Finance Tips

The lawmakers in Colorado are debating a change in the law to correct the gender discrimination currently requiring women to pay more than men to insure their health. The facts are uncompromising. In some 90% of all private health plans, women have premium rates 60% higher than men. This is so even though the statistics show women enjoy better health than men and make fewer claims. This is so even though the men used for comparative purposes are significantly older. And, if you feel you need any more confirmation of the basic unfairness, even men who smoke pay less than female non-smokers. As one of the women promoting the bill commented: insurers often refuse coverage because the applicant has a pre-existing condition. The way the premiums are loaded, it seems being a woman is a pre-existing condition.

The people who are paid to speak on behalf of the insurance industry usually fall back on the tried and trusted defense that women have medical needs specific to their gender. The most often quoted example is maternity and prenatal care. Ignoring the fact that men also have problems specific to their gender, such as erectile dysfunction, women are still quoted premiums 60% higher on policies excluding reproductive health needs. In other words, the discrimination persists even though the scope of the medical coverage is identical. So what’s going on? The answer, in this instance, is slightly complicated. If we start with auto insurance, it’s common knowledge that young men are statistically more likely than any other group of drivers to crash into another vehicle or some stationary object. Thus, where the policy discriminates between different groups of drivers, young men pay significantly more than women who tend to drive more safely. Not all auto policies do discriminate. By spreading the risk among a big group of drivers, the good subsidize the bad. But, most auto insurers do set different premium rates for different groups of drivers distinguished by gender and age. In medicine, it’s a fact that men fall ill and die, whereas women tend to recover from illnesses. This is one of the reasons why women have a longer life expectancy than men. But it also explains why women cost more. They survive for longer with chronic problems requiring continuing treatment. Thus, if the premium is a reflection of the likely costs of treatment over a person’s lifetime, it may appear slightly more reasonable to charge women higher premiums. Except this ignores the general rule that private health insurance stops at 65 as Medicare kicks in. The major long-term costs tend to occur after 65.

Colorado looks as though it may join the one or two other states with equality provisions. There’s no evidence from these other states that men now have to pay significantly more. For now, insurers simply make less profit. As a woman, it’s particularly important to research exactly what the different companies offer. Because of this, searching for cheap health insurance is a greater challenge. Always refer to the websites of the companies making the best quotes to see if there are additional discounts available or special policies for women. If there seems to be no cheap health insurance available, talk directly with the insurers to see whether the difference between the male and female premium rates can be reduced. Not everyone is lucky enough to live in a state committed to equality. It is for you to protect yourself as best as possible.

If you are looking for a Roth IRA investment that can yield good returns with little risk, you may want to consider real estate. The more common Roth IRA investments may still be working for you, but adding real estate to your portfolio could be a good way to diversify.

Many people are unaware that they can use their retirement accounts to invest in real estate. Most people and most brokers tend to stick with a more traditional Roth IRA investment, but the laws that govern IRAs do allow other types of investments.

Lawmakers have two basic concerns in mind. They want you to have the money that you need for retirement and they want your Roth IRA investments to be fairly liquid. If you want to be safe, you should keep those things in mind, as well.

What makes a safe liquid investment? Sometimes it is easier to understand if you look at something that is not easily liquidated.

Some people are fond of antiques and collectibles. A few are actually able to make a living out of selling and trading them. But, antique dealing is not an allowable Roth ira investment. The reason is simple, when you think about it.

In order to liquidate antiques or collectibles, so that cash can be accumulated to settle a person’s debts or to pass on to their beneficiaries, an estate sale or auction is required. It is difficult to assign an accurate value to the items. They may go for more or far less than the appraised value.

An antique appraisal is typically inflated. It is largely for insurance purposes. The chances of finding a collector that is willing to pay that much are slim. Liquidating assets can often yield less than expected, but some assets are more likely to sale for at or very near to their appraised value. The best example for this case is real estate.

Buying houses, apartment buildings, raw land and other types of real estate are “legal” Roth IRA investments. Even tax appraisals are fairly accurate, so the value of the property can be easily established. When the need to liquidate arises, it is usually fairly easy to sell a property and the final price is usually fairly close to the appraised value.

In order to add real estate to your portfolio, you need to be able to make self-directed Roth IRA investments. That means that you may need to change brokers. Most do not offer their clients the option of investing in real estate. Equity Trust Company is one that does.

The best real estate deal for a Roth IRA investment is a cash deal. You may be able to obtain a mortgage in the name of your account trustee, but the process can be complicated and the interest charged can off-set or outweigh the possible profits.

