Safe Money - 9-3-23

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Episode Transcript

(00:00):
Good Sunday morning to all on thisfirst Sunday in September. Normally we are
here every Saturday, but today's showwe're especially here on Sunday morning. I
have a Hawkeyes took my time yesterday, so I am here on Sunday.
Next week we'll return to our regularSaturday morning ten thirty hour, so tune

(00:23):
in for that. We are hereevery Saturday to talk with you our clients
about investment strategies and safe money investingfor our clients. This month of September
is considered Life Insurance Awareness Month,and I'll have more to say about that

(00:44):
later now that we are in September. And remember remember Tomorrow, Monday,
September fourth, is a holiday.It's Labor Day, and Labor Day brings
about the annual Run with Carl nowin This twenty ninth year Run with Carl
begins at the Life Fitness Center onMiddle Road in Bettendorf, and it is

(01:07):
a one mile or half mile funrun for kids and a five mile run
and a five k run walk.Online with online registration is no longer available.
You can register at packet pickup.Can register tomorrow. Tomorrow morning,
runners can pick up their packets andindividuals can late register at a packet pick

(01:30):
up at Bettendorf Middle School twenty thirtyMiddle Road, and you can do that
between at starting at six am andgoing on to seven thirty am. Tomorrow
morning. Proceeds of the Run withCarl go through the schools to Pleasant Valley

(01:51):
in Bettendorf Schools. Market report firstsaying this morning on at this recording on
third Thursday, when we recorded thisprogram on August thirty, first Thursday,
the last day of August, tomarket was up slightly and that's a good

(02:13):
thing. Also during this monthly duringthis month of September, we will be
continuing our virtual community meetings. Nextones are scheduled for Tuesday September nineteenth and
Thursday September twenty feet, both atten o'clock in the morning on Tuesday September

(02:34):
nineteenth, then on Thursday September twentyfirst. These meetings are virtual. They're
very very informative. So I knowif you are aging into Medicare, you
are being inundated with solicitation requests.Gosh, remember there are ten Medicare supplements
available. We get to pick oneof these. There are eighteen prescription drug

(02:59):
plans of able in these Medicare regionsand we get to pick one of those,
and there are eight advantage plans available. The alternative to original Medicare is
the advantage plan, and there areeight advantage plans available and these Medicare regions
and we get to pick one ofthese. So there's lots of choices for

(03:20):
medicare. How do you decide whatto choose? Well, our virtual community
meetings will help you make this choice. So call us call us at five
six two five six three three threetwo twenty two hundred, or email me,
go to my email, go tomy website www. Dick Schulig dot

(03:45):
com. And on my website thereis that drop down on the contact eye
contact I can for my email address. This morning, I want to talk
with you listeners about a kind ofa hidden tax that we don't often consider.
And that tax is the income relatedMonthly Adjustment amounts is called the IRMA.

(04:11):
The income related Monthly adjustment amounts somany tax players there are. For
many tax players, they are calculatedby the Social Security Administration based on income
tax records and deducted from Social Securitypayments. So oftentimes we don't even know

(04:31):
that we have an income related monthlyadjustment. Over the past decade, the
number of recipients owing Part B IRMAhas doubled to five point two million,
while the amount collected as all hasmore than tripled. Thirteen point four billion

(04:54):
dollars have been collected for this IRMAamount. Now. I received a couple
of phone calls this week about IRMA. Do you know about IRMA? Income
related monthly adjustment amount? This isa tax or a penalty tax on high

(05:15):
income Medicare beneficiaries as an additional chargeto Medicare Part B A Medicare Part D
based upon your household income for highFor high income Medicare beneficiaries Part B of
Medicare and Part D of Medicare,the premiums include an additional charge based upon

(05:41):
your modified adjusted gross income. Beneficiarieswho earn over ninety seven ninety seven thousand
dollars a year as a single incometax filer and who are enrolled in Medicare
Part B and Medical Care Part Dpay a search ARTS that's added to your

(06:03):
Part B and Part D premium.IRMA is determined by income from your income
tax return two years prior. ThisIRMA penalty begins at sixty five dollars and
ninety cents sixty five dollars and ninetycents for a single tax filer, so

(06:26):
making the total monthly cost of PartB two hundred and thirty dollars and ninety
cents for those in the lowest IRMAbracket. The base cost of Medicare Part
B is one hundred and sixty fourdollars and ninety cents, and so we
add the sixty five dollars and ninetycent penalty for IRMA, and so the

(06:47):
IRMA penalty raises adjusted income that substantially. The maximum IRMA in twenty twenty three
will be three hundred nine five dollars, bringing the total monthly costs to Part
B two five hundred and sixty dollarsfor those in that practice. IRMA is

(07:11):
a tax penalty for high income householdclients who anticipate their income levels to remain
high even during retirement should look intostrategies to reduce modified adjust to gross income
before it becomes eligible for Medicare.Clients should of course take advantage of the

(07:35):
tax deferred retirement accounts to reduce toreduce the modified adjust to gross income by
contributing to a four old one Afour O one can reduce the adjusted gross
income by at least twenty two thousanddollars for those under the age of fifty

(07:58):
and for those over the age offifty. Those over the age of fifty
can contribute a total of thirty thousanddollars in pre tax funds to these accounts.
Hsas and roth iras can also providesources of free income during retirement.

