SafeMoney 7-20-24

Episode Transcript

Speaker 1 (00:00):
Good Saturday morning to all on this mid July weekend.
Dick Shelle here and this is safe money. We are
here every Saturday. Do you share with you our listeners
the strategies we use with our clients to manage and
protect assets and to manage and protect those assets safely

(00:20):
here in today's very unsafe world. Boy, there's lots going
on in our community here the next couple of weeks,
with the fifty seven next week, and with other things
going on as well. Reminder, first thing this morning is
that the thirtieth annual Run with Carl will be held

(00:43):
on Labor Day, September two, in only forty four days
from now. Run with Carl benefits Pleasant Valley High School
and Bettendorf High Schools by offering scholarships to their graduates.
Plan on help our local schools contain to provide this
great tradition, guys to Run with Carl has provided over

(01:05):
fifty scholarships or technic indicating. Social Security statements are now
available in a new streamlined form. Let me read this
email too. Maybe many of you have received this already,
but it says your social Security statement is streamlined and

(01:28):
easier to read than ever before. This is because we
have reading to provide you the most useful information upfront
and at apliance. We encourage you to check your statement
at least once a year to review the information that's there.
Your first information that's there is your earnings record to

(01:51):
make sure it's accurate and notify Social Security if you
see any errors. Secondly, your personalized monthly retirement benefits estimate,
which now display how much you can expect to receive
depending on when you decide to start your benefits between

(02:12):
ages sixty two and age seventy. Other useful information that
will explain your benefits and help you prepare for your
financial future, and new fact sheets that provide additional information
based upon your specific age group and earnings situation. You
can now you can now access your new statement by

(02:37):
signing onto your account at social Security dot gov forward
slash review your statement. Let me repeat that that is www.
Social Security dot gov forward slash review your statement. Now

(02:58):
that you can access your statement instantly and any time online,
we will not automatically send you one by email. We
hope that you find your statement useful and informative. So
I have that information available and I have access to

(03:21):
this Social Security website. Now, keep in mind who I
am and what I do. I'm an independent insurance agent,
an independent financial advisor. I'm in no way connected with
Social Security, but we can assist our clients and assist
you with the public with accessing that information if you

(03:43):
need it on Social Security. So if we can help
with that, please call us. Call us at five sixty
three three three two twenty two hundred if we can
help with that. Okay, last week we held our virtual
community meetings with a very very good attendance. These meetings

(04:04):
are for persons who are aging into medicare and receiving
all that solicitation material from various insurance companies. As you know,
some time ago, we conducted these meetings in person. We
go to a meeting room somewhere in the area and
we host this meeting live. Now with the COVID, that

(04:29):
taught us that we had to do these meetings not
in person anymore, but we had to do this virtually.
So we changed to our virtual community meetings, and Boyett
ended up that these virtual community meetings are actually more
beneficial and more convenient for attendees. So if you'd like

(04:51):
to participate in these virtual meetings, call us call us
at five sixty three three three two twenty two hundred
and will give you instructions on how you can participate
in these medias. Our next virtual community means will be
August twentieth, in August twenty second. Boy talking about August

(05:15):
already it seems impossible, But Tuesday, August twentieth, at ten
o'clock in the morning, Greg reviews the basics of Medicare
and then focuses on the Medicare supplement plans that are available.
Two days later, on Thursday, August twenty second, again at
ten o'clock in the morning, Greig reviews the basics of

(05:38):
Medicare and then focuses on the alternative to Medicare, and
that alternative is Medicare Part C, which is the advantage plan.
And we focus on what we believe is the more
competitive of the advantage plans in these Medicare regions, and
that alternative is the AAARP Medicare Complete Plan offered by

(06:05):
United Healthcare. These meetings in August will be virtual meetings.
They are done with you remaining in the privacy of
your own home using your own computer equipment. Call Craig
in advance of August twentieth. To receive instructions on how
to participate in these meetings, call Craig at five six

(06:26):
three three three two twenty two hundred or send me
an email. Just go to my website go to Dickshillig
dot com and then scroll over to my contact information
for my email address and drop me an email if
you'd like to participate in these meetings. I think you'll

(06:46):
find those meetings very, very helpful. You know, in the
last several Safe Money programs we spend time talking about
the risks we face in life and the risk especially
we face in retirement, risks to a retirement assets. These

(07:07):
risks are numerous, but one of the more significant risk
is health care and maintaining good health at any age.
Health care is a priority. When you retire, however, you
will probably focus more on health care than ever before.
The researchers found that the following habits were linked to

