Planned Assets Planning Blog

If you were struck with a Critical Illness, Heart Attack, Cancer or Stroke and couldn’t work for six months or more, how would you meet the cost of living, pay your bill and medical cost?

Did you know?

1.3 Million Americans will be diagnosed with Cancer each year?

1 out of 2 men and 1 out of every 3 women in America will be diagnosed with Cancer sometime in their lifetime?

77% of All Cancer diagnosis will be over the age of 55?

865,000 Americans will suffer a major Heart Attack each year?

700,000 Americans will suffer a Stroke each year?

It’s not pleasant to think about what could happen to your family if you were to become seriously ill or otherwise disabled for an extended period of time.  The reluctance to confront that risk may be one of the reasons why 69% of private sector employees have no long-term disability insurance.  If you consider small business and self employed, the percentages are even higher.

If you are 55 and hit with a critical illness and can’t work, what will it do to your retirement plans?  We all are actual cognizance of the risk but still we ignore the possibilities, why is this? 

For most small business and all medium to large business long and short term disability protection is normally available at very low cost, generally at very low cost to the business or employee.  For the business not to provide it and the employee not to accept it is irresponsible, but for the very small business or the self employed it just may not be available often because of cost.  While group short and long term disability is relative affordable with very low cost this may not be the case with individual disability coverage, but there are alternatives.

If you have not explored protecting your family and yourself from a situation that most probably will ruin all of your future plans, now should be the time.

Is now the time to have a conversation concerning your plans to protect yourself, your family and your retirement from disability?  We know how to help you cover this very important problem at less cost than you may think.  Time is not on your side concerning your risk of a disabling episode; regardless of what plans you have for retirement and it will get here before you know it, a disabling episode could ruin them.  A conversation with us today could save tomorrow.  Please call us at 888 270 9870 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it. , today!

If you ask ten different people about the rules, penalties, and tax consequences of an IRA distribution, you’re likely to get 11 different answers.  The fact is a wrong move could cost you dearly.

1^st IRAs are not the same as employer sponsored plans such as 401(k) plans, so they don’t play by the same rules.  

2^nd There are two types of IRAs; Traditional and Roth and both have different rules.

3^rd With the exception of Roth IRAs and 401(k)s distributions generally require payment of income tax.

4^th Distribution rules are governed by your age as to when distributions can be safely taken and how they may be taken.  Understanding these rules can mean the difference between tax savings and a potential tax liability as high as 50%.

With a traditional IRA contributions may be or have been tax deductible, but distributions, at the time they are taken, may be taxable as income.  Your age is the determining factor as to the cost of getting your money.  If you begin taking distribution prior to age 59.5, but if you don’t take enough at 70.5 (Required Minimum Distribution (RMD)) you pay a penalty.  Generally, money taken from an IRA prior to age 59.5 elicits a 10% penalty as well as standard income tax. (If only a portion of your contributions were deductible at the time they were made, that portion plus interest is only taxable.)  Miss taking the proper RMD and it could cost you up to 50% of what you did not take in penalty tax.

As with most things the government does there are a number of exceptions to the rules:

1.     By your beneficiaries at your death.

2.     If you become disabled.

3.     If the money is used to pay qualifying medical expenses [when they exceed 7.5% of your adjusted gross income]

4.     If you are unemployed, to pay the costs of health insurance.

5.     If the money is withdrawn to pay for “higher education” cost for yourself, your spouse, children or grandchildren.

6.     If you use the money [up to $10,000] for the first time purchase of a home for yourself.

7.     If you made an excess contribution, you can take out that amount on or before the due date, including extensions, of your federal income tax return (If you leave it in, you will be subject to a 6% excise tax.).  However, if you withdraw the net income attributable to the excess contribution, it will be included in income and subjected to the 10% penalty.

8.     At any age, under what is known as the Substantially Equal Payments Exception, if payments (at least annually) are spread out over your projected life expectancy.

This is a brief review dealing with traditional IRAs only, many factors can affect you IRA distributions and this is only information not tax advice.  I recommend you consult with your financial of tax professional for more specific information.  

Are you in control of your medical care?  Those of us looking at 60 in the rear view mirror find we spend a lot more time with the doctor and have a have a lot more doctors than in our younger years but are we in control?  Why do seniors or for that matter anyone put up with doctors that are continuously late for appointments?  Why do seniors allow doctors to prescribe medication or treatment without discussing it with them and reviewing the impact of a new prescription on current prescriptions or for that matter explaining why the senior should remain on the old prescription? 

