Safe Money - 12-02-23

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Episode Transcript

(00:00):
Good Saturday morning to alve on thisfirst Saturday in December twenty twenty three,
last month of twenty twenty three.It's hard to believe, isn't it.
This is the last month of twentytwenty three. Holiday season, is honest?
So lot's going on this time ofyear. Dix Schulle here and this

(00:20):
is Safe Money. We are hereevery Saturday to talk with you our listeners
on strategies we use to manage andprotect assets and to manage and protect those
assets safely in today's very unsafe world. You know, this time of year,
holiday season and gift giving season.I'm reminded of a radio show that

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we did several years ago, andit was called the Greatest Gift. In
today's world, we are constantly thinkingof what is the gift that we can
give, the gift that can meansomething to the recipient. Well, I
remember this program called the Greatest Gift, and it encourages us to give the

(01:10):
greatest gift that we can give.And what is that greatest gift? That
greatest gift is having our affairs inorder. Boy so important important every time
of the year, but especially thistime of the year. The greatest gift
is the gift of having our affairsin order we continue to offer that special

(01:37):
annuity that is currently paying a fortyfive percent bonus on money invested. So
the minimum investment is ten thousand dollarsand the maximum investment is one million dollars,
but the bonus is forty five percent. Boy, a good, healthy
bonus. A ten thousand dollars investedpaying a forty five percent bonus provides an

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additional forty five hundred dollars for thatinvestment. A fifty thousand dollars investment pays
an additional twenty two thousand, fivehundred. That's a tremendous bonus. One
hundred thousand dollars invested pays a fortyfive thousand dollars bonus. Encourage you listeners

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to take advantage of this bonus.Well, it is still available. You
know, there are pros and consto any investment, and certainly that forty
five percent bonus is a pro.The con is the holding period. It
requires a ten year holding period.Now there's some liquidity within that ten year

(02:43):
period of time, but Boy,gaining forty five percent on money that we
invest is a tremendous, tremendous bonusso think about that. If you'd like
to have additional information on that,please call me Call me at five sixty
three three three two twenty two hundred, or send me an email. Go
to my website dickshillig dot com andscroll over to the icon for contact information

(03:09):
for my email address and send mean email if you'd like to correspond in
that manner. As a reminder,we remain in two We remain in two
important enrollment periods yet today the Medicareand enrollment period continues until December seventh.

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Boy, that's next Thursday. Soif you are now on Medicare and you
would like to change your choice ofMedicare options for twenty twenty four, you
have until Thursday, December seventh todo so. As coming up, remember
with Medicare, you have two generalchoices. You may choose original Medicare that

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choice we call the three card system. You have your Medicare card issued by
the federal government, and then youhave a Medicare supplement plan issued by a
private insurance company. And then youhave a separate prescription drug plan, also
issued by a private insurance company.That's the three card system. The alternative

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to the three card system is aMedicare advantage plan, and that we call
the one card system. The privateinsurance company administers Medicare Part A, the
hospital part of Medicare, and MedicarePart B, the medical services part of
Medicare, and adds a prescription drugcoverage to most of those plans. So

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with an advantage plan, you haveonly one card. You no longer use
your Medicare card for claims. Youonly use the one card system issued by
a private insurance company in these Medicareregions. There are eight Medicare regions,
or excuse me, there are eightMedicare advantage plans, and we get to

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choose one of these eight plans.As independent insurance agents, we represent most
of the eight Medicare advantage plans andsuggest what we feel is the more competitive
of those plans. And this yearwe continue to recommend what we feel is

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the more competitive of these advantage plans, and that is the AAARP Medicare Advantage
Plan, which is available in ScottCounty and the surrounding counties and in Rock
Island, Illinois, Rock Island Countyand surrounding counties. There So, if
your choice for Medicare is the threecard system, Original Medicare, Medicare Supplement,

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and prescription drug plan. Let mereview the monthly costs of original Medicare.
The base cost for Medicare. Thereis no cost for Medicare Part A,
that's for hospital costs. However,there is a cost for Medicare Part
B, and that base cost intwenty twenty four will be one hundred and

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seventy four dollars. In twenty twentythree, this base cost is one hundred
and sixty four dollars. Now,if household income earnings are higher than the
cost of Medicare Part B will behigher as well. Original Medicare costs per
person per month. Remember there isno cost for Medicare Part A, but

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Medicare Part B the cost for personis one hundred and seventy four dollars per
month in twenty twenty four. Ifhousehold income is higher, then the cost
for Part B will could be higherper person per month. Remember original Medicare
the three card system. The costfor Medicare Part B. The base cost

