COMMENTARY ON ECONOMIC AND PLANNING ISSUES

ERROLD F. MOODY JR.

MASTER OF SCIENCE IN FINANCIAL PLANNING

LIFE AND DISABILITY INSURANCE ANALYST 0626414

REGISTERED INVESTMENT ADVISER

WWW.EFMOODY.COM

HOW TO BECOME A WEALTH MANAGER: Wharton is preparing to launch a wealth-management program aimed at wealth advisers. Students will get a Private Wealth Management certificate for the five-day program, which will cost $8,250.

Five days, 8 grand and voila, you can master someone's entire financial life.

Then there is the the College for Financial Planning, a for-profit college that's owned by Apollo Group. It launched its Accredited Wealth Management Advisor designation. The college promises advanced knowledge on asset management, investment performance, tax strategies, insurance and estate planning.

The $895 course involves no classroom time and requires students to read about 500 pages of material and answer about 500 pages of questions -- all done at home. Students take a two-hour test at home to complete the course but are allowed to use their book during the exam.

What a joke.

FAT: More than half of U.S. adults are overweight and nearly one-third are obese.

-- Obesity is the second leading cause of unnecessary deaths, causing at least 300,000 deaths in the United States each year.

-- Annual health-care costs from obesity are about $100 billion.

-- Obesity is more damaging to health than smoking, high levels of alcohol drinking and poverty, and it affects all major bodily systems-heart, lungs, muscles and bones.

-- Researchers have associated obesity with more than 30 medical conditions, and many agree that it's strongly related to at least 15 of those conditions. Overweight and obese individuals are at increased risk for such physical ailments as high blood pressure, Type 2 diabetes, coronary heart disease, stroke, osteoarthritis, pregnancy complications and gallstones.

-- Obesity is increasing globally, with currently more than 300 million obese adults around the world.

-- African Americans and Hispanic Americans have higher rates of overweight and obesity than Caucasian Americans.

-- Nearly 62% of American women are overweight and about 34% are obese.

-- Obesity has increased across all education levels and is higher among less educated people.

CLAIMS: (HealthPro) There has been a 415 percent increase in the average severity of long-term care professional and liability claims since 1996.

DEPRESSION ACCOMPANIES COGNITIVE DECLINE: People with cognitive impairment are more likely to become depressed, but depression does not increase the risk of developing cognitive impairment.

A FARCE: Principle 6 - Professionalism. A CFP Board designee's conduct in all matters shall reflect credit upon the profession.

Because of the importance of the services rendered by CFP Board designees, there are attendant responsibilities to behave with professionalism. "This principle focuses on a CFP Board designee's conduct as it reflects on the CFP certification marks and the financial planning profession.

Under the principle of professionalism, CFP Board designees must abide by all applicable laws, rules and regulations of governmental agencies and other authorities, and must report to CFP Board any actions taken against the designee by such agencies or authorities. Certain actions, such as a criminal conviction or professional suspension, must be reported to CFP Board within 10 days. Other actions, for example, a client arbitration or NASD investigation, must be disclosed during the certification application or renewal processes, although the designee has the option of reporting earlier.

"The key message here is for designees to make sure that they are in compliance with the requirements of governmental agencies and regulatory. "If a designee is subject to an action by one of these bodies, that in itself could be grounds for discipline by CFP Board under the principle of professionalism. In addition, CFP Board will investigate the underlying conduct that resulted in the action, as well as any mitigating or aggravating circumstances in the case."

Also under the principle of professionalism, CFP Board designees must report any violations of the Code of Ethics by another designee to both CFP Board and other appropriate regulatory bodies. At the same time, a report must not be made merely to harass or embarrass the individual. "The rules governing this aspect of professionalism are simply saying that a designee must have a reasonable belief that the Code of Ethics has been violated, while being respectful of others in the profession and acknowledging that some disagreements are merely differences of opinion,"

My Point? In a meeting regarding illegality called by the California Department of Insurance, the FPA refused to attend. The President of the Board of Standards lied to state regulators in an attempt to get an exemption. The CPA society did not want their reps to have to adhere to the law. And on and on. The California DOI dressed down the organizations for not mandating adherence to the law. So what happened. Here's what. I am the only CFP in the state that has ever taken and passed the Life and Disability Insurance Analyst exam. The only one. I am therefore the only CFP in this state that can offer comprehensive fee planning. Impressive isn't it?

