Baby Boomers in a "Real Stew"

Legal “Stew” is an unusual name for a blog.
“Stew” - Definition:

1. transitive and intransitive verb cook by simmering: to cook something by long slow simmering, or be cooked in this way
2. intransitive verb be upset: to be deeply troubled or agitated
3. intransitive verb be very hot: to swelter or become uncomfortably hot /
in a stew agitated, anxious, or in a difficult situation (informal)

With the baby boomers there’s been a “pressure cooker” situation simmering since the economical meltdown that began the third quarter of 2007. According to CNBC, the median price of homes declined more than 20 percent and stock prices fell twice as much, some 50 percent, from their peak in October 2007. Without question, 2008 was an eventful year for major financial institutions, with massive losses, questions of solvency and, ultimately, government bailouts now totaling over a trillion dollars.

This unique and sweltering financial firestorm could not have come at a worse time for the baby boomers on the cusp of retirement. Transition from the once reliable company pension programs to reliance on 401K “nest eggs” had just begun in earnest and the inflated housing prices were the baby boomers’ “ticket to paradise” in the posh retirement communities. Now time is running short for baby boomers to rebuild the wealth they once possessed. “We won't be rebuilding wealth so quickly,” says Christian Weller of the American Progress and the University of Massachusetts, who specializes in retirement income security. Weller says the decline in wealth was the greatest on record.

The “ingredients” covered in the “Legal Stew” blog, were topics affected by the financial meltdown and these issues have deeply troubled and agitated the baby boomers:
· Age discrimination in the workplace
· Personal bankruptcies due to medical bills
· Early retirement offers
· The demise of Social Security
· Estate planning
· Dealing with the financial needs of elderly parents and dependent “children”
· Long-term car expense
These difficult situations are reasons why many of the 72 million baby boomers may be seeking legal advice concerning contract reviews, age or medical discrimination law suits, probate issues, bankruptcy, etc. which will "cook up" a “tasty” financial stew for lawyers and many opportunities for paralegals.

DISCLAIMER: The information contained throughout Baby Boomers’ Legal Stew Website is not a substitute for professional advice and does not constitute professional advice nor is conveyed or intended to convey professional advice.

Surprisingly Affordable v. Penniless

Have you noticed the number of nursing homes that have been built during the recent years? Within a ten mile radius from my home, there are eight nusing homes! The reason is that businesses and social service agencies are preparing for the surge of the aging baby boomers. It is estimated that seven out of ten baby boomers are expected to require long-term care at some point after they reach the age of 65 or they will have a parent in need of long term care. But once the baby boomers reach their 80s, the demand for long term care services is expected to surge because there will be a lack of available family caregivers due to the declining family sizes, increasing childlessness, and rising divorce rates.

In a recent study by America's Health Insurance Plans it was found that many baby boomers have not prepared for their long-term care expenses. The study further found that more than half of the baby boomers mistakenly believe long-term care costs will be covered by Medicare or another form of health insurance. This misconception could be financially devastating because, according to the AARP Public Policy Institute, the average cost of a nursing home stay is more than $67,000 per year.
The truth is:
· Most health insurance plans do not cover long-term care expenses.
· Medicare is an insurance program administered by the federal government. You must qualify for Medicare by having paid into the program throughout your life through payroll taxes and by reaching age 65. Medicare does cover long-term care expenses, but the best case scenario may provide for 100 days of care.
· Medicaid is a program available in all states and is funded by federal and state dollars. It, too, provides healthcare benefits, but to qualify, spend-down requirements cause most individuals to deplete their financial assets before their coverage begins. Without long-term care insurance coverage, many middle-class retirees in need of long term care could deplete their financial assets.

Surprisingly, long term care coverage is not as expensive as one would think. According to the Long-Term Care Insurance Price Index from the American Association for Long-Term Care Insurance, a 55-year-old can expect to pay $655 per year if married or $1,075 per year if single. At age 65, a married individual will pay $1,292 per year, while a single individual will pay $1,923. However, there are four dangers concerning long-term care insurance coverage to avoid. To learn these dangers, visit “Moneywatch”.

DISCLAIMER: The information contained throughout Baby Boomers’ Legal Stew Website is not a substitute for professional advice and does not constitute professional advice nor is conveyed or intended to convey professional advice.