Too often seniors are treated as a group and not as an individual; we allow the doctor to make us feel it is an honor for the doctor, taking time from his busy, to see us and in reply to a question tells us we just have to expect the problem because of our age.  We are being stereotyped by age and while none of us wants to be stereotyped by age, we let the doctor get away with it.

Dr. Mark Lachs, physician and gerontologist author of the book; Treat Me Not My Age, in an interview with Maureen Mackey (AARP Bulletin, 2011) laid out why this is unacceptable treatment and why you should not accept it.

“None of us wants to be stereotyped by age, yet all too often in the world of medicine, we are defined and labeled by our years of the planet—and treated according to preconceived notions about age.  Because of this, we can potentially miss out on the unique and individualized care we need for maximum health and well-being.

Lachs asserts that none of us ages in exactly the same way.  This is especially critical, he says, “Because when we’re looking at a tremendous increase in longevity among the population, we’re also looking at more chronic illness among older people.” We need to know what is at stake.

Ageism can start early and subtly – in our 40s, 50s, 60s, Lachs says. …”You might go to the doctor for pain, and without a complete evaluation or an exam, the doctor may say, ‘You should expect that. You’re getting older.’ And that’s just crazy.”

…Patients should feel that their doctor is leaving no stone unturned, that complaints are being fairly adjudicated, and that someone is really thinking about their issues.  No ailment should ever be written off as an old age ailment.  Treating patients based on their age means you can miss very significant, treatable situations.”

Q. What can patients do about it?

A. “Among other things, outline your goals for any doctor’s visit before you arrive.  Then, try saying ‘Doctor, today I’d like to cover three things --…”

This interview is well worth full consideration and can be found at www.aarp.org. [click on entertainment, books, author speaks, and then read at Lachs]  For even more read his book “Treat Me Not My Age”.

A predominate cause of financial deprivation to a family is the premature death of the primary income earner.  How many of us have friends or known of others whose life has changed for the worse due to death of spouse or parent and avoidable financial situation if adequate life insurance had been maintained.

Death protection has always, for most, been the primary consideration for obtaining and maintaining life insurance but that is only half the story.  Life insurance has also always been a financial engine and tremendous resource for those who own it.

In the 1980’s term became the life insurance of choice because you get so much death benefit for so little premium.  A policy providing $1,000,000 in benefit obtained for $50 a month or even less depending on age, health and product is not unusual.  But term life insurance, at best, is a one dimensional product.

Life insurance that builds internal cash value can be a financial engine for life and retirement.  Because of protected inside build up of cash value, business and the wealthy have used this product in very large chunks’ to cover estate tax, fund pension and retirement plans, insure businesses survive, provide deferred compensation benefits and the list goes on.  One very interesting and effective use, even for the non-wealthy, was championed by R. Nelson Nash with “The Infinite Banking Concept”, and his book “Becoming your own Banker”.  A concept when properly followed will create a fortune over a lifetime. 

A significant use and value of “cash value insurance” (CVI) is creating retirement income.  Other than death benefit term insurance has no value.  After a period of level premium, term life premium increase and is eventually dropped.  On the other hand CVI may be kept until death regardless of how long we live and when properly designed can provide exceptional benefit in addition to tax free death benefit.

Today’s soon to be retired workers are focused on the all important question; will they outlive their money during retirement?  People are living longer; inflation is not going to go away so it takes more savings to make it through the long haul.  With recent and ongoing problems in the economy, not likely to change soon, retirement plans such as 401(k) savings plans and investment portfolios have taken a hit from which many may never fully recover.  Yet when considering retirement income it is not really possible for most of us to consider the full amount of retirement assets as available for our particular retirement.  A certain amount of these assets, as much as half, must be reserved for our spouse and even with this amount many spouses will live in poverty.   This is a problem only one financial product can solve, CVI.  If I have enough life insurance I can access more of my retirement assets and if I die first assets are replenished for my spouse.  If I out live my spouse I can take the cash value basis tax free through tax deferred loans forgiven on death and perhaps pass a benefit on to my heirs, benefits which may be income and estate tax free.

