We are now located at:

79 West Monroe Street, Suite 1320

Chicago, IL 60603.

Our contact information remains the same...

312-899-0950 phone

312-899-0959 fax

The Consumer Financial Protection Bureau, the new federal   agency that protects the financial interests of the nation's consumers, is urging tougher regulation of the professional designations that financial advisors use to market their services to seniors.

Authoritative sounding titles such as "Certified Senior Advisor" or "Certified Retirement Counselor," are often not what they seem. Thousands of financial advisors market themselves as trained to provide advice to seniors, using authoritative titles. Unlike a "Certified Financial Planner," which requires years of rigorous study, many of these titles only involve attending a seminar or taking a self-study course. Holders of these designations may not even be required to have a high school or college diploma.

In a report to Congress, the Consumer Financial Protection Bureau (CFPB) finds that more than 50 different senior designations are currently in use. This can cause confusion for consumers who don't know how to distinguish between the different designations. A chart listing coursework requirements for eight impressive-sounding titles notes that a "Certified Senior Advisor" needs only a three-day course and that coursework is optional for a "Certified Retirement Financial Advisor."

The CFPB, which was set up in the wake of the late 2000s recession and financial crisis to help shield consumers from the abuses of financial markets, offers several recommendations to Congress, the Securities and Exchange Commission and other policymakers, including:

• Establishing a central tool through which seniors can verify a financial advisor's designations.
• Creating a mechanism to capture complaints against financial advisors who are misusing titles.
• Requiring advisors who use a senior designation to provide disclosure about the designation to consumers.
• Developing minimum standards for the training necessary to get a designation and minimum standards of conduct for anyone with a senior designation.
• Increasing the use of existing enforcement methods to penalize improper use of a senior designation.

To read the CFPB's report, click here.

For coverage of the report in the Los Angeles Times, click here.

When you buy long-term care insurance years before you need it, you are taking a gamble that the company will still be around when it is time to pay out. But what happens if the company goes out of business?

Usually insurance companies don't just suddenly shut their doors. Instead, another insurance company buys out or absorbs a company that is having problems, and the new company honors the old company's policies.

If an insurance company does fail, every state has an insurance guaranty association that protects consumers. The purpose of the guaranty association is to take over the policies of an insurance company that is experiencing extreme financial difficulties and ensure that claims are paid. The guaranty association may provide insurance coverage directly to consumers. Alternatively, the association might facilitate the sale of the policies to another insurance company. It is also possible that policyholders will be given the opportunity to cash in their policies.

The downside of the state guaranty association is that it provides coverage only up to a certain limit. Each state caps the maximum amount its guaranty association will pay out, and the figure is typically between $100,000 and $500,000 per policy, with most states offering $300,000. In a recent blog post, Phyllis Shelton, author of "Protecting Your Family With Long-Term Care Insurance", called the failure of a long-term care insurer "an extremely rare situation."

If your policy is purchased by another company or taken over by a guaranty association, it is important to continue to pay your premiums. Failure to pay premiums could result in the termination of your policy.

Resources:

For the information on the National Guaranty Association,

click here.

For general information about long-term care insurance,

click here.

For information from the Illinois Department on Aging,

click here

Are you married, with one spouse wanting to retire but  the other  one prepared to keep working? If so, you should take a close look at the "file and suspend" strategy to maximize your Social Security benefits.

Spouses are entitled to Social Security benefits on their husband or wife's work record if the marriage lasted at least 10 years. If the spouse who is not working or who wants to stop working is at full retirement age or caring for a child who is under 16 years old, he or she is entitled to an amount equal to one-half of the working spouse's full retirement benefit. If the non-working spouse takes the working spouse's benefits before his or her own full retirement age, the amount will be reduced.

In order to receive the spousal benefit, the worker must have filed for Social Security retirement benefits. The file and suspend strategy allows the working spouse to file for benefits and then immediately suspend those benefits. The worker must be at full retirement age in order to do this. Once the worker suspends benefits, the non-working spouse can begin receiving spousal benefits while the worker continues to work. The longer the worker delays retirement the more delayed retirement credits he or she will get. Social Security benefits can increase by as much as 8 percent a year (depending on date of birth) if a worker delays retirement beyond full retirement age.

