medicare

Misinformation About Medicare Can Hurt Older Americans in Retirement

September 9, 2023 /by marvin dutton

When you retire, healthcare may become your single largest recurrent cost. That’s especially true if your home is paid off by the time your career ends.

That’s why it’s critical to understand what to expect from Medicare when the time comes to begin receiving coverage. However, according to new Fidelity research, older Americans aged 58 to 76 lack a critical understanding of Medicare coverage and enrollment. And this might lead to a world of financial hardship.

Closing a Huge Knowledge Gap

When Fidelity questioned Baby Boomers about when Medicare enrollment starts, 57% said age 62. While seniors can join Social Security at that age, Medicare eligibility doesn’t start until age 65.

Early retirees may face difficulties if they’re unaware of this. If you decide to quit the workforce at age 62, assuming you’ll be covered by Medicare, only to find out that you won’t be for another three years, you may struggle to afford a new health plan.

Moreover, 41% of Baby Boomers polled by Fidelity claimed Medicare has out-of-pocket spending restrictions. However, enrolling in a Medigap plan is the only method to reduce out-of-pocket expenses (supplemental insurance). If you don’t know, you might be on the hook for a slew of medical bills you can’t afford.

Finally, 40% of Baby Boomers believe Medicare pays the cost of nursing home care. That’s incorrect. When it comes to healing from an injury or treating an actual sickness, Medicare will cover the cost of a stay in a skilled nursing facility. However, Medicare won’t cover custodial care or assistance with daily living. Long-term care insurance is required to obtain this coverage.

Don’t Set Yourself Up For Financial Stress

Not understanding how Medicare works might put you in a situation where you’re ill-equipped to cover your future healthcare costs, which is something you should avoid. And you may do so by spending some time researching Medicare before you decide to retire.

At the same time, it’s a good idea to set aside money for future healthcare costs, and a health savings account (HSA) is a smart way to do so. HSA funds never expire, so you may contribute to them during your working years, invest the money you don’t need right away, and carry a comfortable balance into retirement.

You may have heard that an HSA cannot be used to cover Medicare expenditures, but that’s not true. While you cannot contribute to an HSA once enrolled in Medicare, you can withdraw funds to cover Medicare deductibles and copays.

In fact, while you’re researching Medicare, you should also learn more about HSAs. Knowing such information may motivate you to make wise decisions that will help you to cover your future healthcare bills with less worry.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Beneficiaries of Medicare Can Protect Themselves Against Fraudulent Activity by Using the My Health Care Tracker Tool

August 21, 2023 /by marvin dutton

A novel method has been devised to better aid senior folks all over the world who are enrolled in Medicare in monitoring what occurs during their medical appointments.

This method was created to help track what takes place. In addition, it can assist in the investigation and prevention of fraudulent activity concerning Medicare.
My Health Care Tracker is a tool provided by Senior Medicare Patrol to its customers. This tool walks Medicare beneficiaries through the process of comparing the treatments, examinations, and medical supplies they receive to what was invoiced for those expenses on their Medicare bills. Senior Medicare Patrol is the company that offers this tool to its customers.

My Health Care Devices are anti-fraud technologies made openly accessible to participants by the SMP system. My Health Care Trackers provide the services, including a location for individuals to document the health care goods and services they have gotten as well as make remarks regarding their visits, directions on how to match the health care treatments, testing, and hospital equipment products that are reported in the trackers to what was invoiced on the beneficiaries’ Medicare statements.

This may result in the beneficiary owing a lower total amount and could reveal whether or not a medical identity has been stolen. When individuals checking their Medicare statements look for and report errors, they are helping to safeguard the Healthcare system for future generations.

Medicare fraud can be committed not only against the government but also against senior persons who are enrolled in the programs, as stated by Seth Boffeli, an adviser for the AARP Fraud Watch Network. He noted that the most efficient way to protect oneself from falling prey to scams was to act as one’s own private investigator and investigate any suspicious activity.

Boffeli noted that identifying fraudulent activity at an early stage is extremely important since not only does it help customers save money, but it may also have implications for getting treatment in the future. He went on to say that Medicare beneficiaries can protect themselves from fraud by taking a few simple precautions.
Boffeli suggested that patients seek advice from their primary care physicians before offering their Medicare data or consenting to an exam or handset that Medicare will pay for. Boffeli said that it was just essential when you’re offering out your Medicare data or consenting to an exam or a machine that Medicare will be paying for.

The Fraud Watch Network of the AARP provides advice papers on more than 70 different types of fraud that target elderly people. My Health Care Tracker also provides details on the state insurance help program. These programs offer Medicare-eligible people, as well as their families and caregivers, reputable local advice, and assistance.

Contact Information:
Email: [email protected]
Phone: 2129517376

Medicare Website Is Getting More User-Friendly

August 20, 2023 /by todd carmack

The Centers for Medicare & Medicaid Services (CMS) announced various enhancements to the Medicare.gov website that will make it easier for the millions of people who use it to browse and access information to compare and select health and prescription coverage and find providers. Based on consumer feedback, the new website prominently displays timely initiatives and messages on the homepage. It highlights critical tasks and information most commonly sought by people with Medicare, people approaching Medicare eligibility, and their families.

“CMS is making Medicare.gov more user-friendly and useful for consumers looking to understand their Medicare coverage, which is an important aspect of staying healthy,” said CMS Administrator Chiquita Brooks-LaSure. “As we build and provide innovative, tailored online tools and increased customer service alternatives for those with Medicare coverage and people who support them, we’re committed to listening to the people we serve.”

Since 2021, CMS has made several changes to Medicare.gov to make it more welcoming and user-friendly. This week’s updates modernize the Medicare.gov main page and provide more extensive price information regarding Medicare Supplement Insurance (Medigap) Policies, allowing individuals to compare Medigap plan rates and coverage alternatives. CMS is dedicated to providing comprehensive and readily available information to help Medicare beneficiaries make educated decisions. Additional enhancements are planned for the next months to streamline the Medicare Plan Finder and Medicare Account landing pages and harmonize the style and feel with the new home page.

Other changes to Medicare.gov over the last year have included simple language to answer complex questions about Medicare coverage that people frequently have and step-by-step guidance to help people new to Medicare understand their coverage options and when they need to sign up. For example, in the summer of 2021, a redesign of the “Get started with Medicare” section walks visitors through a few questions to get personalized information about their situation, making it faster and simpler to learn about Medicare and sign up. In early 2021, a simple and modern consistent header will be implemented to improve user-friendly navigation on the website.

CMS is committed to enhancing personalization to create an optimized customer experience for people with Medicare and those who assist them and is continuing to incorporate feedback from Medicare.gov users, as well as human-centered design principles, to explore and develop future upgrades to the website.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
Todd Carmack grew up in Dubuque, Iowa, where he learned the concepts of hard work and the value of a dollar. Todd spent years in Boy Scouts and achieved the honor of Eagle Scout. Todd graduated from Iowa State University, moved to Chicago, spent a few years managing restaurants, and started working in financial services and insurance, helping families prepare for the high cost of college for their children. After spending years in the insurance industry, Todd moved to Arizona and started working with Federal Employees, offing education and options on their benefits. Becoming a Financial Advisor / Fiduciary can help people properly plan for the future. Todd also enjoys cooking and traveling in his free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice has been filed, or is excluded from notice filing requirements. This information is not a complete analysis of the topic(s) discussed, is general in nature, and is not personalized investment advice. Nothing in this article is intended to be investment advice. There are risks involved with investing which may include (but are not limited to) market fluctuations and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making any investment decision. You should consult a professional tax or investment advisor regarding tax and investment implications before taking any investment actions or implementing any investment strategies.

SC Justices Uphold The Changes To Medicare Payments To Low-Income Hospitals.

August 20, 2023 /by joe carreno

In June, the Supreme Court maintained a 2005 rule that reduced the additional Medicare payments hospitals receive for seeing a higher proportion of low-income patients.

Because of the ruling, some providers would not be able to recover the higher expenses they claim to incur in caring for low-income patients.

The court ruled in a divided judgment (5-4) that the Department of Health and Human Services regulation is compatible with the text, context, and structure of the DSH regulations. The court decided that those “entitled to Medicare Part A benefits” include all those eligible for the program regardless of whether they receive Medicare payments for all or part of a hospital stay.

The disproportionate share of hospital (DSH) adjustments and additional annual payments are determined following the Medicare Act by the Department of Health and Human Services.

The method is based on adding two percentages: the portions of Medicare and Medicaid. The proportion of hospital patients eligible for Medicare Part A and Supplemental Security Income is known as the Medicare Fraction (SSI), while the proportion of a hospital’s patients who qualify for Medicaid but not Medicare Part A, which pays for inpatient hospital stays, is known as the Medicaid fraction.

By altering the meaning of one phrase, the HHS modified how the Medicare fraction is computed in its rule. According to the statement, patients “entitled” to Medicare Part A are those who are “eligible” for the benefits. However, it preserved its strict definition of patients who are “entitled” to SSI, which requires that they actually get SSI benefits.