Actually, no. I have been blackballed, sworn at- you name it. I was told by the lawyers for the Board that my continued effort to get the law enforced by demanding the Board's action would only end up with ME before the Board for activities against others CFPs. The President was never reprimanded. The illegal CFPs have been allowed to practice indiscriminately and with full purview of the Board.

The Board subsequently simply stated that it will not enforce an ethical violation unless preceded by a legal one. The letter by the DOI is not an opinion. It is a statement of a violation of law and a breach of fiduciary duty. I repeat from above, "CFP Board designees must abide by all applicable laws, rules and regulations of governmental agencies and other authorities." They cannot "advise, purport to advise, or offer to advise.........." What is so unclear? So why the problem? Because there is not a CFP by training that has even a remote chance of passing the exam. I doubt a CFP would get more than 30% of the exam I took correct. (Though it was revised this past summer, it probably maintains the same difficulty.) The reason I passed it was 20 years of experience, a lot of hard study and effort. But no one else will commit to that effort so they simply act illegally.

Ah, so much for integrity.

COUGH, COUGH: More than a third of workers (35%) admitted to calling in sick at least once in the past year, even though they weren't sick. In fact, 10% of the 1600 respondents said they had done it three or more times in that time period. Twenty percent said they called in sick simply because they didn't feel like going to work that day.

DISABILITY: MetLife has found that in its experience back sprains, fractures and repetitive-motion strains dominate short-term disability (STD) claims while sprains, disc disease, malignancies and heart disease are common among long-term disability (LTD) claims.

 MORE MERRILL ETHICS: Merrill Lynch's former chief energy trader, pleaded guilty to charges that he faked documents to bilk the firm of $43 million, saying that he was following orders from superiors to make the company's energy business seem more profitable.

HEDGE FUNDS: (WSJ) "Investors in small funds often entrust their money to people they really don't know beyond a casual reference or chance acquaintance. Charismatic though they may be, these money managers are sometimes short on experience -- or at least the kind of experience that qualifies them to trade the millions of dollars that investors hand over to them."

The article noted the losses of over $20 million sustained by family friends and acquaintances.

Once again I note the stupidity of people to invest money via referrals. Nobody does any checking, nobody asks to see the educational background- nothing. Invariably every one of these investors will say, "but I thought I could trust him.". That is really stupid.

THE IMPACT OF POPULATION AGING ON FINANCIAL MARKETS: A number of financial market analysts have argued that the aging of the "Baby Boom" cohort contributed to the rise U.S. asset values during the 1990s, and that asset prices will decline when this group reaches retirement age and begins to draw down its wealth. This paper explored the importance of changing demographic structure for asset returns, asset prices, and the composition of household balance sheets in the United States. Standard models suggest that equilibrium returns on financial assets will vary in response to changes in population age structure. While the direction of the effect of demographic changes is not controversial, the quantitative importance of such changes for financial markets is open to debate. The paper presents several strands of empirical evidence that bear on this issue. First, it describes current age-specific patterns of asset holding in the United States, and finds that asset holdings rise sharply when households are in their30s and 40s. Aside from the automatic decline in the value of defined benefit pension assets as households age, however, other financial assets decline only gradually during retirement. When these data are used to project asset demands in light of the future age structure of the U.S. population, they do not show a sharp decline in asset demand between 2020 and 2050. This finding calls into question the "asset market meltdown" view. Second, the paper considered the historical association between population age structure and real returns on Treasury bills, long-term government bonds, and corporate stock. The evidence suggests only modest effects, if any, of a changing demographic mix. Statistical tests based on the few effective degrees of freedom in the historical record of age structure and asset returns have limited power to detect such effects. There is a stronger historical correlation between asset levels, as measured for example by the price-dividend ratio, and summary measures of the population age structure. Once again, however, the results are sensitive to choices about econometric specification. These empirical findings provide modest support, at best, for the view that asset prices could decline as the share of households over the age of 65 increases.

Pay attention- those were important words covering the next 20 years.

VARIABLE ANNUITIES. The NASD- the (supposed) oversight entity for the securities industry is proposing new guidelines:

Suitability: Before recommending a deferred variable annuity to a client, a registered representative must ensure that the customer has been informed of the unique features of the variable annuity and has a long-term investment objective, and that the deferred variable annuity and its underlying subaccounts are suitable for the customer with regard to risk and liquidity.

