Understanding the different parts of Medicare

Three Key Medicare Decisions

"While not an overly complicated benefit, initially signing up for Medicare can be an overwhelming and anxiety-inducing process" according to John S. Traynor | Jun 16, 2021 quoting from his article: https://www.wealthmanagement.com/retirement-planning/three-key-medicare-decisions

• Part A (hospital coverage) covers things like inpatient hospital stays, some home health care, skilled nursing facility care and hospice; requires no out-of-pocket annual premiums; but has both annual deductibles and copays.
• Part B (medical coverage) covers things like doctor visits, outpatient services, X-rays and lab tests, as well as preventive screenings; carries both annual deductibles and copays; and requires monthly premium payments.
• Part C (Medicare Advantage) is a private all-in-one alternative to Medicare that covers the services associated with Parts A and B (and usually Part D). On the plus side, these bundled plans tend to be more affordable and may offer broader coverage (for example, vision, hearing and dental. Providers must be Medicare-approved. But the plans typically come with greater restrictions, and most plans act as HMOs and require plan participants to go to their network of doctors and health care providers.
• Part D (prescription drug coverage) is an optional add-on prescription drug coverage that requires monthly premiums, annual deductibles and copays. Your client will need to enroll in an approved plan and be covered under both Medicare Parts A and B (or Part C).
• Medigap is offered by private insurers to help fill any coverage gaps in Part A and Part B such as copayments, coinsurance, deductibles and potentially foreign travel health emergencies. There are 10 different types of Medigap plans—some cover more out-of-pocket costs than others.

Free Legal Forms Online

 While geared toward college students, the following online forms can be helpful at all stages of adult life. Free high-quality legal templates and information are provided online by FormsPal.com

• Last Will Template
  
• Bill of Sale
• Vehicle Bill of Sale
• Living Will
• Power of Attorney Forms
• Fillable PDF Forms
• Internal Revenue Service (IRS) 
   
  U.S. Citizenship and Immigration Services (USCIS) 
   
  Veterans Affairs (VA) 
   
  Social Security Administration (SSA) 
   
  Department of Defense (DOD) 
   
  Centers for Medicare & Medicaid Services (CMS) 
   
  Department of State (DS) 
   
  Other Fillable and Editable PDF Forms and Templates
• Applications
•  
  
• Financial
•  
• Local
•  
• Busines
•  
• All Legal Documents
• Business and Employment
   
  Real Estate
   
  Financial
   
  Personal
   
  Marriage
   
  Health
   
  Miscellaneous

 Special thanks to Daphne Moore!

Just say no to Extended Warranties for Cars

Extended Warranties for Cars Are ‘Fraught With Peril for Consumers’

"While reputable options exist, the robocalls are almost certainly scams, an industry group warns. And for consumers who feel they have been ripped off, there is no guarantee anyone will help" writes Christopher Jensen for The New York Times.

"vehicle service contracts — are “fraught with peril for consumers, especially economically vulnerable people who can’t afford to have their car break down,” said Rosemary Shahan, the president of Consumers for Auto Reliability and Safety."

'In the worst case, telemarketers are just collecting money. “There is no warranty, it is just a flat-out scam,” said Chad M. Canfield, an official with the Michigan attorney general’s office.'

'Policies can cost thousands of dollars, and consumers believe they are getting bumper-to-bumper coverage when they hear claims such as “100 percent of covered repairs are paid.”  But that is "misleading because many things are not covered."

Just say NO! to extended vehicle warranties. If buying a used vehicle, get it checked out first by a trusted mechanic. Instead of buying the warranty, put the money into your emergency savings.

What's the Deal with Social Security for Women?

 What's the Deal with Social Security for Women? is a new book by Marcia Mantell.

 

The following is quoted from: https://www.barnesandnoble.com/w/whats-the-deal-with-social-security-for-women-marcia-mantell/1133342938

"As a woman nearing retirement, you may be delightfully surprised to get your own Social Security check. But you probably have questions. Questions such as:

• How much money will I actually get from Social Security?
• How soon can I retire and start collecting my Social Security?
• What are my options for claiming?
• Do I really get benefits on my spouse or ex-spouse?

