Greetings!
The costs of long term care insurance are rising, not just for us consumers, but for the companies as well. Apparently, it really is a good deal. In January 2013, insurance companies must keep a higher reserve balance and thus they will need to raise the rates they charge policy holders. The attached article describes more about what is happening. The net result is this: if you are considering purchasing long term care insurance, you might want to make your decision in 2012. Click Here to read more. A popular way to do this is by adding a long term care insurance rider onto a life insurance policy. In this way, you know that your spouse, children, charity or other beneficiary is guaranteed a benefit. You know that you haven't sunk money into an insurance policy you will never claim. Some companies estimate policy costs will rise 20% next year. Some long term care companies have raised rates dramatically in the very near past. So much so, that the State of Colorado Insurance Division has received a number of complaints. Oddly enough, the consumer complaints may have indirectly led to the Insurance Commissioner's requirement for insurance companies to hold higher reserves, and thus raise rates. If you're interested in how that happens, call your advisor. In brief, every year we live, everything we buy gets more and more expensive. Insurance does not just protect those who don't have the assets they need to pay for the expensive (and rising) costs of healthcare, nursing homes, and equipment; insurance provides protection for those who have the assets and don't want to force their loved ones to choose which ones to liquidate in the end. Our in-house long term care specialist is happy to provide a review for you. |
| Spotlight on Locks of Love | 
Many of you know Jill Buhrmann on our client care team. What you might not know is that Jill recently donated her long hair to a charity called Locks of Love.  This organization provides hairpieces to children suffering from long-term medical hair loss.
Jill says, "I've been growing my hair out for a year and wanted to make a difference for a child. I'm used to the short hair already!" |
| Weekly Economic Update | |
HOME SALES DECLINE, BUT HOUSING STARTS RISE 15%
The National Association of Realtors recorded a 1.7% decrease in existing home sales in September. Reduced inventory might have played a role. The amount of homes on the market fell to a 5.9-month supply, a low unseen since March 2006. The median home price was $183,900 in September, up 11.3% from a year ago; it hasn't been so high since 2005. September's 15.0% leap in homebuilding took housing starts to an annual rate of 872,000 units, the best pace since July 2008 and a 34.8% increase since September 2012. (1,2)
PUMP PRICES DRIVE UP CPI
Thanks largely to a 7% jump in gas prices, the federal government's Consumer Price Index rose 0.6% in September. Still, the core CPI rose just 0.1% for the third straight month, and food prices rose only 0.1%. Annualized inflation came in at 2.0%. (3)
RETAIL SALES IMPROVE 1.1%
While the overall September gain announced by the Commerce Department was strong, the really notable number was the 0.9% rise in sales aside from gasoline, autos, and building materials. Electronics sales alone rose 4.5%. (4)
AFTER FRIDAY DIVE, STOCKS STILL LOG WEEKLY GAIN
Thanks mostly to earnings disappointments, the 25th anniversary of Black Monday turned out to be a harsh day for Wall Street. The Dow sank 205.43 Friday, yet the week was mixed - S&P 500, +0.32% to 1,433.19; NASDAQ, -1.26% to 3,005.62; DJIA, +0.11% to 13,343.51. NYMEX crude settled at $90.05 Friday, down 1.97% for the week; COMEX gold settled at $1,724.00 Friday after a 2.03% weekly descent. That put oil down 8.88% YTD and gold up 10.03% YTD. (1,5) |
| Market Summary |
|
% Change |
Y-T-D |
1Yr Chg |
5-Year Avg | |
DJIA |
+9.22 |
+15.98 |
-0.26 | |
NASDAQ |
+15.37 |
+15.42 |
+2.06 | |
S&P 500 |
+13.96 |
+18.46 |
-0.90 |
(Source: msn.money.com, bigcharts.com, treasury.gov, treasurydirect.gov -10/19/12). Past performance is no guarantee of future results. Indices are unmanaged, and investors cannot invest in them directly. |
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Create a beautiful week!
Karl Frank, MBA, MSF
Certified Financial Planner (R)
A & I Financial Services LLC
303.690.5070
Citations:
1 - money.msn.com/market-news/post.aspx?post=8e931d01-f2df-44d5-b3e3-0b133a0ac6dd [10/19/12]
2 - www.inman.com/news/2012/10/17/housing-starts-82-percent-2009-trough [10/17/19]
3 - articles.latimes.com/2012/oct/17/business/la-fi-inflation-20121017 [10/17/12]
4 - www.reuters.com/article/2012/10/15/us-usa-economy-idUSBRE89E0RI20121015 [10/15/12]
5 - montoyaregistry.com/Financial-Market.aspx?financial-market=retirement-investment-funds&category=3 [10/19/12]
Securities offered through Geneos Wealth Management, Inc., member FINRA/SIPC. Investment advisory services offered through A & I Financial Services LLC, registered investment advisor.
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| Words for Thought |
"Never worry about numbers. Help one person at a time and always start with the person nearest you."
Mother Teresa |
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Riddle of the Week
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Holly finds herself in a room without windows, holes or even cracks in the walls. She doesn't have any tools and the door to the room is 4" thick and made of steel. Using only her hands, she manages to escape through the doorway. How does she do it?
Last week's riddle:
What word describes a man who does not have all his fingers on one hand?
Last week's answer:
Normal. A normal man does not have all ten of his fingers on one hand. |
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