A health insurance shopping site that actually works

Health claim formYou don’t have to wait for the federal government to fix the Obamacare Web site to learn about your insurance options.

HealthSherpa is the creation of three guys who actually seem to know how to program. Instead of fighting your way through confusing interfaces, legalese and a long sign-up process, you just type in your Zip Code and bam! Your options start to show up.

HealthSherpa allows you to modify your results by the number of family members and your income (which determines whether you get subsidies to cut the cost–most people do).

HealthSherpa doesn’t have the links to Social Security and the IRS that would allow you to sign up for a plan directly on the site. But it does offer links and phone numbers to insurers that can help you sign up once you pick a plan.

If only Kathleen Sebelius had hired these guys in the first place…

UPDATE: As commenter Kitty notes below, you’ll still need to go through Healthcare.gov to sign up for coverage if you want the subsidies and other cost reductions available through Obamacare. The HealthSherpa site allows you to see and explore your options, which should make signing up a bit easier.

Wednesday’s need-to-know money news

Today’s top story: Figuring out what car repairs really cost. Also in the news: Protecting your children’s credit, tips on smart charitable donations, and how to prepare for Black Friday.

How to Figure Out What Your Car Repair Really Costs
How not to be at the mercy of the repair shop.

Protecting Your Children’s Credit
Even children are at risk for identity theft.

6 tips to donate to charity the smart way
Getting the most out of your generosity.

Top 10 Black Friday shopping tips
Practice, practice, practice.

The ‘4 Boxes’ Approach To Helping Elderly Parents
Inventorying your parents’ possessions could make important financial decisions easier.

You may be held responsible for a parent who fails to save

Dear Liz: My mother is 65 and refuses to plan for retirement. She has worked for the same organization for almost 20 years and, despite my begging her over the last decade, has not contributed a dime to her 403(b).

I am an only child in my late 30s and received no financial help from her from the age of 18. In addition, my father died when I was very young, leaving us fairly destitute with no life insurance. I feel that both of these legacies have contributed to my less-than-optimal financial situation.

I have had to work very hard on my own for everything, with very little support from anyone. I am now trying to catch up financially but am afraid that all of my efforts will be futile as I will be required to take care of my mother.

She says she expects to be able to live on Social Security and the $70,000 her company contributed to her 403(b) over the years. I’ve been advised by friends that I have no legal obligations to provide for her. I certainly have social ones though. What are her options once she becomes too old to work and doesn’t have enough money to cover her expenses?

Answer: Your friends may be wrong about your legal obligations, because 29 states — including California — have what are called “filial responsibility” laws. These laws create a legal duty for adult children to support indigent parents.

Most states don’t enforce these laws currently, but that doesn’t mean they won’t in the future, said elder-law attorney Michael Amoruso, a past president of the New York chapter of the National Academy of Elder Law Attorneys. States struggling with money issues may be tempted to step up enforcement, he said.

According to Katherine Pearson of Penn State‘s Dickinson School of Law, who has studied such statutes, the states with filial-responsibility laws are Alaska, Arkansas, California, Connecticut, Delaware, Georgia, Indiana, Iowa, Kentucky, Louisiana, Maryland, Massachusetts, Mississippi, Montana, Nevada, New Hampshire, New Jersey, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia and West Virginia.

Your mother isn’t indigent yet, but she may be soon if she thinks Social Security and a five-figure retirement account will sustain her.

The good news is that you may still have time to influence her decision-making, because she hasn’t quit work yet. You should tell her, gently, that you can’t afford to support her if she runs out of money, and suggest that together you consult a fee-only financial planner about her future.

The planner can review your mother’s financial situation and offer suggestions — which are likely to include delaying retirement and considering part-time work in retirement. The planner also can explain that her $70,000 nest egg will provide only about $200 a month if she withdraws 4% initially. Four percent is considered a sustainable withdrawal rate by many financial planners.

You can tell her that consulting a planner is a good idea for anyone considering retirement — since that’s quite true. If you like the planner, you can book a session for yourself and learn some concrete strategies for getting your own finances on track. This may require an attitude adjustment.

You’re still blaming your parents for your financial situation, but your father’s been dead for decades and you’ve been on your own since age 18. In other words, the statute of limitations on blaming your folks has long since expired.

Your finances are the result of the choices you’ve made, just as your mother’s situation reflects the choices she’s made. Let’s hope you both make better choices in the future.

Don’t let 0% offers result in maxed-out cards

Dear Liz: I’m trying to transfer some credit card balances to existing accounts that are now offering 0% for 12 to 18 months. If I come close to maxing out the credit limit using one of those offers, will that affect my credit score adversely? Or, should I open up a new card, since I’ve gotten several 0% offers recently?

Answer: Using all or even most of your credit line on any revolving account can hurt your credit scores.

Although opening a new card may ding your scores a few points, it’s usually preferable to spread your debt over several accounts rather than pile it all on one card. This advice assumes you plan to use these offers to pay off your debt as rapidly as possible, rather than as an excuse to continue carrying balances.

If you can’t pay off your balances before the teaser rates expire, consider getting a three-year personal loan from your local credit union and using that to get free of debt. The interest rate you pay may be somewhat higher initially but you’ll likely save money in the long run.

Tuesday’s need-to-know money news

Today’s top story: Essential tips for navigating Obamacare. Also in the news: How to boost Millennials’ retirement savings, when couples should separate their finances, and how to monitor your credit after a data breach. Hope

10 Essential Tips for Navigating Obamacare
How to find your way through the Affordable Care Act maze.

The Obamacare Trick Early Retirees Should Know
Subsidies could be a game changer for early retirees.