Disclosure: The firm or its representative would be required to provide the customer with a current prospectus and a separate, brief, "plain English" risk disclosure statement highlighting the main features of the variable annuity contact, including:

-- Liquidity issues, such as potential surrender charges and IRS penalties;

-- Sales charges;

-- Fees (including mortality and administrative fees, investment advisory fees, and charges for riders or special features);

-- Federal tax treatment for variable annuities;

-- Any applicable state and local government premium taxes; and

-- Market risk.

Principal Review: Before a registered representative could finalize any variable annuity transaction, a registered principal would be required to review and approve the transaction.

Supervision and Training: Registered firms would have to establish and maintain specific supervisory and training procedures to make sure registered representatives comply with the NASD's rules on variable annuities.

Here’s a better solution- don’t buy one. The fees are exorbitant.

HOW HUMANS BEHAVE: Implications for Economics and Economic Policy

People’s behavior tends to change as their circumstances change, undermining consistency over time and context. This lack of consistency is not a fault; rather, it is a remarkable defining capacity that allows us to engage in complex social situations. Moreover, as psychologists and neuroscientists agree, although individuals perceive themselves to be unitary creatures, that impression is likely illusory. While the evolved subsystems that make up the human brain do communicate, in many contexts one system or the other tends to dominate. In some circumstances, for instance, emotions and drives can control our “thinking,” radically changing our preferences, our taste for risk, the degree of empathy we feel—in effect, profoundly altering our “rationality” and our perception of utility. Somewhat ironically, moreover, it is the unconscious behaviors that are (relatively) predictable. It is consciousness or cognition that introduces the element of unpredictability in human behavior. All told, given the structure of our brain, it is unlikely that humans will behave as if they are consistently maximizing any single utility function. Rather, their utility function will seem to vary with their circumstances.

Economic theory should reflect how people actually think, feel, and behave. Although the rational model is often a good first approximation to how people make economic decisions, human behavior has proven to be far more complicated than the canonical paradigm assumed by economics. The complexity derives from human evolution. The human brain did not evolve simply to maximize the types of problems framed in modern economic discourse.

TRUSTED ADVISORS: (NY Times) H&R Block Inc.'s financial advisors unit was charged last year with fraud by securities regulators for misrepresenting the risks of Enron Corp. bonds and calling them safe, even as the energy trader had begun its collapse into bankruptcy.

The four-count civil complaint by the NASD concerns the recommendation and sale by about 200 H&R Block Financial Advisors Inc. brokers of $16.4 million of Enron bonds to 820 customers in 40 U.S. states from Oct. 29 to Nov. 27, 2001. H&R Block, which is also the biggest U.S. tax preparer, paid brokers ``significantly higher'' sales credits on Enron bonds than on similar bonds and made $546,000 in profit from the Enron bond sales while its customers lost millions of dollars.

As long as people choose advisors without scrutinizing their background, this type of activity will continue.

WHAT LOVELY WORDS: (Insurance Marketplace Standards Association) "The recent spotlight on our industry is a powerful reminder that ethical business practices are more than just the right thing to do.. "Ethics is a bottom-line issue for the insurance industry.

"In the months to come, there will be intense scrutiny about the role of market conduct standards and how to best create strong, more efficient consumer protections while recognizing today's dynamic marketplace realities. The need for rigorous standards of ethical business practices is key to any discussion about the future of market conduct regulation."

That is not true. The Association is aware of vast violations by representatives in many states and has never done anything to stop the practices. But the words are lovely.

FAT: (Journal of Occupational and Environmental Medicine) More than a quarter (29%) of American workers are obese, compared with just 20% a few years ago. The study found that 7% of the obese employees said they had some form of work limitation due to health or other issues, compared with 3% of other workers, and that more than a third (35%) of obese workers had high blood pressure, compared with 9% of normal-weight workers, and also suffered from higher exposure to high cholesterol levels and diabetes. All told, the impact of obesity on worker health and productivity was equivalent to adding 20 years of age,

MORE FAT: (Harvard School of Public Health) There has been some suggestion that if you are particularly active, you don't have to worry about your body weight, about your diet. That's very misleading.

Women who were physically active but obese had almost twice the risk of death of women who were both active and lean. Women who were sedentary but slender were 55% more likely to die. Women who were both sedentary and obese were almost two and a half times more likely to die.

