How Money Works Logo

How Money Works Educator - Bryan D. Linder

Bryan D. Linder

HowMoneyWorks Educator

610 Elm Street
Suite 400
McKinney, TX 75069

Schedule Appointment

August 2, 2022

Is Your Cash Flowing?

Jump to Article

Subscribe to get my Email Newsletter

How Consumers Prefer to Cover Long-Term Care Costs

How Consumers Prefer to Cover Long-Term Care Costs

It’s a fact—consumers prefer long-term care riders to stand-alone long-term care (LTC) insurance.

In 2018, 350,000 Americans bought long-term care insurance.¹

84% chose linked-benefit coverage. In other words, their LTC insurance was a rider on a life insurance policy or another financial vehicle.

Only 16% chose stand-alone LTC insurance.

If you had to guess why riders won out, what would you say?

  • Because LTC riders are often far more affordable than stand-alone insurance?²

  • Because LTC riders aren’t subject to steadily increasing premiums?³

  • Because stand-alone LTC insurance is growing harder and harder to qualify for?⁴

If you guessed any of the above, you’d be right! They’ve all contributed to the rising popularity of LTC riders.

For many, LTC riders are a no-brainer. If something’s more affordable, easier to qualify for, and less subject to change, wouldn’t you prefer it, too? And considering that 70% of people age 65 and older will need LTC, it’s a form of financial protection everyone should explore.⁵

That’s not to say an LTC rider is the perfect solution for your situation. If you don’t need permanent life insurance, then a stand-alone policy may be the way to go. That’s why it’s critical to meet with a licensed and qualified financial professional—they can evaluate your situation and what tools and strategies best meet your needs.

  • Share:

This article is for informational purposes only and is not intended to promote any certain products, plans, or policies that may be available to you. Any examples used in this article are hypothetical. Before enacting a savings or retirement strategy, or purchasing a life insurance policy, seek the advice of a licensed and qualified financial professional, accountant, and/or tax expert to discuss your options.


¹ “Long-Term Care Insurance Facts - Data - Statistics - 2019 Report,” American Association for Long-Term Care Insurance, Nov 2019, https://www.aaltci.org/long-term-care-insurance/learning-center/ltcfacts-2019.php

² “Should I add a long-term care rider to my life insurance policy?” Nupur Gambhir & Rebecca Shoenthal, PolicyGenius, Jan 25, 2022, https://www.policygenius.com/life-insurance/long-term-care-rider/

³ “Should I Buy Life Insurance With a Long-Term Care Rider?” Sterling Price, ValuePenguin, Mar 14, 2022, https://www.valuepenguin.com/life-insurance-long-term-care-rider

⁴ “Knowledge Tracker: The Collapse of Long-Term Care Insurance,” Alexander Sammon, The American Prospect, Oct 20, 2020 https://prospect.org/familycare/the-collapse-of-long-term-care-insurance/

⁵ “How Much Care Will You Need?” LongTermCare.gov, Feb 18, 2020, https://acl.gov/ltc/basic-needs/how-much-care-will-you-need

A Bold Strategy to Free Up Cash Flow

April 7, 2022

A Bold Strategy to Free Up Cash Flow

Need cash flow? Consider reducing your largest expenses.

Housing, transportation, and food consume more than 60% of the average American’s income.¹ If you’re willing to cut costs in those categories by just a fraction, you could save far more than eliminating smaller budget items. Think of it like this—cancelling a few unused online subscriptions is a good start, but it might not save you nearly as much as downsizing your apartment!

Here’s how it works…

You’re ready to get your financial house in order, attack your debt, and start building wealth. Let’s say you earn about $70,000 per year. $40,000 goes towards housing, transportation, and food, you spend $5,000 on non-necessities, and the rest goes towards insurance, healthcare, and education.

Looks good, right? But when you crunch the numbers, you realize you can’t put away enough each month to reach your savings goals. What a momentum-killer! How are you going to free up cash flow?

By totally eliminating non-necessities like coffee from the shop and streaming services, you could get back $5,000 dollars a year.² Not bad, but not great either.

Or—to save twice as much—you could scale back your housing, transportation, and food expenses by 25%. It might seem radical, but it’s worth considering if it can help get you to your goals.

