Federal long-term care insurance plan doesn't require the health-underwriting that individual long-term care insurance policies require. Thus, it is likely that far more people will be filing claims ... so it's not really an apples-to-apples comparison ... and the implication that consumers will all be facing rate increases is not true.<br><br>Second, you overlooked the #1 reason insurers have needed to request increases on older policies (those sold in the early 90s generally). The premiums people pay comprise about half of the expected funds insurers will use to pay claims. The rest comes from investment returns.<br><br>For every 1% drop in interest rates, an insurer needs a 10-to-15% rate increase to make up the shortfall. So while the substantial drop in interest rates is great when you are shopping for a mortgage, it's terrible for insurers investing premiums for the long haul.<br><br>But, this really applies to older policies. And, I like to say that the "past doesn't equal the present" ... and so consumers have enough to worry about. <br><br>Jesse Slome<br>Executive Director<br>American Association for Long-Term Care Insurance<br><a href><a href="http://www.aaltci.org" target="_blank">http://www.aaltci.org</a></a> Tue, 27 Oct 2009 19:15:07 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/how-to-handle-long-term-care-premium-increases/2386/#18065_87354 2009-10-27T19:15:07Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-forfeit-valuable-health-care-tax-savings/2347/#17666_85528 Very few people take advantage of FSA because they fear the use it or lose it. What most people forget is that medical FSA are pre funded by your employer. So if I put $1000 in the FSA in January, it will come out of the next 12 months of paychecks. However I get access to the $1000 immediately. So I get an interest free 12 month loan. <br><br>Even sweeter than the FSA is the dependent care FSA. Since daycare expenses are very predictable, unlike most medical bills, you are assured to use nearly every penny you have taken out.<br><br>People also need to remember that many many things count towards the medical FSA. It's nearly every OTC drug you could want, elective surgeries, etc...there's a slew of stuff that qualifies. It's not just doctor co pays. Sun, 18 Oct 2009 04:39:39 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-forfeit-valuable-health-care-tax-savings/2347/#17666_85528 2009-10-18T04:39:39Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/maybe-the-recession-isnt-over/2252/#17308_84129 Great post. To quote the late great investment thinker Peter Bernstein: The only thing that's certain about the future is that nobody ever knows what's going to happen. Ever. Fri, 09 Oct 2009 17:04:01 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/maybe-the-recession-isnt-over/2252/#17308_84129 2009-10-09T17:04:01Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/maybe-the-recession-isnt-over/2252/#17308_83699 Charlie, thanks for being willing to state the obvious -- instead of fluff and BS that others think we will believe. I can't stomach hearing another statement that the 'recession is over'. Complete ignorance -- or just arrogant people thinking by 'saying' the recession is over that the 'ignorant' masses will believe it. Insulting to anyone with a brain and breathing. Thanks for willingness to speak the truth. Wed, 07 Oct 2009 15:44:07 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/maybe-the-recession-isnt-over/2252/#17308_83699 2009-10-07T15:44:07Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/maybe-the-recession-isnt-over/2252/#17308_83690 Great analysis and suggestions of what to do here, Charlie. Thanks! Wed, 07 Oct 2009 13:59:07 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/maybe-the-recession-isnt-over/2252/#17308_83690 2009-10-07T13:59:07Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/is-there-a-bond-market-bubble/2180/#16960_82206 Jack, you are correct on bond funds. Investors need to be careful when buying funds because if the fund is actively managed, the manager may end up selling in that type of cycle and then realizing losses in the fund. One way to add some protection against bad market timing decisions is to consider passively managed bond index funds or ETFs, which are available in some 401(k) plans. Bonds are tricky to buy, so it is always a good idea to seek some professional assistance with these decisions. Fri, 25 Sep 2009 17:26:29 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/is-there-a-bond-market-bubble/2180/#16960_82206 2009-09-25T17:26:29Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/is-there-a-bond-market-bubble/2180/#16960_82166 Great explanation, Charlie. Bonds are often misunderstood.<br>I'd add one more word of warning for our readers: Many investors own bonds through mutual funds. Often those funds serve as the "safe" component of 401(k)s. But when you own bonds through a fund, you can suffer real losses in your principal. Since, as you mention, rising rates depress the value of a given bond, the value of funds that own the bonds goes down too. And in the case of a fund, investors can't hold to maturity--if rates keep on climbing, the value of the fund will continue to fall. One way to protect yourself is to stick to funds that hold short-term bonds. That way the older bonds, with depressed values, will mature sooner and the manager can buy new, higher yielding issues.<br>Jack Otter<br>MoneyWatch Executive Editor Fri, 25 Sep 2009 14:49:04 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/is-there-a-bond-market-bubble/2180/#16960_82166 2009-09-25T14:49:04Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81670 Charley<br>You are right, we totally disagree. It makes no difference whether in retirement or not, the only right way to manage a portfolio is total return, not cash flow. <br><br><br> Wed, 23 Sep 2009 12:23:22 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81670 2009-09-23T12:23:22Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81554 That's where we differ, in retirement, we manage for cash flow, and let total return take care of itself. I can calculate cash flow, but can't predict total return. It's not a big mistake, it's really the only way to value an investment, and if the cash flow is good, the valuations eventually follow. Everything else is just a guess. And in the meantime, there's real money available to live on. Tue, 22 Sep 2009 21:29:12 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81554 2009-09-22T21:29:12Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81568 Charles<br>We will agree to disagree on both counts. But I will add this: one big mistake people make is to manage portfolios based on "cash flow" instead of a total return approach. <br><br> Tue, 22 Sep 2009 20:40:51 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81568 2009-09-22T20:40:51Z http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81483 I think you're wrong on both counts Larry. TIPS currently provide minimal cash flow, and if you're retired, cash flow today, this month, next week and next year is critical. Not much cash flow on TIPS. As I say, great long term inflation hedge, but not much help in paying the bills this year. You can't eat theoretical returns.<br><br>And with respect to the stock comment, I am referring to dividends not equity or stock prices. Go back and check the growth of the dividend stream (actual cash dividends paid) on the S&P 500 over the last 10 years and then compare it to the index value, and you'll see what I'm talking about. If retired, you can strip out the dividend payments to fund living expenses.<br><br>The purpose of the post is not that you don't need inflation protection, it's that you shouldn't go overboard with it if you're retired. Tue, 22 Sep 2009 13:44:42 GMT http://moneywatch.bnet.com/retirement-planning/blog/retirement-roadmap/dont-go-overboard-with-inflation-protection/2143/#16821_81483 2009-09-22T13:44:42Z