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09Jun
What is Really Going On with Health Care Reform?
Health Care Costs

Knight Kiplinger shares some interesting information in the May 19 Kiplinger Letter and Kiplinger Tax Letter:

Kiplinger does not believe we should expect quick resolution on replacing Obamacare in the Senate.  GOPers are setting aside the controversial House bill and starting over.  He believes there are great problems in this effort: Senators will have to deal with arcane procedural rules to get a bill passed by a simple majority.  This will involve scaling down the bill, with a result unlikely to satisfy House conservatives. Congress will be bogged down with the controversy over Trump’s firing of the FBI director, therefore passing a major bill in such an inflamed environment will be tough.  Overall, a signed bill is a long way off and any final legislation will look significantly different from the House version.

Next, Kiplinger predicts the annual ceiling on deductible payins to Health Savings Accounts (HSAs) will increase in 2018 to $3,450 for account owners with individual coverage and to $6,900 for those with family coverage.  Those born prior to 1964 can put in an additional $1,000.

Limits on out-of-pocket costs, such as deductibles and copayments, will increase to $13,300 for those with family coverage and to $6,650 for self-only coverage.

Minimum policy deductibles will increase to $2,700 for families and $1,350 for singles.  Proposed changes include the ceiling on deductible contributions nearly doubling, HSA funds being able to be used for the purchase of over-the-counter medicines and the fine for payouts made for nonmedical costs being cut in half.

If you, or someone you know needs it, Resonate can provide excellent independent references for navigating the multitude of health insurance choices.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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24May
What the Worldwide Aging Population Means for Women: Part 3
Health Care Costs

The first two parts of this blog provided the information supporting the fact that women face an unfair disadvantage in terms of planning for a successful retirement.

If you’ve not yet read parts one and two of this blog, please take a few moments to do so.

Here are the action steps that women can take to help prepare themselves for healthcare and retirement costs.

  1. Tell your story and expect to be heard and honored. You and your planning needs are unique.  You deserve the opportunity to “share your story as well as your hopes, fears and dreams”.

Regardless of your current life experience and financial knowledge, you deserve to be listened to without judgment.

You deserve to have all of your questions answered honestly and completely.

You deserve transparency around fees, commissions, and any other form of advisor compensation.

  1. Create a plan and follow it. Again, this is “your plan”.  It needs to be designed specifically for you to get you from “where you are to where you want to be”.
  1. Invest with appropriate risk level. Again, your investment portfolio needs to be designed specifically for you and what it is you want to accomplish.
  1. If you are of a pre-retirement age, be prepared to save aggressively to meet your goals.
  1. If you are already retired, then the allocation of your investment portfolio may be even more critical because you may no longer have the capacity to continue to save to reach your retirement goals.
  1. Be sure you understand how programs such as Social Security, Medicare, and employer-sponsored retirement plans can best be coordinated for maximum results.
  1. Consider products such as life insurance with long-term care riders, products that are designed to create guaranteed lifetime income in retirement, products that are designed to create income tax savings, and anything else that may be appropriate to help you reach financial peace of mind.
  1. Once your plan is in place, be sure to continue with annual conversations with your team of advisors.

As you can see, planning done well is complex and involves the integration of both programs, products and planning.

Do you remember the old Greyhound bus slogan, “Go Greyhound and Leave the Driving to Us”? 

It is suggested that the new slogan might be “Keep Texting and Leave the Driving to Us!”

Whether you find yourself familiar with the first slogan or relate more to the new slogan, we invite you to a conversation at Resonate.  Regardless of your age, our motto is to help you define and discover what Richness of Life means to you.  Then, it is our job to help create the pathway for you to experience this desired destination.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

 

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19May
What the Worldwide Aging Population Means for Women: Part 2
Health Care Costs

In the first part of this three-part blog, we talked about why the U.S. demographics of an aging society present more of a challenge for women than for men.

Here are some additional thoughts for your consideration:

In part one, we suggested that the fact that women still tend to outlive men by 3 to 5 years definitely contributes to the financial challenges that women face in retirement.

Here is a chart that supports that information:

The second reason that women face an uneven challenge is because we still experience a disadvantage in the work place.  In addition to the fact that women are still more likely than men to leave the workforce intermittently, we also know that women are more likely to hold lower- wage and part-time jobs, both of which are detrimental to funding future retirement.

So what can women do about this?  That will be the focus of part three in this series.

If you’ve already read enough, please contact us now.  Otherwise, please be sure to read part three.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

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11May
What the Worldwide Aging Population Means for Women: Part 1
Health Care Costs

In his annual letter to shareholders, BlackRock’s Larry Fink shares these thoughts on April 10, 2017.

“The graying of the population in developed countries is without precedent in human history.

While most developing countries outside of China can look forward to a demographic tailwind for many years, developed countries are rapidly aging.”

 

 

(1)

“According to estimates by the United Nations between 2015 and 2030, the number of people in the world aged 60 years or over is projected to grow by 56%, from 901 million to 1.4 billion.  The number of people aged 80 years or over, the “oldest old” persons, is growing even faster. Projections indicate that in 2050 the oldest old will number 434 million, having more than tripled in number since 2015, when there were 125 million people over age 80.”

