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  02:36pm EDT, 09/06/08
Family Finance
KYW's Salil Gutt


Salil Gutt, who blends a perfect mixture of expertise and common sense on KYW's "Family Finance" reports,  is a certified financial planner and the principal of Gutt & Company.
Using Annuities to Battle Inflation
Develop a retirement income approach that marries the predictability of a monthly check along with increases to offset inflation.
The Lure of a Pension Check
During bear markets retirees appreciate the value of a pension check compared to the volatility that comes when you are managing your own money.
Transition to Retirement Can Test a Marriage
Many couples are discovering that the transition to retirement is one of the toughest tests for a marriage.
Baby Boomers Will Redefine Retirement
With life expectancies increasing, it is possible you could spend as much time in your next phase, or 'retirement', as you did working.
Hiring a Home Health Care Aide
When in need of home health care services and choosing between an independent aide or an agency, this is what you need to know.
A New World of Banking for Consumers
Bankers who had liberally sprinkled loan money around are clamping down much to the dismay of their customers, but that's not necessarily bad news.
Important to Focus on Expenses in Retirement
Most of us tend to focus on our investments at the time of retirement but expenses are equally important.
A Common Problem with Medigap Policies
Medigap policies are responsible for paying the expenses that Medicare does not cover but some insurance companies try to get away with charging seniors the difference.
Opting Out of Medicare Premiums
Increasing numbers of Americans are choosing to retire overseas. A big issue is what happens to their social security retirement benefits and Medicare.
Be Selective with Emerging Markets
The outlook for emerging markets continues to be good but with some caveats. Here are some suggestions.
Beware of 401k Plan Predators
An article in Business Week reported on retirement ruined by 401k plan predators. Beware.
IRS Tightens Financial Reporting for Charities
There are about 1.2 million charities in the United States. Most of us want to be sure our charitable dollars are put to good use.
The Too Good To Be True Variable Annuity
Critics contend bailouts by the Federal Reserve allow financial companies to take on a lot more risk than is appropriate. Variable annuities may put this theory to the test.
Addressing a Shortage of Financial Advisors
The numbers of consumers needing financial advice has grown but the number of professionals giving advice has declined.
Consolidate and Simplify Retirement Accounts
Over the course of a career we accumulate different types of retirement accounts. Here's how to simplify.
Is Your Home Sufficiently Insured?
Now would be a good time to check if your home is sufficiently insured and if you are overpaying for this coverage.
Disabed Are Eligible for Medicare
In addition to covering seniors aged 65 and older, few know that Medicare also covers disabled individuals. Here's a primer on those rules.
Debtor's Rights
The federal Fair Debt Collection Practices act governs how debt collectors must treat consumers. This is what you need to know.
Inflation is Back. Now What?
The outlook for investors is not pretty. Here's how to navigate in inflationary waters.
Your Health Insurance May Not Travel Well
Most people do no give any thought to unexpected illness or injury while traveling. Here's what to know.
Low CD Rates Spur Sales of Annuities
As CD rates plunge, sales of single pay five year fixed annuities have soared causing alarm bells to ring in the offices of regulators.
Some Light on Commission or Load Mutual Funds
There has been endless debate and regulatory action whether load funds are good for the broker or the investor. The answer is still unclear.
When to Start Collecting Social Security Benefits
The most frequently asked question about social security is when to start receiving retirement benefits. Here's a smart idea for couples to consider.
Estate Planning for Your Best Friend
For many of us pets become family members. However, few pet owners plan for the day when they die, leaving their beloved pets to fend for themselves.
The Hassles of HSA Insurance Policies
The ever increasing cost of health insurance has many of us signing up for health savings accounts, HSA's. A couple of years into this program, some interesting trends are emerging.
Are Managed Payout Funds Worth It?
The financial services industry is hell bent on meeting the needs of future boomer retirees. Consider your options wisely.
What Would Happen If Your Broker Went Broke?
