The nature of confidence

Words have meaning. That's obvious, of course. There would be no point in owning a dictionary if words didn't have meaning. But then we have all had our experiences with slang expressions that mean something entirely different than Mr. Webster suggested they should. In fact, there are at least some slang expressions that mean the exact opposite of what the dictionary proposes.

That brings me to a very important word; confidence.

The word, confidence, implies trust, certainty, and assurance. These are all positive terms that give us comfort. They add stability to our lives. They gently lull us into a sense of security that suggests we can forget our cares, let down our guard, and smell the roses without any risk or worry.

Oops. That's the dictionary definition of confidence. There is another meaning for the word, too – a version that is often paired with a second word that suggests fun, frolic, and a carefree attitude. The word is, game. Together, they add up to, confidence game – a term that no one wants to be on the wrong side of. There is no fun or frolic here, only heartache and anxiety.

I point this out for a simple, but very important reason. Sometimes, out of the goodness of our hearts, and a willingness to believe that all people are basically good, and caring – we forget that the truth is otherwise. Surely, most people are good and caring, and they really are basically decent people who have no intention of doing us any harm. However, there is a minority of people who prey on the unwitting, the passive, and the trusting among us who feel it is impolite to ask for credentials, or proper identification. Of course they don't seem like bad people. They may very well earn their living with a winning smile, after all. They may display nothing be the best manners, a sincere interest in our well-being, and an honest curiosity about our family and friends.

But of course, good manners, sincere interest, and honest curiosity does not mean that we are dealing with an upstanding person who means us no harm. How many times have we each seen a news story about some poor elderly couple who paid a solicitor for repair work to be done to their home, only to find no work crew ever shows up? Worse, what about the work crew who does show up and begins the job, only to disappear when a check for the full balance of the bill changes hands – and the workmen never appear again, leaving an even larger repair bill to be paid than if the work had never been started in the first place.

Sadly, the reality is that we all need to remain wary, at least to some degree, all the time. We are often safest when we work with contractors we know, or those who we can obtain solid references for.

Warning signs of a potential confidence game include workmen who sell their services door-to-door, refuse to show proper identification and licensing information – even if they refuse very politely, and you should always be suspicious of contractors who demand payment-in-full before the work is completed to your satisfaction.

Remember, it is always acceptable to tell a salesperson, even a salesperson who appears to have real concern for the well being of your home, “Thanks for sharing this information with me. I will certainly give your company serious thought, and I may be back in touch with you after I get another quote from a competing company.”

After saying those words, and closing your front door, or hanging up your phone, you just may feel a sense of confidence swell up inside you as you realize you have just behaved like the cautious consumer you know you should be. And that is the nature of true confidence, with no games.

Is this great deal, really a great deal?

Mortgage rates are at historic lows at the moment. For many of us,
that is good news. At the same time, the housing market contains a glut
of homes in many areas of the country, which has driven the price of
real estate down dramatically. In some states, such as Nevada and
Florida, home values have been cut in half over the past few years.

These facts can light a fire under some people, causing them to get in a
rush to invest in real estate, and to invest in real estate quickly.
Stock market losses, devalued 401K plans, and anemic IRA returns can all
add fuel to that fire.

Making a major purchase based on emotional considerations, is often a
mistake. Then again, the current market may be agreeable to the savvy
investor. If you know the market, have confidence in the property, feel
you can afford the risk, and have a long-term plan that the purchase
plays a role in – jumping into real estate at a steeply reduced price,
while financing is at gleefully low rates, might be a good move.

But take a moment to think before you jump. Anyone considering buying
real estate as an investment should consider their qualifications very
seriously. For while the potential for profit certainly exists, the
potential for heartache, misery, massive financial losses, and legal
entanglements exist, too. The variable that determines which deal is a
great deal, and which deal is a nightmare-in-waiting is often the level
of experience the buyer possesses.

Before making any significant financial change to your life, and
potentially, your long-term future, it is a good idea to do your
homework, and enlist the assistance of experienced men and women who can
offer valuable insight. Honestly evaluate your aversion or acceptance of
risk before you sign any documents or accept any offers. A pause for
reflection and study can be a lifesaver when you are preparing to plunk
down a year's salary or more on an investment, whether you intend to
live in the home, or profit from owning it as an investment.

Financial security can take years to build up. But it can be washed away
in a flash as the result of a single poorly made, hasty decision.

So build your team, create your plan, and move forward with steady
confidence. When you have all your ducks in a row, you just may find a
great deal, that really is a great deal – and dodge the ones that were
really big fiscal anchors disguised as once-in-a-lifetime opportunities.

Disabled and no Medicare to help!

