I love this post from Cynthia DeGeorge, who is a long-term care specialist with Gurley Long-Term Care Insurance.  It's got some quick and simple rules for a good life: 

* Maintain healthy habits
* Live within your means
* Plan ahead
* Cultivate (and maintain) friendships

Note that I said the rules were simple, but they're not necessarily easy.  There is a lot of noise in our world, and it is sometimes hard to break through it and focus on simple, clear objectives.  if we're not laser-focused, it's easy to be unhealthy in a bunch of different ways .  I know this is an ongoing challenge for me.

Hard and impossible are very different things, though, and stories like this help reinforce my goals for the new year and beyond.

Gurley LTCI is also a great source of information on long-term care, which is an under-appreciated but critical piece of any financial plan.

It's Christmastime, and while many of us are consumed with holiday celebrations, family gatherings and worship services, I'd like to share another entertaining reminder of what the unexpected can do if we're not well insured with a solid Emergency Fund.

Not an endorsement of Allstate Insurance Company.  I very much endorse Christmas.

It's hunting season in Arizona, and as I mentioned in a previous post, it pays to be well insured and to maintain an emergency fund.

Not an endorsement of Allstate Insurance Company, or hunting, for that matter.

Chances are you've seen the relatively new Allstate commercials featuring Dean Winters as "Mayhem". Great campaign - it's both entertaining and highly effective in terms of getting the point across. The commercials also underscore the fact that the world is full of unexpected financial setbacks, and good financial planning can help. Specifically, it pays to have adequate auto insurance and an emergency fund to negate the need to scramble to pay an unexpected deductible. You know, in case your daughter's BFF kisses Johnny.

To be clear...I'm a fan of these ads, but this post is not an endorsement of Allstate Insurance Company.

One of the things I like about the new(ish) BusinessWeek magazine is the way they summarize their articles using what they call The Bottom Line.  In the most recent issue, an article titled "Income for Life?  Sure, but What Does It Cost?" was bottom lined thusly:  "While lifetime income guarantees on variable annuities offer protection against investment losses, they are complicated and expensive."

The article highlights the fact that the annuity industry is booming on the heels of the 2008 meltdown, as near-retirees and other skiddish investors seek a place for safe returns.  The way it works in this case is that variable annuity products offer a feature that ensures a baseline level of income for life, once the purchaser decides to annuitize his or her investment in the product.  Based on data from Morningstar, the article pegs the average fee for the guaranteed income feature at 1.03%, which comes atop the regular annuity fees of 2.51%.  That's a 3.54% hurdle to overcome when seeking returns on your money through these vehicles.  This helps to ensure that the "upside potential is fairly limited".

Also highlighted is the fact that these contracts come "with so many conditions and limitations that it's difficult for consumers to understand them, and terms vary by insurer".  In my mind, this is a far bigger issue.  If a consumer chooses to pay 3.5% for a guaranteed benefit with limited upside, and that consumer knows that it costs 3.5% per year, an informed decision has been made.  However, not once do I remember a client coming into my office with an annuity knowing what the fees are.  Never.  Furthermore, I'm actively working with four clients right now to explore options for variable annuities that they now suspect are not a good deal for them.  Unfortunately, these contracts typically lock you in to these high fees for a long period of time, so the options are sometimes very limited.  Certainly, we'd all be better served by a more transparent model.