"Being physically active did not cancel out the increased mortality of [being] overweight. Being lean did not counterbalance the risk effect of being sedentary,

BRIDGING THE LANGUAGE BARRIER (Jude Roberts)

As a caregiver for a loved one with Alzheimer’s, the difficulties of getting their attention and having them understand you and the professional members of the caregiving team can be a very real challenge. Along with these issues, what if there was also a communication gap caused not only by the disease, but by a language barrier? What if your loved one speaks another language other than English? Because of this, an experience with a doctor or professional caregiver can be very scary and frustrating for a loved one. The Alzheimer’s Association recognized the ever-emerging need for a translation service available to family caregivers, their loved ones, and the professional members of the caregiving team.

Cathy Sewell, Director of Client Services at the Alzheimer’s Association’s Headquarters in Chicago, says the “language line” was a natural progression created from a market study done in 1999. Cathy says the translation service came about “because of the Alzheimer’s Association’s diversity initiative to be culturally competent, reaching out to the under-serviced throughout the country.” Since the inception of the national “24-7” Contact Center 2-1/2 years ago, and with 150 different languages spoken throughout the country aside from English, Cathy went about the daunting task of creating an even more extensive translation service for family and professional caregivers. One of the requirements of the Alzheimer’s Association was to find a language service with the ability to translate the word “dementia” with compassion, and that this word needn’t mean “crazy” in any language.

The Alzheimer’s Association chose NetworkOmni Multilingual Communication as their partner. NetworkOmni is a global language solutions company with headquarters in California. NetworkOmni immediately made a great impression on the Alzheimer’s Association. “They weren’t only easy to work with, but they took a true interest in learning all about Alzheimer’s disease, wanting to know how they could help us better serve caregivers and the Alzheimer’s Community,” says Cathy, “and their personnel took the time and effort to inform their interpretive staff of all our concerns regarding the need for a compassionate translation service, along with the need for extreme sensitivity when dealing with caregivers and their loved ones.” The service is free to family and professional caregivers, with the Alzheimer’s Association absorbing the entire cost.

The “language line” works quite simply by organizing a three-way, conference call between the family or professional caregiver, a care consultant from the Alzheimer’s Association, and an interpreter from NetworkOmni. A caregiver calls the Alzheimer’s Association’s national Contact Center, speaks with a care consultant and requests the translation service, stating the specific language that is needed. The care consultant then calls NetworkOmni, with the caregiver still on the line, making sure that everyone is connected to one another.

One story that illustrates the “language line” concerns Alex Karski and his 86 year-old, Polish-speaking mother who was diagnosed with Alzheimer’s disease just last year. For the past 20 years, she’s enjoyed the independence of living alone in Chicago, and still wants to maintain her routine. In order for her to remain independent for as long as possible, her son hired a Polish-speaking caregiver to aide his mother with the daily tasks of bathing, dressing, food preparation, and keeping up with medications. However, since the caregiver had no formal training in Alzheimer’s or dementia care, she found the man’s mother more and more difficult to work with, and she was unsure of how to handle the increasing demands that the disease was placing upon her. Alex noticed that the caregiver was becoming frustrated and short-tempered when dealing with his mother. He called the Alzheimer’s Association. Between the care consultant and the interpreter, they were able to educate the caregiver on the symptoms of Alzheimer’s disease, giving her several suggestions and communication tips. It was exactly what the caregiver needed, and since knowing that she has a place to turn to at all times, it has made all the difference in her ability to better care for and understand someone with Alzheimer’s disease.

Many caregivers do not realize that the “24-7” Contact Center exists. During normal, weekday working hours, when someone calls the Alzheimer’s Association, the system automatically transfers them directly to the closest, local chapter. After hours and on weekends, when the national 800 number is contacted, headquarters in Chicago answers the call on behalf of the local chapters. There’s always someone accessible for caregivers to speak with, and the “language line” is available to them at all times. With over 500 calls coming in on a daily basis, the “24-7” Contact Center is able to, as Cathy Sewell puts it, “empower caregivers to do what they need to do, like attend support groups, receive respite care, obtain important information regarding the disease, or receive a listening ear when they so desperately need one.”