The takeaway? Before you hack away at your lifestyle, consider your non-discretionary spending. It’s an aggressive strategy, but ask yourself if there are ways you could slash your rent, mortgage payments, car payments, and grocery bill. If so, take advantage of them—they could free up far more cash flow than by just cutting non-necessities.

Not sure how to cut back on your top expenses? Stay tuned for creative strategies for reducing your spending on housing, transportation, and food. Articles that outline how you can save money on the largest items in your budget are on the way!

  • Share:

How Inflation Eats Up Your Savings

How Inflation Eats Up Your Savings

Inflation is financial erosion, a slow and steady force that eats away at the value of money—YOUR money.

Here’s how it works. The trend is that over time, the prices of goods and services tend to rise. As a result, the purchasing power of your paycheck, your savings, and your retirement income is reduced.

The sucker ignores inflation—an abstract concept they may feel they have no control over. But the wealthy understand inflation and prepare for it—calculating the impact into their budget, their future purchases, and their retirement goals.

Here’s an example that drives it “home”…

Let’s say that in 1980 you received a $100,000 inheritance check. You were diligent enough to put the money into an account earning 2% annual interest. Your hope was that one day it would grow and be enough for you to afford a $200,000 dream home—a brick estate with a one acre yard, five bedrooms, three garages, and a pool in the back.

After waiting patiently for 40 years, retirement has arrived. The growth of your inheritance money had exceeded your goal—you now have over $220,000. Time to buy your dream home!

But while you waited, inflation was growing too. It increased at the average annual rate of 3.1%—more than tripling the average costs of goods… and houses.¹

Your $200,000 dream home with three garages and a pool in the back is now for sale at over $600,000.

The takeaway is that you can never ignore the impact of inflation on your goals for the future. You need to know how it could impact the value of your 401(k), the equity in your home, and the death benefit of your life insurance policy.

If you haven’t factored in the impact of inflation on your dreams for the future, there’s no time like the present. Consider scheduling a conversation with your licensed and qualified financial professional today to discuss strategies to beat inflation!

  • Share:

¹ “Average Annual Inflation Rates by Decade,” Tim Mcmahon, InflationData.com, Jan. 1, 2021, https://inflationdata.com/Inflation/Inflation/DecadeInflation.asp

Face it. You’re a Sucker

September 30, 2021

Face it. You’re a Sucker

Most people don’t know how money works.

In 2018, a global survey asked over 100,000 people in 15 different countries 3 simple questions about interest, inflation, and risk diversification. 70% failed to answer all three basic questions correctly.1

The cumulative effect of that lack of knowledge can result in some sketchy decision making. So are you wondering how you’d do? See if you know the answers to the following questions…

• How much interest will you pay over the life of your car loan? • What about over the life of your mortgage? • How much life insurance do you need to protect your family financially? • How much do you need to save for retirement? • Are you on track with that? • If you’re not on track, at what age will your money run out? • How much will Social Security pay you each month? • How much monthly income will your 401(k) provide? • How old will you be when it runs out?

If you can’t answer questions like these, ask yourself if you’re like so many others who assume there will always be enough and hope everything will turn out OK.

How is that possible?

A lifetime of wild guesses and blissful ignorance explains why so many people facing retirement panic when they see how little they’ll be forced to live on for the rest of their days. Is this true for you? If so, you could find yourself saying “Wow! I thought it’d be a whole lot more.”

It’s time to face it. You’re a sucker.

Does that offend you? Good, it should. Let it be a wake-up call. When you don’t know how money works, you can be taken advantage of time and time again.

You’re a sucker. Own it and you’ve taken the first step toward not being one.

Being financially illiterate sucks. But knowing how money works will help you transition from sucker to student and from student to master. The whole point is never to be fooled again.

Not by banks.

Not by credit card companies.

Not by online offers.

Not by employers.

Not by family or friends.

Not even by the number one person in your life responsible for making money—YOU!

But how do you transition from sucker to student? Well, every student needs a teacher. YouTube videos and online tutorials are great if you need a quick fix around the home. But unless you’re REALLY handy, would you try to tackle a major plumbing job in your house based on a video you watched online? Of course not. It’s too involved and too important. You need someone with experience who does that sort of thing for a living—in other words, you need a plumber. In the long run, your personal finances are even more important than a busted pipe in your home. That’s why it’s critical to work with a licensed and qualified financial professional, who can help you repair your finances and keep them flowing smoothly.

