Safe Money - 11-11-23

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Episode Transcript

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Good Saturday morning to all on thissecond Saturday of November Veterans Day. A
special tribute and thanks to all theveterans for their service to our country.
First thing this morning, our annuityofferings. Today we have a annuity insurance

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company offering a forty five percent bonus. That's right, you heard me right,
offering a forty five percent bonus onpremium invested in a special index annuity.
The minimum premium is will ten thousanddollars and the maximum premium is one

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million dollars. And this bonus isavailable for both qualified and non qualified funds.
Remember the difference between the two.Our government classifies all money in one
of two ways. It is eitherqualified or it is non qualified. Qualified

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accounts get tax advantages that non qualifiedmoney does not receive. The big advantage
is that you get to use pretax money to fund these accounts. You
also do not have to pay taxeson the gains in these accounts when you
start until you start withdrawing the money. With the advantages that qualified money receive,

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there are many rules and regulations thatsurround qualified money. For example,
the IRS limits on how much moneyyou can put into these qualified accounts.
Annually. In twenty twenty three,the annual contribution limit for an IRA is
six thousand, five hundred dollars.If you are over the age of fifty,

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it increases to seven five hundred dollars. Other types of qualified accounts have
different limits. You can also youalso cannot withdraw money from these qualified retirement
accounts until you are age fifty nineand a half. If you do not
make a withdrawal, not only doyou have to pay taxes on the money,

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but you also incur a ten percentpenalty charge. There are rules about
leaving money in qualified accounts for toolong. For example, with traditional iras
and for a one KS, youmust start taking r mds, or required

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minimum distributions at the age of seventytwo. If you do not, you
will incur a hefty fifty percent penalyThe IRS also limits the types of investments
you can hold in qualified accounts.For example, these accounts you cannot hold
investments such as collectibles or life insurance. Now think about that, the bonus

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is tremendous. If you invest tenthousand dollars in these accounts at a forty
five percent bonus, that money thenbecomes the account value. Then becomes fourteen
thousand, five hundred. If youinvest fifty thousand dollars, whether qualified or
non qualified, forty five percent bonusis twenty two thousand and five hundred.

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So my gosh, your fifty thousanddollars deposit became seventy two thousand, five
hundred dollars with this bonus. Ifyou invest one hundred thousand, either qualified
or non qualified money and it paysa forty five percent bonus, my guess
you have one hundred and forty fivethousand dollars invested. Now, there are

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pros and cons to any investment,and there are pros and cons simply to
this special bonus annuity investment. Aswell. Qualified accounts get tax advantages that
non qualify accounts do not do notreceive. There are also rules about leaving

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money and leaving money in qualified accountsfor too long. For example, with
traditional iras in forour one case,you must start taking r mds or required
minimum distributions at the age of seventytwo. If you do not, you
incur a hefty fifty percent penalty.The IRS also limits the types of investments

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you can hold in qualified accounts.For example, these accounts cannot hold investments
such as collectibles or life insurance.Non qualified accounts are retirement savings plans.
They are called non qualified because,unlike qualified accounts, they do not adhere

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to Employee Retirement Income Security Act ARISSA. They do not adhere to those ARISSA
guidelines. The contributions made to thesetypes of plans are usually non deductible to
the employer, and they're taxable tothe employee. There are many many more
rules specific to each type of account, but these are the ones most people

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are going to run into. Youneed to be very careful putting money into
qualified accounts as well as withdrawing moneyfrom qualified accounts. Mistakes with qualified money
can cause the whole account to becometaxable to you, so be careful of
that. Non qualified money is moneythat you have had and read you have

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already paid taxes on for this reason. Non qualified accounts, such as savings
account or a brokerage account do notreceive preferential tax treatment. For this reason,
this money has less rules and regulationsthan qualified money. You can put
as much or as little money asyou want into these accounts. You can

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also withdraw non qualified money. Youonly have to pay taxes on the gains.
Since since you have already paid taxeson money you put into this account,
remember our special annuity pay in theforty five percent bonus is available.
Is available for both qualified and nonqualified Money Boy. If you have questions

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on that, please call me Callme at five sixty three three three two
twenty two hundred or send me anemail. Go to my website. Go
to Dickshilly dot com and scroll overto their contact icon and drop down for
my email address and send me anemail. I'll be happy to correspond with

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you via email as well as byphone. You know, we are continuing
to provide our monthly virtual community meetings. The next ones are scheduled for the
time is coming up be the Novemberfourteenth and November sixteenth. On Tuesday,
November fourteenth, Craig reviews the basicsof Medicare and then focuses on the Medicare

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supplements. Two days later, onNovember sixteenth, Greig again reviews the basics
of Medicare and then focuses on theMedicare advantage plans and what we believe is
the more competitive advantage plan for theseMedicare regions, and that plan is the
AAARP Medicare Advantage Plan. Remember thatplan is underwritten and issued by United Healthcare.