As a result, fewer people qualified for Medicaid under the Medicaid percentage, and few of those excluded did so under the Medicare percentage.

In their judgment, the supreme court justices stated that the methodology “accords with the statute’s intention to capture, through two separate metrics, two different portions of a hospital’s low-income patient group.”

According to the Empire Health Foundation, hospitals suddenly saw their Medicare and Medicaid fractions decline. This Washington-based health system challenged the regulation, even though there was no change in the number of low-income patients they were serving.

According to Empire Health’s brief to the court, undercounting the number of indigent patients those hospitals serve, the rule drastically reduces both the number of hospitals getting DSH payments and the payment amounts.

A ‘Term of Art’

Empire tried to convince the judges that having an “absolute right” to get something meant you were “entitled” to it. However, the ruling stated that “entitled to benefits” is fundamentally a term of art that means “qualified for benefits” throughout the Medicare Act.

HHS had contended that its interpretation represented the best, most logical interpretation of the Medicare Act’s legislative wording.

In its petition to the justices, the agency stated that “other provisions of the statute confirm, as HHS has long recognized, that a Medicare beneficiary’s ‘entitlement’ to Part A benefits does not depend on whether they have used up the maximum allotment of one particular benefit (hospital inpatient days) for a specific benefit period.”

In November, the complex Medicare Act left the justices worn out and perplexed at an oral argument. After describing the case’s history, Justice Elena Kagan bowed to its complexity in the majority judgment. Kagan said that the statute is a “mouthful,” adding that with that knowledge under your belt, you “may be ready to assimilate the relevant legislative wording” (but don’t bet on it).

Despite “working very hard to discover ways to control Medicare costs in light of escalating Medicare expenditures and the country’s fiscal predicament,” HHS’s new interpretation of the law is erroneous. Justices Samuel Alito, Brett Kavanaugh, Neil Gorsuch, and Chief Justice John Roberts expressed their disagreement.

“HHS’s opposing view states that a patient can be eligible and ineligible to receive reimbursement from Medicare for a specific day spent in the hospital.” That view is flawed, according to Kavanaugh.

Today, we endorse HHS’s view of the Medicare percentage, adding that HHS’s regulation accurately construes the statutory text at issue.”

The case was keenly studied for the possibility that the conservative wing would use the opportunity to limit the authority of executive agencies; thus, it is noteworthy that the court chose not to do so.

Contact Information:
Email: [email protected]
Phone: 8139269909

Bio:
For over 30-years Joe Carreno of The Retirement Advantage has been a Federal Employee Retirement System specialist (FERS) as well as a Florida Retirement System specialist (FRS) independent advocate. An affiliate of PSRE (Public Sector Retirement Educators), a Federal Contractor & Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.

We will help you understand your FERS & FRS Benefits, TSP & Florida D.R.O.P. withdrawal options in detail while recognizing & maximizing all concurrent alternatives available.

Our primary goal is to guide you into retirement with no regrets; safe, predictable, stable, for life. We look forward to visiting with you.

Disclosure:
Not affiliated with the U.S. Federal Government, the State of Florida, or any government agency. The firm is not engaged in the practice of law or accounting. Always consult an attorney or tax professional regarding your specific legal or tax situation. Although we make great efforts to ensure the accuracy of the information contained herein we cannot guarantee all information is correct. Any comments regarding guarantees, safe and secure investments & guaranteed income streams or similar refer only to fixed insurance and annuity products. Fixed insurance and annuity product guarantees are subject to the claimsâ€paying ability of the issuing company. Annuities are long-term products of the insurance industry designed for retirement income. They contain some limitations, including possible withdrawal charges and a market value adjustment that could affect contract values. Annuities are not FDIC insured.

Medicare Supplement Plans’ Newly Obtained Assets

May 26, 2023 /by mack hales

Medicare Supplement Plans is likely to improve its position as a leader in the Medicare industry due to its recent acquisition of the online assets of Insure Monkey, another well-known company in the industry.

When people in the United States are near the age of 65, they are faced with the critical decision of selecting the appropriate Medicare plan.

However, even that is often not enough because many individuals select insufficient Medicare plans to cover all of their necessary medical expenses. Because of this, an ever-increasing number of people around the nation are searching for Medicare Supplement Plans with private insurers that meet their specific needs and check all of the appropriate boxes.

Insure Monkey

To put things into perspective, this is precisely where the organization’s services enter the picture. Because of its many years of expertise in the industry, it has amassed critical knowledge regarding various insurance companies and plans, which it uses to make its customers’ lives easier.

Medicare Supplement Plans is also aware that no two customers are identical because each customer’s requirements are unique to their demands.

When customers call the firm, they are connected with certified insurance agents who are experts in these products. These agents are professionals who handle customer service for the company. They have trouble precisely understanding what their customers want, interrogating them with pertinent questions, and responding to their inquiries to provide them with helpful information.

The organization has always maintained openness and provided clients access to vital information databases for their advantage.

The fact that the organization behind Medicare Supplement Plans knows to understand why particular plans are effective, and their advantages are another thing that sets them apart from the competition. People may find that searching through a myriad of internet insurance plans to discover the most significant available choices is a task that is both laborious and time-consuming.

However, the business makes it simple for customers to navigate the programs by providing them with the information and support they require over the phone.

Deciding Supplement Plan

Individuals are tasked with considering several distinct aspects when deciding on a Medicare Supplement Plan. They need to keep in mind the various fees that are associated with the process, as well as the total amount that they are responsible for paying.

These plans are likewise structured in letters, ranging from A to N, and the range of services included in each letter plan varies. The organization educates customers on these topics and provides details on open enrollment periods so that customers may maximize their benefits.

It is worth noting that even while consumers may be past the registration windows for a particular plan, they may still be eligible for certain protections and special pricing despite having missed the window for enrollment.

In addition to this service, the organization provides customers with a no-cost estimate regarding the insurance policy that best meets their requirements. In this way, it has assisted customers in making the most advantageous choices for their futures as feasible. And now, with the acquisition of the online assets of Insure Monkey, it will assist more customers and reinforce its position as the industry leader in the area.

The Medicare Supplement Plans You Should Know About

A company with a wealth of expertise in the industry has built a reputation for itself by assisting individuals in making informed judgments regarding the Medicare Supplement Plans that are most suited to meet their requirements and financial constraints.

Contact Information:
Email: [email protected]
Phone: 7705402211

Bio:
Mack Hales has spent the past 4 decades helping clients prepare for retirement and manage their finances successfully. He also works with strategies that help clients put away much more money for their retirement than they could in an IRA or even a 401k. We involve the client’s CPA and/or their tax attorney to be sure the programs meet the proper tax codes.

Mack works with Federal Employees to help them establish the right path before and after retirement. The goal is to help the client retire worry-free with as much tax-free income as possible and no worries about money at risk of market loss during retirement.

Mack has resided in Gainesville, GA since 1983, so this is considered home. Mack is married to his wife of 51 years, has two boys and five grandchildren.

Social Security: Forecast For 2023 COLA

May 20, 2023 /by todd carmack

With 2023 rapidly approaching, Social Security beneficiaries will soon learn how much their monthly payments will increase next year based on the current quarter’s inflation rate. According to The Senior Citizens League, a non-partisan seniors advocacy group, the predicted Social Security cost-of-living adjustment (COLA) for 2023 is 8.7%.

Its forecast was modified on September 13, 2022, in response to the Labor Department’s Consumer Price Index for All Urban Consumers (CPI-U) report. According to the report, overall inflation jumped 8.3% in August compared to the previous year, as monthly rises in food, lodging, and medical care offset a sharp decline in energy and gas prices. The August increase followed an 8.5% increase in July.

The Social Security COLA is calculated using the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W), which differs somewhat from the CPI-U. The COLA is determined using the year’s average inflation rate in the third quarter. When those results are released, the data from July, August, and September will be combined and divided by three to calculate the average. The third quarter 2021 average will then be compared to the 2022 figure to establish the percentage change for 2023.

The group’s most recent COLA projection is significantly lower than earlier estimates this year, which projected a Social Security hike of up to 10.5% in 2023. Even an 8.7% growth would be the greatest in more than four decades.

“A COLA of 8.7% is highly exceptional, and it would be the highest ever earned by the vast majority of Social Security pensioners alive now,” said Mary Johnson, Senior Citizens League’s Social Security and Medicare policy expert. “It was higher only three other times since the introduction of automatic adjustments (1979-1981).”

The Senior Citizens League and other senior advocacy organizations have frequently challenged the formula used to calculate the Social Security COLA since it does not account for increases in the Medicare Part B premium, which is 14.5% more this year than in 2021. This frequently results in Social Security payouts for seniors falling short of the real inflation rate.

According to The Senior Citizens League, the Medicare Part B premium and other fees are typically disclosed in mid-November. It does not anticipate a significant increase in premiums in 2023.

Even if you exclude this year’s higher Medicare costs, the 2022 COLA of 5.9% is already considerably below the total inflation rate. According to the Senior Citizens League, the August COLA fell short by an average of 48%.

