You bought a beautiful piece of art for your wall, but it still feels like something is missing? Sometimes it is not enough to just hang a picture on the wall, and since regular lighting is not always so flattering, your artwork needs a boost.
“There’s nothing better than a beautifully lit piece of art.” – Richard Mishaan, AD100 designer
You can achieve a more eye-catching effect by carefully adding special lighting to your art. You can either directly illuminate it or simply have a piece live in a pleasantly lit room. Of course, there are several things you need to consider before starting your new DIY project.
In today’s article, we will give you some tips and suggestions on how to do it properly, because too much of the wrong light can steal the piece’s beauty and even damage it.
Different types of lighting suitable for your art
Since art is delicate, you cannot just place any light anywhere and risk light damage. Sometimes it is better not to use special lighting if you are not willing to do it correctly. After all, you want that painting to last and admire its beauty for years.
Ceiling-mounted lights
This is an elegant-looking solution that can light up your art wall. Ideally, you should adjust the light to a 30-degree angle, so that the light beam hits the center of the artwork. If you go just ten degrees higher or lower, the effect would not be the same – you’ll either get reflective glare or some intense shadows.
Wall washers
Wall washing is often used in contemporary design when a large surface needs to be accented with light, but it can also be great for paintings or 3D metal signs. With this type of lighting, you are not pointing the light directly to the object, the accent is more on the wall, but at the same time, it does the trick for art too. Wall washers can be placed on the ceiling, floor, or anywhere on the wall.
Track-lighting
Although some will claim that track lights are not the prettiest, we have to disagree on that. This is by far the type of accent lights we usually see. It is widely used in museums and galleries, and it is also suitable for your home. These ceiling lights are flexible and can be moved till you find the perfect angle and position that will beautifully lighten your artwork.
Painting lights
These are usually smaller, decorative lights that can be mounted even on the frame. But even when they are installed on the wall, close to the artwork, they brighten it up and create a sense of intimacy, where it almost seems like the art is coming out of a shadow.
Lamps used for this type of lighting have to have a very low voltage, and they can rarely be enough to lighten up the entire room.
The importance of a picture frame
Even though we are talking about lighting, the frame of a piece plays a significant role in here as well. And we are not talking just about its color. The material and texture can sometimes be too reflecting, and if the picture is framed with glass, the situation becomes even more complicated.
In case your beloved piece of art is trapped behind glass, you have to really think about the lighting and adjust the angle precisely to avoid glare. It goes the same for oil paintings or pieces with a surface texture
In case you want to mount picture lights, make sure that the frame is solid enough to support the fixture. In other cases, that involve ceiling or wall-mounted lights, you can use minimal frames or no frames at all.
If you are in charge of the framing process, do not pick frames that are too shiny and wide because they will also have a reflection.
How to preserve your painting and avoid negative reactions to light
Paintings are particularly sensitive and vulnerable. Thick layers can easily start to crack and crumble, colors can change their shade over time, etc. And all this is due to exposure to intense lighting.
Do you remember that trick, where a magnifying glass can burn a piece of newspaper or a leaf when the sun rays hit on the right angle? Pretty much the same thing happens to art, but over a much longer period of time. The deterioration process is so slow that at the beginning, you will barely be able to notice the difference.
Two great enemies of paintings are the UV light and the heat. So this implies that direct exposure to natural sunlight is a huge no-no. Sunlight can fade your painting’s colors, so make sure that they are not looking directly towards the window.
So what can you do to protect them? Avoid halogen lights and make sure that the light system you are using has UV filters on. The best solution is to use LED lights. They are the safest because they do not emit UV, and they barely heat up.
Bottom line
If you are an art lover or simply appreciate art, we are sure you understand how important this aspect is. Lighting has to be done properly, so if you do not want to hassle with it, better leave it as it is. However, the least you can do is to avoid exposing your pieces to direct sunlight.
Having a piece of art or more in your home is really something special. Everyone enjoys art, its serenity, and stunning effect that makes us stop and stare, and feel a different kind of joy every time.
Author’s bio: Since traveling to different places fascinates her, Karen takes advantage of her escapades to see the world’s best home interior designs and styles. She has a degree in Interior Design and is practicing for several years now. When she’s energized, you will often see her name on different blogs as she writes on some of the best design ideas.
Do you have piles of papers lurking on your desk? Mountains of laundry looming beside your bed? Shelves double-stacked with knick-knacks? I have a bit of a clutter problem myself. The other day, I spent an hour looking for the vacuum cleaner, which eventually turned up buried under a pile of laundry almost as tall as I am.
All that clutter isn’t just annoying. It’s expensive. That’s right: Excess Stuff can keep costing you money even after it’s been bought and paid for.
How expensive is your Stuff? Professional organizer Jen Hunter of Find Your Floor in Boston says clutter can cost us real money in a lot of ways:
Buying replacement Stuff: Somewhere in your closet is that pair of running shoes you bought last year. Probably next to the ones you bought the spring before that. Clutter costs us dollars and time when we have to buy duplicates of stuff we know we own but just can’t find.
Damage to your Stuff: When you have more Stuff than space, storage can become a problem. Things can get stepped on, stored improperly and broken, water-damaged or just so buried they can’t be retrieved when needed.
Missing deadlines: When your Stuff is disorganized, you wind up paying hundreds of dollars a year in bank fees, late charges, library fines, overdue fees and tax penalties. Trust me on this one. I speak from years of painful experience.
Renting storage space: Almost 10% of U.S. families rent storage space for belongings that don’t fit in their homes. That’s a lot of dollars going to serve your Stuff instead of your life. Even those that don’t rent space may choose larger homes than they need so that they can store more Stuff.
Health costs: Out of control clutter can pose health risks from falling, and encourage the growth of allergens like dust and mold. Treatments for those can get expensive. Clutter can also affect your mental health. Writer Ariel Gore saw a therapist until she realized that what she really wanted was a clean home. So she hired a housekeeper for less than she paid the therapist and lived happily ever after.
To Hunter, the biggest cost is an intangible. “It’s the impediment that it presents to people’s lives,” she says.
Stacy J. Kaplan of Clutter Away in San Diego agrees. “You can’t function at your optimum level if you’re disorganized,” Kaplan says. “You wouldn’t run a business without a business plan. If you’re not organized your business will fail. A house is a small business in a way. It’s the operating structure behind what your family is doing.”
Clutter stops us from working as effectively as we otherwise might. At its most basic level, time spent looking for your car keys is time you’re not spending working, playing or relaxing.
It also costs us time because all that Stuff demands attention. While clutter might be a sign of neglect, it requires us to spend time working around it to accomplish basic household tasks like paying bills or preparing a meal. Those extra hours of housework are a drain on time and energy that could go into creative side projects, education or any number of other productive pursuits.
We can become prisoners of our Stuff. J.D. has written a lot here about how Stuff ties up our money. We can inadvertently tie up a lot of our earnings in rarely used sports equipment, video games, and other pricey toys. Selling that unused Stuff frees up not only your cash but your energy. When there’s too much Stuff around you, you’re like a plant in a too-small pot. It’s hard to grow or thrive when hemmed in by clutter.
Of course, the answer isn’t to move to a bigger place. There are families who live happily in 100-square-foot apartments. They just have less Stuff than we do.
The solution is to put your space on a diet. Some basic steps to get started:
Consider adopting The Compact, an agreement to buy nothing new for one year. This should cut the flow of Stuff coming in down to a trickle.