The sudden and dramatic collapse of Bear Stearns begged the following question for all investors. What will happen to my investments if my broker were to go broke ?
Financial Wisdom From Real Retirees
The financial services industry is banking on the future needs of millions of baby boomers headed for retirement. It would serve us well to learn from the experience of current retirees.
Who Should Buy Long Term Care Insurance?
Many states have formed an unholy alliance with the long term care insurance industry. Before you buy in, here are some guidelines.
Watch Out For High 401K Plan Fees
Beware: 401K plan fees and expenses are coming straight out of your pocket and will reduce your retirement savings significantly in the long run.
Price Profiling Comes to the Loans Business
Price profiling is now being applied to the largest financial transactions people will ever make: mortgages, rentals and car loans. Here's how it works.
Emerging Market Funds Will Continue Winning Streak
The investment performance of emerging market funds has been nothing short of outstanding. So will the party continue?
How Going Back to Work Affects Social Security
Given the plunging stock markets, many retirees are heading back into the work force. One of their biggest concerns is what happens to their social security benefits.
University-Based Retirement Communities
Senior housing is still the shining light in this real estate market mess. More interested in active living and life long learning, boomers are eyeing retirement around universities and university towns.
Who Gets Inherited Money in a Divorce?
Here are some things parents can do to keep money in the immediate family and not have it go to errant children in law.
To Buy or Not to Buy Long Term Care Insurance
There is a tussle going on among financial planners. Is it worth recommending clients buy long term care insurance.
Splitting Retirement Accounts in a Divorce
For many families retirement accounts are where the bulk of family wealth lies. So financial planning and attention to detail in the event of divorce becomes important.
Hanging Tough in Turbulent Markets
The past few months has been a rough ride for investors in real estate and the stock market. It's when the market plunges that we understand our true tolerance for risk.
Managing Risk in Retirement
Most of the information on retirement focuses on investments or how to draw down your savings smart. One aspect tends to be overlooked: recognizing and managing risk.
Planning for the Federal Estate Tax
Many of us have put off planning for the federal estate tax due to the uncertainty of the economy in this election year. However, there is movement in this area and here's what the pros expect to have happen.
Many Americans Delaying Retirement
Many of us are delaying retirement. The decline in family wealth in these trying times is the main reason. Here are some safeguards for would-be retirees.
Lessons Learned in These Hard Times
The first quarter of 2008 is one investors would sooner forget but history has shown this storm too will pass. In the meantime, there are lessons to be learned for all investors.
Going Roth in 2010
There is a financial decision that is creating a lot of buzz - to convert or not to convert to a Roth IRA in 2010.
A Huge Pitfall with Reverse Mortgages
Reverse mortgages are a complicated financial product and many seniors are getting snared by aggressive sales people interested more in the commission then their clients.
Health Insurance for Grads
Graduation is still a couple of months away but not too early for health insurance for newly minted college grads.
Solo Defined Benefit Pension Plans
Here's a tax filing tip that can save a bundle though, admittedly, its audience is small.
Beware: States Pushing Long Term Care Insurance
As a means to cut Medicaid bills which provides free health care to the poor, states are establishing partnerships with long term care insurance companies, often to the detriment of buyers.
Bi-Weekly Mortgage Programs Not Worth It
Mortgage companies often offer bi-weekly programs, for a fee. Don't bother signing on the dotted line. You can do it for free!
401K Plan Lawsuits May Increase
The US Supreme Court recently ruled that individual participants can now sue 401k plan administrators for breach of fiduciary responsibility.
Setting Priorities for Personal Financial Goals
Here are my recommendations for a short list as to how a family should ideally prioritize their money goals.
Free Tax Return Prep for Low Income People
Tempted by ads for 'instant refunds' or 'refund anticipation loans' on your taxes? The IRS offers a better alternative, and it's free!
Do Income Annuities Make Sense for Retirees?
As you near retirement, there are a few things you can do to minimize risk which might make consideration of annuities irrelevant.