What Does 8.7% COLA Imply?

According to The Senior Citizens League, an 8.7% COLA increase next year means that the average Social Security beneficiary would receive $1,656 in monthly payments, an increase of $144.10 per month. Retirees can calculate their exact increase by multiplying their current check amounts by .087.

“COLAs are supposed to help sustain the purchasing power of Social Security income when prices rise,” according to the Senior Citizens League’s estimate. They are permanent increases that will gradually boost retirees’ total Social Security benefits throughout their retirement. Without a COLA that keeps up with inflation, Social Security benefits buy less and less over time, which can be difficult, especially as older Americans live longer lives in retirement.

Medicare Part B Premiums May Fall in 2023

While costs for nearly everything has risen in line with inflation this year, it is obvious that Medicare premiums will fall in 2023.

It is the duty of The Centers for Medicare & Medicaid Services (CMS) to announce the 2023 Medicare Part A and Part B premiums, deductibles, and coinsurance amounts, as well as the 2023 Medicare Part D income-related monthly adjustment amounts.

The Social Security Act establishes the monthly Medicare Part B premium, deductible, and coinsurance rates. The regular monthly cost for Medicare Part B users in 2023 will be $164.90, a $5.20 drop from $170.10 in 2022. In 2023, the yearly deductible for all Medicare Part B participants is $226, a $7 drop from the previous year’s $233.

Contact Information:
Email: [email protected]
Phone: 6232511574

Bio:
I grew up in Dubuque, Iowa, where I learned the concepts of hard work and the value of a dollar. I spent years in Boy Scouts and achieved the honor of Eagle Scout. I graduated from Iowa State University and moved to Chicago and spent a few years managing restaurants. I then started working in financial services and insurance helping families prepare for the high cost of college for their children. After spending years in the insurance industry, I moved to Arizona and started working with Federal Employees offing education and options on their benefits. I became a Financial Advisor / Fiduciary to further help people properly plan for the future. I enjoy cooking and traveling in my free time.

Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

When it makes sense to suspend Social Security benefits

May 14, 2023 /by aaron steele

Social Security does not typically grant a “do-over,” although, in some circumstances, retirees may request one. For individuals who can make it through without their monthly paycheck, for the time being, delaying Social Security could lead to a greater payout in the future. However, this strategy shouldn’t be confused with removing Social Security benefits, which function under different circumstances.

Here’s everything you need to know regarding suspending your Social Security benefits, plus when you should do so.

What does it mean to suspend social security?

You can postpone your retirement benefits if you’ve achieved the full retirement age (FRA) and are younger than 70. The critical phrase is “if you’ve reached full retirement age.”

You can submit your request in writing or verbally and suspend your benefits for the next month. If you suspend your benefits, they will automatically restart when you reach age 70, but you can reinstate them anytime.

Social Security Withdrawal Do-over

If you’ve decided to receive Social Security payments, you can request a withdrawal at any age. You may terminate your benefits, formally known as your primary insurance amount (PIA), up to one year after becoming eligible.

The Social Security Administration will then regard you as if you never enrolled. Your PIA then continues to increase until you opt to begin receiving benefits once more.

This “do-over” permits you to accumulate a larger payout in the future, following Social Security’s standard benefit modifications. A withdrawal mandates you to reimburse any money earned, including benefits to a spouse or kid and money withheld for Medicare.

If you choose to remove your benefits, you must submit Form SSA-521 and explain why.

If you intend to file a withdrawal, you must do so within the 12-month time restriction. Otherwise, you may be unable to defer your Social Security benefits until you reach full retirement age.

When is it reasonable to terminate Social Security benefits?

There are numerous factors to consider before reapplying for Social Security benefits. However, some of the most significant factors include evolving demands for your longevity, a new financial condition (perhaps due to a change in employment), and a planning strategy with your spouse to maximize your benefits. All of these factors, however, center around maximizing the after-tax advantage of the program.

• Longer life: If you expect to live longer than anticipated, it may be prudent to defer your payments and try to accrue as much benefit as possible. You can conduct a break-even evaluation to determine what is most rational. However, if you are married, you should consider when your spouse will begin receiving benefits and how this would affect your total payout.

• Taxes: Especially if you pay your taxes early or are working while collecting Social Security, onerous tax regulations might consume a significant portion of your income.

• Misunderstanding: Individuals who begin collecting at a younger age may not realize that they are locking in a lower monthly benefit amount than what they are eligible for if they wait until they become older.

• Medicare expenses: Medicare premiums are often deducted from retirees’ benefits, so you will be responsible for any payments if you suspend or withdraw your benefit. You will be separately charged if you desire to continue Medicare Part B supplemental insurance coverage until your benefits are reinstated.

• Nobody on your record: It may make sense if no one else is seeking benefits on your record. Remember that if you suspend your retirement benefit, anyone who gets benefits on your records, except your divorced spouse, will not be allowed to collect benefits while your benefits are stopped. Any advantages you obtain on someone else’s record will be suspended.

• Capable of affording it: If you are waiting for a greater benefit, you must be able to meet your expenditures until your benefit begins again. And if you withdraw benefits, you’ll need to be able to cover both your living expenses and the payback of any money you’ve previously received, which is a tough order.

• Other conditions: Depending on the circumstances, a suspension or withdrawal of benefits may be appropriate when collecting survivor benefits for a widower or widow and their dependents and collecting on a spouse’s benefit as opposed to your own in the case of divorce or remarriage.

If you delay your payout, you can still benefit from the growth in your full retirement benefits and any cost-of-living adjustments (COLA) resulting from inflation.

Next year’s benefits are expected to increase by approximately 9% due to the rising cost of living. You will earn an 8% deferred retirement credit if you delay your benefits.

Contact Information:
Email: [email protected]
Phone: 3604642979

Bio:
After entering the financial services industry in 1994, it was a desire to guide people towards their financial independence that drove Aaron to start Steele Capital Management in 2013. Armed with an extensive background in financial planning and commercial banking coupled with a sincere passion for helping people, Aaron has the expertise and affinity for serving the unique needs of those in transition. Clients benefit from his objective financial solutions and education aligned solely with
helping them pursue the most comfortable financial life possible.

Born in Olympia, Washington, Aaron spent much of his childhood in Denver, Colorado. An area outside of Phoenix, Arizona, known as the East Valley, occupies a special place in Aaron’s heart. It is where he graduated from Arizona State University with a Bachelor of Science degree in Business Administration, started a family, and advanced his professional career.

Having now returned to his hometown of Olympia, and with the days of coaching his sons football and baseball teams behind him, he now has time to pursue his civic passions. Aaron is proud to serve on the Board of Regents Leadership for Thurston County as the Secretary and Treasurer for the Morningside area. His past affiliations include the West Olympia Rotary and has served on various committees for organizations throughout his community.

Aaron and his beautiful wife, Holly, a Registered Nurse, consider their greatest accomplishment having raised Thomas and Tate, their two intelligent and motivated sons. Their oldest son Tate is following in his father’s entrepreneurial footsteps and currently attends the Carson College of Business at Washington State University. Their beloved youngest son, Thomas, is a student at Olympia High School.

Focused on helping veterans and their families navigate the maze of long-term care solutions, Aaron specializes in customized strategies to avoid the financial crisis that care related expenses can create. Experience has shown him that many seniors are not prepared for the economic transition that takes place as they reach an advanced age.

With support from the American Academy of Benefit Planners – an organization with expertise and resources on the intricacies of government benefits – he helps clients close the gap between the cost of care and their income while protecting their assets from depletion.

Aaron can help you and your family to create, preserve and protect your legacy.

That’s making a difference.

Disclosure:
Disclosure:
Investment advisory services are offered through BWM Advisory, LLC (BWM). BWM is registered as an Investment Advisor located in Scottsdale, Arizona, and only conducts business in states where it is properly licensed, notice filed, or is excluded from notice filing requirements. BWM does not accept or take responsibility for acting on time-sensitive instructions sent by email or other electronic means. Content shared or published through this medium is only intended for an audience in the States the Advisor is licensed in. If you are not the intended recipient, you are hereby notified that any dissemination, distribution, or copy of this transmission is strictly prohibited. If you receive this communication in error, please immediately notify the sender. The information included should not be considered investment advice. There are risks involved with investing which may include market fluctuation and possible loss of principal value. Carefully consider the risks and possible consequences involved prior to making an investment decision.

Confidential Notice and Disclosure: Electronic mail sent over the internet is not secure and could be intercepted by a third party. For your protection, avoid sending confidential identifying information, such as account and social security numbers. Further, do not send time-sensitive, action-oriented messages, such as transaction orders, fund transfer instructions, or check stop payments, as it is our policy not to accept such items electronically. All e-mail sent to or from this address will be received or otherwise recorded by the sender’s corporate e-mail system and is subject to archival, monitoring or review by, and/or disclosure to, someone other than the recipient as permitted and required by the Securities and Exchange Commission. Please contact your advisor if there are any changes in your personal/financial situation or investment objectives for the purpose of reviewing/evaluating/revising our previous recommendations and/or services. Additionally, if you change your address or fail to receive account statements from your account custodian, please contact our office at [email protected] or 800-779-4183.