To deal with the Stuff you have, go through one small area at a time. Don’t try to do the whole house at once. Choose a room, a closet, a desk, or even just a kitchen drawer.
A good rule of thumb: Get rid of anything you don’t use or love.
A habit of clutter can be hard to give up. If you’re used to having a lot of Stuff around you, a pared-down space can feel too spare and empty. Before you rush to fill that void, try sitting with it for awhile and really setting an intention for you want to replace your clutter with. It might be original art, new bookcases, workshop space or just more breathing room.
Whatever you choose to do with your space, you can use the same techniques you used to clear it to keep it clean. Don’t keep Stuff you don’t use or need. Don’t buy Stuff you don’t want or need. Spend a little time each day keeping your space organized.
Here are the top three clutter-busting tips from GRS Twitter followers:
“Throw clutter in bags, put them in the attic. As you need something, take it from the bag. After 6mo, donate bags.” — @jacobmlee
“For clutter: I’m using @gretchenrubin‘s rules: Make your bed and the 1-min rule: if you can do it in 1 min, do it now!” — @jc_losangeles
“My fave declutter advice: Spend 15 Mins a day!” — @BudgetsAreSexy
I know we just talked about Stuff last week, but how do you combat clutter? What tips and tricks can you share with readers?
Over the past couple of years I’ve looked at, and reviewed, quite a few online brokers. There are a lot of pretty good ones out there, but even among all the good ones I’ve reviewed, TD Ameritrade stands out from the pack. They’ve been honored by multiple financial publications like Smart Money, Kiplinger and Barron’s for their great web and mobile tools, usability, commitment to customer education and just being a great place for investors of all types – especially long term investors.
Today I thought I’d do a TD Ameritrade review, exploring their history, the industry awards they’ve received, as well as looking at the important stuff like fees, tools and mobile trading options. So let’s get started.
TD Ameritrade Background
TD Ameritrade has been around for quite a while, tracing it’s roots back to a company launched in the 1960s called Rahel, Knack and Co. From Wikipedia:
The company started as an investment banking business named Rahel, Knack and Co. in the 1960s in Omaha, Nebraska. It was purchased in 1975 by J. Joseph Ricketts, Robert Perelman, and David G. Kellogg, renamed First Omaha Securities, and became one of the first firms to offer negotiated commissions.
Ricketts acquired the company completely from the other two founders in 1981. The company became AmeriTrade Clearing in 1983. In March 1997, Ameritrade became a publicly held company. In 2005 Ameritrade acquired TD Waterhouse and was renamed TD Ameritrade.
Today TD Ameritrade has over 6 million U.S. customers, and more if you include international customers. As of 2008 they were 746th-largest US firm.
TD Ameritrade is member of SIPC, which means your investments are protected by SIPC insurance up to $500,000 and $100,000 of it can be in cash. This means that you are protected against the company going into insolvency. You are not protected against market losses.
Awards
TD Ameritrade has received a lot of praise as one of the top online brokers in the industry. Among the awards they’ve received in the past couple of years:
Kiplinger named them #1 Best online broker for 2011 and called them “a great value proposition for long-term investors“.
Barron’s ranked TD Ameritrade #1 Best site for novices in their 2012 annual review of online stock and option brokers.
Barron’s ranked TD Ameritrade #2 Best site for long term investing in their 2012 annual review of online stock and option brokers.
Barron’s ranked TD Ameritrade #3 Best site for options traders in their 2012 annual review of online stock and option brokers.
Smart Money recognized them as the #1 discount brokerage firm, tied with one other company in SmartMoney’s 2011 review of online brokers
Stockbrokers.com ranked TD Ameritrade #1 overall broker in their 2012 broker review.
As you can see the last couple of years TD Ameritrade has consistently been rated as one of the top platforms for investing, especially for long term investors like I am.
TD Ameritrade Fees, Commissions And Minimums
When you’re opening an online brokerage account one of the first things you should probably look at is what your fees, commissions and minimums on your account will be. With TD Ameritrade you’ll get no account minimums, no maintenance fees and really no other unexpected fees.
Stock Trades
TD Ameritrade has $9.99 stock trades, which are definitely are in line with industry average. For what you’re getting with them for tools and research it is definitely a decent price.
Options Trades
For option trades, they also charge $9.99 per trade, plus 75 cents per contract.
Fees And Minimums For An Account
TD Ameritrade doesn’t have account maintenance fees, monthly minimums, inactivity fees. Broker assisted stock trades are $49.99. To see a full schedule of their fees, head on over to their site.
There is also no minimum account funding level to open a cash account and a $2,000 minimum to open an options or margin account.
TD Ameritrade Tools
TD Ameritrade has some great tools you can access via their platform. For example, the Trade Architect tool-set includes things like custom charts, probability and earnings analysis, stocks watch lists, integrated community to give you help and more.
TD Ameritrade’s Thinkorswim Trading Platform has also been voted the number one trading platform by Barron’s. So you know their trading tools are top notch. Their award winning mobile trading apps are available for Blackberry, iPhone, Ipad, Android, or Windows phone. Trading on the go should never be a problem.
TD also has a ton of research available if you want to investigate stocks before you buy. They offer investing and trading reports from Jaywalk Consensus, Research Team, Market Edge, S&P Columns, and S&P Research. Premium reports are also available for an additional charge if you want to get even more in depth. For the average person, however, they have a ton of knowledge available at their fingertips.
TD Ameritrade Account Types
TD Ameritrade has a ton of investment account options for individuals, families and more. If you want to open a retirement or investing account, they’ve probably got you covered:
Standard Accounts: Individual, Joint Tenants, Tenant in Common, Community Property, Tenants by the Entireties, Guardianship or Conservatorship.
Retirement Accounts: Traditional and Roth IRAs, Rollover IRA, SEP IRA, SIMPLE IRA
Education Savings Accounts: 529, Coverdell ESA, UGMA/UTMA.
Specialty Investing Accounts: Trust, Limited Partnership, Partnership, Investment Club, LLC, Sole Proprietorship, Corporate, Non-Incorporated Organization, Pension or Profit Plan for Small Business.
Open Your Own TD Ameritrade Account Today
Conclusion
When considering an online discount brokerage TD Ameritrade is definitely one of the most awarded and most recommended options out there. They’ve got low fees, reasonable commissions and their online trading tools and research are second to none. Their Ipad app is also one of the best available.
Add to that the fact that they’ve been awarded extensively in the last year, with at least 4 publications giving them a #1 rating as best online brokerage or best for long term investors, and you’ve got one of my top brokerage options to consider. Definitely put them on your short list.
Have you used TD Ameritrade? What has your experience been like? Are you happy with them? Tell us your thoughts in the comments.
Open An Account With TD Ameritrade Or Get Details. Click Here.
Upstart is one of the newer peer-to-peer (P2P) lending platforms available on the Internet. But the platform is coming up quickly, drawing interest from both borrowers and investors. Despite the fact that the service is barely two years old, Upstart could be one of the better P2P platforms to use, whether you are a borrower or an investor.
About Upstart
Based in Palo Alto, California, Upstart is a peer-to-peer lending platform that began operations in 2014. Despite Upstart’s tender age, the platform has already arranged more than $300 million in loans. The company was “founded by ex-Googlers” (former Google employees) to provide personal loans using very different lending criteria than is common even for P2P lenders, to say nothing of banks.