If you happen to be female, the situation is even worse.  For decades to come, women’s life expectancy on average will continue to be 3 to 5 years longer than that for men.  This results in higher healthcare expenses in addition to coping with inflation for a longer period of time. (2)

If you are age 50+ and in relatively good health, please do not wait any longer to contact us!

We will work with you to determine what you need in the way of income and assets to help assure a successful retirement.  Then, we will work with you to create a plan to fulfill that goal.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.
(513) 605-2500

 

Source:
(1) World Bank
(2) “Missed Opportunities” by Sue Watt, Morningstar April/May 2017
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28Mar
What Keeps You Up at Night?
Blogs / Articles
There can be many answers to the question ranging from “my health, my kids, my grandkids, our currently divided country, how to afford the cost of education, the rising cost of health care”, to name only a few.  I want to share an interview with Richard Orlando.

Orlando is CEO of Legacy Capitals, and Ned Dane of the Oppenheimer Family of Funds asks the questions.

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14Mar
HSA Account Owners Beware!
Health Care Costs

The interaction among employer-sponsored health plans, Medicare and health savings accounts (HSAs) is increasingly complex.

Many Americans become eligible for Medicare at age 65.

The exception to the rule is if someone is 65 and still covered under his or her own employer-sponsored health care or that of a spouse.

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17Jan
Expect These Campaign Promised to Be Kept
Economy

In my previous blog, I shared which campaign promises are expected to be broken.   This blog covers the ones expected to be met.

(Source: The Kiplinger Letter November 11, 2016.)
  1. Domestic oil, gas, and coal production will be more in favor. Drilling in new regions as well as offshore will be favored.
  2. He will push hard for more spending on infrastructure.
  3. Trump will try to overhaul financial regulations in order to boost bank lending. (Dodd-Frank is at risk.)
  4. The Trump isolationist stance will force European nations to spend more on their own defense and security needs.
  5. Trump is likely to rip up the Iran nuclear deal and issue new sanctions.


Barbara A. Culver

CFP®, ChFC®, CLU, AEP®
Resonate, Inc.

(513) 605-2500

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18Nov
The Most Overlooked Issue in Retirement Planning – Parts 4 & 5
Health Care Costs

question-markWhat will you pay for health care in retirement?

This is the final installment of the blog series.  See previous posts from Nov. 2nd and 14th.

Here is the third factor that influences what you will pay for health care in retirement:

Your Source of Coverage:

Some Americans are still fortunate to have a certain percentage of their health care benefits provided by their former employer.

For most Americans, this is not the case.

Most retirees need to choose between an Original Medicare, plan which includes buying supplemental Medigap insurance, OR to choose a Medicare Advantage Plan.

Here’s a chart comparing the two:

medicare-chart-resized

(Source: Merrill Lynch)

The fourth and fifth factors of heath care premiums in retirement are:

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14Nov
The Most Overlooked Issue in Retirement Planning – Parts 2 & 3
Health Care Costs

question-mark

What will you pay for health care in retirement?

In Part One of this series, I shared that Fidelity research suggests that a 65-year old couple retiring in 2016 will need an estimated $260,000 to cover their retirement health care costs.  Please reference the entire blog dated Nov. 2nd.

In addition to your own genetics and health history, five factors will have a significant influence on your overall costs for care.

In this blog, I cover the first two factors:

Where You Live:

While Medigap and Medicare Advantage plans are offered in each state, the premiums can vary by as much as 30%.  (Source: HealthView Services.)

Here is their research on the 10 states with the highest cost for Part B, Part D and supplemental insurance for a 65 year-old person.

State First Year Total Over 20 Years
1. Florida  $3,710  $152,184
2. Michigan  $3,707  $152,175
3. Maryland  $3,695  $151,438
4. Massachusetts  $3,686  $151,110
5. Nevada  $3,682  $151,014
6. Louisiana  $3,651  $149,661
7. New Jersey  $3,683  $148,865
8. Illinois  $3,595  $147,203
9. Texas  $3,592  $146,969
10. Indiana  $3,549  $145,235

Source: FA Magazine

If you want to check out rates for where you live, go to the Medicare Plan Finder and enter your information.

Here is the next factor that will influence your retirement health care expenses:

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02Nov
The Most Overlooked Issue in Retirement Planning – Part One
Health Care Costs

Whquestion-markat will you pay for health care in retirement?

Fidelity research suggests that a 65-year old couple retiring in 2016 will need an estimated $260,000 to cover their retirement health care costs.  Please note this represents a $15,000 increase from the 2015 estimate of $245,000 shown in the chart below.

Source: Fidelity Investments

health-care-graphWhile we know this can only be an estimate, here is how the costs break-down:

  • About one-third of the cost is for Medicare Part B (doctors’ services and out-patient care) and Medicare Part D (prescription drugs).  Even the most healthy of Americans incur these costs.
  • Then consider the out-of-pocket expenses of such things as hearing aids, increasing dental costs, and eye care.
  • Of course, the most expensive potential cost of all is the need for care at home or in a facility.  These expenses can easily crest $150,000.

While this information begins to address the importance of including planning for health care in retirement, each individual’s situation is unique.  Let’s talk about your situation and be sure that we plan correctly to meet your life and legacy goals.

Barbara A. Culver
CFP®, ChFC®, CLU, AEP®
Resonate, Inc.

(513) 605-2500

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