Minimize Your Medicare Costs and Social Security Taxes with Roth IRA Conversion

May 14, 2023 /by todd carmack

Suppose you are using a tax-deferred account like 401(k); you can have more money by converting your 401(k) funds to a Roth IRA before claiming your social security. Converting your tax-deferred money to Roth IRA funds helps you reduce taxes. Still, this process may be challenging when deciding the amount to convert.

Roth conversion occurs when you convert your pre-tax deferred accounts like the traditional IRA to an after-tax account that is tax-free. Your money will be taxed like your regular income once you convert it. This means you have decided to prepay taxes that will not be due for many years. Making a Roth conversion will also benefit your relatives and beneficiaries in the future.

Roth conversion is good if the expected marginal tax rate when you withdraw money from a tax-deferred savings plan is higher than the current tax rate. Suppose you retire and have not started collecting social security benefits. In that case, you have a higher chance to do a Roth conversion due to your lower tax bracket.

Roth conversion can also benefit employees with low-income or high-income earners with a temporary lower tax bracket. Roth conversion will be more advantageous if you have enough money to cover the taxes. This money should not be from a tax-deferred account.

It is necessary to estimate the future tax rate before making a Roth conversion because this will determine your social security taxes and Medicare premium costs.

When you convert your money to Roth IRA funds, you should estimate the amount to convert through a process known as conversion optimization. You can optimize your Roth conversion using mass-market programs such as TurboTax or other software.

You can have higher retirement savings when converting your tax-deferred money and delaying your social security claims. With this approach, you can stay within the lower tax bracket through your retirement period.

Contact Information:
Email: [email protected]
Phone: 6232511574

Early Retirement In More American’s Plans

April 29, 2023 /by kevin wirth

We all know that most of us will leave our jobs and retire at some time in our lives. According to some findings, many Americans want to retire a few years before the age 65.

Hearts & Wallets, a consumer research firm, released a report in March 2021 that over 17% of Americans believe waiting until age 65 is too late to retire. Insufficient savings, high housing prices, and debt burdens prevent many from reaching full retirement at 55.

According to Hearts & Wallets, the percentage of people planning to retire at 59 has risen from 11% in 2018. 17.3% of participants wanted to retire before 55, while 39% planned to retire before 65.

According to the survey, 11.5 million of the approximately 70 million American families with major breadwinners under 55 aim to retire by then. Almost half are under 35. Increasingly, individuals work beyond retirement age. That’s up from 23% in 2015.

Laura Varas, CEO of Hearts & Wallets, said more and more individuals are stating, ‘I will work as long as I can.’ “Despite appearances, these two occurrences are not mutually exclusive. For example, Varas cites the Covid-19 era’s realization that health issues or job losses might impair retirement plans. As a result, she says, individuals are thinking about ways to reduce their reliance on work. The firm found that those who wanted to retire by 55 had less total debt and saved money. Varas estimates that just one in five families save at least 15% of their income.

Housing and utilities account for 43% of consumer expenditures, making them the biggest category. Varas says most individuals can save money on housing by downsizing or moving to a cheaper region. It’s difficult for advisors and guidance programs to balance real estate and investible assets. “That’s the largest trade-off in this equation.”

A quarter of families also have student loan debt, either for themselves or their children or grandkids. Hearts & Wallets reports that although that proportion is steady, the average amount owed is smaller.

Nonetheless, three-quarters of those anticipating early retirements lack a full year’s worth of savings. Varas advise against quitting employment without at least a five-to-one asset-to-income ratio.

Two Retirements

Randy Bruns, the founder of Model Wealth, says that retiring before 65 takes special planning.
“We’ve had many clients ask for this. We assumed early on that a 4% rule would need to be reduced to 2 or 3% to accommodate for a longer retirement,” Bruns noted in an email. ‘Normal’ retirement (age 65+) was subsequently cheaper if the early retirement years (55-65) were isolated.

For example, consumers must seek private health insurance before being eligible for Medicare.

Setting Financial Concerns Aside

According to Michael Simmons, director of financial planning at Transitions Wealth Management, the pandemic has made some customers more focused on the charitable possibilities when they retire. It has made others want to retire sooner. He added that clients should evaluate the emotional and social aspects of quitting their job.

“Retirees encounter extra obstacles they haven’t addressed or prepared for,” Simmons stated in an email. “What will they do? How will they respond to losing touch with coworkers they have known for years? How will they now define success?

Patricia Hausknost, 66, was one of the early retirees who worked hard to save and pay off debt. The couple currently teaches at UCLA and are open to other options in the future. “Most individuals who can afford to retire don’t know what to do with themselves,” wrote Hausknost. Liz Windisch of Aspen Wealth Management says she sees more millennials pursuing financial independence before age 50.

Windisch remarked in an email that people should retire from corporate America around 50 and then work for themselves or a charity. “They can accomplish it if they start early.”

An Excellent Way to Discover New Things

According to Juan HernandezAriano, director of WealthCreate Financial, persons contemplating early retirement are frequently engineers or physicians who own their clinics and have significant interests in other activities.

Studies show that hobbies lead to early retirement. “I’ve seen engineers who are more financially prepared yet more cautious. But physicians-entrepreneurs are less prepared but more determined to retire early.”

Contact Information:
Email: [email protected]
Phone: 9143022300

Bio:
My name is Kevin Wirth and I have worked in the financial services industry for many years and I specialize in life insurance and retirement planning for individuals and small business owners, with a specialty in working with Federal Employees. I am also AHIP certified to work with individuals on their Medicare planning. You can contact me by e-mail or phone. I look forward to the opportunity of working with you on these most relevant areas of financial [email protected] 914-302-2300

Early Retirement Reality Check

April 27, 2023 /by mickey elfenbein

Even if you like your work, there are times when alphabetizing the spice cabinet would be preferable to traveling a crowded train with hundreds of sniffling passengers. You could be considering early retirement as you wobble in the car next to a guy who has biked four hours to the station.

Unfortunately, not everyone is suited for early retirement. Indeed, it is not for most people. According to a poll conducted by the Employee Benefit Research Institute (EBRI), just 11% of today’s employees want to retire before 60. The reality of early retirement might be quite different from the dream for many of those who take the jump. Before you decide to retire early, consider a few things.

1. Health care is expensive.

If you were sick as a child, likely, you’ve already been diagnosed with an ailment or two. And if you’re like many people in their 20s and 30s today, those health problems don’t just go away when you turn 65. Believe it or not, most insurance companies won’t cover treatments for conditions present before your policy. And if you get sick after your policy begins, expect to pay extra for your health care.

Medicare doesn’t kick in until you’re 65. You’re on your own for medical expenses unless you buy a private insurance plan that will cover pre-existing conditions or take out an expensive rider to cover that risk after you retire.

2. Tapping your nest egg earlier can be costly.

Depending on how you invest your assets, you could see a significant drop in your portfolio’s value if you begin to liquidate at age 50. For most people, tapping savings represents a large percentage of their net worth, and the loss of that investment can be enough to derail any dreams they have of retiring early. Suppose retirement is still years away, and you’ve got no other sources of income. In that case, the best strategy might be to keep working and investing as usual.

3. Housing expenses don’t retire when you do.

When you retire early, it’s relatively common to move to a less expensive area. But don’t assume that your housing costs will go down as well. It’s pretty common for people to spend more on housing in retirement than they did when working full-time.

How much should you save? A benchmark rule of thumb is to replace 80% of your pre-retirement income. If you’re 35 and earn $70,000 a year now, aim to have about $56,000 saved by age 65 to continue living on about $10,000 per year from then on.

4. Extra income can be hard to come by.

Being your boss and setting your hours can be a great perk of early retirement. But unless you had already planned on working part-time, it’s unlikely that you’ll get the same kind of paycheck after retirement as you do while at work. That extra cash can make paying for health care and housing expenses easier without dipping into savings.

5. There’s a lot of time to kill.

Many people discover that they have a lot more free time as retirees than they ever expected. If you’ve been used to working 10-hour days for the last few decades, spending your days fishing or golfing can feel like an empty experience. As a result, some retirees find themselves longing for the structure of their old work schedules. Working part-time can be an excellent way to fill these hours and provide income at the same time.

What’s more important Ã¢â‚¬â€ not going to work every day or having enough money to pay your bills? Many early retirees find that there are tradeoffs involved in living the life they once dreamed about. Reality is often different from fantasy Ã¢â‚¬â€ but it can still be a rewarding life.

6. You may need to make new friends.

It can feel strange to have all day long to do whatever you want suddenly Ã¢â‚¬â€ and no one else around. But it’s a common experience for retirees who leave behind their co-workers, supervisors, and colleagues when they retire early. And even if you had a solid social network within your work environment, the chances are that most of them will be working still while you’re retired. So if the idea of playing golf every day on your own doesn’t appeal to you, consider starting a new hobby or taking up some volunteer activity in your community so that there’s someone else around during your afternoons and weekends.