A Sweet Spot for Income Investors
The window may not remain open for long but it is possible to get a yield of around 7 to 7.5% on preferred stocks of the giant financial service firms.
An Investment Loss Vs. a Tax Loss
Personal finance articles are urging investors to dump their losers to harvest tax losses as savvy year-end tax planning. A good strategy but with one problem.
Powers of Attorney May Be Imperfect
A power of attorney is a key component of every estate plan. However, some powers of attorney may be imperfect. Here's why.
Creating a Stretch IRA
In my last report, I outlined a couple of strategies for distributions from inherited Individual Retirement Accounts. There is another twist on this to create what is known as a stretch IRA. Here's how it works.
What is a Vesting Schedule?
Misunderstanding of a very simple financial concept is costing individuals a lot of money. The concept of a vesting schedule is little understood.
The Fine Print With High Deductible Health Insurance
The rising cost of health care has pushed employers and self employeds into the hands of high deductible health insurance policies also called HSA compatible policies.  Beware.
How To Get Started in Stocks
Many of us are reluctant to invest in the stock market because of a perception that several thousand dollars is needed to get started. Not true.
Teaching Kids About Money
The majority of young people today are woefully ignorant about personal financial matters. Many parents are simply not talking to their kids about the specifics of money.
A Sure Fire Way to Prevent Identity Theft
There is one sure fire way to stop identity theft dead in its tracks. Freeze your personal credit reports.
Proving State Residency for Tax Purposes
For those with two homes, shifting your residency for tax benefit is not a simple matter of just declaring your residency to be in a certain state.
Transition to Retirement Can Test a Marriage
Many couples are discovering that the transition to retirement is one of the toughest tests for a marriage, financially and socially.
Medical Identity Theft on the Increase
There is a new form of identity theft we should be aware of - stolen health care or pharmacy ID cards.
Tuning Up Your Estate Plan
A new year is always a good time to tune up your estate plan. Even if your wills are in order it is important to check on a few things to ensure some items have not fallen through the cracks.
How to Shop for Your Funeral
Many of us are reluctant to face death like a smart shopper. However, failure to do so could result in final costs ballooning out of control.
How Much to Invest Overseas
Stock markets overseas, particularly in emerging markets, have outperformed the US stock market handily every year over the past five years. So how much should one invest in overseas stocks?
Tips on Investing in 2008
The Wall Street Journal polled a dozen savvy pros in the investing world for applying lessons learned in 2007 to investing in 2008. Here are three common themes.
Your Life Insurance Policy May Die Before You
There is something disconcerting happening in the life insurance industry. Consumers who could be affected are those who bought cash value policies like whole life, variable and universal life insurance policies.
New Types of Annuities for Retirees
What retirees want most from financial companies is a product that mimics social security. But, that won't happen so here are the three options to consider.
Special Needs Trusts for Disabled Children
Many parents are worried about how their disabled child will be taken care of after the parents die. One solution is a 'special needs' trust.
Having Elderly Parents Live in the Family Home
Members of the sandwich generation are embracing new and creative ways of taking care of their elderly parents. One idea rooted overseas is striking a chord here in America.
Reverse Mortgages Get Better
One segment of the mortgage industry is still hot. Reverse mortgages to seniors. Here are a few changes.
Renters Affected As Landlords Default on Mortgages
Most of us tend to associate defaults on sub prime mortgages with residential home owners. Unfortunately, this problem has also snared some renters.
Whether to Buy a Long Term Care Policy
Consumers are starting to fret over the costs of long term care insurance policies. Must you absolutely have a long term care policy? Here are some guidelines in helping you decide.
Dividend Growth Investments
Here's an investment idea that gives you a tax break on the income and growth in value.
How to Repair a Poor Credit Rating
A poor credit rating can be improved. However, you need to work through the process in a systematic manner.