(07:31):
a substantially longer life, and these habits are first of all,
being physically active, secondly being free from opioid addiction, thirdly
not smoking, fourth managing stress, fifth having a good diet,

(07:54):
sixth not regularly binge drinking, and seven having good sleep
hygiene and eighth having positive social relationships. The researchers discover
that men who have adopted all eight habits are by
age forty predicted to live an average of twenty four

(08:18):
years longer than men who have none of these habits.
Women who have all of these habits will live a
predicted twenty one years longer than women with none of
these habits, according to these findings. So staying healthy is
your goal, and this can mean more visits to the
doctor for preventive tests and routine checks out, routine checkups,

(08:44):
your need for costly prescription drugs or medical treatments. That's
why having health insurance is extremely important. In retirement, you're
changing health insurance needs if you are sixty five are over.
When you retire, your worries may lessen when it comes

(09:09):
for paying for health care. You are most likely eligible
for certain health benefits from Medicare, a federal health insurance
program that you acquire aft upon your age sixty five,
but if you retire before age sixty five, you'll need
some way to pay your health insurance until Medicare kicks in.

(09:31):
Generous employers may offer extensive health care insurance to their
retiring employees. But this is the exception rather than the rule.
If your employer doesn't extend health benefits to you, you
may need to provide a private health insurance policy, which

(09:51):
may be very, very costly. So extend your employer sponsor
benefit covered through COBRA if that's available to you, or
purchase individual health insurance through either a state based or
a federal health insurance exchange marketplace. But remember one thing

(10:17):
that Medicare does not pay for is Medicare will not
pay for long term care. If you need to pay
for that out of pocket, You'll need to pay for
long term care out of pocket or rely on benefits

(10:38):
from long term care insurance. When it comes to planning
for your retirement income, it's easy to overlook some of
the common factors that can affect how much you'll be
able to spend. If you don't consider how much your
retirement income can be impacted by investment risk, inflation risk,

(10:59):
catastrophic and long term care, you not, you may not
be able to employ the retirement that you envision. So
let's talk about long term care first. Let's clarify what
is long term care. Someone with long physical with long

(11:23):
physical illness, a disability, or a cognitive impairment such as
Alzheimer's disease often need long term care. Many different long
term care services can help people with these conditions. Long
term care is different from medical care because it generally

(11:45):
helps you to live as you are instead of proving
or correcting medical problems. Long term care services may include
help with the activities of daily living the ad els,
activities of daily living, home health care, respite care, hospice care,

(12:09):
or adult daycare. Care may be provided in a nursing home,
an assistant living facility, a hospice facility, or a daycare facility,
on your own or in your own home. Long term
care also can include care in your own home. Long

(12:34):
term care also includes care management services, which evaluate your
needs and coordinate and monitor your long term care services.
Someone with a physical illness of disability often needs hands

(12:54):
on assistance or stand by assistance with activities of daily life.
Activities of daily living, or ADLs is the most common
way insurance companies beside when you're eligible for benefits. Most
companies use six activities of daily living bathing, continents, dressing, eating, toilenting,

(13:24):
and transferring. Typically, a policy pays benefits when you can't
do a certain number of these ADLs, such as two
of the six or three of the six activities of
daily living. People with cognitive impairments often need supervision, protection

(13:46):
or verbal reminders to do everyday activities. Medical personnel, such
as registered nurses or professional therapists, provide skill care for
medical conditions. This care usually is needed twenty four hours
a day and is ordered by a physician and follows

(14:09):
a plan. Individuals who usually get skilled care and nursing homes,
but also may receive skill care in other places. For example,
you might get skill care skill care in your home
with help from visiting nurses or therapists. Skilled care includes

(14:30):
services such as physical therapy, wound care, or a professional
who gives you medicine through an IV. Personal care, sometimes
called custodial care, helps a person with activities of daily
living a DLS. These activities include bathing, eating, dressing, tordenting, continents,

(14:58):
and transfer. Personal care is less involved than skill care
and may given and may be given in many settings.
Long term care insurance can be expensive. The cost depends
upon the amount in type of care needed and where

(15:20):
you get it at home or in a facility. Long
term care expenses may be needed when physical or mental
disabilities impair your capacity to perform everyday basic task. As
life expectancies increase, so does the potential need for long

(15:44):
term care. Pain for long term care can have a
significant impact on retirement income. In retirement savings, especially for
the healthy spouse will not everyone needs only term care
during their lives. Ignoring the possibility of such care and

(16:05):
failing to plan for it can leave you or your
spouse with little or no income or savings if such
care is needed. Even if you decide to buy long
term care insurance, don't forget to factor the premium cost
into your retirement income needs. A complete statement of coverage,

(16:28):
including exclusions, exceptions, and limitations is found only in the
long term care policy. It should be noted that carriers
have the discretion to raise their rates, to raise their
rates and remove their products from the marketplace. My gosh, listeners.