All loans made through Upstart are made by Cross River Bank, which is an FDIC insured commercial bank that is chartered in New Jersey, but funded through independent investors.
Upstart Borrowing Review
In most respects, borrowing through Upstart is similar to the process on other P2P lending sites, like Lending Club and Prosper. The application is completed entirely online, your loan request – if you qualify – is graded and priced, then the loan is funded.
But what makes Upstart different is the way they underwrite your loan. They check your credit score, your years of credit, and your job history, just like every other lender does. But those aren’t the only criteria that Upstart uses in determining whether or not to make a loan to you. They also consider your education and your area of study.
The idea is that “you are more than your credit score”. Upstart also considers your future potential, which they believe is demonstrated through your education experience. They will take into consideration the college that you graduated from, your grade point average, and your major – obviously certain major fields of study are considered to be an advantage from a lending standpoint. The Upstart system seeks to identify and make loans to what it refers to as “future prime” borrowers.
The Upstart target borrower. Because of the consideration of a borrower’s education, Upstart is well suited to new and recent college graduates. The company is less concerned with how deep your credit history is, or even your employment history. Your potential for future income becomes an essential consideration.
Traditional loan requirements. Upstart does require that you have a minimum credit score of 640, however there is no minimum credit history requirement. You must also not have any bankruptcies or other negative public records on your credit report.
There is also no required minimum income level, nor is there a maximum debt-to-income ratio (DTI). That could be a major advantage if a bank turned you down for a loan due to insufficient income.
Minimum/maximum loan amounts.The minimum loan amount on Upstart is $3,000, and the maximum is $35,000.
Loan term. There are two loan terms available with Upstart, 36 months or 60 months.
Loan purpose. Upstarts loans are generally classified as personal loans, but you can use them for just about any purpose you can imagine. For example you can use the proceeds to pay off credit cards, consolidate debt, refinance student loans, take a course for boot camp, pay for college or graduate school, make a large purchase, relocate, pay medical bills, start or expand the business, buy a car or anything else that you like.
Loan qualifications. In order to qualify for a loan with Upstart, you must be a US citizen or permanent resident alien, be at least 18, not live in West Virginia, have a valid email account, be able to verify your name, date of birth, and Social Security number, have a full-time job or a full-time job offer starting within six months, or a steady part-time job or other source of regular income, and have a US bank account.
Application process. The application is online, and requests information about your academic credentials, work experience and the purpose of the loan. All information provided on the application must prove to be correct. You can complete the application in as little as two minutes.
If you accept your loan no later than 5:00 pm (Eastern Time), your loan proceeds will generally be available on the next business day. Otherwise they should arrive after two business days. However, if the loan is being used for education purposes, there is a three day waiting period between when you accept your loan, and when the funds arrive. In any event, the loan proceeds will be wired to your bank account.
Documentation requirements. Upstart will run your credit report, and you will need to upload documents that support your income. If you are a full-time employee you’ll need to provide your most recent pay stub. If you will be qualifying using bonus or commission income, you will need an offer letter from the employer spelling out the terms and expected income. If you have multiple jobs, you will need the latest pay stub for each.
Rental income will require a copy of a lease on the rented property. And if you are self-employed, they will need the most recent year’s income tax return, as well as copies of current year’s invoices.
And since your college background is an important part of the loan evaluation process, you may also need to furnish a copy of your college transcript. A college transcript will be required if you graduated within four years of your application date.
One more point on income, and it’s a big one. Since the loan that you will be applying for on Upstart is a personal loan, you cannot include other household income on your application. That includes your spouse’s income, if you’re married. Your qualification is based on your income only.
What if you lose your job and can’t make the payments? Upstart doesn’t provide specific information on this point, but they do make the following claim on the website:
“If you are experiencing hardship and cannot pay, please contact us immediately. If you are unable to pay, we may be able to work on an alternative payment plan that will avoid additional fees or penalties.”
You also have the option to change your monthly payment date to better suit your schedule. However, the new payment date needs to be set before your actual due date, otherwise you will accrue additional interest.
Collateral. There’s more good news here; Upstart doesn’t require collateral on any of its loans.
Interest rate and fees. Your interest rate is generated by the model and is based on your application and a “soft pull” of your credit report. Rates range from 4.66% APR to 29.99% APR for a 36 month loan, and between 6.00% APR and 27.32% for 60 month loans.
Like many other P2P lenders, Upstart does charge an origination fee. That fee is equal to between 1% and 6% of the loan amount (putting it squarely in line with Prosper and the other lenders). However, there is no prepayment penalty should you choose to payoff your loan early.
Upstart Investing Review
Upstart is all about lending money to borrowers, but it’s equally accommodating if you want to join the platform as an investor.
Here are the highlights:
Minimum investment. You need just $100 to open an account and invest with Upstart.
Loan quality. Upstart claims that about 98% of their loans are either current or are paid in full. Only about 1.1% of their loans are more than 30 days late, and just 1.2% are listed as charged off.
Borrower quality. The good experience that Upstart has on its loans has to do with the profile of the typical Upstart borrower. Here are some statistics:
Average FICO score: 691
Average income: $105,842
College graduates: 90.9%
Refinancing credit cards: 76.2%
Refinancing credit cards needs some explanation as to why it is seen as a positive factor as a borrower profile. Loans generally perform better when they represent some form of refinance of existing debt. If the borrower has successfully managed that debt in the past, there is a credit track record, and a better chance that the new financing will be similarly well-managed.
In a borrower is using a new loan from Upstart to replace high-interest revolving credit card debt, with a fixed rate installment loan, the borrower’s financial situation improves immediately, particularly if the new monthly payment is lower than what the total payments were on the credit cards that were refinanced.
Expected Returns. As you’ll see below, you can expect to earn rates of interest on your Upstart loan portfolio that are well above what are available through banks and brokerage firms.
Here are the modeled returns listed on the site, based on loan grade:
AAA – 3 year loans 3.79%; 5 year loans 5.67%
AA – 3 year loans 4.50%; 5 year loans 6.18%
A – 3 year loans 5.60%; 5 year loans 7.14%
B – 3 year loans 6.88%; 5 year loans 9.13%
C – 3 year loans 7.93%; 5 year loans 11.92%
D – 3 year loans 9.01%; 5 year loans 13.67%
E – 3 year loans 10.57%; 5 year loans 15.57%
Modeled returns for each grade and loan term are net of the annual loss rate, which is different for each grade and term. For example, on AAA loans the annual loss rate is less than 0.1% on three year loans, and less than 1% on five year loans. At the opposite end of the spectrum, there is a 13.60% annual loss rate on three year loan grade E loans, and 11.19% on five year loan grade E loans.
Income tax reporting. Upstart will report taxable interest income earned on your account with the filing of Form 1099-INT with the IRS. Naturally, you will receive a copy of the document, which must be sent to you no later than January 31, following the year in which the interest income was earned.
Income taxes may be withheld from your interest income for a number of reasons. If you did not complete lRS Form W-9 when you opened your account with Upstart, then withholding will be required. It may also be necessary in the event that the name, Social Security number or taxpayer identification number that you provided to Upstart doesn’t match IRS records. In addition, withholding will take place if Upstart is notified by the IRS that it is required for any purpose.