Another service that has been a huge success and has had a great impact for the Alzheimer’s Association is the “Safe Return” program. Started 10 years ago, the “Safe Return” program is designed to help caregivers locate missing loved ones who have wondered off. “At least 60% of all people with Alzheimer’s will wander at some point,” says Cathy, “with wondering occurring even in the early stages of Alzheimer’s.” When someone has been identified as having Alzheimer’s, their caregivers can have them enrolled in the national “Safe Return” program, which builds a composite for law enforcement agencies and authorities, enabling them to gain valuable information when searching for a missing loved one. The program provides loved ones with an ID bracelet which states that the person is part of the Alzheimer’s Association’s “Safe Return” program. The bracelet provides a telephone number that can be contacted immediately. The program also distributes important information to local law enforcement agencies in the area where a loved one may be reported as missing, providing them with a photograph along with important medical and contact information.

The Alzheimer’s Association has so much to offer both family and professional caregivers, and yet Cathy Sewell is concerned that many do not realize what’s available to them every day, around the clock, and at no cost. “The Alzheimer’s Association has a dual mission ... care and research ... we care about both deeply.”

LTC: Medicare can pay for some nursing home care for recovering patients. This is called skilled nursing care. It typically lasts an average of just 23 days while patients recuperate to the point where they can be sent home to complete their recovery. As long as they continue to be eligible, Medicare will pay 100% of their eligible expenses for the first 20 days, and all except $114 a day (2005 amount) for up to 80 more days. After they have recovered sufficiently, Medicare's benefits stop even though the patient may remain in the nursing home as a permanent long-term resident.

On the other hand, Medicaid (MediCal in California) pays about half of all nursing home expenses. But, relying on Medicaid reduces a senior's options to just one ... a Medicaid nursing home with at least one roommate (no privacy). If local homes are full, the senior must go wherever a bed is available, even if it is hours away from family and friends. While no one really knows how this affects people with advanced Alzheimer's or senility, it can be devastating for a frail elderly person who is still mentally alert.

9 out of 10 nursing homes that accept private-pay patients also participate in the Medicaid program. If your loved one is not on Medicaid when they move into one of these homes, they cannot be discharged later if they run out of money and have to go on Medicaid. But, the nursing home can move them, without anyone's permission, into a lower-cost room, including a ward-type room with several roommates, or into a special Medicaid section of the facility.

LIFE EXPECTANCY INCREASE: (National Center for Health Statistics) Life expectancy at birth was 47.3 years in 1900, rose to 68.2 by 1950 and reached 77.3 in 2002. The latest annual report of the Social Security trustees projects that life expectancy will increase just six years in the next seven decades, to 83 in 2075. A separate set of projections, by the Census Bureau, shows more rapid growth.

Social Security says male life expectancy at birth will be 81.2 years in 2075. The Census Bureau, using different methods and assumptions, says that level will be reached much earlier, in 2050.

Likewise, Social Security says female life expectancy will reach 85 years by 2075, while the Census Bureau says it will exceed 86 in 2050.

For the American population as a whole in the last century, most of the gains in life expectancy at birth occurred from 1900 to 1950. But most of the gains in life expectancy among people who had already reached age 65 were seen after 1950.

BONE DENSITY: Did you know most people have five percent more bone mass in the arm they use most often? This surprising fact illustrates how physical activity can help increase bone mass. Along with getting enough calcium, exercise is the best defense against osteoporosis, or “brittle bones.”

While outdoor exercise can be hard to get during the cooler winter months, there are a slew of indoor options, from gym classes to home videos to walking in shopping malls. More and more gyms have programs specifically designed for older adults, so if you think you’re too old for the gym, think again!

Medicare will cover the cost of a bone mass measurement every two years for people at risk for osteoporosis.

FEES: (Morningstar) The average U.S.- stock fund pays 0.71% of assets each year for portfolio management; this and other charges add up to total expenses averaging 1.51%. Ten Things to Ask Before Buying a Fund (WSJ)

1. What type of securities does this fund buy?

Fund researchers classify funds based on the types of securities they hold. Within the universe of stock funds, for instance, there are funds that invest only in U.S. issues and those that invest in foreign stocks. Holdings may be mostly large stocks or small ones, fast-expanding "growth" companies or seemingly cheap "value" ones. Some funds focus more narrowly on a single industry or one foreign nation.

2. Does a fund of this type make sense for my portfolio?

Look at the bigger picture before weighing the particular fund. Your investment portfolio should include a mix of stock funds for their potentially high returns and bond and money-market funds for their lower risk. Through your stock funds, you should hold companies of different sizes and types around the world. If you are looking at a fund that buys small growth stocks and you've already got four such funds, it's probably time to say no. Take very little risk with money you will need within a few years.

