Life – Health – Long-term care – Retirement – Investing

IRS sets 2016 LTCI tax deduction limits

 The IRS has published the new deduction limits in Revenue Procedure 2015-53, a document that updates the figures for 2015, which were given in Revenue Procedure 2014-61.

Federal law makes an LTCI deduction available to consumers who have enough medical bills to itemize their medical expenses.To itemize medical expenses, consumers must have eligible expenses not covered by health insurance that exceed 10 percent of their adjusted gross income.The deduction might be most relevant to consumers who were healthy enough to qualify to buy LTCI at some point, and then, when the LTCI policy was already in force, developed costly health problems.

In 2016, the LTCI premium deduction limit increased to:

  • $390, from $380, for consumers ages 40 or younger;
  • $730, from $710, for consumers ages 41 to 50;
  • $1,460, from $1,430, for consumers ages 51 to 60;
  • $3,900, from $3,800, for consumers ages 61 to 70; and
  • $4,870, from $4,750, for consumers ages 70 and older.

In percentage terms, the increase for consumers ages 41 to 50 is richest: about 2.8 percent of the 2014 LTCI premium deduction limit.

The increase for consumers ages 51 to 60 amounts to just 2.09 percent of the 2014 limit.

For consumers in the other age groups, the deduction increase amounts to about 2.5 percent to 2.6 percent of the 2014 limit.

The new IRS notice also gives the 2016 numbers for a number of other insurance-related limits, such as the maximum daily benefit limit, under Internal Revenue Code (IRC) Section 7702B(d)(4), for an LTCI contract or life insurance chronic care contract that qualifies for special tax treatment. The daily benefit limitation has increased to $340, from $330. (source: LifeHealthPro)

The Top 5 Most Ridiculous Reasons Not To Buy Life Insurance — With Anthony Anderson

Most people continue to procrastinate about purchasing life insurance.  They always think they have time to ‘think about it’ or ‘shop around’ or simply don’t feel there’s an imminent need and then something happens….untimely death or change in health which changes your insurability status……

Anthony Anderson is a funny dude. The Emmy-nominated actor has been making people laugh on television and in film for 20 years. But now he’s bringing his sense of humor to a surprisingly unfunny topic—the need for life insurance.

Continue reading here to see what he has to say about the ridiculous reasons for not buying life insurance……(contributor, Tim Maurer -Forbes /Advisor Network)

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You can never plan too soon for your retirement.  You never know what life holds around the corner.

Make sure that you are adequately insured for life’s uncertainties.                       

8 Scary Retirement Facts:

For the next 20 years, about 10,000 baby boomers will turn 65 each day. Some have been preparing diligently for their retirement by building savings, and are looking forward to having the freedom to do what they want to do when they want to do it. Other boomers may not have begun to contemplate how retired life will look because they are caught up in living for today. As this massive generation crosses into what has historically been retirement age, they will face many new realities, and they may not all be pretty.

The recent economy has not been cooperative for investors attempting to build a nest egg. Those nearing retirement age have the most to lose if the market declines and limited years to continue contributing to retirement accounts. At the same time, the average life expectancy continues to rise, which is even more years of retirement baby boomers need to save for. Here are eight startling retirement facts to ponder:

1. One in six older Americans lives below the poverty line, which is $22,350 for a family of four, according to the U.S. Department of Health and Human Services. That amount is not much for a single person, let alone a family of four.

2. The current ratio of working age citizens between 15 and 64 to those over age 65 is 5:1. By 2050 this ratio will drop to 3:1. This means we will have a smaller proportion of working people supporting increasing numbers of retirees.

3. The ranks of senior citizens are growing rapidly. There are now around 40 million senior citizens, but that number is expected to increase to 89 million by 2050. The aging population will impact everything from housing and health care to travel and employment.

4. The cost of assisted living facilities has risen to a national median rate of $3,300 per month, which works out to be $39,600 per year. The highest median rate is in Alaska at $6,813 per month.

5. Americans 55 and older now account for 20 percent of all bankruptcies, with the majority due to medical and funeral expenses. In addition, older Americans tend to have more credit card debt than younger Americans. Without delaying retirement, it will be hard for baby boomers to get ahead of their growing debt.

6. Due to the recent economic downturn, baby boomers born between 1948 and 1954 will need to save an additional 4.3 percent of their annual pay to counteract the impact of the financial and housing crisis in 2008 and 2009, according to Employee Benefit Research Institute calculations. For many people this will require working beyond traditional retirement age in a job market already tight and challenging for older workers.

7. Successful retirement planning requires consistent saving to provide for a time when income is no longer generated from your job. However, 35 percent of Americans say they don’t contribute to retirement accounts like a 401(k) or IRA, according to a 2009 CareerBuilder survey.

8. Age discrimination on the job is an increasingly common occurrence as more seniors remain in or re-enter the job force. In a recent study published in the journal Research on Aging, 63 percent of older adults say they have experienced discrimination. [Article contributed by Dave Bernard]