There is a “gap” in Medicare coverage for those who are disabled and under 65.  Richard Wohltman describes his concern about this “gap” below.  Wohltman and I are both members of WealthCounsel – a nationwide Community of Estate Planning Practitioners.  He is located in Alexandria, VA and I find his views valuable, because he is frequent lecturer on Estate Planning and related issues.  And he is also a contributing author of Ways & Means - Maximize The Value of Your Retirement Savings. 

 

"More than 50 million people in the United States have disabilities, a number that is growing rapidly as the population ages. Experts say disability will soon affect the lives of most Americans." Patricia Bauer.

 

If you are unlucky enough to suffer a disability when you are under 65, you may find that Medicare is the only way your health care costs can be paid. If you or a loved one becomes disabled and are unable to work, you may be extremely frustrated to discover that there is a long delay before you are qualified to receive Medicare assistance. The general waiting period is two years after they start receiving Social Security Disability Income.

 

Andy Hook is a respected elder law attorney in Virginia who wrote about this dilemma in his article "Waiting for Medicare" in the September 17, 2010 edition of the Oast and Hook News.

 

"A recent Kaiser Health News article addresses the issue of Medicare and persons younger than 65 years of age who have disabilities. Under current federal rules, such persons are not eligible for Medicare until two years after they start receiving Social Security Disability Income. . . . Congress created the waiting period in 1972 when Medicare was expanded to cover persons with disabilities. The waiting period was designed to control costs and to ensure that only those with ongoing, severe disabilities received Medicare coverage. According to the Kaiser Family Foundation, approximately seventeen percent of Medicare’s 47 million beneficiaries receive disability benefits."

 

Andy notes that the waiting period is shorter for people with certain specified disabilities, many patients face extreme financial hardship during the extended waiting period. The new health care program may eventually remove barriers for patients to be eligible for private health insurance, the only answer to this unhappy situation is in Congress' hands.

 

"Edmund Haislmaier, a senior policy research fellow at the Heritage Foundation, said that eliminating the waiting period “is always going to be an issue in Congress. Some of it is money, some of it is politics, too. For members of Congress, irrespective of party or where they stand on the issue, it’s kind of all-or-nothing because if they did it for some diseases, they’re immediately going to be inundated with ‘Why didn’t you do it for us?’” Some groups, however, such as the Huntington’s Disease Society of America, are asking Congress for specific waivers from the waiting period for their diseases. They believe it may be more politically feasible to press for relief for specific diseases, because the cost of doing so would be less than the cost of across-the-board relief."

 

You can find Andy's complete article at "Waiting for Medicare"

 

I guess we all assume that health care is something we will be able to obtain if we are disabled. I know that I was upset after reading Andy's article. I think you will be too.

 

Your local elder law attorney may be able to help you find alternatives and opportunities if you or a loved one has to face this unfortunate situation.

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The fact that my colleague, Richard Wohltman, finds this information upsetting surely means that you may be unaware of this “gap” in Medicare coverage.  Please contact me if you have questions….or please comment on this posting.

Dotting the i's, and crossing the t's

Most of us take great pride in the fact that we can fend for ourselves over the course of our life. We are an independent bunch, after all. However, we also take great joy in the realization that we can choose to share our life with someone else. That process often begins when we become engaged, and then married. Children may come along, expanding our families and providing us with real comfort in times of emotional strife.

Combining that sense of independence with a willingness to be selfless enough to become a part of a family group is one of the things that allows for a rich and enjoyable life over the long term. Along the way, trust is nurtured and grows between husbands and wives, as well as parents and children. Even grandparents and their grandchildren can establish strong ties that involve confidence, trust, and true caring.

Those relationships are important. They are especially important when we find ourselves dependent, rather than independent, as so many of us will at some point in our lives. This is especially true in our later years. And even during the prime of our lives there may be circumstances where although we may be perfectly capable of conducting the business of our lives, our work schedules or geographic location may make it difficult or impossible to be as personally involved in the business of our day to day lives as we want to be.

Fortunately, there is a method of passing our seal of approval on to another, trusted individual when we need to. A Power of Attorney allows us to indicate who we deem capable of exercising our personal and business decisions on our behalf, either in our absence, or if we are incapacitated and unable to act in our own best interest. In effect, a Power of Attorney is our legal means of telling the world who we authorize to act as our representative in legal, business, financial, and medical matters that affect us directly.

You can designate anyone you choose to hold your Power of Attorney. It is entirely up to you. You might select your wife, your husband, your sister, or your brother. One of your children can be entrusted with your Power of Attorney, or even a good friend, or neighbor, if that is your choice.