Civil Employers, Unions, Government Jobs, Military, Teacher Employment provided pension plans require retirees take a spousal option when retiring or the spouse signs a release allowing a higher life annuity  payout, in which case at death of the employee the spouse will receive no further income.  The spousal benefit is a life annuity and if the spouse predeceases the employee there is no benefit to the retired employee for its termination.   Depending on age and health, a life policy may be less costly and a better spousal benefit than the life annuity being offered.  If the retired employee is predeceased by the spouse the retired employee not only does not need to continue premium payment and at his or her discretion receives the cash reserve or value as a benefit..

Is Cash Value Life Insurance expensive?  It depends on the product and how it is designed.  Is CVI more expensive than Term again that depends on how the product is designed.  During the first years CVI is more expensive than Term, in later years it is much less expensive.  Using proper design, CVI provides tax free death benefit and can provide tax free retirement income.  If you look at CVI correctly, it not how much do I need but how much can I afford or obtain.  Before you write Cash Value Off as being an overpriced insurance product unable to provide a viable living benefit for you, an outstanding death benefit and a number of benefits in between you might want to get the full story.  Cash Value Life Insurance is a valuable financial product with flexibility, guaranteed return and ability to do what no other product cable of doing. 

Is now the time to have a conversation concerning your plans for retirement income and how you can develop retirement income you can count on?  Time is not on your side concerning retirement planning; regardless of when you plan for retirement it will get here before you know it.  A conversation with us today could save tomorrow.  Please call us at 888 270 9870 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it. , today!

News that isn’t news: Individual retiring or planning to retire (I hate the term Baby Boomer) are more nervous about and unprepared for their retirement today than any time in history.  In the 90’s the financial press told us to diversify and move our assets out of stocks into mutual funds as a way of protecting our assets just to get slammed in 2000-2001and again in 2007-2008, being diversified or using mutual funds made little difference.  Since December 31^st the market has been good to us with the Dow increasing almost 1,000 pts and the S&P just under 200, but for how long.  Due to market volatility, excessive mutual fund fees and difficulty of actively managed fund to beat the market advisers are turning to the next new thing, managed exchange–traded funds (ETF) portfolios.  

A few advisors build their own portfolios of ETF’s most outsource the work to registered investment advisers.  Although ETF’s carry lower cost than the mutual funds they replace, these portfolios changes are adding new layers of fees and commissions, more often than not with higher aggregate fees than the funds they replace.  The print outs and projections look good, but these higher fees have impact generally not to your benefit.  This is not to say ETF are not a good idea, but will you earn enough to offset the penalty of change, is there a guarantee?  The real problem for the retiree is the track record of ETF’s, there is none.  According to Morningstar “almost a third of the strategies tracked are less than three years old.  If you are looking for long term benefit can you trust a three year old?  And Because ETF’s is an asset-allocation strategy, what do you compare it too. 

Whether it is stocks, mutual funds or ETF’s listening to and following the advice of the financial press or your friend next door may not get you where you want to go.  They look good today will they guarantee that tomorrow you will not loses principal, interest earned or have to change again?  Safe money products have changed, with many, over time, providing better total return and security.  Safe money products can out pace most market investments and are the only product able to project a minimum life income, protect your Social Security from being tax and provide an income you cannot outlive.

The main excuse used by advisors or brokers to not recommend safe products is what they call high cost and the fact that any money going into a safe money investment is money they cannot churn to build fees and commissions.  When talking about high cost or commissions they only comparing cost of the first two or three years.  Safe money products are not built for the short term and when their cost and benefits are compared over a 10-15 year period or life to market investments safe money products cannot be beat.

Is now the time to have a conversation concerning your plans for retirement income and how you can develop retirement income you can count on?  Time is not on your side concerning retirement planning; regardless of when you plan for retirement it will get here before you know it.  A conversation with us today could save tomorrow.  Please call us at 888 270 9870 or email This e-mail address is being protected from spambots. You need JavaScript enabled to view it. , today!       

Enrollment:  If you or your spouse (or family member if you’re disabled) is still working and you have health coverage through that employer or union, it in your best interest to contact your employer or union benefits administrator to find out how your coverage works with Medicare.  For some small business employees this may mean talking with the owner and/or the agent working with the business.  For teachers this will mean making an appointment with the districts administration office and then taking time off to meet with them.