Drawing on the author's expertise and sharing the personal stories of real women, What’s The Deal With Social Security for Women opens the door on how Social Security works regardless of your life's journey. It's for you if you’re married, divorced, widowed, or single and will take some of the mystery out of this complex yet critical income source. Read this book discover how important it is to:

• Make smart decisions about when to claim Social Security
• Receive more monthly income by claiming after age 62
• Learn the facts about Social Security's future
• Balance time and money when deciding when to retire"

 

Who is more susceptible to financial scams: Seniors or young adults?

 We all know that financial scams target seniors and that they are the most susceptible to the bait. Right? think again...

"Stop it with the ageism and delusions of invincibility. Young adults often don’t recognize the bad checks coming at them, or fake job offers, either" writes Ron Lieber for The New York Times.

"For years now, the Better Business Bureau’s survey research has shown that younger adults lose money to swindlers much more often than the older people you may think of as the stereotypical victims. The Federal Trade Commission reports similar figures, with 44 percent of people ages 20 to 29 losing money to fraud, more than double the 20 percent of people ages 70 to 79."

It's not the Nigerian prince or pfishing scam. "The targeted activities vary widely, from the online shopping that these victims may do nearly every day to their once-in-a-blue-moon handling of paper checks. Illegal schemes also target the student debt payments they must make and the jobs they seek to afford them."

"Pet and pet-supply scams have historically made up 25 percent of the online purchase scams reported to the Better Business Bureau."

"Given its size, con artists try to impersonate Amazon more often than any other company’s brand."

Employment Scams: never give your date of birth or Social Security number online. 

Fake check scams “Sorry, this is an accidental overpayment” or “Please use some of the money to perform mystery shopping of online money transfer services.”

 

Student Loan Scams: Once the moratorium on repayment ends, "expect a flood of thieves offering “free extended forbearance” or “Biden forgiveness plans” that do not exist. "Then they’d try to redirect victims’ payments or use their personal information for identity theft. Or both."

 

 

How much to invest to have $1 million by retirement

Start early to attain your goal.

Starting at age 20:

• Assuming a 6% return, compounded monthly, you should aim to invest $364 a month toward retirement to reach $1 million in savings by age 65.

Starting at age 30:

• Assuming a 6% return, compounded monthly, you should aim to invest $704 a month toward retirement to reach $1 million in savings by age 65.

Starting at age 40:

• Assuming a 6% return, compounded monthly, you should aim to invest $1,444 a month toward retirement to reach $1 million in savings by age 65.

Starting at age 50:

• Assuming a 6% return, compounded monthly, you should aim to invest $3,439 a month toward retirement to reach $1 million in savings by age 65.
  

  How to retire a millionaire By Jazmin Goodwin, CNN Business

Invest wisely. Check out other blog posts on index investing and investing.

How much are you spending on bottled water?

The Story of Bottled Water

For those of us who remember life without bottled water, it is sad, pathetic, and frustrating when consumers spend money on water packed in a throw away plastic bottle. The bottle is made from petroleum and shipped across the country (wasting more petroleum), and then 80% of the bottles end up in landfills or incinerators. Even worse, much of the supposedly recycled bottles are shipped to developing nations like India (wasting more petroleum in the process) where they add to the pollution problem. While consumers routinely claim to be immune to advertising, bottled water is a classic example of “manufactured demand,” using scare techniques and images of pure fantasy to entice buyers. Pepsi’s Aquafina and Coke’s Desani are simply filtered tap water sold at 2,000 times the price of tap water! Despite its advertising claims and images of pristine sources, Fiji water is lower quality than Cleveland’s tap water. Imagine paying 2,000 times the price of gas for your car! Yet consumers succumb to this insanity daily. 

Logan, UT has some of purest water on the planet coming out of our taps. Don’t be a schmuck. 

Save your money and the environment; use a steel water bottle. 

Watch the 8 minute video and kick the bottled water habit: http://storyofstuff.org/movies/story-of-bottled-water/

Retirement Planning Checklist

Whether the day you stop working is a decade away or around the corner, these to-do items will help you retire on your own terms.

by: Sandra Block, Kiplingers, May 26, 2021

"Ideally, you should start planning for retirement the day you receive your first paycheck. But in reality, most of us don’t focus on retirement until much later—and that’s fine, as long as you’ve been saving throughout your career. Once you reach your fifties, though, it’s time to start thinking about when you’ll retire, where you’d like to live, and how you’ll spend your time once you stop working."

Highlights (details available at URL below): 

10 years until retirement

Use your stimulus check or other money you’ve saved to increase contributions to your retirement plans.

