Name That Company

I was founded in 1980 by a home economics teacher named Doris. Today I’m the premier direct seller of high-quality kitchen products and pantry food items. I serve more than 13 million customers each year, raking in three quarters of a billion dollars annually. There are 70,000 independent Kitchen Consultants worldwide who sell my wares, and I employ more than a thousand people in Illinois. This year I have a new home, as Doris agreed to sell me to Berkshire Hathaway, headed by Warren Buffett. You might call me the mollycoddled hash slinger. Who am I? (Answer: The Pampered Chef)

Know the answer? Send it to us with Foolish Trivia on the top and you’ll be entered into a drawing for a nifty prize! The address is Motley Fool, Box 19529, Alexandria, Va. 22320-0529. Send questions for Ask the Fool, Dumbest (or Smartest) Investments (up to 100 words), and your Trivia entries to Fool@fool.com.

Long-term security

As if the myriad costs associated with aging — retirement housing, greens fees, spoiling the grandchildren — weren’t overwhelming enough, a study by the AARP reveals that most aging Americans are unaware of how much they’ll need to shell out for long-term care.

According to an aptly named study, “The Costs of Long-Term Care: Public Perceptions Versus Reality,” the majority of those surveyed who were 45 years old or older underestimate the costs and funding sources of long-term care, which includes nursing homes, assisted living residences and in-home care provided by skilled nurses and aides.

Here’s the gist of AARP’s discoveries:

• Only 15 percent of those surveyed could identify the cost of nursing home care within 20 percent of the national average. More than half (51 percent) estimated the cost too low. The national average monthly cost of nursing home care is $4,654.
• Only one in four could come within 20 percent of the estimated median cost of care in an assisted living facility. The national estimated median cost for assisted living per month is between $2,000 and $2,500.
• One in three had absolutely no idea how much an in-home visit from a skilled nurse or aide costs. The average Medicare reimbursement is $109 for a skilled nurse visit and $64 for a home visit by an aide.
• About three in 10 said they have insurance that covers the costs of long-term care. Yet the Health Insurance Association of America estimates that only about 6 percent of Americans purchased such insurance, meaning folks may be confusing long-term care insurance with other types of coverage, such as disability insurance or Medicare.
• Roughly 7 million Americans age 65 or older will need long-term care this year, and that number will hit 12 million by 2020. Even young people need long-term care sometimes.

Don’t be caught facing unexpected bills in your golden years. Get to know the costs, funding sources and coverage options of long-term care. The better you plan for your retirement, the more you’ll likely enjoy it. Learn more at www.aarp.org/confacts/health/privltc.html and www.fool.com/retirement.htm.

Total returns for funds

What do the 13-week, three-year and five-year percentage returns that are listed for mutual funds in newspapers and at many Web sites mean? Do these figures include all interest, dividends and capital gains/losses? — John, Detroit

It’s vital to understand exactly what information you’re being given. Look for some fine print in the newspaper or Web site, defining the numbers presented. You want the “total return” for any given period, which should include any interest or dividend payments received, plus any capital gains (net of capital losses) distributed.

Also be on the lookout for a fund’s tax efficiency. If a fund does a lot of trading and generates many capital gains, you’ll end up losing much of your gain to taxes. The Securities and Exchange Commission now requires funds to disclose both their pre-tax and after-tax returns.

If a newspaper or Web site doesn’t disclose exactly what numbers it’s giving you, then look elsewhere. Try www.morningstar.com for data on most mutual funds, or go to the horse’s mouth — mutual fund companies’ Web sites. They often offer online prospectuses for each of their funds, with performance results clearly spelled out.

When your stock splits 2-for-1, how do you figure your cost basis? — Diane Norene, Boynton Beach, Fla.

Your basis splits 2-for-1, along with the stock. Imagine that you bought 100 shares of Hero Parades Inc. (ticker: TAPE) for $60 each, paying a $20 commission. Your cost basis is $6,020 — or $60.20 per share. After the split, you have 200 shares and your basis is now $3,010, or $30.10 per share. (Always add the purchase commission to your cost basis and subtract the sale commission from your proceeds — you’ll save a few tax dollars that way.)