If you have the above referenced coverage you may not need to enroll in Part B and may do so without fear of penalty.  Once you retire, are laid off, leave employment or your plan is terminated you have up to 8 months to sign up for Part B without a penalty.  This 8 month period will continue whether or not you choose COBRA coverage.  COBRA coverage does not stop the penalty clock from running.  If after 8 months on COBRA you have not enrolled with Part B you may face a penalty and increased premium. 

Individuals with TRICARE (insurance for active-duty military or retirees (medically retired) and their families), you must have Part B to keep your TRICARE coverage without a break.  TRICARE requires you to enroll with Part A & B not late than the month before you turn 65 to maintain TRICARE without a break.  When you turn 65 your TRICARE becomes TRICARE for Life and fills the Medicare gaps in a manner similar to Medicare Supplement Insurance.  If your dependents are not yet qualified for Medicare, they will remain with TRICARE.  For questions contact the TRICARE administrator in your region.

Cost: Medicare Part B is paid for by premiums paid by members and the Federal Government.  If you are receiving Social Security benefits your premium may be drawn from your Social Security benefit otherwise you will normally receive a quarterly bill from U.S. Department of Health & Human Services Centers for Medicare & Medicaid Services (CMS).  One advantage to have your premium paid from your Social Security benefits is that your premium may not be increased in years that Social Security benefit are not increased.

October 27, 2011 HHA Secretary Kathleen Seblius announced that for 2012 Medicare Part B premiums would be lower for those not having their premium paid by Social Security and those paying by Social Security would catch up to a standard monthly premium of $99.90.  This decrease was allowed by decreasing cost allowed doctors and hospitals (perhaps decreasing the number of doctors accepting Medicare in the future), increasing the cost of Medicaid for the states (increasing taxes) and sense 2007 requiring those with Modified Adjusted Gross Income above $85,000 (single) and $170,000 (married) to pay ever increasing monthly premiums, in 2012 the standard premium of $99.90 + $219.80 (penalty for doing well) for the same coverage.  Premiums are based on previously filed tax returns of two years past, this year 2010 tax returns are used.

With the ever increasing cost of Health Care no doubt the cost of Medicare Part B will continue to increase.  Because of this there are several programs to help those who no longer can afford the cost of their Medicare coverage.  One such program is the Medicare Savings Program provided by each state, in Texas the Health Information Counseling and Advocacy Program (HICAP) phone 1-800-252-9240.

For questions concerning Medicare you should contact your local Social Security office.  Depending on information from other sources such as AARP will not excuse you if it incorrect.  For questions concerning Medicare Supplement Policies or your current health insurance please call (888 270 9870) or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ). 

Medicare Insurance: Part B, Enrollment (2)

Enrollment: Individuals, not meeting certain exceptions, failing to enroll during the initial enrollment period may find their Part B premium increased up to 10% for each 12 month period that the person could have enrolled but did not.  This penalty may be considered draconian because it remains throughout life.  If you believe you fall under an exception, a prudent person should consult with your local Social Security office or call 1-800 772-1213 for information and help.

If you do not enroll during the initial enrollment period and do not qualify for an exception, you will have to wait until the next general enrollment period.  Prior to 2011 open enrollment period was from January 1st to March 31st.  Starting in 2011 the open enrollment period begins October 15th and ends December 7th.   

While true you have 7 months (initial enrollment period) to enroll (manual) in Medicare A or B without penalty, there are exceptions:

1.During the initial enrollment period if you do not fall under an exception there is a penalty, not financial, for not enrolling prior to the month you turn 65.  

a.Depending on the month you actually enroll your effective date may be delayed up to as much as 3 months.

2.Employer provided group insurance.

a.If you or your spouse (Family member if you are disabled) is still working and they/you have health coverage through an employer or union you may have an exception.  However, you are well advised to contact your employer or union benefits administrator to determine if and how your coverage works with Medicare.  

b.It is very possible it may be to your advantage both financially and medically to delay enrolling.

c.If your employer has 20 or more employees you may not need to enroll in Part B, but if the employer has less than 100 employees you should determine exactly how your plan works with Medicare.

( If your employer has more than 20 employees or even a few more, before declining to obtain Part B you should insure your health plan qualifies you for the exception.)

Employer provided group health insurance: As discussed in a prior post, individuals covered by Health Saving Qualified Plans may be best served by not enrolling in Medicare coverage (Part A, B &D).

1.If you like your plan.

2.Your employer is paying most if not all the premium.