(08:20):
Clients who have reached age seventy twocan reduce their modified adjust gross income up
to one hundred thousand dollars per yearby using their required minimum distributions to contribute
to a charity in a qualified charitabledistribution. For other clients, the solution

(08:41):
might be too Simply inform Medicare thattheir income has dropped substantially for the year
in questions. Clients can do thisby submitting a special form as Form SSA
forty four SSAUR. That's the Medicareincome related monthly adjustment amount. Now you

(09:09):
can obtain that form from the SoulSecurity Office. And both work reduction and
work stoppage qualify as life changing events. So that's that's important. If you
have questions on that, I thinkwe can help. Please call US at
five six three three three two twentytwo hundred or send me an email give

(09:33):
my email address from my website www. Dick Schulig dot com. Let scroll
over to the contact information for myemail address. Okay, that's that's important.
The month of September is characterize asthe Life Insurance Awareness Month. Life

(09:54):
insurance listeners, when was the lasttime you reviewed your life insurance? How
much of your life insurance is fromyour employer? And how much life insurance
is your own personal insurance. Iwant to put a challenge out to you,
and this challenge is to discuss yourlife insurance with your spouse, with

(10:20):
your family and answer this question,how much life insurance do you have?
And for those dependent upon you,do they know how much you are insured
for and how much of this lifeinsurance is personal? And how much of
this life insurance do you have withyour employer or former employer. Employers,

(10:45):
especially larger employers, normally have lifeinsurance on their employees and when their employees
retire, oftentimes that former employer continueslife insurance, although they may be reduced
as an may be reduced amount oflife insurance, but it still continues after
retirement. This is a vital topicas should be discussed openly between spouses and

(11:13):
others dependent upon you. Folks.How many of you listeners can answer this
question? How much life insurance doyou have? And for those dependent upon
you do you know how much lifeinsurance exists on your provider to day?

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With lots of years in this businessof life insurance, I continue to provide
life insurance. Along with life insurance. I provide safe investment harbors for my
clients with annuities. Annuities are providedby life insurance companies and today annuities are

(11:54):
the main product of my business.Annuities properly structured will guarantee the income for
lifetime and include a named beneficiary orbeneficiaries. Life insurance listeners, when was
the last time you reviewed your lifeinsurance? How much of your life insurance

(12:16):
is from your employer? And howmuch insurance is in your own personal insurance?
The challenge I put out to alllisteners is to discuss life insurance.
Discuss life insurance with your spouse andyour loved ones and ask the question how
much life insurance do I have?And for those dependent upon you do they

(12:39):
know how much you are insured for? This is a vital topic, and
that topic should be discussed openly betweenspouses and others dependent upon you. Folks,
how many of you listeners know howmuch life insurance do you have?
And those dependent upon you? Doyou know how much life insurance exists on

(13:03):
your provider? Remember what life insuranceis supposed to do. It is to
replace your income. It is toreplace everything you are working for, to
buy groceries, to make house payment, and you told the payments. To
provide funds for emergencies, to providefunds for educating children, to provide funds

(13:28):
to replace your paycheck. This iswhat life insurance does. I always I
always tell this story when I firststarted in the business a long time ago.
I begin business and life insurance business. I begin a long time ago,
and the story I'm going to tellyou is a true story. It

(13:48):
was concerning an over the road truckdriver. It was my first year or
so in the life insurance business,and at that time, with a wife
and three small children, our householdincome was very, very important. So
I was just starting the insurance businessand I go anywhere anytime for the potential

(14:13):
of a sale. I had thisprospect and over the road truck driver,
and he said to me, Hesaid, Dick, if you want to
see me, you have to seeme when I'm home Saturday or Sunday,
because other days I am on theroad. So I scheduled a meeting time
and put a nice sized life insurancepolicy on him. I recall he was

(14:37):
a young person with small children athome. Now, that weekend visit with
him ended up being a nice,nice sale for me. I don't remember
the amount of the insurance, butI do remember it was a nice policy
with a maximum term writer on thepolicy and an accidental death benefit on the
policy too. About six months later, this guy's father called me late at

(15:01):
night and wanted to know if thatinsurance was good because his son was killed
in a trucking accident that morning.Remember the policy was only six months old,
but it was certainly a good policyand it was in force. I
remember going to the visitation for thistruck driver father and husband, and I

(15:30):
was in line and somebody said tothe fathers, your son's family going to
be all right financially, And thefather pointed to me and said, thanks
to this guy providing the life insurance, the family will be okay. That
story I tell all the time,and that true life experience taught me the