3. Is now a smart time to buy?

Too often, it's hot performance -- and nothing else -- that makes investors consider a fund. Be wary if a type of fund has been shooting the lights out for the past few years; it may be due to cool off. Think instead about types of funds that are underrepresented in your portfolio or have been going through a period of weak performance.

4. How well has the fund performed relative to its objectives?

You obviously don't want a fund that has been a perennial laggard compared with other, similar funds. But a fund that is the past year's star in its category may have gotten there by taking extra risk or through luck. Favor funds that have been solid performers versus peers for longer periods such as three, five and 10 years.

5. How much risk does this fund take and can I stand it?

Among stock funds, funds holding large "value" stocks tend to be fairly sedate while those with small "growth" stocks are more likely to soar and swoon. In the bear market that began in 2000, many investors found they didn't have the stomach to hold onto the most volatile funds. You can get an idea of a fund's riskiness by looking at its best and worst three-month periods or the magnitude of its ups and downs over the past few years. For comparison, the big-stock Standard & Poor's 500-stock index lost 22% in 2002 and gained more than 28% in 2003.

6. Is there any reason this fund's performance might slump compared with peers?

Be wary of small-stock funds that have posted great results and then ballooned in size as new investors rushed in. Because small companies have limited shares outstanding, the manager of a greatly enlarged fund may have to buy many more stocks or shift the fund's focus to larger stocks. Be cautious also if a mutual fund has recently lost a highly regarded portfolio manager.

7. Are the fund's annual expenses reasonable?

Various charges, including the portfolio manager's fee, are subtracted from a fund's assets and thus reduce your return. But because "you don't pay the bill yourself," many people fail to pay attention to those costs, says Nancy Smith, a fund consultant and former Securities and Exchange Commission official. For comparison, the average U.S.- stock fund pays 0.71% of assets each year for portfolio management; this and other charges add up to total expenses averaging 1.51%, according to Morningstar.

8. If I'm buying through a broker, how will that person get paid?

Brokers and other financial advisers can be paid in many ways, from annual fees that you pay directly based on your portfolio's size to far-less-visible charges that are built into the annual expenses of the funds your broker recommends. If the fund has an annual "12b-1" fee, for example, it may be going to pay the broker.

9. If the fund has multiple share classes, is this the best share class for me?

Many funds offer multiple share classes that pay the selling agents differently. Depending on how much you are investing and how long you hold your investment, one share class may be much better for you than another. Two regulatory Web sites, www.sec.gov and www.nasd.com, have detailed explanations and calculators that can help you select a share class.

10. Does the fund company run this fund in my best interests?

You want to do business with fund management firms that put investors' well-being ahead of their own business interests. Many financial advisers look for fund companies that have low fees, that avoid introducing trendy funds and that have portfolio managers and executives who invest their own money in the funds. Think carefully about fund firms that have been implicated in the past year's fund-trading scandals.

GETTING INVOLVED: An Introduction to Rehabilitation for the Primary Caregiver (Christian Andaya RPT )

What should a caregiver expect when their loved one is facing a long regimen of rehabilitation? The whole process can be a mystery and often it is unclear as to what role the caregiver should play in the process. The more progress your loved one makes in rehab, the better you both will feel. The process of rehabilitation is not an easy one but with your help and support, your loved one will gain back the most capability possible.

How do you get the most out of your love one’s rehabilitation? It’s just a matter of getting INVOLVED. Make sure you read about your loved one’s condition and educate yourself so you can ask the right questions. Try to understand what your loved one is going through medically. Be familiar with of your loved one’s insurance benefits. For example, the “length of stay” in a facility should be discussed with the staff. If your loved one dislikes hospital food ask dietary staff if you could bring the patient’s favorite foods. In rehab, it’s the doctor that orders and discharges the therapy or nursing services. Be aware that nurse practitioners, chiropractors and physician assistants can also give some orders. Getting involved may mean a lot of different things depending on your particular situation but there are certain basic guidelines you should try to follow.

Usually there is patient conference scheduled that family members can attend. Make sure you can be there. If one is not scheduled, ask that one be arranged. At the conference you will be informed about your loved one’s overall medical, physical, emotional and psychological status. The goals for the patient are established and the expectations of the patient, family, medical professionals, including case managers, are also discussed.