3.You have and are taking advantage of having and contributing to a Health Savings Account.

However, even if you meet these three items it may or may not be in your best interest to remain in the plan.  I would strongly recommend you discuss remaining with the plan with your HR department and even an agent qualified to discuss your current plan and Medicare considering not only the coverage provided, but out of pocket cost and the effect of coverage for your family.

For questions concerning Social Security you should contact your local Social Security office.  For questions concerning Medicare Supplement Policies or your current health insurance please call (888 270 9870) or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ). 

3.7.12

Medicare Insurance: Part B, Eligibility & Enrollment (1)

Eligibility: If you are entitled to premium-free Hospital Insurance (Part A) having been enrolled through Social Security or manual enrollment or if you are paying  premium for Hospital Insurance (Part A) for the working disabled under Medicare, then you are eligible to enroll in Medical Insurance (Part B).  All Social Security and Railroad Retirement beneficiaries, age 65 or over, are automatically eligible to enroll in Medicare Part B Medical Insurance.  But any person age 65 or over may enroll in Medicare Part B if he/she is a resident of the United States and is either (1) a citizen of the United States or (2) an alien lawfully admitted for permanent residence who has resided in the United States continuously during the five years immediately prior to the month in which he/she applies for enrollment.

Workers receiving disability benefits under the age of 65, widows age 50 to 64, and children under age 18 or who were disable prior to 22 and have received disability benefits for at least two years may obtain coverage the  same as persons age 65 or over.  Employed persons who are employed but are not medically recovered and whose disability benefits are terminated may retain coverage for an additional 48 months.  If this is trial employment, benefits are paid for the first nine months of the work period and then for an additional three months.  After 48 months and with continued disability coverage is available the same as for non-insured persons 65 or over.

Medicare Hospital Insurance (Part A) alone or with Medical Insurance (Part B) may be retained as long as the individual remains disabled.  Disabled individuals do have an initial enrollment period beginning the month after notification they are no longer eligible for Social Security paid Hospital Insurance (Part A) and remains open for seven months thereafter.  Failure to enroll at this time closes the initial enrollment period but the individual may subsequently enroll during any general enrollment period or during a special enrollment period. 

Enrollment: As with Part A, persons already receiving Social Security or Railroad Retirement benefits will be enrolled automatically when they become eligible for Hospital Insurance (Part A).  Individuals may elect not to be enrolled in Part B, not Part A, at this time by completing a form which will be sent to them at the time they become qualified for enrollment.  Those not receiving not receiving Social Security or Railroad Retirement may enroll by contacting their nearest Social Security office.

Enrollment period without penalty is for a full seven months starting with the first day of the third month before the month a person first becomes eligible for enrollment.  The initial enrollment period terminates the last day of the third month after the month a person becomes 65 and is eligible to enroll.

Generally those failing to enroll at this time without appropriate will have to wait until a general enrollment period and may face a penalty due to their failure. 

For questions concerning Social Security you should contact your local Social Security office.  For questions concerning Medicare Supplement Policies or your current health insurance please call (888 270 9870) or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ). 

As previously discussed, [Medicare: Do you know Part A, Enrolling] Original Medicare consists of Part A (hospital Insurance) and Part B (Medical or Outpatient Insurance)

You are required to individually apply for Medicare unless you already receive Social Security and enrollment is automatic.  Most individual should enroll for part A as soon as qualified other than those with HSA health savings plans through their employer and who want to remain on the group HSA plan. {If you enroll or are enrolled automatically, you cannot continue contributing to you Health Savings Account}

Benefits provided by Medicare part A is not without cost.  As with your Health Insurance before going to Medicare there are deductibles and copayments when receiving care.

Medicare part A benefits are measured in benefit periods as opposed to the annual deductible of your current health insurance.  Unlike you private or group health insurance it is possible to have more than one deductible during the year.  The hospital deductible for 2012 is $1,156 and covers most (not all) cost during the first through sixtieth day of treatment as an inpatient. {Not all overnight stays are classified as inpatient, so check with your doctor.} Day 61 to 90 require a copay of $289 (2012) per day and day 91 through 150 requires a copay of $578 per day. (Day 91 through 150 is reserve days and you only have 60 of these, lifetime.) 

