Who Can You Trust With Your Money?

Even during good times it is hard to trust another person or company with your hard earned money. What if you get taken?

This past year has only added to the fear with crooks like Madoff, Stanford and numerous other con men and women literally stealing the life savings of innocent people, charities and pension funds.

Yes, you can stuff your cash in a mattress or personal safe to physically guard it, but let’s face it, there’s got to be a better way. It’s a bit like identity theft. There are standard and common sense precautions to take that work 99% of the time and there is always that 1% that is unavoidable and unpredictable but necessary for us to prosper.

I’ve put together some basic rules that it makes sense to follow.

*Know what it is you own. Whether it is a CD, a stock, an annuity, real property, a mutual fund, etc. you should have a document of purchase and it should be traceable.

* Beware of writing a check to an individual who is investing your money. This is how many crooks take advantage. They cash the check because it is made out to them personally and never invest it where they said they would.

* Don’t invest in something you don’t understand.

* Most investments should be in vehicles that are regulated by the state and or federal government. Stocks, mutual funds, annuities, real estate are all examples.Be cautious of giving money to a person or company that tells you they will give you unusually high returns on an investment you can’t track the value of or that is unsecured by some sort of collateral.

* Be aware if your investment is in anything except some insurance products, annuities and CDs with guarantees you can and often will lose value as well as receive gains.

The moral of this story is not to be afraid, but to be cautiously optimistic and educated on where you put your hard earned gains and savings. If we learn nothing else from this rotten economy, it should be that prudence should outweigh greed.

Paula Straub
760-917-0858
savegainstax@gmail.com
http://www.savegainstax.com/

Attention Seniors With Diabetes, Arthritis and/or Mobility Issues

If you are over age 65, and have Medicare Parts A and B, and are not currently part of an HMO, you may be eligible for free medical supplies.

Examples are a diabetic testing meter that does not require pricking your finger, elastic support braces, electric scooters and a hot/cold compression wrap to reduce swelling.

Go to the following link to see the options available, and if you feel you can benefit send me an email to savegainstax@gmail.com with your name and phone number. If you qualify, the devices are delivered to you at no charge.

http://www.savegainstax.com/ProductsAvailable.pdf

Be patient for the file to appear, as it takes a bit of time to load on your screen.

Please feel free to pass this email to someone you know if you feel they can use any of these products.

My Mom loves her new testing meter.

In this economy, every little bit of savings count!

Paula Straub
(760)917-0858

Another Potential Hidden Source of Income

There may be some “green shoots” of hope forming in parts of the economy but we are still subject to a long period of uncertainty. I am always looking for ways to pass on little known options for the right situation where someone might benefit.

I’ve talked about life settlements and veteran’s pension benefits and today want to mention annuity purchases. Here are a couple of examples.

1. You bought an annuity years ago and are now receiving payments from this annuity over a number of years, let’s say 20. You set this up for a guaranteed income stream to get you through retirement. Now it is year 5 and you are faced with a serious life crisis. For whatever reason, you need a lump sum of money but don’t have other resources. It is possible that a company who purchases annuity payments can look over your policy and make a cash offer in exchange for your future payments. This may be also possible on a partial amount. If this makes sense for you, it opens a new window to solve a pressing problem.

2. You had an accident or perhaps a medical claim that was settled in the past and you chose payments over a specific number of years versus a lump sum payout. At the time this seemed the prudent thing to do, but again, life interferes and you need access to a larger sum of funds. There may be a company who will make an offer as in example one that will allow you access to funds that you did not have before.

I have access to these companies, so if you are in a similar situation, or know someone else who is, please give me a call at (760)917-0858 or (888)338-3036.

It helps to know as many options as possible, because we are all having to be creative financially in this volatile times and knowing where to turn for help is the first important step.

In the next email, I’m going to explain how certain people can get access to free medical supplies such as new diabetic testers, braces for arthritis, and electric scooters.

Paula Straub
savegainstax@gmail.com
www.savegainstax.com

The Document Everyone Should Have on File

While waiting for the credit markets to loosen up so my clients can actually sell their real estate and businesses, I have been spending a lot of time with veterans, widows and their families.