Withdrawing funds from Upstart. You can have cash balances in your Upstart investment account transferred to your bank account at any time you choose. There can be a delay of up to seven business days with the transfer, depending upon your bank.
IRA accounts are available with Upstart. You can set up a self-directed IRA account with Upstart that allows you to invest in loans through the platform. Given that interest rates are so low at banks and brokerage firms, the higher interest income that an Upstart account can provide could make an excellent place to hold your fixed income IRA allocation.
Fees. There’s really good news here – Upstart charges no fees to investors. What’s more, Upstart doesn’t earn fees on loans that default. Even better, if the loan defaults, Upstart turns the fees that were collected when the loan was originated over to investors in the loan. This is where that origination fee of between 1% and 5% of the loan amount could loom large.
No FDIC or SIPC insurance coverage! There is one caveat in regard to investing with Upstart. In the event that Upstart goes out of business, there is no federally sponsored insurance agency or fund that will cover your investment with the platform. However, this is another factor that is common with P2P platforms.
Upstart claims that they have a backup servicer and administrator in place so that the loans held for the platform will continue to be serviced, and you will get paid as an investor in those loans.
Upstart Review Summary
If you are a borrower, Upstart uses innovative methods in approving loans. This is an excellent loan source if you are recently out of college, and have not fully established yourself financially, or if your bank thinks your income is insufficient to support a loan. The platform will accept a very short employment history, or even a written promise of employment. It gives you an opportunity to be approved for a loan, even though banks may decline your application.
From an investor standpoint, Upstart’s loan quality is providing solid returns. The emphasis on “future prime” borrowers may be allowing Upstart to tap into a market that other lenders are ignoring. That assures more good investment opportunities in the future.
Whether you’re looking to borrow or to invest, check out Upstart as one of the P2P possibilities.
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The earlier you begin investing, the better off you’re likely to be in the long term. Here’s how you can get started if you’re still in your 20s. It’s never too early to start investing—as long as you do so wisely. It’s important to make a proper plan so that your investments actually help you reach your goals. Here are six tips you can implement if you want to start investing in your 20s. A financial advisor can help you manage your investment portfolio.
1. Focus on Retirement
Your first investment move should be to use tax-advantaged accounts to save for retirement. Many employers offer 401(k) plans with matching. If you can afford to, max out the match to capture the greatest retirement savings. So if your employer will match 50% of your 401(k) contributions up to 6% of your paycheck, contribute at least 6% to get the full employer match.
If you don’t have retirement savings options through your employer, there are some tax-advantaged options outside of a job. If you’re self-employed, you can set up a solo 401(k) plan. You can also set up a traditional or Roth IRA on your own and contribute up to $6,500 in 2023.
While retirement savings aren’t the sexiest investment option and you won’t normally be able to access the money without a hefty penalty until the age of 59 ½, they are still the best place to start. You can set yourself up for a secure retirement by starting to build your nest egg now. Being able to take advantage of employer matches and saving on your taxes is the icing on the cake.
2. Build Liquid Savings
While investing for the future is important, it’s still wise to have some liquid savings that you can access quickly if needed. Say you lose your job unexpectedly. If your savings are locked up in a CD for another year, you’ll have to pull them out and lose some or all of the interest you had earned.
While this isn’t the end of the world, it does set you back on your investing goals. The same is true if your money is tied up in stocks—you may have to cash out at an inopportune time from an investment perspective, losing earnings.
So after you’ve set up your retirement accounts, start building an emergency fund. A good goal is to save up enough money to cover your expenses for six months. So if you need $3,000 each month for rent, utilities, transportation, food and other necessities, aim to keep $18,000 in liquid savings.
This money should sit in an account where it’s earning interest. Take a look at high-yield savings accounts, money market accounts and money market funds where your funds can generate interest while still remaining instantly accessible.
3. Start Investing With a Brokerage Account
Once you have retirement funds and an emergency savings account, you can start investing in the market. It’s time for you to set up your own brokerage account so you can buy and sell stocks, bonds, exchange-traded funds (ETFs) and mutual funds.
Many brokerage accounts can be set up and managed completely online. Shop around and see which one is right for you. Some important things to consider are whether they require a minimum initial investment, what their fees and commissions may be and whether they offer helpful tools for analyzing investments.
You might start by investing in mutual funds and ETFs, which bundle different kinds of stocks and bonds. Make sure the operating expense ratio of a fund is not excessive, such as more than 1%. You can also buy stocks and bonds directly—but first research the companies you’re considering to see if they’re a solid investment. For example, government bonds are generally a safe investment, but some corporate bonds can be quite risky. And it’s possible for a company’s stock to crash, taking your money with it.
4. Understand the Risk/Reward Trade-Off
For any investor, diversification is the name of the game. Even if you think you’ve found the most profitable stock of all time, you shouldn’t put all your eggs in the same basket. By diversifying the things you invest in, you can set yourself up for lower risk overall.
A strong understanding of risk can help you avoid meme stocks and other unwise investment maneuvers. The younger you are the higher the portion of your portfolio should be in equities, which are riskier than fixed-income securities like bonds. For example, if you’re in your 20s an 80/20 (equities/bonds) allocation might be a reasonable option for you. Use an asset allocation calculator to help you create a diversified portfolio that matches your risk tolerance.
5. Work With an Expert
If tax planning and the other complications of investing leave you with a lot of questions, you might consider working with a financial advisor to get expert advice. While there are plenty of resources out there for a beginning investor, sometimes talking to someone with deep financial knowledge can quickly pay for itself.
6. Let Your Investment Plan Grow and Evolve with You
As you age, your financial needs will change too. Generally speaking, younger investors are advised to take more aggressive and riskier financial positions because they have time to ride out the highs and lows before they’ll need to cash out. On the other hand, older investors are nearing retirement and have less time for their investments to recover if there’s a market downturn.
As you get older, you might have different financial goals than you had at 20. You might be thinking about buying a home, starting a family or starting your own business—any of which would likely change your investment strategy. Take a look at your investment portfolio at least once a year to make sure your strategy is still working for you.
The Bottom Line
Young investors can start by building retirement savings, creating an emergency fund and opening a brokerage account. Savvy investors will understand the risk/reward relationship, revise their investment strategies as their financial needs and goals change and work with a financial advisor when they need expert advice.
Tips on Investing
As you build a portfolio, you might benefit from working with a financial advisor, who can offer both investment insights and tax advice. Finding a financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Success in investing is partly about your portfolio’s asset allocation. SmartAsset has an asset allocation calculator that will assist you in picking the right asset allocation for you.
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A reader on the Mint.com Facebook page writes:
What are the best retirement savings tools for Americans living abroad? I can’t invest in an IRA or 401(k) with foreign-earned income. But I’m young, I have disposable income, and I’d like to get started now.
Good for you.
The reader didn’t specify his job or which country he’s working in, so I’m going to imagine he teaches English to Tokyo hipsters by day and tends bar in the Caribbean at night.
The Foreign Earned Income Exclusion (FEIE)
If you work abroad all year long, you’re eligible for the Foreign Earned Income Exclusion (FEIE). Basically, the IRS figures that if you live and work outside the US, you shouldn’t have to pay taxes on the first $92,900 of your income, plus an additional allowance for housing.
The rationale for this juicy deal is:
You’ll probably be paying income taxes in the country where you work.
You won’t be able to take advantage of most of the services paid for by US taxes, anyway.