Cost is based on benefit periods and periods start on the 1st day coverage is provided ending when you have not received skilled impatient care in any facility for a consecutive 60 days.  If you return for skilled inpatient care after the 60th day a new deductible is required and the period starts anew.  However, if you return for skilled inpatient care during the 60 day period after release, you continue under the former claim and no new deductible is required, but you may be required to pay copays.

Part A covers Skilled Nursing care Facilities but requires 3 days (72 hours) of prior inpatient hospitalization.  Medicare pays 100% of cost for the first 20 days, followed by a copay of $144.50 per day for any additional day up to 100.  {Medicare does not cover custodial care}

Part A provides Home Health Care: If a person requires post-institutional skilled health care at home, Medicare will cover some of the cost on a limited bases.  Part A Hospital Insurance covers a maximum of 100 home health visits made on an intermittent basis.  Care must be certified as needed, skilled nursing or therapy services are required and services are provided by a Medicare certified home health agency.

Hospice or end of life care is the last function of Part A Hospital Insurance:  Medicare through Part A Hospital Insurance recognizes the care required by the impending death of an individual.  Hospice is not considered treatment but care to make the patient as comfortable as possible with the goal of maintaining continued life with minimal disruption to normal activities while remaining in the home.

Hospice benefit periods consist of two 90-day periods followed by an unlimited number of 60-day periods.  The patient must be re-certified that he/she is still terminally ill at the beginning of each 60-day period.  During Hospice care there are no deductible and patients do not pay for Medicare covered services except for a 5% or $5 (whichever is less) copay for cost of outpatient prescriptions.

Impatient respite care is also provide, the patient is charged 5% of the amount paid by Medicare per respite care day.

Having a Medicare Supplement policy sold by a private insurance company fills in the out of pock cost gaps of Medicare part A.

If you would like to have a conversation concerning your current health care coverage, Medicare or Medicare Supplements, call (888 270 9870 or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ).

Medicare coverage is available for many more people than those turning 65.  And if you have significant medical problems such as Lou Gehrig's disease, kidney failure, and some other disabilities you may want to investigate availability of Medicare.  

Part A (Medicare Hospital Insurance) and Part B (Medicare Medical Insurance) combine to form, since 1998, comprise what is known as the Original Medicare plan. Part A & B is traditional fee-for-service Medicare plans, in that a patient has some free choice regarding medical care.

Medicare Part A, Hospital Insurance, is financed directly through Social Security taxes.  You are eligible for premium free Part A if you are age 65 or older and you or your spouse worked and paid Medicare taxes for at least 10 years.  If you (or your spouse) did not pay Medicare taxes while you worked, and you are age 65 or older and a citizen or permanent resident of the United States, you may be able to buy Part A. {Other qualification may exist, if you meet age or have medical problems you should check} {Social Security offices provide Medicare information and forms.}

You may enroll in Medicare up to 3 months before the month you turn 65 you still have 3 month after the month you turn 65 but your start date will be delayed.  This period is known as the initial enrollment period.  If you fail to enroll during this time you will then have to wait until the following January through March to enroll and coverage will not start until July. 

If you’re already getting Social Security checks, enrollment into Part should be automatic.  You should receive your Medicare card three months before your 65th birthday.  If you enroll prior to the month you turn 65 or you’re enrolled automatically your benefits start on the first day of the month you turn 65.

Even if you keep working after you turn 65, you should sign up for Medicare Part A assuming you have group health insurance and your group is larger than 20.  [With some small businesses where there are more than 20 employees the group still may not include more than 20 employees.  Not knowing will cost you increased premium the rest of your life if you do not know and do not sign up for Part B.  It is up to you to ask your employer.]  If you have health coverage through a group larger than 20 Part A may help pay some of the out of pocket cost not covered by your group plan.  For smaller business Part A & B become the primary payer and your group health insurance becomes the secondary payer.

Military Retirees covered by TriCare:  Your TriCare coverage stops on the first of the month you turn 65.  If you have not enrolled in Medicare and TriCare is your primary coverage you will have no coverage until you enroll with Medicare Part A & B.  You must also contact TriCare and switch from TriCare to TriCare for Life, which becomes you Medicare Supplement.

If you have reached an age or medical condition where a conversation about continuing health care would help or have questions about your current health care call (888 270 9870) or email ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ).

A Medicare Advantage Plan is another Medicare health plan choice you may have as part of Medicare.  These plans are often called “Part C” and are offered by private companies approved by Medicare.  Advantage plans provide all of your Medicare benefits under part A and B and many even include Part D or Medicare prescription drug coverage.