If your employer offers one, consider shifting some of your 401(k) contributions to a Roth 401(k).

Contribute to a health savings account.

Pay off high-interest debt.

Create (or update) your estate plan

Take advantage of a drop in income

5 years until retirement

Estimate what your expenses will be in retirement.

Add up sources of guaranteed income.

Once you’ve signed up for an online account with Social Security, review your earnings history.

If you’re concerned that you haven’t saved enough, look into the possibility of a phased re­tirement.

Explore part-time positions or gig-economy jobs that will gen­erate additional income in retirement. 

If you plan to relocate in re­tirement, start visiting potential destinations.

Plan for the cost of long-term care.

Start shifting some of your savings to more-conservative investments.

Prepare for the unexpected.

Consider keeping your mortgage

1 year until retirement

Determine when you’ll apply for Social Security.

Start exploring your Medicare options.

If you’re eligible for a traditional pension, review the pros and cons of taking a lump sum versus a monthly payout. 

Decide what to do with money in your current employer’s 401(k) plan.

Simplify your finances.

If you have decided on a re­tirement destination, step up your research.

Come up with a plan for charitable giving.

Create a bucket system.

Read or listen to the article: 

https://www.kiplinger.com/retirement/retirement-planning/602869/retirement-planning-checklist

 

Look into the benefits of a life-time income annuity.  Search for "annuity" in this blog.

Median CEO Pay Sets Fifth Straight Record

 "Median pay reached 413.4 million for chief executives of the biggest. U.S. companies in 2020, setting a fifth straight annual record in a year when businesses and their leaders battled a global pandemic" (Theo Francis & Inti Pacheco, The Wall Street Journal, 6/2/21). 

Seven CEOs were awarded compensation of more than $50 million in one year!

The same folks oppose raising the minimum wage to $15/hour.  Nuf Said.

U.S. Government I Bonds (inflation protected) are the best savings option you probably have never heard about

"In today’s yield-parched world, money-market funds are paying 0.02%, bank savings accounts 0.13%, a three-month Treasury bill 0.015% and even a 30-year Treasury bond only 2.25%." Wall Street Journal writer Jason Zweig reminds us of one of the best kept secrets for savers; I-Bonds. These savings instruments are inflation-protected U.S. savings bonds that are currently paying 3.54% for bonds issued May 2021 – October 2021. I bonds are almost risk-free and offer significant tax advantages.

"The maximum purchase is $10,000 per year per account holder (unless you elect to take your tax refund in the form of an I bond)."

"Ironically, the less you earn and have to invest, the more powerful a tool I bonds are."

Never heard of I-bonds? Maybe because "financial advisers have no incentive to sell I bonds, which don’t pay commissions or charge expenses and are available exclusively from the U.S. government (see TreasuryDirect.gov)" 

"Their yield consists of a fixed rate for the 30-year life of the bond and an inflation rate, which adjusts semiannually. The current 3.54% applies to I bonds issued until Nov. 1, 2021 and will reset every six months unless the official government rate of inflation stays constant."

While the yield can decline if inflation drops (not likely in coming years according to my reading of the WSJ). "But, unlike with Treasury inflation-protected securities, or TIPS, the yield on I bonds can never go below zero. So they protect against both inflation and deflation."

Interest on I bonds is exempt from state and local income tax! So especially appealing for residents of high tax states. "For income-tax purposes, you can choose to defer declaring your I-bond interest until maturity or you redeem, whichever comes first." 

Some caveats: You can't access your funds for first 12 months. If you cash out before 5 years, you lose 3 months of interest. "If you buy an I bond at today’s 3.54% rate and sell it one year and a day from now, you’ll earn 2.65% after the penalty (assuming the rate doesn’t change). That’s roughly quadruple what you’d get from a one-year certificate of deposit or ultra-short-term bond fund."

I bonds are ideal for emergency savings. You don't get monthly or yearly reminders about your account so it's "out of sight, out of mind" so you're not tempted to used the money for less than an emergency.  They are also well-suited for short term goals where you want to be sure your money grows and you can't lose purchasing power. 

Thanks to Jason Zweig for this timely reminder about a great addition to one's portfolio. Check out his website and his books: https://jasonzweig.com/

For more details see: https://www.treasurydirect.gov/indiv/products/prod_ibonds_glance.htm