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Long-term care: It's a Class Act

The new health care bill President Barack Obama signed into law in March includes a national voluntary insurance program for purchasing long-term-care services, called CLASS, for the Community Living Assistance Services and Supports program (SmartMoney June 11).

Working people age 18 or older will have the option to use CLASS, through voluntary payroll deductions, to take the place of or supplement private long-term-care insurance (LTC). The program is expected to launch next year.

Why would you want more insurance? If you become disabled, traditional insurance, private LTC, Medicare, Medicaid, and your loving family most likely will not be enough to allow you to stay in your home and out of institutional settings (The New York Times March 24).

Here's what you need to know about CLASS:

• Enrollment. If you are working, you can enroll no matter what pre-existing conditions you have. You can have premiums deducted from your paychecks if your employer participates. Some employers will enroll workers automatically and provide an opt-out if they choose.
• Eligibility for benefits. You become eligible for benefits when you need help with two or more activities of daily living (ADL), as long as you've worked the previous three years and have contributed for at least five years. ADLs include preparing meals, eating, bathing, dressing, helping with medications, using the toilet, and so on.
• Cash benefits. The cash benefits can be used to pay for home care services, nursing home care, assisted living care, or adult day care. CLASS benefits won't cover all your costs for long-term care. The details are being ironed out--it may take awhile--but the Congressional Budget Office expects they'll average $75 a day, and be no less than $50 a day.

You might do better getting private LTC insurance, but perform a careful comparison. Fewer than 10% of older adults have bought private LTC policies. The daily cost benefits are not the only differences between CLASS and private LTC insurance. Look at the consumer protection provisions, lifetime benefits, lifetime premiums, discounts, and other features, as well as the daily cost benefits.

Buying a car?

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36 to 60 Month New/Used Auto 4.25%
72 Month New Auto 5.25%

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Matchmaker, matchmaker... make me a monetary match

No matter how much you love your spouse, chances are there's something you'd change if you had the chance. Often that desired change is about how your significant other handles money, according to a recent Thrivent Financial and Kiplinger's survey (June 2).

Nearly two in five Americans said they most wanted to increase their spouse's earning power, the survey found. Three in 10 respondents said they wish their spouse would talk about money more. Seventeen percent wish their spouse did more of the routine money management duties. Twenty-three percent of respondents want their mate to be less of a spendthrift; one in 10 wish their spouse was less of a tightwad.

A willingness to accept your partner's money personality is a start, but you have to take action if you really want to achieve financial harmony. Discussing what's important to each other can help you understand each other.

To reduce conflict and reach your and your spouse's financial goals, the Credit Union National Association's Center for Personal Finance recommends:

• Communicate - It's vital that you talk about money and your marriage. Set aside time to do so. Remain open-minded rather than insisting your partner do things your way. Make agreements to compromise.
• Set goals together - Start by making separate "wish lists" and then, together, rank the items and work toward those that you both feel are most important. Revisit goals at least annually and make adjustments based on changing priorities and goals.
• Maintain individual accounts - Consider having his, hers, and ours accounts. Use the joint account to pay household expenses, including mortgage and rent, utilities, insurance, and car and home repairs. If there's money left over, split it into your individual accounts. From these accounts you can pursue individual goals. For a spender, that might mean paying for a dream vacation. For a saver, that might mean beefing up a retirement account.
• Get professional help - If you run into roadblocks, consider getting professional help. Whether you choose to see a marriage counselor, financial planner, or another type of professional such as a member of the clergy will depend partly on whether you believe your issues have more to do with your relationship or your finances. Contact the professionals at your credit union. You also can find a nonprofit, accredited credit counseling agency by visiting the National Foundation for Credit Counseling website at nfcc.org or by calling 800-388-2227.

Leonard Wedel Scholarship Winners

Congratulations to Leonard Wedel Scholarship winners Morgan Turner and Michael Dillon! Morgan will be attending Union University this fall, and Michael is completing his Master of Divinity degreee at Southern Theological Seminary. Both Morgan and Michael will receive $2,500 from LifeWay Credit Union towards their degrees.

Flying this summer? Plan ahead

Planning to fly this summer? Expect full flights, higher prices, delays, and a difficult time using frequent flyer miles.

The number of first-class, business-class, and economy class travelers is up more than 7% from a year ago, and those increases are in no way being matched by increases in passenger seats. Air Transport Association, the trade group for the American airline industry, says domestic capacity will only increase about 0.2% this summer over last year (The New York Times June 1).