Also, consider shadowing a money mentor. Who do you know that’s financially successful? Become their friend so you can discover what they did (and do) right. Observe their daily habits and how they make decisions. What time do they wake up? How do they use credit cards, if at all? Where do they put their money? Do they make financial decisions with their partner or separately? What you could learn from a financially-savvy friend could pay dividends down the road.

And if you need a beginner’s guide, consider the HowMoneyWorks: Stop Being a Sucker book. It’s a super-readable crash course on the basics of financial literacy that you can read in an hour but think about for a week. Just ask me how you can get a copy!

  • Share:

¹ “The New Social Contract: a Blueprint For Retirement in the 21st Century —The Aegon Retirement Readiness Survey 2018,” Aegon—Center for Longevity and Retirement, May 2018, https://www.aegon.com/contentassets/6724d008b6e14fa1a4cedb41811f748a/retirement-readiness-survey-2018.pdf

5 Myths You May Still Believe About Long-Term Care

April 14, 2021

5 Myths You May Still Believe About Long-Term Care

When a loved one needs extra help to take care of herself at home or needs to go into a nursing home,

the costs—averaging a total of more than $200,000¹—can be devastating. But the impact on families can be felt far beyond the pocketbook: An estimated 34.2 million Americans provide unpaid care to adult family members,² leading to greater incidence of depression and heart disease among caregivers, the majority of whom are women.² Anyone who has seen first-hand the destructive impact of these situations has at least thought about the need to protect their family from the threat of long-term care. But the vast majority haven’t taken action.³ That needs to change. Since change starts with financial literacy and education, let’s review the five most common myths about long-term care.

Myth #1: Medicare and health insurance plans cover long-term care. Private health insurance does not cover long-term care. Medicare only provides extremely limited benefits in a few very specific circumstances. The Medicare.gov website clearly states that Medicare does not cover most long-term care situations. There is one government insurance program that does cover long-term care: Medicaid. But to qualify for Medicaid, one must have income at or below the poverty level⁴ and in most states have less than $2,000 in financial assets.⁵ So unless one plans on being absolutely broke in retirement, they need to have a long-term care solution in place.

Myth #2: Long-term care means that you go into a nursing home. When we think of long-term care, we often think of an old lady wasting away in a nursing home. While a nursing home is certainly an example of a long-term care setting, only about 1/3 of care takes place in nursing homes.⁶ The majority of care takes place in a private residence. So if your stubborn father says, “I’d rather die than go into a nursing home,” your response should be, “fair enough, but how are we going to care for you at home?” When planning for long-term care, you should focus on solutions designed to help keep you in your home for as long as possible. Because no one wants to go into a nursing home.

Myth #3: Long-term care is only for the elderly. Many people are shocked to learn that 37% of Americans receiving long-term care are under the age of 65.⁷ One of the major reasons for this is that long-term care doesn’t only arise from getting old or getting sick. Sometimes long-term care claims stem from accidents or injuries—not illness. So something like a car accident or a traumatic brain injury can suddenly put you into a long-term care situation—even in the prime of your life.

Myth #4: It won’t happen to me. None of us wants to picture ourselves in a long-term care situation. We recoil at the thought of being a burden to our family—whether that burden be financial, physical, or emotional. But the fact is that 70% of us will need long-term care at some point in our lives.⁸ So if you don’t want to be a burden, you need to start planning now.

Myth #5: If it doesn’t happen to me, I will have wasted money on long-term care insurance premiums. If there’s a 70% chance you’ll need long-term care, there’s a 30% chance you won’t. Since there’s a 100% chance you want to retire comfortably, a 100% chance you want your kids to be able to go to college if they want to, and a 100% chance you want to protect your family in the event you die early, you need to prioritize the sure things in life. By the time you allocate money to cover all of the absolute necessities, there may not be any money left over to protect against things that are likely, but not guaranteed, to happen. In response to this conundrum, the financial services industry has evolved to create new products that can allow you to focus on the sure things while also protecting against long-term care. If you need it, these new solutions will cover your long-term care costs. And if you’re one of the lucky 30% of people who won’t need long-term care, all of the benefit for which you paid can go to your family in the form of a large, tax-free, lump-sum payment. Often, you can kill two, three, or four birds with one stone. That’s how money works!

