Healthcare Traveler - March 2009 - (Page 17)

Med Ec-cerpts HIGHLIGHTS FROM MEDICAL ECONOMICS Money management » Updating your will How often should I update my will? A: Advisers vary in opinion, but most when its stock price is higher than the bond’s conversion price. David J. Schiller, JD recommend updating your will every one to five years. However, nearly all are in agreement that your will should be studied when certain life circumstances change. For example, a family situation (death, birth, divorce, severe illness, etc.) or a sudden change in wealth are the types of events that merit attention. Estate and tax law modification, along with a move to another state, are also reasons to prompt a review. Be sure to meet with your attorney if your views or opinions differ from the time you last addressed your will (i.e., you have a new favorite charity or an important person in your will falls out of favor). Another point to remember: Let your closest family members and key advisers know where your will is located. Steven Austin » Relief from overdraft fees I made an error that created an overdraft and was charged a high fee. Is it worth contacting my bank to see if it will waive it? A: Absolutely. Most bankers value limit conventional loans to $417,000 or less, so that’s something to consider since rates are near historic lows. But when you go beyond $417,000, mortgage rates are substantially higher—a situation that should rectify itself once the housing market and mortgage industry stabilize. An experienced mortgage lender can guide you through the various refinancing expenses. Then you can compare the cost of refinancing to your projected savings on interest over the life of the new loan. Steven Austin relationships, and one inadvertent error should not affect that relationship. Ask for some relief of the charges after explaining the isolated situation, and there’s a good chance that your banker will accommodate you. Another point to consider is whether your insufficient checks were paid or returned, and whether you were personally notified. The answers will tell you a lot about your banking relationship. Steven Austin » Donating stock to charity Is it better to give to a charity stock that has appreciated or depreciated? A: Never donate stocks that have gone » When to consider refinancing » Investing in convertible bonds What are the risk-reward tradeoffs associated with convertible bonds? A: Investors who think they’re getting Is now a good time to refinance my home? A: Maybe. Lenders in most regions below your basis, since you will not be able to write off the loss. It is better to sell the stock, take the loss, and give the proceeds to the charity. Conversely, if you have a gain and have held the stock for at least one year, gifting appreciated stock is advantageous since you will not only enjoy the tax deduction, but you avoid the capital gains tax on your investment as well. David J. Schiller, JD the best of both worlds with a convertible bond should be wary. It’s true that convertible bonds may be converted to stock for a fee, often at the bond holder’s discretion, but there are drawbacks associated with this type of investment. First, because they can be converted into stock, convertible bonds generally offer a lower rate of return than typical corporate bonds. So if the stock price doesn’t rise, you’re stuck with a bond that offers inferior returns. Further, most companies that issue convertible bonds have the right to “call” them at any time, meaning that the company can force you to convert the bond into stock. A company may do this Down market doesn’t affect most investors’ strategies D espite volatility in the stock market, 60% of U.S. consumers say they are not altering their investment choices, according to a December survey by market research ﬁrm Morpace. The firm asked 1,015 consumers age 18 or older over the Internet how a down market affects their investment choices. Sixty percent answered “No change: I have set a long-term plan and don’t overly worry about short-term fluctuations,” while 33% responded that they have become “more conservative.” Stocks, bonds, and mutual funds reportedly now account for 16% of investors’ portfolios, down from 21% in July, according to Morpace. But when 401(k) and IRA plans are included, the decline in proportion of market-related assets is less than 3 percentage points. The results of this monthly survey have been nearly identical since July, according to Morpace. —Morgan Lewis, Jr. This department originally appeared in Medical Economics, a sister publication. For subscription information, call 877-922-2022. www.memag.com www.healthcaretraveler.com March 2009 Healthcare Traveler 17 http://www.memag.com http://www.healthcaretraveler.com

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Healthcare Traveler - March 2009 Editor’s Desk Contents Paws for Thought Field Notes Company Corner In a Flash Rural ORs Balancing Act Clinical Highlights Drug Update On Assignment Cityscape Name It Tax Facts Big Deals Advertisers’ Index Going the Distance Contest Rules Allied Corner Classifieds Tales from the Road

Healthcare Traveler - March 2009

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