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AARP is not an insurance company.AARP merely sells their logo to United
sa Healthcare. Consequently, United Healthcarehas permission to use that logo on the
products on the Medicare products that theyprovide. You know, we remain in
two very important enrollment periods for majormedical insurance this morning. The first is

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the Medicare Annual Enrollment period. TheMedicare Annual Enrollment Period that began on October
fifteenth and continues to December seventh.If you wish to make a change in
your choice for Medicare, now isthe time to do so, and that
new choice will become effective then onJanuary first, twenty twenty four. On

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this topic, I'd like to sharewith you an example of how we have
been able to help with these choices. I visited with a couple earlier this
week. The couple was age eightyand age seventy four. Their choice earlier
was to choose the original Medicare witha Medicare supplement and a prescription drug plan.

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Now, premium for Medicare Part eightis zero dollars but the Part B
premium. Next year, the basepremium will be one hundred and seventy four
dollars. Further, premium for Medicaresupplements are now A Medicare supplement for this
couple for the one person is nowtwo hundred and seventy four dollars, and

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the premium for the prescription drug planis thirty four dollars, so that totals
four hundred and eighty two dollars.This is for one of the spouses.
Remember this is an husband and wife, so the premium is then doubled.
We are paying nine hundred and sixtyfour dollars for Medicare supplements. Then remember

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we must pay extra premium for theprescription prescription drug plan. Total monthly,
they are paying well over one thousanddollars per month per person. Boy,
that takes a big chunk out ofa monthly pension income. Now, the
Medicare Advantage plans greatly reduces that monthlypremium, and the Medicare Advantage plan provides

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additional benefits. They provide a limitedvision dental hearing benefit that is not covered
by original Medicare. Medicare does nothingfor vision except you are allowed a glaucoma
screening test once a year, andMedicare pays for that. But for an

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examine, for an examination, foran eye exam, or for lenses,
there is no benefit from Medicare.The advantage plan makes a nice contribution for
lenses. Medicare advantage plan makes anice contribution for dental and hearing benefits.

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And remember dental and hearing benefits arenot covered by original Medicare. Over the
last decade, Medicare advantage that isthe private plan alternative to traditional Medicare,
it has taken a it has takenon a prominent role in the Medicare program.

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In twenty twenty three, nearly thirtyone million Medicare beneficiaries are enrolled in
the Medicare advantage plans, more thanhalf or fifty one percent of the eligible
Medicare populations. Remember that over halfof the Medicare eligible people are now participating

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in Medicare advantage plans. So ifyou do not have a Medicare advantage plan,
well, it's worth looking into.It's worth looking into. We have
our Medicare meetings coming up here orvirtual meetings coming up here during the during

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this month of November. Yet andwe will invite you to participate in those
virtual meetings. On Tuesday, Novemberfourteenth, Craig reviews the basics of Medicare
and then talks about the Medicare supplements. That's one choice for Medicare you have.
You have a choice of the ofof one of the Medicare supplements.

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Two days later, Craig again focuseson the medic on the basics of Medicare,
and what we believe is the morecompetitive the Medicare advantage plan for these
regions, and that plan is theaa RP Medicare Advantage Plan. Remember the
example I was talking about earlier,My gosh, a couple was paying monthly

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over one thousand dollars per month forMedicare. That was the Medicare premium,
the Medicare supplement premium, and theprescription drug premium. Boy, that's a
big hole in our pension income checks. And they need to do that for

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husbands, they need to do thatfor wives. They both must have a
must pay the premium for Medicare PartB, as well as pay a premium
for a separate Medicare supplement and aseparate prescription drug plan. Now, the
alternative to that choice. That veryexpensive choice is a Medicare advantage plan.

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Over the last decade, Medicare advantageplans have provided over fifty one percent of
the Medicare beneficiaries, So over halfof all Medicare beneficiaries are now participating in
the Medicare advantage plans. So ifyou'd like to have more information on the

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advantage plans, or you would liketo have more information on the competitiveness of
the advantage plans, I'll be happyto visit with you and to share with
you the eight advantage plans that areavailable, and you can pick and choose
your choice of Medicare advantage plans.As I mentioned earlier, we believe that

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the more competitive of the advantage plansis the AAARP Medicare Advantage Plan underwritten and
issued by United Healthcare. Prior toeligibility for Medicare, millions of Americans who
buy their own health and insurance.So if you're not eligible for Medicare yet

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and you must buy your own healthinsurance through the through the Affordable Care Act
through the marketplace, the end ofthe year brings a day of reckoning.
It's time to compare benefits and pricesand change to a new plan, or
enroll for the first time. Forunder sixty five pre Medicare enrollments, that

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enrollment period began on November first.Consumers can go online, call, or
seek help from a broker or otheras sister to learn their twenty twenty four
coverage options, calculate their potential subsidies, or change plans. Remember, if

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you qualify for a subsidy that ishelp in pain the cost of major medical
insurance, you can find that outif you qualify for that subsidy by going
to the website. Go to healthcaredot gov and you can open that website

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and determine by yourself, or ifyou want to call us, we'll help
you walk through that website and determineyour eligibility for a subsidy. The eligibility
as I mentioned here, oftentimes onsafe money that I have had clients that
would normally pay over one thousand dollarsfor an under sixty five major medical insurance