The Quirks of the College Financial Aid System
There are so many quirks in the college financial aid system that a whole industry of consultants has sprung up to help families navigate. Here are some suggestions.
Don't Be Snared By the Alternative Minimum Tax
The Alternative Minimum Tax is expected to maul some 23 million tax payers in 2007. Congress is debating a one year fix of the problem but here's a quick primer.
Bunching Tax Deductions
Every December there's a last minute rush to tax advisors in a last ditch effort to reduce the years income taxes. Here is a surefire way to do just that.
Managed Payout Funds Target Boomers
The marketing machine of financial firms has found the Holy Grail. Pitching mutual funds that offer retirees an income stream they can never outlive.
Municipal Bond Exchange Traded Funds
This is how municipal bond exchange traded funds compare to traditional municipal bond funds.
The Hidden Danger of Rolling Over a Pension Plan
Job changers are often urged to roll their employer-sponsored retirement plans into an individual retirement account but there is a hidden danger.
Living Expenses in Retirement
There is a virtual tsunami of articles on retirement planning. The best way to figure a formula for expenses, I think, is to start with a clean slate.
Choices With 401k Plans When Changing Jobs
Job changes necessitate an important financial decision. What to do with the money in 401k or similar employer sponsored retirement plans. Here are some choices.
Develop A Roadmap for the Surviving Spouse
The death of a spouse is always tragic. Leaving an estate in disarray compounds the tragedy. Here's how to create a road map for a surviving spouse.
Helping Your Children Get A Good Credit Report
Having a good credit report and a high credit score is critical. Here are two options for helping your children.
Immediate Annuities
There is an insurance product which perfectly meets the needs of customers in this age of increasing life expectancies but don't go overboard.
Investing for a Weak Dollar
The dollar is hitting new lows against all major currencies and the outlook for an even weaker dollar will accelerate the types of investments currently being used.
Renting Retirement Housing Makes Sense
Many seniors continue to downsize and move to warmer climates. The conventional wisdom is to buy real estate but there is a case to be made for renting instead.
Structured Notes: Faux Equity Indexed Annuities
Structured notes appear to be equity indexed annuities in disguise.
Pentagon Going After Crooked Financial Advisors
We generally think war profiteering involves fraudulent sale of weapons and military supplies. Unfortunately, war profiteering also applies to the financial services industry.
Financial Planning for Early Retirement
The media has latched onto early retirement as the next big thing. If early retirement strikes a chord with you there are certain financial planning steps you must carry out.
Time to Sell Asia Stock Funds
Asian stock markets have been on a tear, with some mutual funds averaging returns of 35% a year over the past five years. It's time to start selling.
Writing Off Personal Bad Debt
Many of you may have made loans to friends and family that went bad. Fortunately Uncle Sam will subsidize the loss if you feel the loan is uncollectible.
Say Hello To Medical Tourism
With healthcare costs skyrocketying here in the US, many developing countries are opening hospitals that look like five star hotels and courting Americans by offering comparable surgeries at a significant discount.
Many Seniors Are Selling Their Life Insurance Policies
There is a financial option for seniors that has been flying under the radar. It has the power to deliver a windfall.
Wall St. Resists Changes to 12b-1 Fees
Investors have gotten very savvy about the impact of investment fees and expenses on the long term returns from their portfolios but some mutual funds may be more costly than they appear.
One Cannot Disinherit a Spouse
Estate planning is not necessarily as simple as a will which leaves everything to a spouse and then equally to the kids.
Protecting Your Assets From Creditors
Sometimes there comes the need to protect one's personal assets from creditors. Here are some actions to consider.
How Much Debt is Too Much???
The pressures of too much debt can keep one up at night. Here is a simple formula for figuring out where you stand.
Make Living Debt Free Your #1 Goal
Stories abound of the tremendous pressure on families carrying lots of debt. Here are some tips to minimize your financial burden.
Hiring Home Health Care Aides
There is a shortage of home health care workers, and this problem is going to get more acute with an aging population.
 
 
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