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July 23, 2010 - Diving Into Financial Reform's Impact on Retirement

What? You haven't been spending your summer days poring over the Dodd-Frank Wall Street Reform and Consumer Protection Act (also known as the financial regulatory reform bill)? At 2,300-plus pages, the legislation that was signed into law by President Obama Wednesday is hardly beach reading. Several of the provisions that do touch investors directly call for further study and won't likely go into effect for at least a few more years, if at all. However, Morningstar's director of personal finance, Christine Benz, says that some aspects of the legislation are worth keeping on your radar if you're a retiree or preretiree; the bill is also notable for what it doesn't include.

When Is the Right Time to Purchase Long-Term Care Insurance?

My husband and I are in our early 50s with no kids. We'd like to purchase long-term care insurance but wrestle with the right time to do so. I know it's cheaper to buy a policy when you're younger, but my hope is not to need this coverage for another 30 years, if at all. Any guidance?

Christine Benz answered this question by noting that with nursing home care averaging $200 a day in 2008, according to MetLife (and skilled home health care or nursing care at higher-end facilities or in high-cost geographies costing a lot more than that), you're wise to contemplate a purchase of long-term care insurance. But there's a crucial question: When is the time to buy it? Timing a long-term care insurance purchase is more art than science and involves guessing about your own health and future.

Among the other topics we addressed this week:

* Would Automatic IRAs Help Address Retirement Shortfalls? Congress may consider automatic IRA contributions for employees without employer-sponsored retirement plans.

* Risk-Conscious Ways to Make Emerging-Markets Plays. These attractive emerging-markets funds provide a relatively smooth ride.

* These Young Funds Aren't a Gamble. Three proven managers set off to run money and business their own way.

* The Error-Proof Portfolio: Don't Forget to Sweat the Big Stuff. Ask yourself these five questions.

* Emerging-Markets Bond Funds: From Emerging to Converging. This asset class has many strengths, but don't expect a repeat of the last decade.

* Morningstar's Stock Star Rating Report Card. Our track record for the first half of 2010.

* Opportunities and Pitfalls in the Current Real Estate Market. Real estate expert Ilyce Glink discusses how to be a savvy property investor, tips for sellers, the case for vacation homes, and more.

* Income or Total Return? Retired Users Weigh In. Most vouch for a combination approach.

* Don't See Doom in Every Data Point. It's far too early in the recovery to panic over a month or two of sloppy economic data.

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