When therapy has started, you should frequently discuss the progress that your loved one is making with the physical therapist, occupational therapist, in house doctor and nurses. Ask any questions that you have and make certain your perception of how your loved one is doing is the similar to theirs. Ask permission to and read the medical charts. Do not be intimidated by the medical setting or your lack of a medical education. Go over every page and ask about anything you don’t understand. Remember that everything is written in the medical charts including changes in medication. The patient has the right to go over her/his chart as does the primary caregiver with proper authorization. You can ask the case manager for details.

Attend every activity including physical therapy, occupational therapy and speech therapy appointments. Talk with each of the different therapists about your loved one’s routine. Family members with appropriate training can learn and easily do some of the exercises. Ask if you could help do the exercises with your loved in their free time. You should also encourage your loved one to attend every scheduled activity. Rehabilitation is never easy and your loved one will need your support to get the most out of it. It also helps the patient battle depression. A great deal of success is dependent upon the patient’s willingness to get better, but always keep in mind that your loved one has the right to have a bad day or even refuse entirely.

When your loved one has shown sufficient progress to think about going home, you should inquire about the discharge date and get yourself involved with the planning in plenty of time. Ask about the necessary equipment that Medicare or insurances can purchase. If the equipment cannot be purchased through insurance, go to the nearest second hand shop or look in the classified section of your local paper. I have seen brand new walkers, bedside commodes, canes and wheelchair for sale in a fraction of the new price. If you do find second hand equipment, make sure you have it checked with the PT, OT, and NSG staff. Medical equipment shops also can offer second hand equipment, as do some charitable institutions.

As the primary caregiver, you are an important member of a team working together to improve your loved ones health. Your understanding and participation is just as important as the medical professionals who are working very hard to help your loved one’s physical and mental outlook. Work with us and ask questions and we will all see the best results.

INVESTOR SURVEY OF PROPOSED BROKER RULES: Findings uncovered that 53% depend on stockbrokers for more than transactional assistance. In fact, 28% mistakenly think that investment advice is a primary service offered by stockbrokers and therefore look to them to fill that need. On the other hand, a measly 26% understand that the chief role of a stockbroker is to buy and sell investment products.

And 86% of those investors believed that a stockbroker should be required to disclose to an investor any incentives or other forms of compensation that the broker is receiving to push a given product.

Dream on!

PRISON: Since 1995, the federal prison population has grown an average of 7.7% a year, compared to 3.3% for the state prisons population.

Both pro-prisoner and pro-law enforcement groups say the growth in federal prisoners is the result of the Bush administration's policy of aggressively enforcing federal drug laws.

• Louisiana, Mississippi, Texas, Oklahoma and Alabama had the highest rate of incarceration by population, each with more than 635 prisoners per 100,000 residents. The national average was 482 prisoners per 100,000 residents.

• The female prison population has increased far more rapidly than the male population. There were about 101,000 women in state or federal custody last year, up nearly 50% since 1995. Texas, California and the federal prison system accounted for nearly one-third of all female inmates.

• Prisoners under the control of the Bureau of Immigration and Customs Enforcement, a merger of the Immigration and Naturalization Service and other agencies, grew 12% in 2003, to nearly 24,000.

• The racial composition of America's prisons remained relatively unchanged. As of Dec. 31, 2003, about 44% of all inmates were black, 35% were white and 19% were Hispanic. Nationally, about 9% of all black males age 25 through 29 were in prison, compared to nearly 3% of Hispanic males and 1% of white males.

HEART ATTACKS: (BMJ) Nine in 10 heart attacks can be predicted on the basis of nine risk factors, which are the same all over the world irrespective of ethnic group or sex, global research in 52 countries has found.

An abnormal ratio of apolipoprotein A to apolipoprotein B—a more sensitive marker than the ratio of high density to low density lipoprotein—and smoking accounted for two thirds of total risk.

Smoking six to 10 cigarettes a day doubles the risk of heart attack, according to the findings. Smoking 20 cigarettes a day increases the risk fourfold and 40 cigarettes a day gives rise to a ninefold increase in risk.

Other factors included high blood pressure, diabetes, abdominal obesity, low daily fruit and vegetable consumption, a lack of exercise, and stress. However, a small amount of alcohol—around three drinks a week—was moderately protective.

DRINK UP: (2001-2002 National Epidemiologic Survey on Alcohol and Related Conditions)  The number of American adults who abuse alcohol or are alcohol dependent rose from 13.8 million (7.41 percent) in 1991-1992 to 17.6 million (8.46 percent) in 2001-2002.