Whether or not any of us should enter into a Power of Attorney with another person is a highly unique and individual choice. For many of us, it is a practical decision that provides comfort and stability during a time of life when we need it most. For others, it may be the acknowledgement that we are not quite as permanent and will not remain as perpetually strong as we might have hoped. Or perhaps we are simply accepting a temporary work assignment overseas that lasts long enough that we want someone on the case back home, who can legally act on our behalf if we need them to.

Whatever the case, I find it somewhat comforting to know that there is a method for assuring that we will never be truly alone, and that even under the most dire circumstances, we have a means of selecting the one person in the world who we think will represent us best – and announcing that selection to the world in a solid, legal manner that gives us a sense of peace and satisfaction.

Is “For Sale By Owner” your best bet?

When selling a property, many homeowners choose to go it alone. Certainly the allure of saving a hefty commission is attractive. And many of us are perfectly willing to shoulder more of the paperwork load in a tight economy to squeeze every possible penny of profit out of the deal. But going it alone doesn't mean you have to go totally solo. In fact, it may not be in your best interest to ditch the realtor, and the whole support team that relationship implies. Or maybe the deal will work out fine. It's hard to say for sure.

There are questions you can ask yourself before advertising your home for sale that may save you some king-size headaches later. If only somebody knew exactly what those questions are. But that's the trick of it, isn't it?

The fact is, every real estate deal is a unique negotiation, with myriad possibilities, prices, responsibilities, and terms to agree on. Looming over that negotiation is the anxiety that comes from knowing that this is a one-shot deal for the seller. Set the price to high, or the terms too stringently, and you may blow the deal. Set the price too low, and you may lose out on a a payday you've been working towards after decades of investment. Establish terms that are too loose, and you may find yourself holding the bag long after you thought the sale was final.

And then there's the risk of litigation. Like it or not, a buyer can come back with a list of issues that disturb them well after the closing date. In a worst case scenario, they may take an intractable stance that suggests they intend you to pick up the tab for improvements you had no knowledge there was a need for. They may even imply, or straight out make the statement, that they are willing to go to court if necessary to seek a remedy for their ills.

That is about time you may begin to seriously wonder if writing that sales document yourself was such a good idea. If you know for sure that your sales contract complies with all the appropriate State laws, your blood pressure may remain rock steady and your palms stay dry. If, however, you have doubts, you may have a long series of sleepless nights in your future, with the potential for a large and unanticipated outlay of cash if the worst occurs.

Certainly there are people who are well versed in real estate transactions who can reliably come out of a closing with their head held high and a song in their hearts. If you are one of those fortunate few, congratulations. You have earned your peace of mind, and should revel in the joys of a swift and satisfying closing. If however you are unsure of the vagaries of real estate law, prefer to avoid confrontation whenever possible, and do not see yourself as a hard-core marketing professional – the For Sale By Owner route may not be for you.

There is reason to take heart in either case, however. Because the confident seller who walks away from their real estate closing has no regrets. And the seller who assembles a team of advisors to assist with the sale just may learn something along the way about tax law that could conceivably offset that lost sales commission, plus some.

It all depends on how the deal is structured, and what you are comfortable with. Every real estate transaction is unique and deserves to be treated as if it's the most important financial deal you'll make in your entire life - because it just might be.

Hey, you know what I heard?

A story crossed my mind recently that it seems might be worth passing along. You have probably heard it before, frankly. It's half joke, half cautionary tale. In either case, it's worth re-telling.

As the story goes, a lawyer bought a box of expensive cigars, then bought an insurance policy to protect his investment. Of course, the lawyer then proceeded to smoke the cigars over a period of time, as might be expected, . The twist in the story comes in the revelation that the lawyer then made a claim against the insurance policy, suggesting that the cigars had been lost in a series of small fires.

It sounds funny, so far, right? And the twist is...

The narrative goes on to suggest the case went to court, and the lawyer actually won the case. The insurance company issued a check to cover the losses – and the lawyer cashed it.

Get set for twist number two!

After cashing the check we are told the insurance company had the lawyer arrested for arson – the proof being his own court testimony about the fate of his cigars, which he willingly set alight. The lawyer is found guilty on the criminal charge and goes to prison for 2 years.

All of which brings us to twist number three. The story is an urban legend. It did not actually happen. It's nothing more than an entertaining, albeit untrue story.

The lesson in this humorous little story is a serious one. We all hear stories, and make assumptions based on the plot line of those stories. Whether it's harmless hearsay about a cigar smoking lawyer, or an anecdote with more serious ramifications, it is important to keep in mind that serious decisions affecting our health, wealth, property, and the future stability of our families should be based on something a bit more solid than, “Hey, you know what I heard?”