Knights
of Columbus
Council
6772
Brooklyn
Park-Brooklyn Center, Minnesota
http://www.kofc6772.org
"The World's
Largest Catholic Family Fraternal Service Organization"
Who Are the
Knights of Columbus?
News!
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WHAT ARE YOU GOING TO DO WITH THE MONEY? A
sound financial plan can be more important than a lifetime of work! Don
Kramer, Knights of Columbus Field Agent 763-566-0401
K of C Field Agent News Beneficiaries…Who Do You Love? Do
you know who the beneficiary is on your life insurance policy? It would be
a wise idea to find out – and update your beneficiary if necessary. As
your K of C agent, I can help you do that. Why
is this important? A life insurance policy protects the financial status
of another person – or people – in the event of your death. Through a
beneficiary designation, you determine just who that should be. When you purchase a K of C insurance policy, you must select a primary beneficiary – at a minimum. You don’t have to name a contingent beneficiary – also known as a “secondary beneficiary.” However, it’s always a wise move because you might outlive your primary beneficiary. A contingent beneficiary (also known as a “secondary” beneficiary) is the person designated to receive life insurance policy proceeds if the primary beneficiary dies. You
should be as specific as possible in wording your beneficiary designation.
By naming your wife, daughter, son, etc., as beneficiary, you make sure
that the life insurance proceeds will be available in a timely manner to
them. Your
life situation will undoubtedly change over time. Plan to update your
declared beneficiaries periodically. Otherwise, the K of C will have no
way of knowing what your intentions are at each stage of your life. Changing
your beneficiary is fairly simple. You just need to fill out a change of
beneficiary form (#113A) for each policy you want to change. I can provide
you with these forms – and I will help you to fill them out. I can also
help you with beneficiary designations for any life insurance policy you
hold – regardless of the company that issued it. Give me a call.
I’m at your service. Don
Kramer, Knights of Columbus Field Agent 763-566-0401 What
is likely to use up your hard earned money the fastest? Although
you may not like to think about it, there may come a time when you may
need help getting dressed, eating, bathing or have severe cognitive
impairment like Alzheimer’s disease.
When that happens, you’ll need Long Term care either in your home
or in a facility like a nursing home or in assisted living.
If
so, how can you maintain your independence and not be a financial or
physical burden to others? Would
the people you live with or other family members be able to take care of
you? Are your children and
their spouses both working or possibly live too far away so they can’t
help you out? Would you
expect them to give up their job or move in with them to help you?
With longer life expectancy and changes in medicine, are you going
to be able to pay for Long Term care when you need it?
Right
now, the average cost of Nursing Home care in Minneapolis is more than
$50,000 per year. Nursing
Home costs have been going up about 5% a year. If
you are 55 years old now and the Long Term Care costs continue to increase
5% per year, it will cost you over $520 per day when you’re 85
(that’s the average age at which people go in the Nursing Home). The cost of Nursing Home care (for a semi-private room) in
2033 is expected to be over $200,000 per year. In
order to cover that cost, you will need about $4 million invested at 5% to
produce the funds to pay for it. If
you can’t pay for Long Term Care, who is going to pay for you? According to information on the U.S. Office of Personnel Management sponsored website (www.ltcfeds.com) this is how Long Term Care is paid for now.
Home Care
costs
Nursing Home costs: 1.
Private LTC insurance 5.0%
1. Private LTC insurance 5.0% 2.
Medicare 15.3%
3. Medicare 8.0% 3.
Medicaid 17.3%
3. Medicaid 41.0% 4.
Out of Pocket 62.2%
4. Out of Pocket 46.0% Social
security was not designed to provide Long Term Care at all. The social security act of 1935 was designed to provide
retirement benefits. The
Medicare Act of 1965 was designed to provide affordable health care for
the elderly using Social Security to fund it, but did not really increase
funding. So how will the
government fund Long Term Care, especially when the baby boomers start to
need it? What are the odds that you will need Long Term
Care? No one can tell you for
sure, but right now, one out of every two people is expected to need Long
Term Care at some time in their life.
In fact, one out of every four people needing Long Term care today
spends more than $100,000. Sandra
Timmerman, Ed.D. is the
director of the Mature Market Institute.
In April 2002 she said “The projected average cost for one person
is $61,320 per year or $153,300 for the average nursing home stay, causing
many families to have to spend down their assets”. To
get the information you need about Long Term Care so you can develop peace
of mind for yourself and your loved ones please contact me and I will help you before it’s too late.
May God bless you and your family, Don
Kramer, Knights of Columbus Field Agent 763-566-0401 WHAT
ARE YOU GOING TO DO WITH THE MONEY? As you probably know
by now, Congress and the President have provided significant tax relief
for Americans in 2003. There
were many changes that benefit individuals, families and business owners. All of the tax brackets have been reduced, taxes on dividends
have been reduced, the child credit was increased, and more.