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plan. Now by participating in healthcaredot gov, oftentimes they pay substantially less
than that. Sometimes they even paya zero dollar premium for major medical insurance.
So, as we remember this openenrollment period for under sixty five major

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medical insurance lasts until January fifteenth,although some states have different time periods,
but in Iowa and in Illinois andthese Medicare regions. In these Medicare areas,
you are eligible for enrollment in anunder sixty five plan up until January

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fifteenth. That's the end of theannual enrollment period. Health policy experts and
brokers recommend that all policyholders at leastlook at next year's options because prices and
the doctors and hospitals and planned networksmay have changed. So the Affordable Care

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Act plans are now well entrenched andestimated sixteen point three million people signed up
during open enrollment period last year.Now this year you may even see larger
numbers en Hence, subsidies first approvedduring the height of the COVID pandemic remains

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available, and some states have boostedfinancial help in other ways. In addition,
millions of people nationwide are losing Medicaidcoverage as states as many states,
including Iowa and Illinois, they reassesstheir eligibility for this for the first time

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since early in the pandemic. Manyof those house could be eligible for an
Affordable Care Act plan. They cansign up as soon as they know they're
losing Medicaid coverage, even outside ofthe open enrollment period. Another important caution
don't wait until the last minute,especially if you are seeking help from a

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broker. Consumers this year will beasked to certify that they voluntarily agreed to
broker's assistance and that their income anotherinformation provided by the broker is accurate.
It's a good protection for both partiesand many of the brokers I agree with

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that, but brokers are concerned therequirement could cause delays, especially if clients
wait until right before the end ofthe open enrollment period to apply. Remember
the open enrollment period for under sixtyfive medical insurance Major medical insurance, the
open enrollment period ends on January fifteenth. Now, if you apply from January

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first to January fifteenth for major medicalinsurance, your effective date then will be
February first, So that's important inknowing when your effective dates in your coverages
are. If you sign up nowfor major medical insurance if you're under age
sixty five, the effective date willbe January first, two and twenty four.

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But if you wait until after Januaryfirst and sign up for major medical
insurance prior to January fifteenth. Youreffective date will be February first. So
while some health insurance plans are loweringtheir premium for next year, many are
increasing them, often by two percentto ten percent. So that's a big

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increase as well. Now as thesubsidy increased to that effect. You know,
really I can't answer that question.I don't know if the subsidies have
increased for to compete with the increasedcosts of major medical insurance. So so
that's the real reason to log ontothe federal website healthcare dot gov and in

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determine what your subsidy is. Soit's very very important keeping in mind that
the month of November, we haveour Medicare that's for sixty eight, sixty
five and over. Our Medicare virtualmeetings are the fourteenth of November and the

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sixteenth of November. Remember November thirteenth, Remember fourteenth. We review the basics
of Medicare and then focus on theMedicare supplement plans that they have available.
There are ten Medicare supplements. Weget to pick one of those ten.
Prescription drug plans. There are eightprescription drug plans. Excuse me, there's

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more than eighth. There are eighteenprescription drug plan. We get to choose
one of those eighteen. We helpour clients enroll normally by going to the
website, going to healthcare dot govand inputting your providers, your doctors,
and your hospitals that you utilize,and then we input your prescription drugs in

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that program too, and then thatprogram will come up with an idea on
the best plan that we can enrollin major medical insurance and provide the subsidy
that's available for us. So that'swhat we do. For persons who are
under the age of sixty five,I encourage you to make use of that.

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For persons on Medicare or over theage of Medicare wanting to look at
perhaps planned changes for twenty twenty four, you may wish to leave a Medicare
supplement plan because it's increased in costsand elect to participate in a Medicare advantage

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plan. If you do that,your premium will be substantially reduced. Your
premium for Medicare Part B will staythe same. You continue to pay your
B premium from your Social Security check, and then you pay the cost of
the Medicare advantage plan. Many ofthe Medicare advantage plans have a zero dollar

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premium. Many of the advantage planscharge you a minimum premium. The trade
off is the out of pocket maximum. And we'll be happy to review the
various plans and the various out ofpocket maximums because they differ from insurance company
to insurance company, from plan toplan. So if you'd like to know

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more about Medicare, jot down thosedates November fourteenth and November sixteenth, and
call Craig in advance of the fourteenth, in advance of the sixteenth to determine
how you can participate in those virtualcommunity meetings. In addition to the Medicare
community meetings, we have community meetingsfor persons under the age of sixty five

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qualifying for major medical insurance, andyou can do the same thing and call
Craig and receive instructions on how toparticipate in the meeting for November fourteenth to
learn more about major medical insurance plansavailable and to learn about the subsidies that

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are available to us. So that'sabout all I have for you this morning.
If you need to call me,remember my number is five sixty three
three three two twenty two hundred andremember you can obtain my email address by
going to my website Wwwdykshilli dot comand then scroll over to the contact icon

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for a dropdown on my email address. Have a great, great weekend,
Happy Veterans Day to all the turnsout there. Good day,