The only downside to the FEIE is that if you exclude all of your income from U.S. taxes (as your average English teacher/bartender will), you can’t contribute to a traditional or Roth IRA or 401(k), all of which require non-excluded earned income.
Furthermore, U.S. citizens who participate in a retirement plan in another country are likely to end up with ongoing tax headaches.
So we’re back to the original question: what should our international playboy do?
Save like an international man (or woman) of mystery
The best move for a U.S. citizen working abroad who intends to return to the U.S. is to open a taxable brokerage account with a U.S.-based brokerage or mutual fund company. “Taxable account” just means “not an IRA.” You can still use the money for retirement, of course, even though it’s not in an officially designated retirement account.
This, unfortunately, is easier said than done. If you’re a foreign resident and aren’t rolling in cash, most US brokerages will consider you high-maintenance — at best. Vanguard doesn’t want your money at all. Schwab makes a special effort to reach non-U.S. residents, but they have a minimum opening balance of $25,000.
TD Ameritrade is open to residents of most, but not all, countries and they don’t require any special procedures or minimum balances. Roughly 30 to 40 countries are on a blacklist, however, and TD doesn’t publish it; you just have to ask. And we’re not necessarily talking about Axis of Evil-type countries; I was able to determine that Japan is on the blacklist.
Now, I am not explicitly suggesting anyone do this, but I suspect the way most foreign residents get around these restrictions is to link their brokerage account to a U.S. bank account (which they established before leaving the US), provide a U.S. mailing address to the brokerage, and sign up for online statements.
However you manage to establish an account, whatever investments you would have made in your IRA, you can make in your taxable account, with no maximum contribution. Those investments might include mutual funds, ETFs, or individual stocks and bonds.
The interest, dividends, and capital gains from those investments are not considered earned income and will be taxable, but because you’ll be in a low tax bracket, the taxes will be minimal, at least until you have a very large investment account.
This leaves the question of how to get the money to the U.S. and into U.S. dollars without spending a fortune on wire transfer and currency conversion fees.
If you work with a brokerage used to dealing with international residents, they can probably help by providing an international bank account where you wire the money and it automatically ends up in your U.S. brokerage account within a couple of days. (Schwab offers this service; TD Ameritrade doesn’t.) Or, if you need to get money into your US checking account as an intermediate step, you can use a low-cost international wire service like XE.net or OANDA.
Trouble in paradise
I’ve glossed over a variety of other issues you may run into. Border straddling of any kind makes governments nervous, especially when money is involved. It’s hard not to get the feeling that everyone assumes you’re a smuggler or a wealthy elite trying to pay zero taxes.
The IRS is not the only taxman in the world. The country you live and work in may want to know why you’re keeping all this money “offshore,” and might want a cut. This is more likely to come into play when you’ve amassed enough money to be worth going after—but I’m not promising anything. The details vary from country to country.
Speaking of the IRS: they are generally intolerant of U.S. citizens investing in foreign mutual funds and similar investments. Unless you want to learn a whole lot about “passive foreign investment companies” and all the red tape involved, avoid investing in funds local to your host country, even if they’re denominated in U.S. dollars.
The U.S. Treasury (not the IRS this time!) wants to know about your foreign accounts (bank, brokerage, or otherwise). If the total balance exceeds $10,000, then you have to file an annual form with Uncle Sam.
The best advice I can give is: talk to members of your expat community. Admittedly, if we’re talking about 24-year-olds teaching English in Japan, they’re probably not sending any money home or putting anything away for retirement. Fine. Seek out ”the suits” in your expat community and hire a pro to do your taxes the first year or two, or until you understand how all the moving parts work.
None of these hurdles are legitimate excuses for failing to save for retirement—and I know the reader knows that, or he wouldn’t have asked.
Oh, and if you think this sounds like a reeking can of worms, it could be worse: you could be a non-citizen working in the U.S., trying to abide by our rules. More on that in a few weeks.
Matthew Amster-Burton is a personal finance columnist at Mint.com. Find him on Twitter @Mint_Mamster.
Do you have an investing question for Matthew Amster-Burton? Head over to the Mint.com Facebook page and ask away!
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Known for its natural beauty and urban skyline, there’s a lot to see in Salt Lake City.
There are so many attractions that can bring you to Salt Lake City, but when it’s time to pick an apartment, make sure you know exactly what you want. Even if a chic fitness center and a decked-out rooftop are on your list, in a place like Salt Lake City, you should also think about the view.
What you see out your window can take apartment living in Salt Lake City to the next level, whether you’ve got mountain views or cityscapes, don’t forget to check out what’s outside before signing the lease.
To get you started on finding the best views in Salt Lake City, check out these ten apartments. They’re great contenders for the prize of best view in the city.
Source: Rent. / Seasons at Library Square
You really do need to check out a wide-angle shot of Seasons at Library Square to understand what kind of views await. Not only are the mountains within range, but you’ll also glean a panoramic view of the downtown area. Having both city and mountain views is what living in Salt Lake City is all about.
This Central Salt Lake City community is not only perfectly positioned to capture all the city’s beauty, but it’s in a great location for everything else. From here, you’re within walking distance of businesses, sports, shopping, restaurants and bars. The vibrant urban scene within SLC is at your fingertips whether you’re headed to a museum or a local festival.
Source: Rent. / The Marq
The view at The Marq may be a little more subtle, but if you take into account the cool indoor-outdoor space you can look out from, it will definitely impress. Overall, you’ll look out onto treetops and lush greenery, but you’ll be sitting in a modern lounge with couches, a long dining table and a paneled wall with a flatscreen TV. Another, even bigger TV, sits above the couch and surround sound speakers make the space that much more inviting.
Finding a community to call home in the laid-back People’s Freeway area not only puts you in a great spot but a convenient location. You’re only 15 minutes from the University of Utah and about five minutes from the city center. At your fingertips are plenty of budget-friendly eateries and low-key bars, while those needing a dose of fresh air and some scenery can bike or hike along the Jordan River Parkway.
Source: Rent. / Clover Creek Apartments
An urban oasis you can access without leaving home, that’s what everyone really needs, and Clover Creek Apartments readily provides. The pool area is serene enough, but a woodsy view to a wall of trees in a variety of colors makes things even better. You can forget your stress and focus on the soothing view of nature as you relax in the pool, under an umbrella or in a lounge chair.
Also close to the Jordan River Parkway, this Murray North community creates a fantastic, park-like setting that’s full of natural beauty. Only about 15 minutes to the south of SLC, it’s still in a prime location for those who need to commute into the city. Around the corner, you’ll find great shopping as well the other neighborhood conveniences that make a place truly feel like home.
Source: Rent. / Fox Point in Old Farm
It’s just a bench, but this simple spot in Fox Point in Old Farm gives you the most relaxing view you’re likely to find in Salt Lake City. Looking out onto the water, with all those trees hovering just above the surface of the water — it’s breathtaking. This entire community takes its commitment to nature seriously. There’s plenty of green space, trees and moving water. If you’re not watching the fountain, you may be quacking back at the ducks, all right from home.
This community, and the entire Midvalley area, operates at a slower pace than Salt Lake City proper. You’re not far from the urban energy of the city, but you’re also close to plenty of outdoor recreation up in the mountains. Within the neighborhood itself, you’re nearby amazing restaurants and bars, so keeping busy is no problem in this little slice of SLC.
