Posted: 1/1/2017 4:43:38 PM EDT
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I went out this morning and has the AM radio on, half listening to one of these Sunday investment advertising shows. The investment lady was pushing annuities and told the story of a couple she recently helped. The wife had to have surgery and needed to recover in a nursing home. But since the husband had $700,000 in his IRA and the wife had $300,000 in her IRA, they didn't qualify for government assistance. So, the finance lady transferred their IRAs into an annuity and she was able to get federal benefits to pay for her recovery in the nursing home.Â
So a couple with $1,000,000 needed a handout from the taxpayers to cover their medical expenses? 
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Absent any missing information (although its unlikely there are factors that would change my opinion):
What they did is wrong. I'm also sure the gov't would not appreciate someone hiding money in order to qualify for assistance. And when I say "not appreciate" I mean "probably prosecute". |
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I was just thinking about those shows. I was going to start a thread and ask if anyone actually listens to them. Personally, I hate them. I wish the stations would go back to local programming on the weekends but its cheaper to sell time to these guys. I turn them on when I'm driving so that I have some noise to listen to. I wish there was something better on though. |
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Absent any missing information (although its unlikely there are factors that would change my opinion): What they did is wrong. I'm also sure the gov't would not appreciate someone hiding money in order to qualify for assistance. And when I say "not appreciate" I mean "probably prosecute". Just like they prosecuted the Clintons for lying and hiding assets? |
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I went out this morning and has the AM radio on, half listening to one of these Sunday investment advertising shows. The investment lady was pushing annuities and told the story of a couple she recently helped. The wife had to have surgery and needed to recover in a nursing home. But since the husband had $700,000 in his IRA and the wife had $300,000 in her IRA, they didn't qualify for government assistance. So, the finance lady transferred their IRAs into an annuity and she was able to get federal benefits to pay for her recovery in the nursing home. So a couple with $1,000,000 needed a handout from the taxpayers to cover their medical expenses? If she really did that, she is about to get loved tenderly. That is not how it works unless that particular state has some weird laws I don't know about. Here in TX and in most places, Medicaid has a look back period (usually 5 years) and they will see those funds. That won't end well. |
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The story is a sales pitch with a few clever devices designed to get ole people to call. It will score the full gamut:
Ole People With money Ole people with some money, who are desperate Ole people with some money who are bad with money Ole people without money but will pay for help navigating a govt program |
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They paid into social security and Medicare. I think they should be allowed to use some of those funds. Social Security and Medicare are not Medicaid. IIRC, Medicare will only pay for 30 days of nursing home and that's only if you go there directly from the hospital. |
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Social Security and Medicare are not Medicaid. IIRC, Medicare will only pay for 30 days of nursing home and that's only if you go there directly from the hospital. Quoted:
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They paid into social security and Medicare. I think they should be allowed to use some of those funds. Social Security and Medicare are not Medicaid. IIRC, Medicare will only pay for 30 days of nursing home and that's only if you go there directly from the hospital. Sliding scale and dependent on what state you're in. Usually covers the first 30 days, then part of the next 30. By 90 days it's all on you. It also has to be a skilled nursing facility and rehab is usually involved. Just jumped through these hoops with my mother. We were paying her memory care costs out of pocket ($5k per month) but Medicare picked up the hospitalization and 'nursing home' when she broke her hip (minus deductibles of course). It did cover the final four days in hospice though. |
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Thanks, saved me the trouble.
Anyway, someone pointed out something I missed. That annuity is still an asset that would (should? I don't know how federal assistance programs work) be counted. I suspect this whole thing is a BS "listen to my show and we'll tell you the secrets of saving your money and spending the taxpayers!" gimmick. Quoted:
Yeah, but they're not the Clintons. http://rlv.zcache.com/some_animals_are_more_equal_than_others_bumper_sticker-r3517fc9a33ed4150b5fd8b9d7c73a449_v9wht_8byvr_324.jpg Annuities are sometimes referred to as "the Yugo of investment instruments" Quoted:
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Just like they prosecuted the Clintons for lying and hiding assets? Yeah, but they're not the Clintons. http://rlv.zcache.com/some_animals_are_more_equal_than_others_bumper_sticker-r3517fc9a33ed4150b5fd8b9d7c73a449_v9wht_8byvr_324.jpg Annuities are sometimes referred to as "the Yugo of investment instruments" |
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Maybe it can't be liquidated or converted under those conditions but it would still be counted as an asset on a personal balance sheet wouldn't it?
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Not if the annuity has been annuitized or is a single premium income annuities, which is probably what the OP's radio lady was talking about. Quoted:
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An annuity is an asset. You can sell it. Its value is part of the person's net worth. Not if the annuity has been annuitized or is a single premium income annuities, which is probably what the OP's radio lady was talking about. |
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Maybe it can't be liquidated or converted under those conditions but it would still be counted as an asset on a personal balance sheet wouldn't it? Quoted:
Maybe it can't be liquidated or converted under those conditions but it would still be counted as an asset on a personal balance sheet wouldn't it? Quoted:
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An annuity is an asset. You can sell it. Its value is part of the person's net worth. Not if the annuity has been annuitized or is a single premium income annuities, which is probably what the OP's radio lady was talking about. I guess it would depend on for whom the balance sheet is being prepared. For Medicaid planning purposes the spouse is named as the income beneficiary. Think of it this way - when you annuitize or purchase an immediate pay annuity, you're irrevocably trading your bag of money to the insurance company for a guaranteed stream of income. You no longer own the bag of money. ETA I'm not a Medicaid planning attorney and this is not advice. ETA 2 No,it wouldn't be listed as an asset, unless you're trying to bolster your assets by getting creative and listing some discounted value of future cash flows . |
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I was just thinking about those shows. I was going to start a thread and ask if anyone actually listens to them. Personally, I hate them. I wish the stations would go back to local programming on the weekends but its cheaper to sell time to these guys. These are basically paid advertisements. That's just about all AM radio is anymore on the weekends. Probiotics and red krill infomercials. They don't have to pay for any on air talent, or probably even have anyone there at all. Just pop a cartridge in or click a mouse and the station broadcasts pap for the next 48 hours. And makes a few dollars from the paid programming. And people will at some point not come back to radio, especially AM |