What you might want to look for is a house that you can buy “cheap”, with funds already in your account. The biggest profits usually come from fixer-uppers. The cost of purchasing and repairing is often far less than what the house can be resold for in “prime” condition. If you have any experience in flipping or rehabbing houses, you probably have an idea of what to look for.

If, on the other hand, you have no experience, you might want to get some help. There are a few real estate investors that are willing to help you find the right deals and make big profits for your retirement. If you get the right help, real estate might become your favored and most profitable Roth IRA investment. It’s definitely something to consider.

Those people who are demanding that Victory Day should be abolished in Rodhe Island miss the point of the holiday. Political correctness and a desire to not offend anyone take away from the sacrifices of a generation of Americans who fought and sacrificed their lives for the survival of this nation.

As Rhode Island communities prepared to celebrate Victory Day on August 14 in recognition of the allied triumph over the Japanese Empire during World War II, “concerned” citizens opposed to the holiday began lobbing criticisms at event organizers around the state. Rhode Island, which is the only state that still celebrates Victory Day, or V-J Day as it is sometimes called, suddenly found itself at the center of the politically incorrect universe.

Critics of the holiday charge that it is discriminatory and want to remove all references to Japan and the Japanese people.

The Associated Press quoted former Rhode Island State Representative George Lima as saying, “This is a stigma against the Japanese whom we do business with and are allies.” Mr. Lima, who was responsible for a failed attempt to get rid of the holiday while serving in the state legislature during the 1980s, is a perfect example of the many out-of-touch-with-reality individuals who are so concerned they might offend someone else that they often miss the real motivation behind whatever it is they are opposing.

Responding to critics clamoring for political correctness and sensitivity, Rhode Island lawmakers made several attempts to either get rid of the holiday or, in the absence of its elimination, at least change its name.

Each time the tremendous opposition of the state’s citizens caused them to abandon their efforts. Three separate legislative bills introduced during the 1990s by State Senator Rhoda Perry attempted to change the title of the holiday to Rhode Island Veterans Day. “It was absolutely a no-winner,” Perry was quoted as saying. “I did not have support, period.”

In the true spirit of political correctness, though, the Rhode Island General Assembly did pass a resolution designed to ease some of the concerns of those critical of the holiday. The resolution, which was approved in 1990, declared that Victory Day was not a celebration of the atomic bombing of Hiroshima and Nagasaki, or of the death and destruction caused by President Truman’s decision to use nuclear weapons. Bowing to the demands of the touchy-feely, can’t-we-all-get-along crowd, the members of the General Assembly managed to change the focus of the debate on the holiday.

Proponents of the celebrations argue that Victory Day is necessary so that Rhode Islanders, and all Americans, can remember the sacrifices made during the Second World War. Not surprisingly, veterans groups are among the most ardent supporters of the holiday. They, unlike the main stream politically correct crowd, understand why Rhode Islanders are steadfast in their commitment to celebrate V-J Day.

Critics like George Lima and Rhoda Perry, who want to abolish the holiday or even change its name, have lost focus on why the holiday even exists. Here’s a reminder. In a surprise attack on December 7, 1941, over 300 airplanes from the Japanese Navy bombed the U.S. naval base at Pearl Harbor, resulting in over 3,500 dead and wounded sailors, soldiers, and marines and over 100 dead and wounded civilians.

That attack propelled the United States into a brutal war against Japan in the Pacific, a war in which our military was forced to conduct an island-hopping campaign against entrenched Japanese soldiers determined to fight to the death. Fighting in the Pacific theater resulted in some of the bloodiest battles of a war that cost us over 300,000 killed and almost 700,000 more wounded.

The celebration of Victory Day in Rhode Island is not about the Japanese people. It is about the generation of Americans who sacrificed so much in a terrible global war that threatened the very existence of our country. It is about honoring them for what they did, and not about offending our Japanese business partners and allies.

In a country where handicapped is often replaced with handi-capable, and where Happy Holidays gets substituted for Merry Christmas, it is imperative that we not let the idea of being politically correct cause us to lose focus on what is important to us as Americans. For now, at least, the people of Rhode Island are standing their ground and serving as a shining example of political incorrectness to the rest of the nation.

Greg Reeson is a frequent contributor to The Land of the Free and Associated Content. His columns have appeared in several online and print publications, including The New Media Journal, The Veteran’s Voice, The American Daily, GOPUSA and Opinion Editorials.com.