Source: Rent. / Cobble Creek
Prioritizing its green space, Cobble Creek wants you to always have a nice little piece of nature to unwind in when you come home. Even the pet park is all grass and trees. The best spots are right in the center of the community though, where you can stroll beside a little, rock-lined creek. There’s also a lovely deck to hang out on that’s right beside the on-site lake.
Full of scenic walking paths and giving off forest vibes, this Cottonwood West community is a nature-lovers delight. Just outside the community, you’ll find a laid-back, suburban neighborhood with casual places to hang out and plenty of recreational activities to enjoy.
Source: Rent. / Seasons at Murray Crossing
Whether you’re at the pool or on your own personal balcony, at Seasons at Murray Crossing, you’ll always enjoy great mountain views. Yes, there may be some buildings in your eye-line as well, but those Utah peaks are straight ahead and easy to see and enjoy.
Another great place to call home in Murray North, living here keeps you close to shops, restaurants and outdoor recreation. You can get deeper into both the city and mountain views whether you’re looking to grab a bite or just enjoy the fresh air.
Source: Rent. / Ritz Classic
Modern meets art deco for a cool property to wander through at Ritz Classic. You’ll get a combination of interesting things to see whether it’s the metal winding staircase that feels a little old school to the gorgeous outdoor space complete with pool, hot tub, lounge area, grills and dining space. Even the apartment community sign is a sight to behold. It definitely gives off retro Las Vegas vibes.
Also in Midvalley, this community offers up mountain and city views within a historic building. You’ll find plenty of modern amenities, and you’re close to prime shopping, dining and entertainment. You’re not far from the city center and likely will not have to travel far to find exactly what you’re looking for.
Source: Rent. / Valley Park
Soak all kinds of wholesome neighborhood vibes right outside your door at Valley Park. There’s even a white picket fence to seal the deal. You won’t find a front lawn like this in every apartment community, so it’s truly a special view. Beautiful landscaping with flowers, trees and a variety of shrubbery transforms this apartment community into its own special place.
Situated to the west of the city, this Redwood community provides amenities geared toward every resident of your home. There are basketball courts, a heated pool with a sun deck and a pickleball court for those who like to stay active. For younger residents, there’s a children’s playscape as well, and pups can utilize the enclosed dog run.
Source: Rent. / The Village at Raintree
It will feel like you’re living on a golf course when you call The Village at Raintree home. The landscaping has all the right elements. Sweeping swaths of close-cut grass and water feature rocky bottoms topped with spraying fountains. Tall trees frame the space creating an aesthetic that’s serene and beautiful. It’s the perfect view from any window or balcony, and what’s even better is you can stroll through it at the drop a hat whenever the mood hits.
Within the heart of SLC, with beautiful city views, this Rose Park community is only about five minutes from the city center. It’s a great location to walk around and explore and is considered one of the most ethnically diverse parts of Utah. The area is full of parks and has a reputation as a highly livable area for all its residents.
Source: Rent. / Eight20
Catch the most spectacular mountain views the moment you set foot in Eight20. This community has the best mountain backdrop. When those tall peaks have snow on them, it’s like looking at nature at its most beautiful. With a large, green lawn separating buildings in this apartment community, you’ll have no trouble finding a comfortable spot to sit and absorb this majestic view.
Another premier Midvalley apartment complex, Eight20 is convenient and stylish. It’s full of amenities including two tennis courts, a game room and a state-of-the-art fitness center. The pool and hot tub area is the perfect place to relax, and the bark park gives your pup a little taste of luxury living too. There’s something for everyone here, aligned with some of the most excellent scenery.
Make sure you have the best view in Salt Lake City
While there are so many potential Salt Lake City apartments to call home, you won’t know if you’ve found the right place until you can see it for yourself. Looking around means being able to check all your ‘must haves’ off your list, but it also allows you to see the sights.
Find your favorite community above and fill out an application today. Your stellar view of Salt Lake City awaits.
Featured image source: Rent. / Fox Point in Old Farm
Did you know that the average American has a nearly 70% chance of needing some form of long-term care upon reaching age 65? But did you also know that you may be able to prepare for the event by purchasing long-term care insurance? That’s why we’ve prepared this guide of the 7 best long-term care insurance of 2023.
Before getting into our reviews of the seven best long-term care insurance providers of 2023, scan the table below to see which company you think will work best for you:
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Our Picks for Best Long-Term Care Insurance
Dozens of insurance companies offer long-term care insurance, but below is our list of the top seven, and what each is best for:
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Best Long-Term Care Insurance – Company Reviews
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
GoldenCare, also known as National Independent Brokers, Inc, is a privately held long-term care insurance brokerage firm, and one of the leading such firms in the industry. They provide policies from the top-rated insurance companies in the industry. The company is based in Plymouth, Minnesota, and has been in business since 1976. Their plans are available in all 50 states.
The list of companies they work with includes the following:
GoldenCare also offers critical illness insurance, Medicare supplements and Medicare Advantage plans, prescription drug plans, life insurance, annuities and final expense policies.
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
Like GoldenCare, LTC Resource Centers is also an insurance brokerage specializing in long-term care insurance. Based in Cape Coral, Florida, the company has been in business for more than 40 years. They provide long-term care insurance, short-term care, linked or combination products, Medicare supplements, life insurance, critical illness, and annuities.
A specialization they offer is what is known as asset-based long-term care. It’s a strategy that uses a whole life insurance policy or annuity to provide long-term care coverage, which eliminates the need for an expensive, dedicated LTC policy. A pricing comparison is presented in the screenshot below:
As a broker, they work with multiple long-term care insurance providers. That means to get detailed information you’ll need to set an appointment with a long-term care insurance specialist and make the request. The company’s licensed to operate in all 50 states.
Maximum Benefits: Up to $400 per day or $10,000 per month
Benefit Period: Up to 5 years, or unlimited lifetime benefit
Waiting/Elimination Period: 0, 30, 60, 90, 180 or 365 days
Mutual of Omaha is one of the top individual providers of long-term care insurance. They offer some of the best plans in the industry, including lifetime benefits coverage, multiple elimination periods, and inflation protection. They are a full-service insurance company providing coverage in all 50 states, providing virtually all types of insurance policies.
Mutual of Omaha also offers premium discounts. For example, you can save 15% when you purchase a policy for both you and your partner. You can also save 15% if you’re in good health. There’s even a 5% discount if you are married but your spouse does not purchase a policy.
Maximum Benefits: Up to $7,000 per day, up to a $250,000 lifetime maximum
Benefit Period: Up to maximum daily or lifetime limit
Waiting/Elimination Period: One-time deductible of $4,500 up to $21,000
Like Mutual of Omaha, New York Life is a large, well-established and diversified insurance company. In addition to long-term care policies, they also offer virtually every other type of insurance policy available. Also like Mutual of Omaha, New York Life is a mutual insurance company, which means it’s owned by its policyholders, not shareholders. The company partnered with the American Association of Retired Persons as a preferred provider of long-term care insurance policies.
New York Life provides their NYL My Care long-term care policy. The basic parameters are as follows:
Like other direct insurance providers on this list, New York Life also offers annuities and whole-life insurance policies with long-term care riders.