7. Retirement can be tough on couples.

Many retirees find that they miss the structure of a work schedule, a shared social network, and a sense of meaning in their lives. If you’re married, your partner could experience similar feelings Ã¢â‚¬â€ even if they are happy to be retired. That can put added stress on your marriage as you both sometimes struggle with competing desires for time alone versus togetherness. In some cases, it might be helpful to take up new activities or hobbies separately so that each person has their own set of friends and social interactions outside the home.

Contact Information:
Email: [email protected]
Phone: 6122163911

Bio:
Mickey Elfenbein specializes in working with Federal Employees relative to their retirement benefit plans, FEGLI, TSP, Social Security and Medicare, issues and solutions. Mr. Elfenbein’s mission is to help federal employees to understand their benefits, and to maximize their financial retirements while minimizing risk. Many of the federal benefit programs in place are complicated to understand and go through numerous revisions. It is Mr. Elfenbein’s job to be an expert on the various programs and to stay on top of changes.

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

He has over 30 years of senior level experience in a variety of public and private enterprises, understands the needs of federal employees, and has expertise built on many years of high-level experience.

Seven Aspects In Which Your Financial Literacy Changes Once You Retire

April 26, 2023 /by todd carmack

Financial literacy covers a broad range of topics, including budgeting, saving, investing, and retirement planning. However, your financial literacy broadens to cover circumstances that weren’t as important during your working life once you retire. For example, income declines typically in retirement, while costs may remain constant or even grow, depending on your lifestyle and overall health.

Here are seven crucial subjects to learn if you wish to avoid financial pitfalls in retirement.

Social Security

You’ve been paying into Social Security since your first payday. Still, as you near retirement, you should plan your Social Security withdrawal strategy. Your Social Security benefits partly depend on how much you earned throughout your working lifetime. You should also consult a tax or financial professional to determine if you should start benefits early, at full retirement age (FRA), or even later.

Medicare

Medicare is a complicated system of health insurance for seniors. To use it efficiently, you must understand how it works. Medicare has two fundamental portions, A and B, covering hospital and medical costs. Part B has a monthly premium. If you need prescription medication coverage, you can add Part D. Medicare Advantage (Medicare Part C) is a private company’s version of Original Medicare. You’ll probably need to consult an expert to understand Medicare’s financial implications with so many options. Notably, neither Original Medicare nor Medicare Advantage is likely to cover care outside the US.

Required Minimum Distributions (RMDs)

As you’ve paid Social Security taxes during your working life, you’ve also contributed to your retirement accounts. But you can’t keep your money in them forever. Traditional IRAs and 401(k) plans demand annual distributions beyond a specific age to avoid a 50% penalty tax. Congress has extended the deadline for taking RMDs to April 1 of the year after your 72nd birthday. Since Roth IRAs are funded after-tax, they don’t require you to take minimum distributions.

Taxes

Taxes are easy if you have a paid job. Generally, your company will deduct taxes from your paycheck, while all you need to do is supply your W-2 information when filing your taxes. During retirement, you may get many forms like 1099-Rs and K-1s. Some of these may have different tax implications, so you should familiarize yourself with them before retiring.

Expenses

Even if you’re used to budgeting, your retirement budget is likely to vary dramatically. For instance, many retired people have already paid off their mortgages. However, some expenses, like medical bills, are likely to climb, even with good insurance. Other costs will vary based on your lifestyle. Some retirees increase their travel and dining expenses, while others reduce them instead. Budgets differ significantly from one person to another, but they often shift after retirement. Be prepared and aware that your retirement costs might increase or decrease drastically.

End-of-Life Planning

Nobody wants to talk about the end of their lives, yet it’s a necessary step in financial preparation. First, you should create a will and/or trust to identify who will inherit your assets after you die. You may also consider consulting an estate attorney about optimizing the value of your asset transfers to heirs. Nonfinancial considerations include preparing instructions for end-of-life planning in advance if you become disabled. For example, you might want to sign an advance directive, such as a durable power of attorney for healthcare, which authorizes someone else to make medical choices on your behalf.

Asset Allocation

You’ve probably heard of asset allocation in your pre-retirement years, whether in a 401(k) plan or your personal investing account. However, as you approach retirement, you will almost certainly need to revise your asset allocation, which should have served you well during your working years. You will have fewer years to recover from a slump in your assets in retirement and less money to contribute to your account while markets are down.

As a result, many financial consultants may advise you to adjust your portfolio toward more conservative assets as you become older. As each person’s financial position is unique, you should assess your income, spending, and financial requirements, maybe with the help of a financial counselor, before making any significant changes to your portfolio.

Contact Information:
Email: [email protected]
Phone: 6232511574

What To Do About Social Security

April 26, 2023 /by marvin dutton

A lot of people have retired in the past few years. Many government employees have elected to end their service because of the pandemic, market instability, the shift in pace and workplace culture, and several other factors.

When it comes to deciding when to retire, many factors will go into the decision – one of which is determining what to do with Social Security.

According to Kiplinger, there are more than 500 different ways to determine when and how to apply for Social Security. Around 80 of those are solely for individuals that are married.

What Should a Retiree Do When Deciding on Social Security?

There’s so much misinformation about Social Security, and many people don’t know their choices. Even an SSA agent may not be aware of all your options. They also don’t know you or your lifestyle, so they’re not well-equipped to assist you in making the best decisions.

We won’t be able to cover all of the aspects of the Social Security system in this article, but we’ll discuss some of the most important things to keep in mind when filing for benefits. Learn how to get a free worksheet to help you calculate your Social Security taxes.

Special Retirement Supplement

You can get the special retirement supplement until you reach the age of 62 if you retire under FERS with 30 years at the MRA or 20 years at 60. As a federal employee, this well-known benefit is intended to bridge the gap between your exit from service and the commencement of your Social Security payment.

Waiting For The Perfect Time To File For Social Security.

Simply because you have the option to take Social Security does not mean you should.

You should be aware of the three primary target milestones for Social Security. The first is when you turn 62 and become eligible. The second is your full retirement age (FRA), ranging from 66 to 67 years old, depending on your birth year. The third is your age, which is 70. Between those dates, you can collect your Social Security payment at any time (excluding disability).

While you can start collecting Social Security at age 62 if you meet the requirements, this is the earliest date permitted (non-disability related).

Depending on your birth year, your full retirement age (FRA) is between 66 and 67. This is when you start receiving your full Social Security income (not the maximum amount). You’ll get whatever you’re entitled to based on the calculations.

A third option is to postpone filing until you reach your full retirement age (FRA).

Why would anyone want to wait? Because you received an annual raise of 8% for waiting until you were 70 years old. There’s no point in waiting until you’re 70; the bonus credits stop at 70, so grab it now if you haven’t already.

These aren’t your only options, but they’re just where you start when planning your retirement. Here are other considerations when deciding when to file for Social Security.

Considerations for Your Health

Another thing to consider is that you may have information about your health that leads you to believe you will not live to be extremely old. If this is the case, it might make sense to start taking Social Security before your full retirement age (FRA).

Consider your family.

If a surviving spouse applies for Social Security, they may be eligible to receive benefits from their deceased partner. If theirs is higher, they can keep it, but they also have the option of acquiring their spouse’s. Because of this, they will lose their own money, so it’s essential to plan for a drop in income (this is where a life insurance policy comes in).

You made a mistake in your application.

If you believe you made a mistake when applying for Social Security benefits, you usually have 12 months to withdraw your application and refund the benefits you’ve received. This might help you return to your original choices, which are ideal for you and your family.

Don’t be too hard on yourself. There is relatively little education about the complexity, and many of the rules are illogical.

Contact Information:
Email: [email protected]
Phone: 2129517376

How to Get the Most From Your FEHB

April 26, 2023 /by kevin wirth

The Federal Employees Health Benefits (FEHB) program remains one of the most significant government benefits. Solicit the opinion of a non-insured private sector employee or a retired private sector employee who had insurance but lost it when they left their job.

With no limitations or waiting periods to join, and the same government contribution to premiums for retirees and active workers, FEHB has long been held up as a model program for employer-sponsored insurance. Most federal workers like their program.

A 2019 survey rated the FEHB as the second most valuable federal employee benefit behind retirement. Many said it was essential to them & three-quarters thought it was a good to exceptional value.

70% of individuals said having health insurance affected their choice to work for the government, and after being in the FEHB, they liked it more. 80% indicated it influenced their choice to stay. Almost all eligible individuals who are not registered revealed they have health insurance from another source, such as a spouse’s job or the military Tricare program.

That doesn’t mean it’s flawless. However, some private sector companies pay more than 70% of the entire premium cost, at least for some enrollees. Also, FEHB has coverage gaps in certain places, and rates rise each year. To get the most out of the FEHB, you must educate yourself and make wise decisions. The steps explained below help you achieve that.

