BENEFITS CORNER

K of C Field Agent News
We seem to say it every
year, “It’s almost Christmas, where has the
year gone?” As we look back we measure the
passing of the seasons, from one holiday to
the next, and see how our lives have changed
over that time. Christmas and the end of
the year mark a milestone for most of us.
The season gives us pause to thank God for
sending his only-begotten Son to redeem us
and it is a time to reflect on all the gifts
we’ve received from him. God’s gift to us
inspires the gift-giving so many of us enjoy
at Christmastime. We certainly enjoy
receiving those gifts, but reflect for a
moment of what the giving of gifts does for
the gift-giver. Quite simply, it makes us
feel good to give.
As I look back at 2020,
I can’t help but think of all of the
selfless members of the Order who gave gifts
to help others. From our “No Neighbor Left
Behind” campaign to fulfilling our “Knights
of Charity” moniker, we prove every day what
it means to be a Knight. To give of
themselves by giving the gifts of their
time, their talent or their treasure to help
those less fortunate and those in need.
Knights are known for
their generosity. We are indeed Knights of
Charity. All of these important initiatives
help many others, but don’t forget about
your own family…and I’m not talking about
gifts that you’ll put under the tree. This
holiday season as we think of giving and
receiving, when we think of all the good
gifts we have been given and all we are able
to give, make sure you give your family the
gift of peace of mind. Secure in the
knowledge that whatever challenges they may
face, you have protected them.
The Knights of Columbus
has the products that will do just that:
Provide financially for your family if you
aren’t here, make sure you have enough for a
comfortable retirement, give the care needed
if you can’t care for yourself and make sure
all of this comes to pass if you are sick or
hurt and can’t work. It’s painless to sit
down with me to analyze your particular
situation.
As we prepare to celebrate Christmas, let us be thankful for all the
graces God has showered on us, especially
the gift of his Son, our Savior!
Vivat Jesus!
Dan
Daniel J. Falstad
(612) 310-5254

A sound
financial plan can be more important
than a lifetime of work!
When planning your future financial
security, it is important to set goals,
initiate action, and periodically review
your progress. Retirement goals must be
considered. If a wage earner dies, funds
need to be available for both Cash Needs and
a family's continuing Income Needs.
Cash needs could include:
· Final Expenses Fund for medical, legal,
funeral and other expenses
· Debt Payment Fund to pay off your debts,
including your mortgage
· Emergency Reserve Fund for unexpected
bills not readily payable from current
income
· Education Fund to provide for your
children's education
After death, income generally comes from
four different sources:
· Survivor’s Earnings
· Savings and Investments
· Life Insurance Proceeds
· Social Security
Financial experts generally recommend that
70% of total household income be available
after the death of a wage earner while there
are children at home and 50% thereafter.
Will you have enough money when you retire?
The earlier you begin setting money aside,
the more likely you are to achieve your
goals. Retirement Income generally comes
from three different sources:
· Social Security
· Employer Sponsored Plans
· Savings and Investments
If you need additional retirement capital
you should consider:
· Saving more money
· Earning a higher return on your assets
If you are not able to accumulate additional
capital, you may need to consider:
· Postponing your retirement, or
· Reducing your standard of living.
If these options are not attainable, you can
work towards doing a little bit of each.
If you aren't sure where you are, consider
having us do a financial analysis that
compares your investments and savings
strategies with your financial priorities
and concerns. We can provide you with a
broad, general guideline, which may be
helpful in shaping your financial thinking
about investment objectives and risk
tolerance – and your future. We can do
reports and graphs with the data you furnish
us. Give us a call to set up an appointment
to help you review your progress. All at no
cost to you as a brother Knight!

Beneficiaries…Who Do You Love?
Do you
know who the beneficiary is on your life
insurance policy? It would be a wise idea to
find out – and update your beneficiary if
necessary. As your K of C agent, I can help
you do that.
Why is
this important? A life insurance policy
protects the financial status of another
person – or people – in the event of your
death. Through a beneficiary designation,
you determine just who that should be.
When you purchase a K of C insurance policy,
you must select a primary beneficiary – at a
minimum. You don’t have to name a contingent
beneficiary – also known as a “secondary
beneficiary.” However, it’s always a wise
move because you might outlive your primary
beneficiary. A contingent beneficiary (also
known as a “secondary” beneficiary) is the
person designated to receive life insurance
policy proceeds if the primary beneficiary
dies.
You
should be as specific as possible in wording
your beneficiary designation. By naming your
wife, daughter, son, etc., as beneficiary,
you make sure that the life insurance
proceeds will be available in a timely
manner to them.
Your
life situation will undoubtedly change over
time. Plan to update your declared
beneficiaries periodically. Otherwise, the K
of C will have no way of knowing what your
intentions are at each stage of your life.
Changing your beneficiary is fairly simple.
You just need to fill out a change of
beneficiary form (#113A) for each policy you
want to change. I can provide you with these
forms – and I will help you to fill them
out. I can also help you with beneficiary
designations for any life insurance policy
you hold – regardless of the company that
issued it.