Maximum Benefits: Up to $750,000 maximum lifetime benefit
Benefit Period: Up to 7 years
Waiting/Elimination Period: 90 days
Nationwide is one of the leading providers of long-term care insurance in America. With a maximum lifetime benefit of up to $750,000, they provide the highest lifetime maximum benefit on our list. They also offer a single, simple, 90 calendar-day elimination period. You can choose between two years and seven years for a maximum benefit period.
The policy will also cover home healthcare, hospice, adult day care, household services, home safety improvements, and even family care. And in a unique twist, nationwide also provides international benefits. If you live out of the country during the benefit period, the policy will pay 50% of the maximum monthly benefit.
Maximum Benefits: Up to $250,000 maximum lifetime benefit
Benefit Period: Up to maximum lifetime benefit limit
Waiting/Elimination Period: 90 days
Brighthouse Financial is an insurance provider that offers two types of products, annuities and life insurance. Either is available with a long-term care rider. The company has $254 billion in assets, serving about 2 million customers.
Brighthouse Financial provides long-term care insurance through its SmartCare plan. It’s a combination plan that adds a long-term care provision to a whole life insurance policy. You’ll get the benefit of long-term care if it’s needed, but you’ll also have a life insurance benefit to pay to your beneficiaries if it’s not, or if there are any funds left over after your long-term-care stay.
The policy will cover adult day care, hospice, and home healthcare, in addition to nursing homes and assisted living facilities, and skilled nursing care.
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Maximum Benefits: Varies by provider
Benefit Period: Varies by provider
Waiting/Elimination Period: Varies by provider
CLTC Insurance Services, or California Long Term Care Insurance Services, is a long-term care insurance aggregator, based in San Francisco. Aggregator is a fancy word for an online insurance marketplace. As an aggregator, CLTC will give you access to a large number of long-term care insurance companies. You can then choose the one offering the plan that will work best for you. The main limitation of this provider is that they offer policies only in the state of California.
In addition to long-term care insurance, they also offer annuities and life insurance policies, both with long-term care riders. These types of policies eliminate the need for a dedicated LTC policy, since the cost of long-term care is paid out of the proceeds of the annuity or life insurance. CLTC also offers critical illness insurance.
Long-Term Care Insurance Guide
What is Long-Term Care?
When an individual reaches a point where they can no longer care for themselves, long-term care becomes necessary. That care can be provided by anyone from family members to nursing homes.
The need for long-term care generally applies when the individual can no longer perform one or more of the six activities of daily living (ADL). This can include inability to dress, groom, go to the bathroom, bathe, eat, or even to move about freely.
In most cases, long-term care becomes necessary after a major health event, like a heart attack or stroke. But it can also be the result of an ongoing, degenerative health condition or simply advancing age.
In most cases, long-term care is provided by a family member. But institutional care may be necessary if the individual is unable to perform several ADLs, which may overwhelm the ability of family members to provide ongoing care.
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How to Purchase Long-Term Care Coverage?
We recommend contacting any of the seven best long-term care insurance providers in this guide. Otherwise, do a search and identify insurance companies that offer long-term care coverage. But be aware that not all insurance companies offer it, precisely because of the many variables. It involves.
When purchasing a policy, be aware of the following:
Like life insurance, it’s best to purchase LTC insurance when you’re young and healthy. That’s when the premiums are lowest.
Consider purchasing a long-term care insurance alternative, like a life insurance policy or an annuity with a long-term care rider (see below). It’s generally much less expensive.
Pay close attention to the maximum benefit paid, whether daily, monthly, annually, or lifetime. It should approximate nursing home costs in your area. (Be aware that these costs vary greatly from one state to another.)
Pay close attention to the benefit period. While the typical number of years an individual needs long-term care coverage is three years, there’s no way to tell what you may need. If you can afford the higher premium, it may be best to go with the longer benefit period, say, five years or longer.
Be aware of the elimination period. The standard is 90 days, but it can be as long as one year. This is not a minor factor, since nursing home care at $8,000 per month could cost you $24,000 with a 90-day waiting period before benefits kick in. The waiting period you choose should match the amount of liquid assets you expect to have available to cover it.
When you take a policy, be prepared to pay the premium for the rest of your life. If you take a policy at 60, stop making the payments at 80, then you need long-term care at 85, you’ll get no benefits from the lapsed policy.
According to the website Consumer Affairs, long-term care insurance premiums look something like this:
Now, the screenshot above reflects only sample averages for very specific policies at ages 55 and 65. The actual premium you will pay will be based on a combination of factors, including your age at the time of purchase, any health conditions you have, as well as the dollar amount and term of the benefits your policy will include.
Finally, given how complicated long-term care insurance is, it wouldn’t be overkill to have the policy reviewed by an attorney before accepting it. If so, an attorney who specializes in elder care will be your best choice.
Who Needs Long-Term Care Coverage?
The short answer to this question is everyone. The unfortunate reality is that people turning 65 have an almost 70% chance of needing some type of long-term care services during their lifetimes. Approximately 37% will require institutional care. And statistically, women and single individuals are more likely to require long-term care than men and married individuals.
If you’re unsure if you need long-term care, check out Jeff’s post, Long term care insurance: do you really need it?.
Though it isn’t well-known outside the industry, there are two basic types of long-term care coverage available. The first is a standalone long-term-care insurance policy.
Like a life insurance policy, medical underwriting will be performed. The insurance company will consider your age, your health condition, your family health history, your occupation, requested benefit levels, and other factors in approving your application and setting the premium level. This is the more costly of the two options.
The other is a hybrid policy. Most commonly, this is life insurance with long-term care benefits. You’ll purchase a basic life insurance policy, then add a long-term care rider to the policy. This will increase the premium on the life insurance policy, but it will be much less expensive than a standalone long-term-care policy.
Meanwhile, you’ll also have a death benefit from the life insurance policy, in addition to long-term-care coverage. But the policy may also include using some or all the death benefits to pay the long-term-care benefits. Your beneficiaries will receive only the amount of the unused death benefit upon your death.
Most of the best life insurance companies offer life insurance policies with this rider.
Another variant of this option is to use an annuity with long-term care rider. Annuities are designed to provide an income stream, very similar to a pension. But similar to a life insurance policy with a long-term care insurance rider, you can also add the rider to an annuity.
Again, it will be less expensive than purchasing a standalone long-term-care policy. And the long-term-care benefits may reduce any death benefit in your annuity. But the provision will be much less expensive than purchasing a standalone long-term-care policy.
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Finding the Right Policy
Long-term care insurance is one of the more complicated insurance types. It also includes more potential variables than other policies. For example, not only will you not know if you will need the coverage at all, but you won’t know when, to what degree, what level of care will be required, or how long it will be needed.
Because of all these variables, the cost of a long-term care insurance policy can be all over the place. But it may be better to pay a little bit more for a more comprehensive policy than to price-shop for the least expensive plan.
Before deciding to purchase a long-term-care insurance policy, first review Jeff’s Podcast episode: Long Term Care Insurance – How much do you need? Given how complicated long-term-care insurance is, it’s best to go in with as much knowledge as possible.
How We Found the Best Long-Term Care Insurance Companies
We used the following criteria to determine the best long-term care insurance companies of 2023:
Maximum Benefits: Given that the cost of long-term care can easily run into hundreds of thousands of dollars, we favored companies with the most generous lifetime benefits.
Benefit Period: One of the most basic problems with long-term care is the uncertainty. There’s no way to know in advance what level of care you might need, or how long it might be necessary. For that reason, we favor the companies that provide the most flexibility in this area.