The Step-by-Step Procedure

The first step is to learn FEHB. While it may seem redundant, especially if you’ve been in the software for a long time, there may be essential aspects you’ve overlooked. Many FEHB members have been with the same plan for years, if not decades, and pay little attention to open season except to compare new premium costs and coverage modifications. Even though all are entitled to change during yearly open seasons, just 5% do so.

Due to new legislation and OPM rulings, it’s also critical to understand how FEHB develops over time. Don’t make the mistake of assuming your coverage will be the same next year. Don’t assume your current plan will be available next year; some do, as did some HMO plans for 2021. Enrollees must re-choose a plan or risk losing coverage if they do not. Meanwhile, new plans join or current plans increase their offers, providing new options for the 2021 plan year.

The average FEHB enrollee premium increased 4.9% in 2021 over 2020, somewhat equal to prior increases (except for a modest 1.5% rise in 2019), compared to the experience of big private-sector employers in their programs. Benefits for retirees qualified for Medicare to join the program, even if it requires paying a separate fee, and benefits for insured individuals to engage in wellness programs and improve their healthcare quality.

Inflationary pressures such as rising usage rates, providers adopting newer and more costly equipment, and other factors such as medical inflation continue to drive prices up. Aside from premium and coverage terms, consider your enrollment type. A family member must be qualified for coverage under the program to be eligible for self only coverage. Although self plus one is less costly than family coverage inside a plan, there are still thousands of family coverage enrollments covering just two individuals years after self plus one was introduced. Then it would help if you had to know what options you can make and when. Outside of open seasons, adjustments are permitted for life events like marriage or childbirth, when you may want to review your health coverage.

Keeping what you have is also a choice, and it may be the best. Whatever you decide, be sure you make an informed choice based on all the facts.

Understanding FEHB Options

The flexibility of FEHB allows eligible individuals to make informed judgments about how to utilize the program in their circumstances effectively. Only ten carriers provide nationwide plans for 2021 (or 18 if you add certain of their high-deductible and consumer-driven choices, explained below), and even those have restrictions on who may enroll. Most of the remainder are LHMO plans, with one in every state.

In practice, enrollees have about 15 options depending on where they reside, with more options in cities and fewer in rural regions. Some plans provide two tiers of coverage, a large deductible or a consumer-driven design.

FEHB insures 8.2 million individuals. Almost all federal workers and retirees are eligible, as long as FEHB covers them for five years before retiring on an immediate annuity (there are limited exceptions to that requirement). Retirees pay the same premiums as current workers, but monthly rather than biweekly, and the employer contribution remains the same.

Postal retirees and non-postal federal workers pay around 70% of the premium; the employer contribution is somewhat greater for current postal employees but not for retirees. Activists may pay premiums using pre-tax paychecks. Retirees cannot use this “premium conversion” option, making their insurance costlier even if their premiums are the same as current workers.

Contact Information:
Email: [email protected]
Phone: 9143022300

Retirement insecurity Common Among Middle Class

April 26, 2023 /by mack hales

Middle-class households in the United States have limited financial assets. They may experience retirement insecurity, according to a study conducted by the National Institute on Retirement Security, a non-profit, non-partisan research and teaching organization.

Using data from the Federal Reserve’s Survey of Consumer Finances, the research examined financial assets by generation, net worth, and race.

In 2019, middle-class households owned only a small part of their generations’ overall financial assets, with millennial households having a median net worth of $22,630, Generation X having a net worth of $150,500, and Baby Boomers having a net worth of $236,350. That suggests a concentration of wealth among more affluent households.

While middle-class millennials have 14% of their generations’ assets, Gen X and Boomers each have single-digit percentages of wealth.

Furthermore, median middle-class household financial assets, which exclude tangible assets such as homes, demonstrate that each generation’s savings may be insufficient for retirement.

Middle-class Baby Boomers had median assets of $51,700, while Black and Hispanic households had much lower median assets of $30,900 and $22,280, respectively.

Even though middle-class Gen X households have some time left before retirement, the research finds they are not on pace, with median assets of $39,000. With less time in the labor force, millennials have amassed the least wealth, at $7,800.

According to Tyler Bond, research manager at the National Institute on Retirement Security, middle-class Americans are failing to acquire enough financial assets during their working years.

These findings are consistent with earlier statistics demonstrating that most older Americans’ savings fall short of their planned retirement income.

According to a poll conducted by the Insured Retirement Institute, more than half of U.S. workers over the age of 40 have less than $50,000 saved for retirement, and the majority are not increasing their savings to boost their nest eggs.

Furthermore, many Americans do not take advantage of employer retirement programs. According to MagnifyMoney research, 17% of people having access to employer accounts, such as 401(k) plans, donâ€™t contribute to them.

Moreover, among those who join workplace plans, 17.5 million savers fail to take advantage of their employer’s matching contributions.

Most people without a 401(k) or another form of the plan via their employer will simply not save.

However, many workers continue to lack access to corporate retirement programs, said Bond, exacerbating the problem.

The U.S. Bureau of Labor and Statistics found that around 67% of private industry employees have company-provided retirement plans. While individuals without employment plans might save through individual retirement accounts, this is less common.

There’s a lot of evidence that demonstrates that’s not what people do, Bond explained. Most folks without a 401(k) or another form of the plan via their job will simply not save.

While Congress enacted the Secure Act of 2019 to improve the United States’ retirement system, a pair of bipartisan measures in the House and Senate are attempting to expand on that legislation.

Among other proposals, the measures could expand “catch-up” contributions for savers 50 and older and provide 401(k) access to part-time workers.

According to Bond, retirement security appears to be one area where bipartisan collaboration on the Hill may still be found.

Furthermore, he added, state-run individual retirement accounts, such as those in California, Illinois, and Oregon, are gaining support as politicians look for solutions to close retirement savings gaps.

Contact Information:
Email: [email protected]
Phone: 7705402211

Seven Tips To Help You Choose The Right Health Benefits Plan

February 16, 2023 /by mickey elfenbein

If you are planning to get a health benefit plan, you must choose the right one because it is essential to consider your requirements and select a program that can cover them while staying within your budget. You also need to consider if any medication changes require different coverage or if you’ll need specialist care in 2023. Therefore, we have seven tips to help you choose the right plan and avoid flashy gimmicks.

1. Evaluate coverage and cost

Determine if the health plan covers your preferred doctor, hospital, and medications, if there are any extra benefits you might need in the future, and your monthly budget for insurance premiums. Understanding your current and anticipated needs for the upcoming year is essential. For instance, if you’re currently taking prescription drugs or require frequent doctor visits, you should make sure you select a plan that covers those services at an affordable cost.

2. Understand Your Deductibles

It’s essential to look at the total cost of a health plan before making a selectionÃ¢â‚¬â€not just the premium amount but also co-pays, deductibles, and out-of-pocket costs associated with it. Deductibles are the total amount you must pay out-of-pocket before insurance pays their contribution to medical expenses. Ensure you understand the deductible amounts required before looking into other details of a health plan’s design.

3. Look Into Mental Health Care Benefits

You must make sure your health care benefit plan covers mental health too. Your physical health isn’t everything – any potential plan you pick should provide adequate mental health support. So, choose the plan with health services with integrative wellness counseling programs with reputable clinical professionals who understand individual patient profiles better, which could improve outcomes significantly over time.

4. Confirm Speciality Coverage Options

Investigate additional offerings such as rewards programs that promote healthy behavior, access to health centers focused on preventive care options (e.g., disease management), and 24/7 access to urgent care clinics. Remember additional benefits such as dental, vision, hearing, or critical illness insurance. You can also add these services to specific plans providing a comprehensive approach to your healthcare needs.

5. Compare Plans Side By Side

Each plan offered will have different coverage and pricing structuresÃ¢â‚¬â€some may be more expensive than others, with higher premiums but lower co-pays for doctor visits. Meanwhile, some may offer more extensive coverage across more categories, such as dental, vision, etc. However, at a higher premium rate compared to other offerings from competing insurers or state exchange marketplace website listings.

Make sure to compare all variables side-by-side before deciding what kind of health insurance best suits your needs this coming year, 2023.

6. Anticipate Next Year’s Possible Expenses

When deciding which plan would work best for you, consider any significant events that may occur throughout the next few years, such as surgeries or births, which require different coverages from different providers. Your benefit plan should cover these significant expenses, or it will be useless.

7. Opt For Virtual Care Services

Understanding the breadth and depth of provider options available in networks is essential. Contacting physicians’ offices directly or using online directories can provide more detailed information beyond what one may find on an insurance company’s website.

Ensure that the network you choose works well with where you live, work and get medical care, including telehealth services when applicable. Besides, looking towards a plan that offers virtual access to doctors without traveling outside the home is preferable. It can save time as well as money when visiting medical professionals.

Final Words

In the face of rising inflation, many people are considering changing their lifestyles and spending patterns. However, it is critical to assess your health and finances regarding healthcare. The yearly or open enrollment season has arrived, giving more than 12 million Floridians the option to choose or replace their health insurance plan for the following year, 2023.