In April, Delta, United, American, Continental, and US Airways averaged domestic load factors of 85% - the measure of how many seats on planes are occupied by paying customers. Airline loyalty programs are sitting on a cache of at least nine million frequent flyer miles, say some observers. With planes filling up with paying customers and airlines not increasing the number of potential seat availability, it becomes obvious that airline reward programs will pay off less frequently (frequentflyer.com May).

Frequent flyer programs started in 1981; by 2005 travelers had accumulated more than five trillion unused miles. Where once consumers racked up rewards by flying, today consumers are more likely to rack up miles based on credit card reward programs. As a result, today there are more miles chasing fewer reward seats. In 2008, airlines began making program changes that made it more difficult and costly to exchange miles for free tickets and upgrades.

All this means travelers will have to be even more diligent when trying to recoup frequent flyer miles. Here are some suggestions from frequentflyer.com:

• Choose one frequent flyer program and concentrate your mileage earning in that program.
• Monitor your account and look for new mileage-building opportunities.
• Know how to get points from partner programs--businesses that reward miles with your particular frequent flyer program.
• Track your miles diligently. Keep receipts and reconcile mileage statements.
• Monitor expiration dates of your miles and redeem them before they expire.
• Make your plans as early as possible; space is limited.

Job hunting in the modern (cyber) world

Looking for work ain't what it used to be. Long gone are the days of circling want ads in the daily newspaper and hitting the pavement. Today, like it or not, you've got to be prepared to take your job hunt online. With the economy adding 195,000 jobs in April (U.S. Bureau of Labor Statistics May 7), you want to be as competitive as possible.

Here are some suggestions from the Credit Union National Association's Center for Personal Finance for conducting a job search in cyberspace:

• Know your way around. If your computer skills are limited, spend some time getting up to speed. Some public libraries offer Internet navigation courses, as might your local technical college. Not only will you improve your job search, but you'll also acquire the ability to fill out online applications, which are becoming more and more common.
• Investigate prospective employers. Many companies now post job openings on their websites. While you're there, study each company's information, its products and services and its industry. This will help you identify places that are a good fit for your talents and career plans. It'll also help you write cover letters that reveal knowledge relevant to the position you aspire to get.
• Consider several job search sites. By now you've probably seen ads for Monster.com, but there are many competing sites out there. On her website job-hunt.org, self-described online job search expert Susan P. Joyce says, "Many of the 'big names' are great sites, but they can also be expensive for employers to use and not attractive to some specialized groups of job seekers." Therefore, you'll need to poke around and compare search site features, ease of use, and supporting help, such as résumé guidance.
• Complement your personal network with online contacts. The more people you know who are aware that you're looking for work, the more likely you'll hear about openings that aren't advertised. Be sure to spread the word about your availability and employment interests among relatives, friends and business associates. But also set up accounts with one or more online social networks such as LinkedIn and cast your net among acquaintances you don't see every day.
• Be careful. The Web can help you snare a great job, but it also can be a trap. Joyce points out that identity thieves and con artists often use job seekers' eagerness and desperation against them. So, for example, she warns against including your Social Security number on your résumé and urges you to be "very wary of an e-mail from an anonymous employer or recruiter."

Finally, if you're successful in getting a job interview, don't forget the final step, which the Internet can never improve upon - a thank-you note, on paper and in ink, just like Mom always told you, remember?

Turn to Someone You Can Trust

"People helping people" is the fundamental philosophy on which credit unions were built. More consumers are discovering that credit unions have some important characteristics not always found at other financial institutions, such as personal service and customer advocacy.

Data from Forrester Research Inc. shows that customers of the biggest banks in the U.S. are the least likely to believe their financial institution does what's best for them as opposed to what's best for the bottom line, according to the 2009 Customer Advocacy Rankings. Americans often are wary of doing business with large profit-driven financial organizations--they believe these companies only are interested in their own bottom lines.

Credit unions, however, continue to remain near the top of the rankings, as they have in previous years, with 70% of credit union customers saying their financial institution puts their interests first. Members trust their credit unions, which are not-for-profit organizations. Members know the people at their credit union care about them and have the members' best interest at heart.

When you become a member of LifeWay Credit Union, you'll always have a place where you belong. We offer a wide variety of programs and services designed to meet the unique needs of our members. Our member-focused staff will be here to assist you face to face, and answer any questions you may have.

Whether it's to open a new account, to ask about a loan, or for any of your financial needs, stop in and see us today. We are here for you.

Looking to buy a new or used car? LifeWay Credit Union has great rates that can save you money!

Up to 24 Month New/Used Auto 3.25%
36 to 60 Month New/Used Auto 4.25%
72 Month New Auto 5.25%

Call us today for more information!