Example: Husband and wife are at full retirement age. Wife wants to start collecting benefits and husband wants to continue working. If husband retired now, he would receive $2,000 a month. Husband files for benefits and immediately suspends. Wife files for spousal benefits. She receives $1,000 a month on his work record. Husband continues to work and retires at age 70. When he retires, he can get as much as $2,800 a month in benefits.

This strategy can work either if you, as the non-working spouse, are retiring early or if you are retiring at your full retirement age, but for it to be to your advantage you must receive lower benefits on your own record than on your spouse's record. If you retire before your full retirement age, Social Security will automatically give you whichever benefit is higher--your own benefit or the spousal benefit. If you retire at full retirement age, you can choose which benefit to take. This allows you to take a spousal benefit while your worker's benefit accrues delayed retirement credits.

Example: Husband and wife are both at full retirement age. Husband's benefit is $2,000 a month. Wife would receive $900 a month in benefits if she received benefits on her own work record. Husband files and suspends. Wife receives $1,000 a month of spousal benefits on husband's work record. At 70, wife can claim on her own record which, because of delayed retirement credits, will have grown to more than $1,000 a month.

While it may sound complicated to file for worker benefits, apply for spousal benefits, and then suspend worker benefits, it can be done in one visit to your Social Security office. For more information, click here. 

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It is important to note, this isn't the best strategy for everyone. Planning for today...and tomorrow...requires reviewing many different aspects of a person's life. For more information about how Dutton & Casey can assist with long-term planning, please click here.

Legal Ability Planning - How To Prepare for and Prosper in Adulthood

Adequate legal planning for living with a disability, whether your own or your loved one's, involves more than writing a will.  It requires legal documents designed for living.  Attend this session, led by an attorney practicing disability and elder law, as she discusses important topics, including health care planning and coverage, financial and health care surrogate decision-making, long term care, and other important planning tools designed to protect your physical, mental, and financial health, or that of someone you care about, during life.

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Taking Control of Your Future: Strategies for Avoiding Legal Pitfalls

Adequate legal planning for older age involves more than writing a will. This session will address important topics which can impact your physical, mental and financial health. Doing some simple advance preparation now can help you avoid legal pitfalls down the road.

Presenter: Janna Dutton, JD

Date: Wednesday. May 29, 2013

Time: 6:30 PM - 7:30 PM

Location: Terrace Gardens Assisted Living, 8415 Waukegan Rd, Morton Grove, IL 60053

This session is part of a 6 week series, "Resources for Navigating Life Transitions: Your Personal GPS." Click here for a flyer regarding the series.  

Registration: There is no charge to attend this, or any session. However, advanced registration is required. Click here to register. 

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Special Needs Trusts

The purpose of a special needs trust is to enable the donor to provide for the continuing care of a disabled spouse, child, relative or friend. The beneficiary of a well-drafted special needs trust will have access to the trust assets and still be eligible for benefits such as Supplemental Security Income, Medicaid and low-income housing. A special needs trust can be created by the donor during life or be part of a will.

Presenter: Janna Dutton, JD

Date: Thursday, July 18, 2013

Time: 10:30 AM- Noon

Location: CJE Senior Life, 3003 West Touhy, Chicago, Illinois. This program is being sponsored by the Linkages Program at CJE Senior Life.

Registration: There is no charge to attend. However, advanced registration is required. Please contact Rosann Corcoran at 773-508-1694 or rosann.corcoran@cje.net

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Taking Control of Your Future: Strategies for Avoiding Legal Pitfalls

Adequate legal planning for your future involves more than writing a will. This session will address six important topics which can impact your physical, mental, and financial health: disability, health care coverage, health care surrogate decision-making, long term care, planning for retirement, and estate planning.

Presenter: Kathryn C. Casey, JD

Date: Tuesday, July 23, 2013

Time: 6:00 PM - 7:30 PM

Location: St. Alexius Medical Center, 1555 Barrington Road, Hoffman Estates, Illinois

Registration: There is no charge to attend. However, advanced registration is required. Click here to register.

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CLICK HERE FOR A FULL LISTING OF OUR UPCOMING PROGRAMS FOR THE COMMUNITY. 

      

CLICK HERE FOR A LISTING OF OUR UPCOMING PROFESSIONAL EDUCATION PROGRAMS.

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