Two Surest Ways to Boost Millennials’ Retirement Savings
Teaching Millennials’ the importance of planning ahead.

Video: When Should Couples Separate Their Finances?
Navigating personal finances with your spouse.

How to Monitor Your Credit After a Data Breach
Keeping an eye out for suspicious activity.

Are vets getting what they deserve?

Soldier saluting Yesterday on Bob McCormick’s KFWB show Money 101 we talked about veterans’ benefits that are often overlooked. If you’re a vet or have a vet in your life, you should know about:

Aid & Attendance: This benefit helps pay for nursing home, assisted living and home health care for low-income vets. The benefit can be $1,700 a month for the veteran, $2,000 a month for a couple and $1,000 a month for a veteran’s widow. Yet few people take advantage or even know about this benefit, and the VA isn’t always forthcoming. A New York Times article last year said only about 38,000 of the 1.7 million World War II vets alive in 2011 were receiving it. The site VeteranAid.org has details on how to apply.

Family Caregiver Program: Eligible Post-9/11 veterans can opt to receive home health care from a family member, and that family member may be eligible for a stipend, mental health services, respite care and access to health care insurance. Family Caregiver program application are available at www.caregiver.va.gov and Caregiver Support Coordinators are stationed at every VA medical center and via phone at 1-877-222 VETS (8387) to help with the application process.

VA Mortgages: These mortgages aren’t exactly unknown, but Terry Savage wrote in a recent Huffington Post column that 70% of younger veterans had yet to take advantage of this program which offers zero down payment home loans at attractive rates. Find out more from the VA mortgage loans help desk at 800-983-0937.

Post 9/11 GI Bill: Again, not a hidden benefit, but one that’s probably underused. This version of the GI bill has paid college expenses for nearly 1 million veterans of the Afghanistan and Iraq wars, but there are nearly 6 million vets from those conflicts. At a time when college educations are all but essential for staying in the middle class, more vets should be looking into this program, which provides up to 36 months of benefit, including full tuition and fees for in-state schools plus possible help with housing and books. You’ll find details here.

Monday’s need-to-know money news

Credit card backgroundToday’s top story: Planning for Black Friday. Also in the news: How the CARD ACT saved consumers billions, five factors that could increase your insurance rates, and three tax moves you should make before the end of the year.

Score on Black Friday by doing research now
Developing a plan of attack could save you a lot of money.

CARD Act Helped Consumers Without Limiting Credit Access
Saving consumers over $20 billion a year.

5 Factors That Could Raise Your Insurance Rates
You might want to put out that cigarette.

3 Tax Moves to Make Before the End of Year
It’s time to get your investments in order.

DHS Secretary warns of Obamacare scams
Your personal information could be at risk.

Friday’s need-to-know money news

Today’s top story: The best online budgeting tools. Also in the news: How to choose between a 15 or 30 year mortgage, what to do when your home is underwater, and simple ways to raise your credit score.

The 5 Best Online Budgeting Tools to Help You Save Money
Tools that could help keep more money in your wallet.

30-year mortgage, or 15? 5 questions to help you choose
Deciding which mortgage works best for you.

What to Do if You Owe More Than Your Home is Worth?
How not to drown when your home is underwater.

Simple Ways to Raise Your Credit Score
It’s easier than you think.

Will Paying Bills Before They Arrive Help My Credit?
If paying bills late hurts your credit, shouldn’t the opposite be true?

Thursday’s need-to-know money news

Today’s top story: Re-Evaluating your airline miles credit cards. Also in the news: Saving money on school expenses, avoiding awkward money conversations at the holiday dinner table, and finding the best life insurance plan to fit your needs.

Do You Need to Re-Evaluate Your Airline Miles Credit Cards?
Changes to several programs has made some frequent travelers unhappy.

How to Save More Money on School Expenses
Don’t let school supplies drain your wallet.

How to Navigate Awkward Money Conversations at Your Family’s Holiday Dinner
AKA “How to avoid a food fight.”

Tips for Picking the Right Life Insurance Plan
Making sure your plan best suits your needs.

Will FlexScore Replace Credit Scores?
A new way of determining credit worthiness is on the horizon.

Food stamps are the symptom, not the problem

eating breakfastThe conservative Wall Street Journal opinion page is not where you’d expect to see a piece headlined “In defense of food stamps.” Yet there it is, written by William A. Galston of the Brookings Institution.

Galston recounts the facts: that nearly half (47%) of the people on food stamps are children, that the typical income for families with children on food stamps is 57% of the poverty line (less than $11,000 for a family of three) and that 91% of food stamp benefits in dollar terms go to households living in poverty. Galston writes:

The large increase in the program’s cost over the past decade mostly reflects worsening economic conditions rather than looser eligibility standards, increased benefits, or more waste, fraud and abuse.

The only area where Galston concedes food stamp critics have a point is regarding relaxed requirements for able-bodied adults without children. He thinks those should be toughened up.

As for the argument that food stamps breed dependency? Galston disagrees:

The final complaint is the broadest: Food stamps are welfare, and welfare increases dependency. But the most rigorous research (summarized in a 2011 NBER paper, “An Assessment of the Effectiveness of Anti-Poverty Programs in the United States”) has found SNAP’s effects on work effort to be “small,” “statistically insignificant,” or “zero.”

What will get people off food stamps, he writes, is an improved economy. Now there’s a thought: Congress could focus on ways to help businesses generate jobs, rather than on beating up those who have lost them.