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Author: ww4321 Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 75335  
Subject: invest to protect assets Date: 4/6/2006 8:25 AM
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Is there anyway to invest to protect assets in case me or my wife have a major illness and need extended health care? We are both on Medicare and have supplementary health insurance.
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Author: jrr7 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50918 of 75335
Subject: Re: invest to protect assets Date: 4/6/2006 9:13 AM
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Be very careful when you're searching for information on "asset protection" -- as you are investigating something slightly shady, the industry tends to attract slightly shady people.

I had looked for this once and got all sorts of "conceal your assets and income from the IRS by holding them in an unnamed bank account in the Cayman Islands!" info.

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Author: IndecisiveFool Big funky green star, 20000 posts Top Favorite Fools Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50919 of 75335
Subject: Re: invest to protect assets Date: 4/6/2006 9:27 AM
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Be very careful when you're searching for information on "asset protection" -- as you are investigating something slightly shady, the industry tends to attract slightly shady people.

I had looked for this once and got all sorts of "conceal your assets and income from the IRS by holding them in an unnamed bank account in the Cayman Islands!" info.


I don't think the OP is looking for something slightly shady. Their search will probably present a number of shady options but I think their intent is not shady. The OP is probably looking for options like long term care insurance which I don't know much about.

IF


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Author: DeltaOne81 Big gold star, 5000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50920 of 75335
Subject: Re: invest to protect assets Date: 4/6/2006 9:37 AM
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The short answer: no. And the only products that claim to do so take your money in all sorts of ways via fees and hidden calculation details which reduce your take.

However, there's no reason for you to be looking for one solution. You should divide your money by needs.


First, you should set up an emergency fund, which is enough to cover a several months of living expenses as well as a decent sized emergency.

This money should be put in a guaranteed account - savings account, money market account, or money market fund. Since you seem at least someone comfortable with the internet, you may want to try a high yield online savings account, such as from HSB Direct or Emigrant Direct - currently paying 4.8% and 4.5% respectively.

Here's what The Fool has to say on Savings:
http://www.fool.com/savings/savings.htm?source=LN


Second, depending on your asset level, common advice is often to split your retirment assets into multiple parts. Generally, one part will have 5 to 10 years of expenses and be invested in CD, bonds, and bond funds (some short, some long, etc). This is money that you will need soon, to money that you won't need for several years. Then, any additional money can be put in a variety of investment options, knowing that even in the worst case you have several years before you need it, and it can be allowed to take on whatever level of risk you're comfortable with.


Finally, you *may* want to consider Long Term Care Insurance. This is best for people with moderate levels of assets. Because low asset people have nothing to protect, and high asset people can pay for the care themselves.

Here's what The Fool has to say on Long Term Care Insurance:
http://www.fool.com/insurancecenter/longterm/longterm.htm




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Author: kaudrey Big red star, 1000 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50924 of 75335
Subject: Re: invest to protect assets Date: 4/6/2006 11:19 AM
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Hi, good advice so far. I have a question. When you say "protect assets", do you mean so that you don't have to use them all to pay for health care expenses? Or to make sure you have enough to cover it?

If you mean that you want to have some left over for your heirs, another option is to start giving it away now. You and your wife can each give gifts of $12K (or is it $11K this year? It should be easy to look up), to as many individuals as you want. So, if you have 3 kids, you can give away $72K a year in total to them.

Not sure if this is what you were asking, so if not, just move on... :)

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Author: brndnsdad Two stars, 250 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 50925 of 75335
Subject: Re: invest to protect assets Date: 4/6/2006 1:49 PM
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Based on what's already been said, you may want to clarify your question.

If you're trying to protect your assets in case you or your wife need nursing home care, you may want to look into long-term care insurance. just make sure the company you choose is financially sound.

I believe you may want to consult an estate planning attorney if you're just trying to protect your assets for your heirs. I believe there may be a type of trust you can set up, but I don't know any details.

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Author: pedorrero Big red star, 1000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51012 of 75335
Subject: Re: invest to protect assets Date: 4/9/2006 9:11 PM
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Just because there is a lot of shady info on asset protection doesn´t mean it´s not a valid subject. Of course OP didn´t provide much personal info at first so it´s hard to prescribe, especially because I know little of the subject....

The fact that he, she, they are on Medicare probably means they are not real rich. There is a variety of things one can do to protect assets even so, but it is true that many of these will have commissions or at minimum the legal costs to set up a Trust or other device.

If you have substantial assets you´d best get started. There is, I believe, a 6 year minimum look'back (relates to moving assets around) if you are trying to qualify for Medicaid. I would highly recommend, in order, that you (1) read one or more books on Medicaid planning and-or estate planning (2) consult an estate attorney. Definitely don´t do anything until you have been at least reasonably well informed.

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Author: Matt1344 Big gold star, 5000 posts Feste Award Nominee! Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 51013 of 75335
Subject: Re: invest to protect assets Date: 4/9/2006 10:04 PM
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"The fact that he, she, they are on Medicare probably means they are not real rich. "

Hi pedorrero,

Medicare and how much money you have isn't like the Medicaid programs which look at your assets. I'm paying $448 a month for Kaiser. When I hit 65 and sign on to Medicare this will drop to ~$65.

http://www.ssa.gov/history/lbjsm.html

"At the bill-signing ceremony President Johnson enrolled President Truman as the first Medicare beneficiary and presented him with the first Medicare card. ..."

Regards, Ken

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