Don’t be a sucker. Refer to page 87 of “HowMoneyWorks, Stop Being a Sucker” to begin increasing your literacy on this important financial concept. Then contact your financial professional to get started.


– Matt Luckey


  • Share:


¹ “Genworth Cost of Care Survey 2019,” genworth.com/aging-and-you/finances/cost-of-care.html and “Long Term Care Statistics,” LTC Tree, Dec 2018, ltctree.com/long-term-care-statistics/

² “Executive Summary: Caregiving in the US,” AARP, June 2015, https://www.caregiving.org/wp-content/uploads/2015/05/2015_CaregivingintheUS_Executive-Summary-June-4_WEB.pdf

³ “The State of Long-Term Care Insurance: The Market, Challenges and Future Innovations,” National Association of Insurance Commissioners, May 2016, naic.org/documents/ciprcurrent study_160519_ltc_insurance.pdf

“General Medicaid Requirements,” LongTermCare.gov, Oct 2017, https://longtermcare.acl.gov/medicare-medicaid-more/medicaid/medicaid-eligibility/general-medicaid-requirements.html

“Financial Requirements—Assets,” LongTermCare.gov, Oct 2017, https://longtermcare.acl.gov/medicare-medicaid-more/medicaid/medicaid-eligibility/financial-requirements-assets.html

“Long-Term Care Insurance Facts - Statistics,” The American Association for Long-Term Care Insurance, 2020, https://www.aaltci.org/long-term-care-insurance/learning-center/fast-facts.php

“The Basics,” LongTermCare.gov, Oct 2017, longtermcare.acl.gov/the-basics/

⁸ “How Much Care Will You Need?,” Oct 2017, longtermcare.acl.gov/the-basics/how-much-care-will-you-need.html

The Middle Class Saves…The Rich Invest

October 7, 2020

The Middle Class Saves…The Rich Invest

Saving money is a good habit, but a bad strategy.

That’s why the rich focus on investing. While the masses are getting .09% interest on their passbook savings account,(1) the rich are pursuing returns of 5% or more on the same money. That means with a $10,000 investment paying .09% interest, the saver pockets a whopping $9 per year. That same $10,000 investment paying 5% interest yields a $500 return.

Wealthy people know that a little strategy goes a long way, and when it comes to money, that could make the difference between a comfortable and miserable retirement. The good news is that you don’t have to have a PhD in finance to become a competent investor; you simply have to know how money works. While the masses may be buying used luxury cars, second homes, and living beyond their means, the rich are more inclined to create assets that leverage the power of compound interest and other people’s time—such as retirement accounts that yield interest, part-time businesses, and property. The rich put their money to work, while the masses simply go to work.

The secret to better investing is maximizing returns while managing risk. The rich rarely get greedy, and usually settle for reasonable returns with minimal risk. They generally don’t expose their financial future to the wild swings of the market. They know that the enemy of the investor is losing money, so they lean more towards calculated risks where returns are respectable and losses are not likely. It’s the old professional baseball strategy: Forget about hitting home runs and just get on base. Sure, it’s not as sexy as knocking the ball out of the park or being able to brag to your friends that you made a 50% return, but it reduces your exposure while simultaneously providing you with the potential to become incrementally wealthier every day.

Start by learning the Rule of 72, the Time Value of Money, and the concept of Wealth Equivalency. Next, learn how to protect your family from the fallout of premature death while building cash value you can eventually withdraw tax-advantaged. Lastly, learn how to leverage long-term care insurance for pennies on the dollar by adding it as a low cost rider on a life insurance contract. More people go broke from medical issues than any other reason.(2) These basic strategies will start you on your way to financial success.

Our book, How Money Works: Stop Being a Sucker, will take you through the 7 Money Milestones. Study these milestones and contact your financial professional to put the proper strategies in place. If you take action, you can alleviate any worries about your financial future. It’s that powerful of a process. Once you’ve implemented these strategies, you can focus on the other things that really matter in your life. Give yourself the gift of financial security. You deserve it.

— Steve Siebold

  • Share:

Subscribe to get my Email Newsletter