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is one hundred and seventy four dollarsper month. Due to the deductible and
co insurance under medical care, mostpersons eligible for Medicare and choose original Medicare.
Also choose to participate in a Medicaresupplement plan, and boy, that
begins the confusion with Medicare. BecauseMedicare supplement plans are standardized, and by

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standardized we mean the benefits from theinsurance company to insurance company are identical.
So if you have a Medicare,supplement plans are lettered beginning with Medicare Supplement
Plan A to Medicare Supplement Plan IN. So let me give you the cost

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of a Medicare Supplement plan G.Today's Medicare supplement premiums with an insurance company
out offering a household discount that meansthe client lives with another person. A
non tobacco premium for a person startsat age sixty five at one hundred and
forty eight dollars a month, andincreases every year to two hundred and sixty

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nine dollars at age eighty one.Remember this is a three card system.
The cost of Medicare in is onehundred and seventy four dollars a month.
The cost for the Medicare's supplement planwill be one hundred and forty eight dollars
with a household discount then increases eachyear to a total of two hundred and

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ninety seven dollars a month per person. That's then the three card system provides
also for a prescription drug card withmonthly premiums as low as zero dollars a
month to a high of one hundredand eight dollars a month. Original Medicare

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is the three card system. Nowremember that three card system covers illnesses only
Medicare Part A and Part B,and then a Medicare supplement plan and a
prescription drug plan. So you havethree cards. You have a card for
Medicare issued by the federal government,and then you have a Medicare supplement card

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issued by a private insurance company alongwith a prescription drug a prescription drug plan
also issued by a private insurance company. That is the three card system,
and that three card system covers illnessesonly. If you're sick, you have

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wonderful coverage with Medicare, but youhave no benefits unless you get sick.
A Medicare advantage plan is also offeredby a private insurance company. If an
individual elects an advantage plan, that'sMedicare, that's Medicare Part C, and
that's the one card system. Theinsurance company issuing the Medicare advantage plan receives

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some help in paying the premium fromMedicare. Therefore, there is a minimum
monthly premium for the Medicare advantage plan. Some Medicare advantage plans offer a zero
dollar monthly premium. Other advantage plansrange all over the place. We believe

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the most competitive of the advantage plansis one offered by United Healthcare, and
that premium will be thirty nine dollarsa month in twenty twenty four. It's
thirty four dollars a month in twentytwenty three, but in twenty twenty four
it goes to thirty nine dollars amonth per month per person. Remember,

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if you elect an advantage plan theone card system, you continue to pay
your premium to Medicare, and thatpremium to Medicare is one hundred and seventy
four dollars in twenty twenty four,and then in twenty twenty. In twenty
twenty three that was one hundred andsixty eight dollars. But in twenty twenty

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four that premium is for Medicare isgoing to one hundred and seventy four dollars
the cost of a Medicare advantage plan. We believe the most competitive a Medicare
advantage plan is one offered by UnitedHealthcare, and that is the AAARP Medicare

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Complete Plan. In twenty twenty three, the premium for that plan was thirty
four dollars. In twenty twenty four, the premium for that Medicare advantage plan
will be thirty nine dollars. Sothere's a lot to consider when you are
first eligible for Medicare, and there'sa lot to consider if you wish to

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change your Medicare choice. That's whatthis annual enrollment period is all about.
Up until December seventh. If youare currently on Medicare and you wish to
change your Medicare choice, you wishto change your Medicare plan, then now
is the time to do so,and you can do that up until Thursday,

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December seventh, next Thursday. Nowthe new plan will be effective then
January first, twenty twenty four.But now is the time to make the
change to that plan I call Medicareadvantage plans. You have coverage for illness,
as you do with original Medicare andthe Medicare Supplement, but with the

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Medicare Advantage plan, you also havecoverage for wellness. So if you are
sick, you have wonderful coverage underthe Medicare advantage plans. But the Medicare
advantage plans provide some wellness benefits,some limited dental vision and hearing plans coverage

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which are not available under original Medicaresome limited dental vision and hearing. Neither
dental vision or hearing is covered underoriginal Medicare. With a Medicare advantage plan,
you have some coverage, and that'sfantastic, So I call the Medicare

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Advantage plan the illness plan. Plusyou have some living benefits as well,
and I think those living benefits arejust wonderful. Just a reminder that you
pay for Medicare Part B in twentytwenty four, you will pay one hundred

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and seventy four dollars as a basepremium. Higher income households will pay more
than the base premium. But thispremium is a direct deduction from your Social
Security check, and because it isa deduction from Social Security, oftentimes clients
forget there is a monthly charge forMedicare. This premium for Medicare Part B

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has ranged from a low of onehundred and forty eight dollars a couple years
ago to this high of one hundredand seventy four dollars a month per person
starting in twenty twenty four. Remember, if household incomes are greater than one
hundred and seventy four dollars, premiumwill be higher. So if you have