Advantage plans are quite different than Medigap plans which are private plans sold to supplement part A & M of Medicare coverage.  Some months ago in a report by the Wall Street Journal, Advantage plans were credited as providing better coverage than standard Medicare plus a Medigap policy.  Part of this may be due to Medicare paying these plans more per enrollee than the cost of care for beneficiaries in the standard fee-for-service program.  The 2010 health reform bill at first was a shot to terminate these plans but now is reducing federal payments to the Advantage policies per beneficiary and increasing cost for enrollees. 

If you are not aware of Advantage policies you should be if you are starting to reach that age.  These plans have been around since 1970 in one name are another and payments to them in 2012 is expected to reach $115 billion, accounting for 21% of total Medicare spending according to the CBO.  In 2011, 49 million people were enrolled with Medicare with 25% (12.25 million) enrolled with Advantage plans.  Today that number is 12.5 million and growing each day.

30% or less of retiring or retired seniors has a written retirement plan, even less have had a critical review and/or update.  Your retirement plan is only as good as your last critical review and update.  Developing a retirement plan is hard work even when using an advisor.  To develop an appropriate plan is not something you complete, but an ongoing work in progress.  Periodically reviewing the plan to reflect life changes, comparing it to where you wanted to be as to where you actually are then updating the plan is mandatory to success, as well as making good sense. 

Retirment plans should be reviwed at least twice a year.  Establish a date early in the year, each year, as a habit to initially reassess or review retirement plans pre or post retirement.  You should review your plan several times a year with your advisor or personally.  Marking your calendar with a certain dates in advance for the reviews each year is a good practice.  A personal review allows you to examine how your plan functioned in the past year, reassess your relationship with your planner and consider new directions or changes you might make.  During the review you should identify concerns as well as what you like about your current plan.  Then, if you work, you should, with an advisor prepare an itinerary for your meeting with him or her later.

Recently the Japanese government stated; Japan and China will promote direct trade without using dollars and instead will use the Yen and Yuan. Japan has also stated it will also apply to buy Chinese bonds next year instead of U.S. bonds.

As a part of a plan outlined in October to promote use of the Yuan within the Association of Southeast Asian Nations and establish free trade zones, China will complete a 70 billion ($11 billion US) currency swap with Thailand.

If our government continues failing to take action concerning debt and deficit issues, if it continues to only print more money based on nothing the rest of the world will have no alternative but to find an alternative to using US Dollars as a world reserve currency. A point made clear by Russia and supported by France.

This recent action and it continuance will be and is a significant blow to the US Dollar. Diminishing the strength of the dollar and reduced purchase of US bonds will not help the US economy. These countries, China and Japan, represent two of the world’s largest economies and largest purchaser and holder of US bonds.

As the world’s largest debtor nation, moving the US Dollar from the principal world reserve currency and reduced purchase of US bonds will affect our economy significantly. China is in direct economic competition with the US and China, the world’s largest creditor nation, is not the China of history.

A change of this magnitude will affect growth and recovery of our economy and each of us dramatically as taxpayers and consumers. As we move to 2012, the one thing we can expect is change. I we do not take note and continue to do what we have always done what will be the outcome. Now is the time to consider having an in-depth conversation about your wealth accumulation and optimization plans with us.

January 1, 2012 is the start of the 2012-2013 college year and all students (new or ongoing) hoping to receive financial aid for this period must complete the Free Application for Federal Student Aid (FAFSA) form, the sooner the better. The form is available as a paper version, PDF or there is an on line version. The application will only be accepted after the first, but any and all aid is based first on results of this form and all aid is first come first serve the sooner your student may get in line.

Private colleges and some public also require and electronically completed CSS/Financial Aid PROFILE Form as well and you will want to determine if a school your student is interested in requires this form. Understand that this form is more invasive than the FAFSA and will requires information the FAFSA does not.

Then some schools, mostly private, require completion of their own forms for aid. Graduate and some professional school students may also have to complete a Need Access Application.

To find out which forms are required by schools your student is interested in should be in the information booklets you have receive or on the schools website.