As I have mentioned before, many who are now in need of daily medical and personal assistance can qualify for the Veterans Improved Pension benefit with Aid and Attendance Add-on. It is a life saver for those whose savings are being eaten up by care bills and also those adult children caregivers who perhaps have quit a job to care for Mom or Dad and now find themselves in a financial bind.

Perhaps one of the major road blocks I have consistently seen is an elderly person with dementia or Alzheimer disease, or perhaps now disabled from a stroke who did not sign over durable power of attorney to someone prior to becoming physically or medically disabled. Now it is too late and a family member must go to court to get custodianship and ask permission from the court before making financial or medical decisions on their behalf.

This can be very time consuming and expensive and is easily avoidable.

It does not matter if you are 30 or 80, you need to put a plan in action to give a chosen person power of attorney in the event of your physical or mental incapacity. Name contingent designees in case a spouse might precede you in death. The power of attorney should be for both financial and medical decisions.

Just having this document notarized and on file where someone can access it in time of need can mean the difference of being taken care of the way you want and having everyone hands tied so they can not help get your affairs in order when necessary.

An attorney is not necessary to implement this document. Templates can be downloaded online and you can write in your exact wishes and when the document becomes in effect.

Please take a moment and do this now. Tell your family and friends to do the same. Take it from those who wish this had been done and whose hands are now tied because they can’t access the funds of the incapacitated individual or make the medical decisions necessary for their care and well being without a court ruling.

Paula Straub
760-917-0858 M-F 8am to 5pm Pacific
www.savegainstax.com
www.gbausa.org/pstraub (More info on VA benefits)

Answers to Most Common Questions from VA Benefit Post

I’ve been receiving many questions from my last post, so I am going to attempt to answer the most common questions. If you have others, please contact me directly.

Q: What exactly is this pension and who qualifies?

A: Here are the mandatory qualifications for what is known as the Veterans Improved Pension Benefit. This is a non-service connected pension benefit with additional add-ons of “housebound” and “aid and attendance” benefits available to a veteran or their widow(er) who requires the assistance of another person in order to avoid the hazards of his or her daily environment. This is not to be confused with a service related disability pension which falls under a different program. The veteran must also have:
a. 90 days of consecutive active duty service, one of which was during wartime.
b. Any discharge other then a dishonorable discharge
c. Be 100% disabled or at least age 65
d. There are income and asset limitations which can be discussed individually

Q: How do I know if I qualify?

A: Go to http://www.gbausa.org/pstraub and fill out the qualification form. It comes directly to me and no one else and I can contact you to discuss your qualification.

Q: I already applied and was turned down. What can I do now?

A: Once you have submitted the application, and if it was done incorrectly or lacking the proper documentation, it is pretty difficult to overturn the decision. This is why it is crucial to do everything right before the initial submittal.

Q: I have a Veteran’s Service Officer helping me. Do they perform the same service you are providing?

A: The Veteran’s Service Officer at the local VFW or American Legion is trained to fill out the paperwork for submittal. They are not trained or able to offer suggestions of what options you have to be in a position to qualify at a later date, and may tell you that you do not currently qualify and to come back once your income or assets have been depleted. It makes their job easier if everything is in order so they can review the application prior to submittal and make sure everything is in order for processing. Since you only get one first shot at success, it pays to have all your ducks in a row so you are approved on the first go around. Since neither myself nor the VA Service officer charge for this service, why not cover all your bases for optimum success? We both want you to qualify to receive the benefit you have earned.

Q: How long does it take to qualify and begin receiving the benefit?

A: The VA can take 4-6 months to approve the benefit, just due to backlog and understaffing. However, the benefit is retroactive to the 1st of the month following application receipt, so the sooner the better as far as applying. If assets need to be transferred, this may take additional time depending on the individual situation.

Q: Do you have to be “poor” to qualify?

A: No. To get only the basic pension without any need of medical assistance, such as driving, taking medication, walking, bathing, etc, you do have to have a very low income and this may not be the right time to apply. Once you start needing ongoing care, the medical bills can be substantial, and this is when the program can really help defray the costs of home care, assisted living, or nursing care. This is the true value of this benefit.

Q: Is this applicable to the spouse of a veteran?