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questions on that, please call me. If you are wanting to change your
choice for Medicare, you have untilThursday, December December seventh to make that
change. And you can make thatchange by giving me a calum will step
a day at a time that wecan get together and we'll go to the

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Medicare dot gov website and look atthe Medicare plans that are available, and
you have the option of choosing theplan that do you think is best for
your situation. You know, I'ma firm believer in the Medicare Advantage plan
because the advantage plan offers wellness benefitsin addition to sickness benefits. Original Medicare

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offers wonderful coverage for sicknesses, butthey do nothing for wellness. The Medicare
Advantage Plan provides wonderful coverage for sickness, but it also provides coverage for wellness
as well. You have limited dental, limited vision, and limited hearing benefit

(15:45):
under the advantage plans, So todetermine if you qualify for that advantage plans,
and there is pros and cons tothat advantage plan, just there is,
just as there is pros and consto insurance plan that you obtain.
I would like to talk with youabout that, so feel free to give

(16:06):
me a call or send me anemail. Call me at five to sixty
three three three two twenty two hundredor email me. Go to my website.
Go to Dickshilly dot com and whenmy website opens, scroll over to
the contact icon and drop down formy email address and send me an email
if you'd like to correspond in thatmanner. In addition too everything that's going

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on with Medicare, I just receivednotice of Social Security changes for twenty twenty
four and I'll have that for you. I have that here for you,
but remember, if you'd like tohave a copy of this Social Security adjustments
for twenty twenty four, just giveme a call or send me an email

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and I'll be happy to provide thatfor you as well. What to expect
in Social Security adjustments for twenty twentyfour. First of all, coalis the
Social Security Administration adjusts the payouts annuallyto accommodate rising inflation. The cost of

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Living adjustment or COLON for twenty twentyfour will be a modest three point two
percent. That's this significant drop fromthe record breaking eight point seven percent increase
that we had in twenty twenty three. This means that the average Social Security
payout will increase by about fifty bucks, though individual benefits may vary, so

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there is a Social Security adjustment andthe adjustment is for COLON next month.
In twenty twenty four, there willbe changes to the disability benefit qualifications.
Earning threshold for disability for disability benefitswill increase. In twenty twenty four,

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non blind individuals must now earn belowfifteen hundred dollars per month, while persons
who are blind have a threshold oftwenty five thousand, nine hundred dollars.
The trial work period limit has alsoincreased to eleven hundred and ten dollars per

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month. These changes aim to supportthose with disabilities while ensuring the program remains
sustainable. Social Security income benefits willalso see a three point two percent increase.
Now, isn't that significant that theSocial Security will increase by three point

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two percent and the COLA benefit alsohas increased by three point two percent.
Algel persons will receive an average ofnine hundred and forty three dollars per month,
couples will receive fourteen hundred and fifteendollars per month, and essential persons
will receive four hundred and seventy twodollars per month. For twenty twenty four,

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the Social Security exclusion is set attwo thousand, two hundred and ninety
dollars per month, increasing the opportunityfor students to receive support without affecting their
eligibility further the Social Security wage base, the limit on earnings subject to payroll

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taxes will increase to one hundred andsixty eight dollars in twenty twenty four.
This update ensures that the program continuesto receive adequate funding from current workers' payroll
tax Moreover, the maximum benefit forthose retiring at full retirement age will increase

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to three eight hundred and twenty twodollars per month in twenty twenty four.
This adjustment aims to provide increased financialsecurity to retires, reflecting the rising costs
of living. Furthermore, the earningslimit for working individuals will change in twenty

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twenty four. For workers younger thanfull retirement age, the limit is set
at twenty two thousand, three hundredand twenty dollars. That's the earnings limit.
So if you are retiring early fromSocial Security and you and by retiring
early, I mean if you're retiringprior to your full retirement age. Full

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retirement age this year is approximately agedsixty six and seven months, I think,
so those reaching full retirement age willhave a higher threshold of fifty nine
thousand, five hundred and twenty dollarswhile individuals. Once individuals reach full retirement

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age, there is no income restrictionsor payroll reductions. End. Boy,
that's an important point to remember thatonce individuals reach full retirement age, there
are no income restrictions or payout reductions. That could be very very important.