The questions you may be asking are “How much will we get out of
it?” and “What should we do with it?”
It has been estimated
that the average family earning $40,000 will receive more than $1,000 in
annual tax relief over and above the tax cuts enacted in 2001. The child credit provides $400 per child per year, and the
15% bracket was reduced to 10% and applies to the first $14,000 of taxable
income that results in an annual savings of $700.
The other brackets were reduced as well and joint filers could see
as much as another $935 in annual tax relief.
To estimate your tax savings, it is recommended that you consult
with a tax specialist. Now, what can you do
with that new money? Of
course, you could spend it now, and some people will.
However, is that best for you and your family? It is well known that Americans in general are very poor
savers, and most people admit that if they could change one thing in their
financial plan they would put more money away to work for them. For emergencies, to send their children to college, for
retirement, and more. Well,
here is an opportunity to do something more!
The Knights of
Columbus has programs that are designed for building and protecting
wealth, and they are available to members only.
I can show you how these programs can benefit you and your family
now and in the future, plus all of our programs have guarantees! As to that $1,000 per
year – did you know that $1,000 saved now and earning 7% compounded
annually grows to over $3,800 in twenty years?
And $1,000 saved per year for twenty years and growing at 7% yields
nearly $45,000? It’s your
choice. Spend it now, or put it to work so you can spend more later. Please give me a call
so that I can show you how our programs can benefit you and your family. God Bless you and
your family, Don Kramer, Field
Agent 763-566-0401 Two Incomes Equals Two
Insurance Needs
In the days of
“Ozzie and Harriet,” most families fit one description. Fathers
worked full-time, while mothers remained home, raising the kids and taking
care of the house. Nowadays, some families do still fall into the
traditional, one-paycheck category. Yet others rely on two incomes to make
ends meet – even if one parent works part-time or from home. As much as things change, they
remain the same. This maxim certainly holds true with life insurance
planning. If someone earns an income to support a family, family-income
protection through life insurance is of utmost importance. As your agent, I can do a needs
analysis for both of you. I’ll take into consideration the amount and
the sources of your income, and suggest different ways to provide
sufficient life insurance coverage for you and your family. You take it for granted that
you and your family should get an annual checkup from your doctor. But
you’d also benefit from a financial checkup. Now’s the time, because
chances are, your life and your financial obligations become more
complicated each year. Here’s good news for married
people: If a husband and wife purchase permanent insurance policies at the
same time, they can get our Spousal Waiver of Premium rider added to each
policy at no cost. You have to apply for insurance on or before your 45th
birthday, and you both must qualify for insurance at standard rates. The Spousal Waiver of Premium
Rider is an excellent feature for both dual-income and one-income
families…and everybody in between. Call me. I’ll be glad to meet with
you and your spouse. May God bless you and your family, 763-566-0401 What
happens when you can no longer take care of your everyday needs?
Raising a family is
costly. For many of us, there's not much left over for long-term
goals...such as saving for our children's education or for retirement. Ideally, caring for a
sick parent shouldn’t be part of that equation. Yet as with so many
things in life, the reality is quite different. Today, many people start
families in their 30s and 40s - while their parents live well into their
70s, 80s, and 90s. If one day you require
nursing care, you might have to ask your children for help just when
they're ready to send their own sons or daughters off to college. This is,
in fact, a common dilemma among middle-aged people today. Experts have
even coined a term -- "the sandwich generation" -- to describe
those who are squeezed between these conflicting financial obligations. The average cost of
nursing-home care is more than $60,000 per year. That could easily force you to deplete your assets or to rely
on your family for help. According
to the Health Insurance Association of America (1999) “Most older
Americans are cared for at home; family members and friends are the sole
caregivers for 70% of elderly people.”
Would the people you live with have the physical and financial
ability to take care of you? Medicaid will help -
but only after you’ve depleted your own resources down to welfare
eligibility levels. According
to the Department of Health and Human Services, in 2001, Medicare covered
only 14% of long-term care costs. Individuals
needing care, along with their families, pay for over one-third of the
high cost of long-term care out of their own pockets.
One of the challenges
in planning for long-term care is accepting that you or a family member
may need care in the future. Overcoming
this hurdle is critical to the planning process.
With advances in medicine and people living longer than ever
before, the possibility of someone in your family needing long-term care
is greater than ever. To give you
information about these issues and help you develop peace of mind about
long-term care for yourself and your loved ones, the St Al’s Knights of
Columbus are sponsoring a program to help you in your deliberations.
Look for the specific information and details about this program
elsewhere in this newsletter.
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Tax-Deferred
Annuities
Expecting a tax refund? Even if you're not, you certainly wouldn't want to
pay more in taxes than you have to, would you?
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