What is likely
to use up your hard earned money the
fastest?
Although you may not like to think about it,
there may come a time when you may need help
getting dressed, eating, bathing or have
severe cognitive impairment like Alzheimer’s
disease. When that happens, you’ll need
Long Term care either in your home or in a
facility like a nursing home or in assisted
living.
If so, how can you maintain your
independence and not be a financial or
physical burden to others? Would the people
you live with or other family members be
able to take care of you? Are your children
and their spouses both working or possibly
live too far away so they can’t help you
out? Would you expect them to give up their
job or move in with them to help you? With
longer life expectancy and changes in
medicine, are you going to be able to pay
for Long Term care when you need it?
Right now, the average cost of Nursing Home
care in Minneapolis is more than $50,000 per
year. Nursing Home costs have been going up
about 5% a year. If you are 55 years
old now and the Long Term Care costs
continue to increase 5% per year, it will
cost you over $520 per day when
you’re 85 (that’s the average age at which
people go in the Nursing Home). The cost of
Nursing Home care (for a semi-private
room) in 2033 is expected to be over
$200,000 per year. In order to cover
that cost, you will need about $4 million
invested at 5% to produce the funds to pay
for it.
If you can’t
pay for Long Term Care, who is going to pay
for you?
According to information on the U.S. Office
of Personnel Management sponsored website
(www.ltcfeds.com) this is how Long Term Care
is paid for now.
Home Care
costs
Nursing Home costs:
1.
Private LTC insurance
5.0% 1. Private LTC insurance
5.0%
2.
Medicare
15.3% 3.
Medicare 8.0%
3.
Medicaid
17.3% 3.
Medicaid 41.0%
4.
Out of Pocket
62.2% 4. Out of
Pocket 46.0%
Social security was not designed to provide
Long Term Care at all. The social security
act of 1935 was designed to provide
retirement benefits. The Medicare Act of
1965 was designed to provide affordable
health care for the elderly using Social
Security to fund it, but did not really
increase funding. So how will the
government fund Long Term Care, especially
when the baby boomers start to need it?
What are the odds
that you will need Long Term Care? No one
can tell you for sure, but right now, one
out of every two people is expected to need
Long Term Care at some time in their life.
In fact, one out of every four people
needing Long Term care today spends more
than $100,000. Sandra Timmerman, Ed.D. is
the director of the Mature Market
Institute. In April 2002 she said “The
projected average cost for one person is
$61,320 per year or $153,300 for the average
nursing home stay, causing many families to
have to spend down their assets”.
To get the
information you need about Long Term Care so
you can develop peace of mind for yourself
and your loved ones please contact me and I
will help you before it’s too late.

WHAT ARE YOU GOING TO DO WITH THE MONEY?
As you
probably know by now, Congress and the
President have provided significant tax
relief for Americans in 2003. There were
many changes that benefit individuals,
families and business owners. All of the
tax brackets have been reduced, taxes on
dividends have been reduced, the child
credit was increased, and more. The
questions you may be asking are “How much
will we get out of it?” and “What should we
do with it?”
It has been
estimated that the average family earning
$40,000 will receive more than $1,000 in
annual tax relief over and above the tax
cuts enacted in 2001. The child credit
provides $400 per child per year, and the
15% bracket was reduced to 10% and applies
to the first $14,000 of taxable income that
results in an annual savings of $700. The
other brackets were reduced as well and
joint filers could see as much as another
$935 in annual tax relief. To estimate your
tax savings, it is recommended that you
consult with a tax specialist.
Now, what
can you do with that new money? Of course,
you could spend it now, and some people
will. However, is that best for you and
your family? It is well known that
Americans in general are very poor savers,
and most people admit that if they could
change one thing in their financial plan
they would put more money away to work for
them. For emergencies, to send their
children to college, for retirement, and
more. Well, here is an opportunity to do
something more!
The Knights
of Columbus has programs that are designed
for building and protecting wealth, and they
are available to members only. I can show
you how these programs can benefit you and
your family now and in the future, plus all
of our programs have guarantees!
As to that
$1,000 per year – did you know that $1,000
saved now and earning 7% compounded annually
grows to over $3,800 in twenty years? And
$1,000 saved per year for twenty years and
growing at 7% yields nearly $45,000? It’s
your choice. Spend it now, or put it to
work so you can spend more later.
Please give
me a call so that I can show you how our
programs can benefit you and your family.
What happens when
you can no longer take care of your everyday
needs?
Raising a
family is costly. For many of us, there's
not much left over for long-term
goals...such as saving for our children's
education or for retirement.
Ideally,
caring for a sick parent shouldn’t be part
of that equation. Yet as with so many things
in life, the reality is quite different.
Today, many people start families in their
30s and 40s - while their parents live well
into their 70s, 80s, and 90s.
If one day you
require nursing care, you might have to ask
your children for help just when they're
ready to send their own sons or daughters
off to college. This is, in fact, a common
dilemma among middle-aged people today.
Experts have even coined a term -- "the
sandwich generation" -- to describe those
who are squeezed between these conflicting
financial obligations.
The average
cost of nursing-home care is more than
$60,000 per year. That could easily force
you to deplete your assets or to rely on
your family for help. According to the
Health Insurance Association of America
(1999) “Most older Americans are cared for
at home; family members and friends are the
sole caregivers for 70% of elderly people.”
Would the people you live with have the
physical and financial ability to take care
of you?
Medicaid will
help - but only after you’ve depleted your
own resources down to welfare eligibility
levels. According to the Department of
Health and Human Services, in 2001, Medicare
covered only 14% of long-term care costs.
Individuals needing care, along with their
families, pay for over one-third of the high
cost of long-term care out of their own
pockets.
One of the
challenges in planning for long-term care is
accepting that you or a family member may
need care in the future. Overcoming this
hurdle is critical to the planning process.
With advances in medicine and people living
longer than ever before, the possibility of
someone in your family needing long-term
care is greater than ever.
To give you
information about these issues and help you
develop peace of mind about long-term care
for yourself and your loved ones, the St
Al’s Knights of Columbus are sponsoring a
program to help you in your deliberations.
Look for the specific information and
details about this program elsewhere in this
newsletter.

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