A: Although the aid and attendance benefit is for the veteran or the widow(er) of the veteran, it still may assist the couple when either needs care. This is because both the husband and wife’s income counts towards qualification, so do the medical costs of both the husband and wife count towards qualification.

Q: If a widow(er) of a veteran remarries, do they still qualify for the benefit?

A: No. The VA only counts the most recent marriage for the widow(er).

Q: Does care provided in the home count for qualification?

A: Yes, see me for details.

Q: What if a child is caring for the veteran at home?

A: The care does not have to be provided by a licensed care giver as in long term care policies. See me for details.

Q: Can a veteran get both a service related pension benefit and a non-service related benefit?

A: Not both at the same time. Whichever pays the higher amount would be the one to go with.

Q: Does this amount stay the same year after year?

A: The amounts are increased annually. You must also re-qualify each year, which is pretty straight forward unless you receive additional income or no longer need assistance.

The bottom line is if you know of someone who may qualify, it is worth it to check it out. With the rising cost of health care, the increase in life expectancy and the risk of outliving income and savings, every penny counts and this benefit is free of dreaded TAXES!

Paula Straub
www.savegainstax.com
http://gbausa.org/pstraub
888-338-3036 toll free
savegainstax@gmail.com

Important Info for Veterans Over 65 Using Assisted Living Services

In doing research for my own family member, I came across extremely valuable information for US Veterans that might make a huge financial difference in their lives and the lives of their spouses and children.

If you are, or know of, a Veteran or Widow(er) of a Veteran over age 65 in need of medical assistance for daily living, whether at home, in an Assisted Living Facility or in a Nursing Facility, you need to know if you (or they) qualify for the Veterans NSC Improved Pension Benefit.

http://www.gbausa.org/pstraub


This assistance is a little known benefit of tax free pension income from our Government to Veterans who served during any period of war, even if they did not go into battle and it can truly be a life saver.

I recently went through a training program to educate people on this benefit and have set up a web page with additional information and resources. I also have a toll free phone line for questions and contact.

http://www.gbausa.org/pstraub


It doesn’t matter which state you reside in. I will let you know if I can help, or I will try and direct you to a person in your area.

There is no charge for this service and I urge you to use it. Even if you think you or your family member or friend will not qualify, this may not be the case. The maximum benefit for 2009 is $23,396.00 per year and is TAX Free!

Go to this web link and find out more.

http://www.gbausa.org/pstraub

Paula Straub
http://www.savegainstax.com/
760-917-0858

Good Intentions, Bad Tax Consequences

As we step in to take care of aging friends, parents and grandparents, we can make choices which seem like a good idea at the time, but turn out to be not so desirable when it comes time to sell.

I’ve gotten several questions lately about the tax consequences after selling a home that was either gifted or sold for a very low price prior to death, typically to a child of a sick or ailing relative.

The idea was that the owner was either too sick or unable to take care of their residence and a child stepped into getting control of the assets so they could make the financial decisions to care for the seller.

Since they didn’t want to pay the seller out of pocket, the property was gifted with a quit claim or grant deed or sold on paper for $1. or other low amount. No taxes were due, and now the responsible party was in control. Note: this doesn’t work for planning for state or federal aid unless done at least 5 years prior to need or request.

Then, once the parent or seller is taken care of or has passed on the property is sold for market value. It is at this time that the real consequences surface.

To make a long story short, the new seller now has a large tax bill with capital gains tax levied on the amount over cost basis for the sale. The cost basis is either the $1 paid or the previous owner’s cost basis if gifted. This can be a huge amount depending on value.

If the original owner had retained title, the house could have been sold and the personal exclusion for primary residence applied if they still satisfied the ownership and residence tests, or would have passed to the beneficiary at market value as of date of death.

The child could have gotten legal power of attorney and handled this for the original owner if incapacitated.

Before making any major decisions, be sure to meet with a good attorney who will explain all the pros and cons.

Paula Straub
www.savegainstax.com
savegainstax@gmail.com
760-917-0858
Fill out a Confidential Qualification Questionnaire and see if you qualify to save capital gains tax. Go to
http://www.savegainstax.com/qq.html