(16:52):
When I first started the business and first became associated
with long term care, there were many, many, many insurance
companies who were involved with long term care. Not today,
in today's world, where there are fewer and fewer insurance

(17:13):
companies that even provide long term care policies, I find
that today I think there are fewer than six life
insurance companies that provide for long term care. Long term
care expenses and long term care may be needed when

(17:35):
physical or mental disabilities impair your capacity to perform everyday
basic tasks. As life expectancies increase, so does the potential
need for long term care. In planning for retirement or
if you are retired, in planning while you are retired,

(17:58):
you need to make some plans for long term care.
As I say, paying for long term care can have
a significant impact on retirement income and savings, especially for spouses.
Especially for married couples, the spouse needing long term care

(18:24):
can absorb much of the receivings, much of the retirement
income that has been accumulated. So when that spouse is deceased,
then the surviving spouse really really has a problem with
them making life and meet The cost of catastrophic care

(18:47):
for long term care is really really significant. As the
number of employers providing retirement health care benefits dwindows and
the cost of medical care, including the cost of long
term care, continues to respiral upward, planning for catastrophic healthcare

(19:10):
costs and retirement is becoming more and more important, and
as I say, the importance of this planning is especially
true for couples. So if you recently retired from a
job that provides health insurance, you may not fully appreciate

(19:30):
how much healthcare really costs. Despite the availability of Medicare coverage,
you'll likely have to pay for additional healthcare related expenses
out of Vodkin. You may have to pay for the
rising premium cost of Medicare Option Part B coverage, what

(19:53):
helps pay for outpatient services, and are Part D coverage,
which his prescription drug coverage. You may also want to
buy supplemental mental health insurance, which is used to pay
Medicare deductibles and co payments, and to provide protection again

(20:15):
catastrophic expenses such as long term care that either exceed
medical benefits or are not covered by Medicare at all.
Otherwise you may need to cover medical deductibles, co payments,
and other costs out of pocket. Taxes can also impact

(20:40):
your available retirement income, especially if a significant portion of
your savings or income comes from tax qualified accounts such
as pensions for one case, and traditional r's. Remember Uncle
Sam classifies all of our money one of two ways.

(21:04):
It's either classified as qualified or non qualified money. Qualified
money is anything that is part of a pension or
anything as part of a retirement plan. A four to
one K, a pension plan, an I r A. Those
are all qualified plans. Non qualified plans are as everything

(21:28):
else less. Plans that are not associated with long term
plans not associated with a retirement plan is considered non
qualified plans. Now, when planning for your retirement or if

(21:48):
you are now retired, consider these common factors that can
affect your income and savings. While many of these same
issues can affect your income during your working years, who
may not notice their influence because you're not depending on
your savings as a major source of income. However, remember

(22:11):
investment risk, inflation risk, taxation risks, and health related expenses,
including the risk of long term care can greatly affect
your retirement income. Next week, we will continue our discussion
of the risk we face in retirement and especially the

(22:32):
healthcare risk, including the risk of long term care expenses.
You know, listeners, I talk with you often about the
bar graph charts we create tracking the history of the
stock market, tracking the history of the Dow, Jones and
dust or avage, the history of the S and P

(22:53):
five hundred, the history of the NASDAQ one hundred and
the Nasdaq. I have those bar graph charts and we
update these every quarter of every year, and they go
back to the latter part of the decade of the
nineteen nineties and track the history of the calendar here
history of those indexes, the doll the Nasdaq, and the

(23:17):
S and B NASDAQ one hundred. If you'd like to
have a copy of those, be happy to send those
to you. I think having those in your hand and
understanding the risk that we face in life, and especially
the market risk that we face in life during every retirement,
is so very very important. So if you like to

(23:39):
have a copy of those barograph charts, please call me.
Call me at five sixty three three three two twenty
two hundred, or email me. Go to my website. Go
to Dick Schillig dot com and scroll over to the
contact icon and drop down that contact icon for my

(24:00):
email address. I'll be happy to send a copy of
these to you via email, or if you call, I'll
be happy to send these to you by US mail. Okay,
that's about all I have for you this morning. Have
a great, great weekend. Looking forward to talking with you.
Again next week. Good Day