(15:54):
value of life insurance and convinced meto put as much life insurance as possible
on the lives of especially heads ofhousehold, especially family members. And that
reminded me, and that remained mymission and sent me on a nice career

(16:14):
in the life insurance business. Nowforty five years later, that's how long
I've been in the insurance business.Forty five years. Still I provide life
insurance and annuities and duties are thecrux of my business today. But remember
annuities are offered by life insurance companies. So I want to remind everybody about

(16:41):
tomorrow. The tomorrow is Labor Day. Labor Day brings about the Run with
Carl. Run with Carl is inBettendorf. It's at the Bettendorf Life Fitness
Center on Middle Road, and itconsists of a one mile and a half

(17:02):
mile run fund run for kids.It consists of a five mile run and
a five k run walk, soproceeds of the Run with Carl are used
for the benefit of graduates of PleasantValley High School and graduate of Bettendorff High

(17:22):
School. Every year, the Runwith Carl is proud to say that we
have now provided over fifty four thousanddollars scholarships for graduates of Pleasant Valley High
School and graduates of Bettendorf High School. Run with Carl is designed to serve

(17:45):
as a memorial or a memory inCarl's name, and we do that provided
by providing these scholarships to the schoolsform the Run with Carl. So,
if you're not signed up for theRun with Carl, encourage you to do
so. Go down with Karl dotcom and you can register. Can register

(18:06):
online, but no, I'm sorry, you canister in line. You can
register in person Tomorrow morning, Monday, September fourth. Register in person starting
at six am at the Life FitnessCenter to participant for kif K Run walk
and then at five mile run events. The one mile Front Run starts at

(18:30):
seven thirty, so I'll be sureyou're there and have a good observation period
where you can observe your kids participatingin the run. I want to remind
you again that during this month ofSeptember, during Life Insurance Awards a month,

(18:51):
we will be offering our virtual communitymeetings and they will be offered on
on Tuesday, September nineteenth, andagain on Thursday September twenty feet. During
at ten o'clock in the morning onThursday September nineteenth, we review the basics
of Medicare and then focus on theten Medicare supplement plans that are available in

(19:17):
these Medicare regions. Two days later, on Thursday September twenty first, at
ten o'clock in the morning, seethere are eight Medicare advantage plans available in
these Medicare regions. As independent agents, we represent all eight of those companies
that offer those plans, and werecommend normally what we feel is the more

(19:42):
competitive of these plans, and thatis the AARP Medicare Advantage Plan, and
that plan is offered by United Healthcare. It's called the AARP. The AARP
is not the insurance company. Theinsurance com is United Healthcare. AARP merely

(20:03):
sells their logo to United Healthcare,and as a result of that, United
Healthcare has an option of putting theirlogo on United Healthcare products AARPS logo on
United Healthcare product. We believe thatUnited Healthcare as the most competitive Medicare advantage

(20:25):
plans in these regions, and sowe normally recommend that program, but we
still recommend that you consider original Medicarewith the Medicare supplements and the prescription drug
plans. When you have Medicare anda prescription drug plan and the Medicare supplement,

(20:48):
we call that arrangement the three cardsystem. You have your Medicare card,
you have your Medicare Supplement card,and you have your prescription drug card.
We call that the three cards.That's original Medicare. The alternative to
original Medicare is the one card system, and the one card system and advantage

(21:11):
plan Medicare Parts C is an advantageplan. Most Medicare advantage plans cover Medicare
Part A, Medicare Part B,and the supplement, the provisions that's provided,
and then they also provide a prescriptiondrug plan built into the built into

(21:32):
the advantage plan. There are prosand cons to each. There are pros
and cons to original Medicare, justas there is pros and cons to the
Medicare advantage plans. We normally recommendthe advantage plan because the advantage plan has
with it not only the benefits formedical purposes that are offered under Medicare Part

(21:56):
A and Medicare Part B, butit also offers some living benefits as well,
and those living benefits include such thingsas as fitness benefit, such things
as dental benefits, limited dental benefits, and limited vision benefits. None of

(22:17):
these vision, dental, or visionare offered by Original Medicare, so Original
Medicare is called the illness type ofMedicare, whereas the advantage plan is provided
is called the living benefits that areavailable under Original Medicare. If you'd like

(22:38):
to participate in our meetings this month, don't forget to call me five six
three three three two twenty two hundred. If you'd like to contact me via
email, go to my website.Go to www. Dick Schulig dot com
and scroll over to the contact informationand pick up my email dress. You're

(23:00):
welcome to email me as well.That's about all I have for you today.
Have a great, great holiday weekend. Take care. We'll talk to
you begin next Saturday. Now remembertoday we're talking with you on Sunday.
Our Safe Money Show is normally onSaturday, and next Saturday, September ninth,

(23:22):
we will return to our Saturday morningbroadcast Saturday morning at ten thirty talk
to you. Then, have agood weekend, good day,