Open enrollment is an excellent time to assess how frequently you use healthcare services and determine if you should keep your current plan or switch to another. It’s also a time to analyze your total care expenditures to ensure you’re selecting the most effective strategy for the upcoming year’s budget. So, It’s time to follow the tips and select the perfect health plans.

Contact Information:
Email: [email protected]
Phone: 6122163911

Mickey enjoys in providing an individualized and complimentary retirement analysis for federal employees.

Tax Break You Could Consider As a Retiree

January 23, 2023 /by george learned

title: Tax Breaks (plural)

While retirement does not exclude you from filing taxes, it frequently allows you to claim valuable tax credits and deductions.

In some instances, these tax breaks are available to both employees and retirees; nevertheless, retirees are sometimes unaware that they may qualify. In other cases, these tax incentives are essentially reserved for senior taxpayers, meaning that younger taxpayers may not be aware of them until later in life.

The following are a few instances of federal income tax advantages that retirees frequently overlook.

Traditional IRA Contribution by Spouse

Even if you can only fund an IRA with salary or other forms of earned income, your spouse may be able to do so with their income. If one of you is employed, you can contribute to the retirement savings of your non-working spouse. Contributions to a traditional IRA made by your spouse may also be eligible for a tax benefit if you fulfill certain income and other criteria.

Qualified Donations to Charity

Taxpayers seeking a charitable deduction must itemize their deductions instead of taking the standard deduction. Additionally, standard deductions increased following the federal Tax Cuts and Jobs Act of 2017, which means fewer people now benefit from itemizing. However, some retirees might be able to avoid this successfully.

Funds from an IRA can be transferred to a charity and used to meet your required minimum distribution (RMD) requirement without being treated as taxable income once you reach the age of 70½. The IRS refers to this as a “qualified charitable distribution.”

Deductions for Medical Insurance Premiums

Health insurance premiums paid by self-employed individuals may be deductible on their tax returns. The following, as stated by the IRS:

“Qualified long-term care insurance and medical and dental insurance for yourself, your spouse, and your dependents may all be tax-deductible expenses. As long as the Medicare premiums are paid freely, they can be counted toward the deduction.”

As an illustration, the standard monthly premium for Medicare Part B in 2021 was $148.50 per month, representing a potential write-off of $1,782.

Saver’s Credit

Because it isn’t targeted toward retirees, the saver’s credit may go unnoticed. However, this benefit is available to all taxpayers who maintain a retirement savings account. Retirees who can put money in a retirement account can take advantage of this benefit, provided they otherwise qualify for it.

So, if you are currently putting money into a retirement plan, make it a yearly ritual to see if you are eligible for the saver’s credit. Married taxpayers filing a joint return may lower their tax bill by up to $2,000 or $1,000 if they’re single.

Increases in the Standard Deduction

A higher standard deduction could lower your tax bill for free if you’re over age 65 and don’t itemize your tax deductions.

Generally, the standard deduction for seniors goes up by $1,350 per married person or $1,700 per single person. The Internal Revenue Service (IRS) defines a “senior” as a taxpayer born on or before January 2, 1957, and whose tax return is due on April 15, 2021.

If you’re one of two married seniors over age 65 and both over age 65, you’ll get an additional $2,700 in tax-deductible income. The amount of money they will save on taxes will be directly proportional to their income level; nevertheless, it will result in a lower base amount that they report.

Non-itemized Charitable Deductions

Non-itemizers can claim a new charitable deduction starting in the 2021 fiscal year. Because of the CARES Act of 2020, taxpayers who claim the standard deduction in 2020 will be able to deduct up to $300 in charitable contributions made during the year.

This tax deduction has been extended and expanded through 2021. So, retirees who made charitable contributions last year can take advantage of the tax benefit this year.

Traditional Individual Retirement Accounts (IRAs) Allow for Tax-deductible Contributions

The retirement savings cap on traditional IRAs was eliminated due to the Secure Act of 2019, which was signed into law by President Donald Trump (IRA).

Therefore, beginning of the 2020 tax year, retirees with earned income, such as from part-time employment, can save money in this type of account regardless of their age and deduct the contribution from their taxes.

Contact Information:
Email: [email protected]
Phone: 3037587400

Projected 2023 COLA hits 8.7%

December 27, 2022 /by george learned

The Senior Citizens League predicted that the Social Security retirement benefit cost-of-living adjustment (COLA) for 2023 might be 8.7%. The increase would be the biggest in almost 40 years.

The SCL stated in a press release that a COLA of 8.7% is uncommon and would be the biggest payment ever made to the majority of Social Security recipients still living. Since the introduction of automated adjustments, it has been higher only three previous times (1979-1981). You may read about the history of COLAs here.

The estimate is based on updated Bureau of Labor Statistics (BLS) Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) data through August. The final month of consumer price information has passed. On October 13, following the September CPI-W data publication, the Social Security Administration is anticipated to make the 2023 COLA announcement.

The method for calculating each COLA is laid out in the Social Security Act. The methodology states that rises in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) serve as the foundation for COLAs.

A COLA for December of a given year is equal to the percentage increase in the average CPI-W for the third quarter of that year over the average for the third quarter of the year before, the one in which a COLA went into effect. If there is one, any increase would be rounded to the nearest tenth of 1%. There is no COLA if there is no rise or the rounded increase is zero.

How are the CSRS COLA and FERS COLA differences calculated?

A COLA may impact different federal retirees under the Federal Employee Retirement System (FERS) and the Civil Service Retirement System (CSRS).

The FERS COLA and CSRS COLA are compared in the following table:

Medicare Part B premiums in 2023 may stay around the same.

According to the SCL, Medicare Part B rate increases in 2023 could not be that significant. The Medicare Trustees predicted in their annual report for 2022 that the regular Part B premium would continue at $170.10 per month in 2023. Mid-November is typically when the Medicare Part B premium and other charges are revealed.

When will the Social Security COLA for 2023 be revealed?

There is just one more month’s worth of consumer pricing information before the Social Security Administration releases the COLA for 2023. The Senior Citizens League anticipates the SSA to announce the publication of the September consumer price index statistics on October 13.

Mary Johnson, the league’s Social Security and Medicare policy analyst, says, “A COLA of 8.7% is exceedingly uncommon and would be the largest benefit that most Social Security recipients alive today have ever received.” Only three other instances (1979-1981) were higher since the automatic adjustments began.

“COLAs are designed to support keeping Social Security benefits’ purchasing power when prices rise. The total Social Security income that retirees will receive throughout their retirement will steadily increase due to these permanent increases. According to Johnson, without a COLA that sufficiently keeps pace with inflation, Social Security benefits will gradually buy less over time, which might be difficult for older Americans retiring later in life.

“The COLA for August 2023 has, on average, fallen 48% short of inflation through August. A $1,656 benefit is short by a total of $417.60 year to date, or around $43.80 per month on average.”

The tax implications of the COLA increase

Although Social Security COLAs are intended to provide financial relief, they may increase your tax burden. According to preliminary findings from The Senior Citizens League’s 2022 Retirement Survey, almost 59% of respondents feel they may have to pay more in taxes in 2022 because of the 5.9% COLA they received this year.

Furthermore, according to 21% of respondents, their household income was below the income levels that might subject up to 85% of Social Security benefits to federal income taxes until 2022. This group is concerned that they may have to pay tax on a portion of their Social Security income for the first time during the upcoming tax season.

For the next year, a COLA of 8.7% would result in comparable recurring increases in tax obligations.

Premiums for Medicare

The government typically announces the Medicare Part B premium and other expenditures in the middle of November. In 2023, Johnson predicts that the cost of Medicare Part B won’t likely increase significantly.

In their 2022 annual report, the Medicare Trustees predicted that the regular Part B premium would remain at $170.10 in 2023. The extra Part B premium charges from this year, as decided following a reassessment, will be used by the Centers for Medicare and Medicaid Services to lower the Part B premium in 2023, according to the agency.

Contact Information:
Email: [email protected]
Phone: 3037587400

Life Planning Resources About You That Your Loved Ones Will Need

November 24, 2022 /by bill hoff

Your spouse, partner, or children will appreciate this article if you become incapacitated due to cognitive deterioration or pass away. First and foremost, the information comes from you. Second, the informational sources are all government entities they must become acquainted with to comprehend their position as your advocate, care provider, or beneficiary. Third, these digital resources are updated regularly, ensuring that the material is up to date when needed.

This article is designed to be used as an attachment to be shared with others through email. The idea is that by giving this information, you’re presenting them with several reliable digital resources that can be shared with them now, electronically archived by them, and made available to them when required in the future.

Remind your close ones about the article when you give them specifics about your estate planning instructions, such as your will, advance directives, powers of attorney, etc.

Important Federal Agency Resources

Office of Personnel Management (OPM)

During their retirement, all federal annuitants, regardless of the federal agency they worked for, are subject to the oversight of the Office of Personnel Management (OPM).