ASSISTED LIVING: The average age of a person in assisted living is 85.

ALZHEIMERS: What's the connection between diet and exercise and Alzheimer's?

Answer:  The single factor in diet that has gotten the most attention is a diet rich in disease-fighting antioxidants like vitamin E. There are studies indicating that these factors may have a mild protective affect, but the effects have not been terribly dramatic.

One of the most consistent beneficial things one can do is to have an active and stimulating life. Consistent mental and cognitive exercise like reading, doing crossword puzzles, learning a musical instrument or foreign language -- what some call the "use it or lose it" theory of keeping your brain healthy -- seems to be a good idea. Regular exercise also seems to be important. Studies indicate very active lifestyles into late life offer substantial protection against Alzheimer's.

BRIGHT(?) DOCTORS: (NY Times) About 4,000 doctors and dentists across the nation bought tax-reduction plans in recent years from the company, Xelan, evading $420 million in taxes, not including interest and penalties.

Xelan had set up several types of plans aimed at helping doctors and dentists lower their tax bills. The government is focusing on two of them, one involving a charity administered by Xelan and the other, disability insurance, which the company said would allow investors to defer taxes on income for seven years.

The I.R.S. says that it found some two dozen instances of doctors using the charity to make "contributions" to their children's college tuition. (How stupid can you be?)

ENERGY (Dick LePre) There are 437 nuclear power plants in the world. There are 110 nuclear power plants in the U.S. Nuclear power plants produce about 1,000 gigawatts. Diablo Canyon nuclear plant produces 2.19 gigawatts.An equivalent fossil plant would have to consume 20 million barrels of oil or 4 million tons of coal to generate as much power. In the U.S. 51% of the electricity comes from coal, 20% from nuclear, 15% from natural gas, 8% from hydro, 3% from oil and 2% from "non-hydro" renewable

NO NONSENSE FINANCE

McGraw Hill- Available at Amazon.com

During the last month, I have had numerous radio interviews, been on CBS TV and have also spent several hours with Consumer Reports on their upcoming commentary on Annuities

BRITISH HEALTH: Office for National Statistics. Probably very similar to the U.S. but I have not seen this study here.

Life expectancy in Great Britain increased between 1981 and 2001. Females born in 2001 can now expect to live an average of 80.4 years (versus 76.8 years in 1981) and males an average of 75.7 years (versus 70.9 years). Although women have also in the past had a longer life expectancy than men, the new data show that life expectancy is increasing at a faster rate for males than for females.

The researchers also looked at the quality of health in the extra years. Healthy life expectancy was quantified and defined as the expected years of life in good or fairly good health. In 2001 healthy life expectancy at birth was 67.0 years for males and 68.8 years for females. Although these values are slightly higher than for people born in 1981, healthy life expectancy has not been rising as fast as life expectancy.

People may be living longer, but the extra years are largely lived in poor health (defined as the difference between life expectancy and healthy life expectancy). In 1981, the expected time lived in poor health for males was 6.5 years; by 2001 this had risen to 8.7 years.

Women are even worse off, according to the data. Those born in 1981 could have expected to live in poor health for 10.1 years in 1981, but this rose to 11.6 years by 2001.

ERROLD F. MOODY JR.

BSCE, LLB, MBA, MSFP, PhD

Life and Disability Insurance Analyst

2232 W. Ave 133

San Leandro, CA 94577

Phone & Fax 510 352-4127

Marina Office 510 357-1554

Cell 510 459-7797

EFM@EFMoody.com

ELDERLY PEOPLE ARE AT GREATER RISK OF SUICIDE: Elderly people have a higher risk of completed suicide than other age groups, and prevention and management should focus more on this group of people. In a review, O'Connell and colleagues explain how psychiatric illnesses (most notably depression), certain personality traits, and neurological illnesses and malignancies are associated with a high risk of suicide. Social isolation and being divorced, widowed, or single also increase the risk. People who have attempted suicide are at higher risk of subsequently being successful.

SOCIAL SECURITY DISABILITY: In 1998 - only 35% of Social Security disability claims were approved!

DEPRESSION ACCOMPANIES COGNITIVE DECLINE: People with cognitive impairment are more likely to become depressed, but depression does not increase the risk of developing cognitive impairment.