Waiting/Elimination Period: Just as most insurance policies have deductibles, long-term care insurance uses the waiting period in much the same way. The standard delay on benefits is 90 days. But we prefer companies that offer longer waiting periods, since this will represent an opportunity to lower the cost.
Speaking of cost, as much as we would like to provide a list of average costs per provider, this information simply is not available. That’s because long-term care insurance is highly customized. There’s nothing approximating a “one-size-fits-all” policy, as each policy premium is determined by a multitude of factors.
These include your age at the time you purchase the policy, your general health condition, your family health history, the length and amount of coverage you need, and many other factors. The only way to get a reliable premium figure will be to contact one of the companies above and get a quote.
Best Long Term Care Insurance FAQs
What is long-term care insurance?
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Long-term care insurance is a type of coverage that will provide benefits to pay for your personal care when you’re no longer able to do so for yourself. While the typical long-term-care scenario involves a nursing home, it also applies in lesser situations. That can include assisted living arrangements, home nursing care, and even family care. The policy will begin paying benefits when you qualify for care based on inability to perform several of the ADLs.
What does long-term care insurance cover?
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As mentioned earlier, long-term care insurance benefits begin to apply when you are unable to perform activities of basic living. Depending on the type of policy you have, you’ll receive benefits for a stay in a nursing home, an assisted living facility, skilled nursing care, an adult day care, hospice, and even home care provided by your family.
Some policies will even provide for the cost of modifying your home to better accommodate your capabilities, or the purchase of certain helpful equipment.
How long does long-term care insurance work?
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A typical long-term-care insurance policy will pay benefits between two and five years, though some will go as long as seven, and a few providers offer lifetime benefits. You should be aware that you will need to qualify for whatever coverage term you prefer, and the longer the term, the higher the premium will be.
Is long-term care insurance worth it?
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It really depends on your perceived need for the coverage, and your ability to pay the premiums. Need can be determined by your family history. If you have multiple family members who require long-term care, having the coverage for yourself will be highly desirable. But if you’re in excellent health, and there’s little history of a need for care in your family, you may want to pass on the coverage.
And of course, given the high cost of the premiums, your ability to afford coverage can never be ignored. But if you have very limited financial means, Medicaid may provide benefits for long-term care. However, to qualify your total assets must generally be below $2,000.
Summary of the Best Long-Term Care Insurance Companies
Let’s wrap up this guide by giving you one more look at our list of the seven best long-term care insurance companies of 2023:
Long-term care insurance isn’t inexpensive. But given the unusually high likelihood that will be needed at some point in your life, it’s a policy worth having if you can afford it. And if you can’t, consider taking an annuity or a whole life insurance policy with a long-term care provision.
What Medicare Assignment Is and How It Impacts You
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Tap on the profile icon to edit your financial details.
If a doctor or other healthcare provider accepts a Medicare assignment for a particular service, a patient covered by Medicare will likely have to pay less out of pocket for that service. Accepting Medicare assignment means the healthcare provider has agreed to charge no more than the amount Medicare approved for that service. It also means the doctor agreed to bill Medicare rather than charging you directly. Providers who don’t accept assignments can charge 15% more and require immediate payment from the patient. A financial advisor can help you develop a financial strategy to pay for your healthcare.
Medicare Assignment Basics
Medicare is the government-sponsored national healthcare plan for about 63 million Americans over age 65. Original Medicare is the fee-for-service plan that includes Medicare Part A, which covers hospital costs. And it also includes Medicare Part B, which pays for other healthcare services, including doctor’s office visits.
Almost all doctors accept patients covered by Medicare. And almost all doctors who take Medicare patients accept Medicare assignments. Doctors who accept Medicare assignments are also known as assignment providers, participating providers and Medicare-enrolled providers.
A Medicare assignment provider agrees to charge no more than the Medicare-approved price for a specific service. The doctor or other provider also agrees to bill Medicare directly, rather than charging the patient on the day of service. This means that if you go to a Medicare-participating provider, you won’t usually have to pay anything at the time of service. And you will likely pay less out-of-pocket when all is said and done.
While Medicare assignment is relevant to people covered by Original Medicare, it doesn’t affect people covered by Medicare Advantage plans. These plans have their own rules.
How Medicare Assignment Affects Your Cost
Doctors and other providers who don’t accept Medicare may charge as much as 15% more than the Medicare-approved amount. The exact percentage varies by state. If you go to a non-accepting provider, you may have to pay the extra over the Medicare-approved amount, plus the 20% share of the cost Medicare passes on to all Medicare-insured patients.
For example, consider a visit to an occupational therapist who charges $120 for a treatment session. The Medicare-approved cost of the service is $100.
If the therapist accepts the Medicare assignment, they will charge you $100 and bill Medicare. After Medicare pays $100, you’ll owe 20%, or $20 for coinsurance. That’s if you have already met your Part B deductible. If not, Medicare may not pay anything, up to the amount of the deductible, and you may be responsible for the entire bill.
If the therapist does not accept Medicare assignment, they may charge 15% more than the Medicare-approved amount, or $115. Plus they may ask you to pay the entire amount. If that happens, you have to file with Medicare to get reimbursement.
Whether you or the provider sends the invoice to Medicare, Medicare will pay only 80% of the approved amount, or $80. Your out-of-pocket costs in this case will be $120 minus $80, or $35 instead of $20.
Finding Medicare Assignment Providers
Nearly all healthcare providers accept Medicare assignments. One way to check is to use Medicare’s online tool. You can filter these searches for, among other things, whether the provider accepts Medicare assignments.
You can also ask the provider whether they accept Medicare when you visit. In addition, you may also request information in advance detailing how much they’ll bill Medicare for the service and how much you’ll be expected to pay at the time of the visit.
Bottom Line
Medicare assignment means a doctor or other healthcare provider will charge no more than the Medicare-approved amount for a particular service. This usually means lower out-of-pocket costs for patients who are covered by Medicare. It also means the provider will bill Medicare rather than expecting the patient to pay the full amount at the time of service. Nearly all doctors accept Medicare assignments. But to be sure, you can check Medicare’s provider search tool for more information or ask before your next doctor’s visit.
Healthcare Tips
Consider discussing how you plan to pay for your healthcare with a financial advisor. Finding such an expert doesn’t have to be hard. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area. And you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Healthcare costs can be a significant issue for retirees. How big an issue? Median out-of-pocket retiree healthcare costs for 2018 came to $4,311, according to one study. That means after Medicare or other insurance paid everything it would pay, the retiree had to come up with that much in cash to pay for healthcare in that one year alone. That’s why having a plan to pay for healthcare is an important part of retirement planning.
Mark Henricks
Mark Henricks has reported on personal finance, investing, retirement, entrepreneurship and other topics for more than 30 years. His freelance byline has appeared on CNBC.com and in The Wall Street Journal, The New York Times, The Washington Post, Kiplinger’s Personal Finance and other leading publications. Mark has written books including, “Not Just A Living: The Complete Guide to Creating a Business That Gives You A Life.” His favorite reporting is the kind that helps ordinary people increase their personal wealth and life satisfaction. A graduate of the University of Texas journalism program, he lives in Austin, Texas. In his spare time he enjoys reading, volunteering, performing in an acoustic music duo, whitewater kayaking, wilderness backpacking and competing in triathlons.
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