Here’s an example of how to collect information using the OPM search box. For example, entering “death” into the OPM’s search box yields 49 results. Each outcome provides a two or three-sentence summary of the associated material, for instance, FAQs on the death of a government employee or annuitant. All the links provide paperwork, extensive descriptions of a procedure, or other relevant information.

Thrift Savings Plan (TSP)

Almost everything a spouse, partner, and children need to know about the Thrift Savings Plan (TSP) may be found in a special section for beneficiaries on their website. The site includes a PDF document entitled “Your TSP Account: A Guide for Beneficiary Participants,” which may be accessed via the website.

Social Security Administration (SSA)

Social Security offers various resources that others close to you may find valuable. The first is about people helping others and how Social Security can help you when a family member dies.

Medicare

Medicare provides information on important Medicare-related matters such as where to sign up for Medicare, how to change plans, the advantages of Medicare drug coverage, and where to get Medicare paperwork for claims and appeals. It offers a searchable database of Medicare-accepting medical providers.

Centers for Disease Control and Prevention (CDC)

The CDC provides an overview of Alzheimer’s disease and offers a wide range of information on the subject and the option to get email updates.

National Library Service for the Blind and Print Disabled (NLS)

The NLS provides a plethora of resources for senior citizens and their families. At least once a year, various organizations, online tools, and publications from government, academic, and nonprofit sources are updated. Connections for caregivers, legal, eyesight, physical health, and psychological health services are a few of the topics covered.

Conclusion

These tools aren’t meant to be a replacement for thorough estate planning. Conversations with the receivers of this article may be just what you need to get started on a personal estate plan.

Contact Information:
Email: [email protected]
Phone: 2178542386

Bio:
Bill and his associates of Faith Financial Advisors have over 30 years’ experience in the financial services industry.
He has been a Federal Employee (FERS) independent advocate and an affiliate of PSRE, Public Sector Retirement Educators, a Federal Contractor and Registered Vendor to the Federal Government, also an affiliate of TSP Withdrawal Consultants.
Bill will help you understand the FERS Benefits and TSP withdrawal options in detail while also helping to guide you in your Social Security choices.
Our primary goal is to guide you into your ment with no regrets; safe, predictable, stable and for life using forward thinking ideas and concepts.

Bullet points:
> Financial Services consultant since 1984
> FERS independent advocate and an affiliate of Public Sector Retirement Educators (PSRE), a Federal Contractor and Registered Vendors to the
Federal Government
> Affiliate of TSP Withdrawal Consultants
> His goal is to guide individuals into retirement with safe, and predictable choices for stability using forward thinking ideas and concepts.

How to Avoid Two Major Mistakes During Medicare Enrollment

November 10, 2022 /by todd carmack

Medicare coverage doesn’t have to be out of reach for retirees. Individuals looking to enroll in Medicare can benefit significantly from this type of healthcare coverage, especially if they were uninsured before retirement. Whether you are the type of person who likes keeping tabs on the Market yearly, the process of Medicare enrollment has never been more straightforward. However, as with any enrollment process, there are a few significant missteps you should work to avoid if you are looking for a smooth transition process with the highest level of benefit.

Enrolling at the appropriate time is crucial for any healthcare coverage, and Medicare is no exception. So, how would you go about calculating your enrollment window? It’s simple: your window begins three months before your birth month (starting at age 65) and extends three full months after for a full seven-month opportunity. Once you begin receiving Social Security at 65, you will automatically enroll in Components A and Half B, also known as Unique Medicare. Should you choose to work for your employer past the age of 65 (with fewer than 20 employees), you can enroll in Medicare Half A on your own. While you have the option of enrolling into Half B, ultimately, you should speak with a representative from your employer to see whether you should delay enrollment. If you work for a company employing more than 20 employees, you must enroll within eight months of retirement to avoid protection gaps and various penalties.

Failing to take on additional plans for extra coverage is another mistake that could end up costing you in the long run. For example, you will pay higher Medicare premiums by not enrolling in a Part D prescription plan (also known as PDP). Even if you aren’t currently using any prescription drugs, failing to register in Part D will be stuck paying higher Medicare premiums regardless of whether you enroll in Part D later. Additional protection plans will also benefit your Medicare coverage long term, including Medigap plans, MA, and Half C plans. Medigap bridges the gap caused by Components A and B as an add-on, whereas MA and Half C are provided through non-public insurers to strengthen the Components A and B features.

By working to avoid these two major Medicare mistakes, you will be well on your way to enjoying affordable coverage well into your golden years. However, the journey toward Medicare enrollment can feel uncertain and confusing. As the costs associated with healthcare continue to rise for seniors across the country, it pays to take advantage of free Medicare and Medicaid counseling. If you need help navigating the world of Medicare, your local State Health Insurance Assistant Program (SHIP) can answer your questions and help you get started today.

Contact Information:
Email: [email protected]
Phone: 6232511574

Astonishing Data on the Current State of Retirement in the United States

October 24, 2022 /by bill hoff

You may always start saving for retirement. People in the US work hard throughout their careers to retire. Planning requires cognitive abilities and a focus on saving money.

According to a Gallup study, the average retirement age in the US has risen from 60 to 66. With a 78.7-year life expectancy, Americans will have at least 12 years to enjoy retirement.

The average annual income and net worth of the 47.8 million Americans aged 65 and older are $38,515 and $170,516, respectively. That’s a lot of money to save for retirement. Here are some more startling facts concerning the situation of retirement in the United States.

Young people believe they can retire early, which does not happen.

Most respondents aged 18 to 29 who took part in a Gallup poll believed that they would be able to retire early, around the age of 60. However, their optimism may fade as they approach 30 because of the difficulties of making a living and earning income.

Retiring may take longer than anticipated.

The average lifespan in the US is 78.7 years, but many people survive into their 80s or 90s, making it challenging to predict retirement worth. According to the Social Security Administration, a healthy 65-year-old has a good probability of living to 86 or 84. Over 65s should save for a 20-year retirement.

More and more people in the United States are preparing for a longer retirement.

Americans take extended life expectancy seriously. 81% of Americans are moving their assets in anticipation of living longer than their predecessors by minimizing spending, acquiring safe life insurance, and boosting pension payments.

Many Americans are taking money out of their retirement accounts early.

In contrast to those who are saving for longer life, many Americans are taking early withdrawals from their retirement accounts. 44% of Americans between the ages of 40 and 79 have pulled money from their retirement plan. While 46% of those aged 40 to 49 and 53% aged 70 to 79 have done so as well. Financial experts warn against early withdrawals from a retirement account, as doing so might result in hefty fines.

Americans Aren’t All Set for Retirement.

77% of American employees are considering retirement via company plans and other alternatives. People begin saving for retirement on average when they turn 27 years old. Only 33% of Americans have anything set aside for their retirement days.

Americans are falling short of their financial goals.

As many as 77% of Americans are planning for their retirement, but most don’t have quite enough personal savings to maintain their standard of living in retirement. As per a 2017 GAO analysis, the typical retirement funds for Americans aged 55 to 64 were a little over $107,000. Although it may sound like a lot of money, the GAO points out that if it were placed in inflation-protected annuities, it would only provide $310 minimum repayments.

Social Security isn’t a sure thing.

Social Security is only guaranteed to be financed until 2035, when it may be three-quarters financed, citing Business Insider. Those already receiving benefits may see a drop, while freshly retired folks may not receive any. This is partly linked to aging. The number of Americans 65 and older will climb from 56 million to 78 million by 2035. More people will withdraw money from the pool, while fewer will contribute.

Your Retirement Could Be Squeezed Out of You Before You Know It.

It’s helpful to have a retirement plan in place. But occasionally, life has several other intentions. According to a TD Ameritrade survey, health issues and career changes are the two most popular causes for retiring. 50% of persons retired early due to unemployment, parenting duties, a sudden change in their economic standing, and health concerns.

A Larger Amount of Money Is Necessary to Retire comfortably.

Experts recommend that you save between $500,000 and $1 million to maintain your current standard of living in retirement – a considerable sum of money, the accumulation of which may take many years.

Residential Care for the Elderly Is Expensive.

Long-term care is mainly needed by individuals who reach the age of 65. Medicare doesn’t pay assisted living fees. A care facility costs $4,051 per month, whereas a nursing home costs significantly more. Other medical expenses aren’t included. In their 60s, more people buy long-term insurance.

The Time Is Now.

More and more consultants are labeling themselves “complete,” and this trend is expected to continue. The issue is that many individuals we talk to do not incorporate conversations about risk assessment into their line of work. Even if they are joking, it doesn’t change that they aren’t seriously trying to come up with recommendations or answers.

According to our assessment, these professionals are missing out on a fantastic opportunity. The environment of investment planning has changed, and customers now want a more exceptional customer experience, which is why so many advisors are now similarly advertising themselves.

Currently, experts that offer a comprehensive service have most of the financial advantage. Learning about and putting into practice different risk management measures, such as annuities, could be a straightforward first step.

Contact Information:
Email: [email protected]
Phone: 2178542386

Tag: Medicare

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