Caution:

1. These forms take thought, care, research and time. Do not rush to get them completed.

2. Make sure that you have all of the correct information required before you get started.

3. I stress correct, even more that you Tax return, these are forms you do not want to hedge on or provide almost correct information. Although the IRS must get a subpoena to see your FAFSA form the Secretary of Education has the authority to verify information of the FAFSA with the IRS.

4. Make darn sure you use the correct FAFSA form; for 2012-2013 the paper form is orange and purple.

The paper FAFSA can be obtained from most school guidance counselors or by calling (1-800-433-3243). Make sure you ask for the specific year form. To down load or complete on line go to www.fafsa.ed.gov.

Will Rogers once said “Return of your money is sometimes more important than return on your money.”

IMF Chief Christine Lagarde recently speaking at the U.S. State Department in Washington said; “There is no economy in the world, whether low-income countries, emerging markets, middle-income countries or super-advanced economies, that will be immune to the crisis that we see not only unfolding but escalating.”

Economist’s as opposed to market commentators forecast economic ‘deflation’ as the only possible scenario in the decade ahead. The cliché about things in our time being unlike the experience of our parents or grandparents is well known, but wrong touching economics. “Nothing new under the sun” is more appropriate, because we see the current situation similar to the U.S. of the 30’s or Japan of the 80’s and 90’s. Deflation and the nation’s response will affect us dramatically as taxpayers and consumers right when we are trying to address our own goals, needs and retirement planning.

--How do I recover from my losses since 2008?

--How do I secure my finances for the future?

--Will I run out of money in retirement?

--What about the volatile stock market?

If you lost money, we can show you how to recover back to where you were and grow without increasing your risk.

Planned Assets is a financial planning firm helping individuals and families throughout Texas protect and grow wealth through successful financial strategies.

Whether you have a net worth of a million dollars or more, in the middle of your wealth-building plan or trying to dig yourself out of a financial hole we can help protect and grow your wealth through safe and predictable financial strategies.

We believe in building with Safe Money, and we only work with programs not exposed to the open market.

We believe stopping unnecessary transfers of wealth is an appropriate accumulation strategy to increasing rates and risk.

We believe in Reasonable Rates of Return.

And, we believe in Simple. If you don’t understand it, you shouldn’t own it.

For a no-cost phone consultation, feel free to call us at (888) 290-9870 or complete this form.

Planned Assets 131 West Brook Dr. Texas 77484

A successful retirement doesn't just happen; it must be planed for. Initial panning involves control of current assets and income through a budget process. Developing or proceeding with a systematical saving plan for the money you will need, making sure it is suitably invested has always been considered the next step. However, the majority now in retirement and those actively planning for retirement are not only underestimating the amount of money that will be needed, but allowing 10, 20 even 30% of income and invest-able assets to be transferred unknowingly and unnecessarily out of the family. With the decrease of invest-able assets because of wealth transfer many resort to chasing investments with higher rates of return and high risk often with disasters consequences. Once retirement starts, emphasis shifts to spending and safeguarding, but with continued wealth transfers compounded by volatile financial market and underestimation of required assets most retirement plans have little chance to be as effective or successful as planned.

Americans, particularly Baby Boomers, are more nervous about and unprepared for their retirement today than at any time in history. Though 401(k) balances reached an all-time “high “of $71,000—reetirement confidence has fallen to an all-time low. Even though the greatest challenge in retirement and probably your greatest fear, is outliving your money, most Americans spend less time planning their retirement than they do a vacation. It is never too late to start retirement planning, and it is never too early to refine plans you have already made.

Without professional financial help, you know your chances of “Stumbling Across” or developing a retirement program you desire and obtaining the success you know you’re capable of achieving is less than optimal. Planned Assets has the capability of guiding you to a successful long term plan.

We each get only a few opportunities in life to get on a higher path and Planned Assets will help you find your higher path—and guarantee you take consistent action to meet your retirement goals. Call or email us today, (888 270 9870 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it. ). If you procrastinate or wait, the chances of you taking action in the future are very slim.

Wow,

What a great year! Planned Assets has had a great decade despite the economic downturns of late and is excited to unveil our new website and financial information hub/blog.

As the senior CTO (Chief Technology Officer) for our company you can imagine the excitement of our expansion. We look forward to offering more indepth informational and fiscal planning than we have ever offered.

In the months to come our goals are to expand our consulting division and add 10,000 new families and business to our investing family.

We look forward to serving you!

Sincerely,

Michael H. Twigg M.Ed. - CTO