August 11, 2012 - 40 Must-Know Statistics About Long-Term Care - by Morningstar Investment Research
How to pay for long-term care is on your mind, judging from the valuable set of reader comments below last week's article about the limitations of Medicare and Medicaid coverage for long-term care. Readers shared their personal experiences as caregivers of elderly relatives and also discussed whether they had purchased long-term care insurance for themselves or were doing without.
To make good judgments about whether to buy this type of coverage, it's important to arm yourself with the facts about what it's likely to cost, as well as to gauge how likely you are to need care in a long-term setting, and for how long. What follows are some statistics to aid in your decision-making. Click here to read more.
A Gift Tax Loophole for 529 Plans
My spouse and I plan to establish a 529 college-savings account for our daughter and to contribute $50,000 to it this year. However, we're concerned that this high amount might be subject to the gift tax. Is there any way around this?
Morningstar assistant site editor Adam Zoll addressed this question, stating that Normally a $50,000 gift from a parent to a child would be subject to the gift tax; gifts from one individual to another that are more than $13,000 per year (or $26,000 from a couple to an individual) count toward the gift-giver's lifetime gift tax exemption limit. However, education expenses are treated differently under the tax code than other gifts. Zoll provided an overview of gift tax rules as well as how investors can take advantage of gift tax exemptions with 529 plans.
Among the other topics we addressed this week:
Investors Used These Quality Funds Well We look at how investor return exceeds total return for these highly rated funds, in part three of our series examining these two metrics.
Unbalanced Portfolios and Inflation--The Risk-Parity Approach A relatively new approach to portfolio construction says many investors aren't truly diversified.
Your Investment Performance and the Silver Medal Trap MYOB and creating a custom benchmark are essential to gauging your true success.
How Important Is Turnover? Helpful at the extremes, less helpful elsewhere.
How Do These Three Target-Date Series Size Up? PIMCO, Russell, and Manning & Napier are now part of Morningstar's target-date coverage.
Large Opportunity for Big Pharma We believe that emerging markets' strong competitive advantages aren't being recognized by the investment community.
This Health-Care and Biotech Fund Is Off to a Strong Start H& Q landed on our CEF best performers list for the year to date.
PowerShares Draws Up Plans for High-Dividend and Emerging-Markets Debt ETFs State Street drafts plans for actively managed, MINT-like ETFs, and Fidelity reportedly is considering a move into actively managed, equity sector ETFs. Plus, the week's best and worst performing funds.
Corporate Bond Investors Buying Anything in Sight Despite the drama out of Europe, investors are continuing to pour money into U.S. corporate bonds.
For India, Time for Retirement Planning Is Now Without action soon, India's 'demographic dividend' could become a retirement deficit as the country's population ages during the next 40 years.
Don't Expect Miracles From Central Bankers Investors' hopes that the Fed and ECB can singlehandedly rescue the global economy might be misplaced.
The Economy Isn't the Roller Coaster It Seems to Be The world is a little more stable and flexible than the short-term economic numbers, and the short-sighted media, might have you believe.