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Finally, Social Security's long term futuremust be considered. As projected by the
Congressional Budget Office, the trust fundsare expected to be depleted by twenty thirty
three, potentially leading to twenty fivepercent reductions in benefits in Social Security benefits

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by twenty thirty four, Legislative changesmay be necessary to secure the system's sustainability.
And boy, that is something weshould encourage our congressman to take a
look at and to take a lookat seriously. The year twenty thirty three.
Gosh, that's coming up, andif our Social Security checks are to

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be reduced by twenty five percent,how would you like to have that twenty
five percent reduction in your Social Securitycheck? That's the way the system is
currently projected. Now Congress can changethat, and so we as taxpayers,
we have an obligation, I believe, to make sure our congressmen are well

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aware, are well aware of thefact that we are well aware of that
potential twenty five percent reduction in SocialSecurity benefits. So you should call or
write to your congressman and let himknow that you are fully aware the potential
for that reduction in Social Security benefits. In my gosh, in nine or

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ten years, that's going to happen. So as we look ahead to twenty
twenty four, these adjustments will helpensure the Social Security program meets the evolving
needs of the American people. Optimizeyour retirement planning by staying informed and being
prepared for these changes. There's alot we have to stay on top of.

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This Medicare annual enrollment period is comingto a close here next Thursday,
December seventh, and we have anobligation to know what Medicare is going to
pay. And we have an obligationto understand what the Medicare system is all
about because it will affect us.It will affect us tremendously, so we

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need to be aware of what thatprogram is all about. We have two
choices now for Medicare. We canchoose original Medicare. That is the three
card system. Remember that that's yourMedicare Part A, Medicare Part B that
card issued by the federal government,and then a Medicare Supplement card issued by

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a private insurance company. And thethird card is the prescription drug Coverage card
issued by a private insurance company.So that's original Medicare. Now. The
alternative to original Medicare is a MedicareAdvantage plan. Medicare advantage plans provide wonderful

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benefits as original Medicare provides. Theyprovide wonderful benefits for illnesses. So if
you are sick under Original Medicare,or if you are sick under the Medicare
Advantage plan, you have tremendous coverage. But Original Medicare does nothing as far

(25:11):
as vision, hearing, and dentalservices are concerned. Original Medicare only provides
coverage for sicknesses that does not providecoverage for wellnesses, whereas the Medicare Advantage
plans provide coverage for sicknesses as doesMedicare, but in addition to that,

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it provides some wellness benefits, particularlywith vision, with hearing, and with
dental. I had a client inmy office this week who had Original Medicare,
and she was probably in her midseventies, and she said to me,
I was shocked that my prescription glasseswere not covered by Original Medicare and

(25:59):
she ended up having to pay betterthan three hundred dollars for those glasses.
Further, she said the same thingthat she's shocked every time she goes to
the dentist and she has to paythat dental bill and there's no coverage for
Medicare for dental coverage. Now witha Medicare advantage plan, you have coverage,

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limited coverage for dental benefit, youhave limited coverage for hearing, and
you have limited coverage for vision.So those are important factors. And as
we age, we tend to usedental vision and hearing benefits more and more.
And my guess, speaking of hearingbenefits, the cost of a hearing

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device at a minimum is well inexcess of one thousand dollars. Now,
if you and depend upon the sophisticationof that hearing device, it can cost
two or three times that amount coverageunder original Medicare for that hearing device.

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Most Medicare advantage plans provide some limitedcoverage for that hearing device. So that's
a very very important thing to lookat. Encourage you to give me a
call if you have questions on that, call me at five sixty three three
three two twenty two hundred, orsend me a note via email. You

(27:26):
can get my email by going tomy website wwwdikschillig dot com, scroll over
to the contact information for my emailaddress and send me an email if you'd
like to correspond in that manner.Remember, we continue to have the fifteen
percent I'm sorry, I said thatwrong. We continue to have that forty

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five percent bonus on a particular annuityforty five percent bonus on that annuity.
So if you invest ten thousand dollarsin that new you acquire an additional forty
five hundred dollars. One hundred thousanddollars invested in that annuity pays an additional
forty five thousand dollars bonus, SoI encourage you listeners to take advantage of

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that bonus while it is still available. There are pros and cons to any
investment, and certainly that forty fivepercent bonus has pros and cons attached with
it too. The biggest advantage isthe bonus, and the biggest disadvantage is
the holding period. There is aten year holding period on that annuity,

(28:37):
but that annuity has a some liquidityoptions during that ten year period of time.
We continue offering our monthly community meetingscoming up here during the month of
December, so I encourage you tolisten for those. Craig puts those on
and does a good job and explainingwhat original Medicare covers and then explain what

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the Medicare supplements are available. Andthen on another day Craig talks about again
the basics of Medicare and then focuseson the Medicare advantage plans that are available,
and in particular this AARP Medicare advantageplan. So again, give me
a call five sixty three three threetwo twenty two hundred, or go to

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my website Dickshilling dot com and scrollover to the contact information for my email
address. Hey, this looks likea nice weekend, so have a great,
great weekend. Talk to you nextweek. Good day,