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Medicare is complex and ever-changing. Having the right Medicare plan for your individual needs is an important piece of your retirement and longevity plan. We can help.
Medicare basics
Medicare includes Part A hospital insurance and Part B medical insurance. There are two paths for filling the gaps Part A and Part B don’t cover and getting the Medicare coverage you need.
You have the option to add Part D prescription drug coverage and Medigap or Medicare Advantage. You are eligible for your initial enrollment in Medicare when you turn 65 and can make changes to your plan every year in the fall during open enrollment.
What isn’t covered by Medicare?
Medicare Parts A and B do not cover hearing, vision, dental, mental health, coverage abroad or long-term care needs. Hearing aids can range from $900 to $6,000, and it is estimated that a couple will spend more than $18,000 in dental services without the proper coverage. The costs add up. Traditional Medicare will not cover you if you are traveling outside the United States, and caregiving services like bathing and dressing are not covered.
The path to additional coverage and ensuring you are not financially liable for extra healthcare costs in retirement is a highly personal decision. Once enrolled, you should review your plan yearly to make sure there haven’t been any changes to your coverage. Working with a Medicare agent can help you determine the best route for your individualized needs.
A trusted resource
HealthPlanOne is a vetted resource to help you learn more about, get enrolled in or make changes to your Medicare plan. HealthPlanOne agents will walk you through your medical situation and preferred doctors and hospitals and help determine your supplemental plan options. They can also write the policy for you if you choose to move forward. Please reach out to our team, and we will set up a call with one of HealthPlanOne’s top agents.
Links are being provided for information purposes only. Raymond James is not affiliated with and does not endorse, authorize or sponsor any of the listed websites or their respective sponsors. Raymond James is not responsible for the content of any website or the collection or use of information regarding any website’s users and/or members
Are you concerned about losing your home due to a long-term care need?
One of the most significant risks as we age is long-term care. Throughout the years, we have had clients who wanted to protect their homes in the event of an extended long-term care need.
One solution often considered is transferring your home to your children. Before this is done, one needs to consider the unintended consequences and additional risks that may occur.
In the example below, we walk you through a family considering this option. The family has a home, cottage, other equipment, and investment accounts, including IRA accounts of $1,000,000. The question of transferring the title of their home to their adult children arose.
The following are some of the unintended consequences.
$500,000 realized capital gain x 28% = $140,000 tax due.
Other solutions to consider: These options will effectively transfer their house while maintaining the tax benefits without incurring additional risks but will not protect the home from long-term care costs.
If the situation warrants the transfer of one’s home, most of the above risks could be mitigated through a properly written irrevocable trust. This option does lose the step-up in basis on the house, and therefore, it needs to be thoroughly analyzed before being implemented.
Most often, one of the best ways to protect your assets from potential long-term care costs is using an insurance option.
If you are concerned about protecting your home and other assets you have spent a lifetime obtaining, schedule a time to have one of our wealth managers provide options to avoid unintended consequences.
Many of us make New Year’s resolutions to lose weight, eat healthier, exercise more, read more… This year why not make a resolution to review some overlooked areas of your financial life?
Review Retirement Savings
Contribution limits have increased for 2023 – do you need to update your deposit or payroll instructions to take advantage of the new savings limits? Will you turn 50 in 2023 and are now eligible to make catch-up contributions?
2023 Contribution limits
Review Insurance Policies
When was the last time you reviewed your Home/Renter/Auto/Umbrella policies to ensure coverage limits are adequate? Can you afford to raise your deductibles to save on premiums? Do you qualify for any discounts (veteran, bundling policies, senior rates, good student, etc.)? Contact your agent and schedule an insurance review.
Review Budget
Inflation was the talk of 2022, and it is not going away so it may be time to review and update your household budget or consider starting one by tracking spending for 3 months using an App (Mint, Rocket Money, NerdWallet), spreadsheet, or pen & paper. Can you save money on subscriptions you no longer need (Streaming services, online services, etc.) or making coffee at home more?
Review Savings
Is your emergency fund adequate? We recommend 3-6 months of expense in a savings or money market account. Additional cash reserves should be working for you – consider putting excess cash in CDs, I-bonds, or other safe options to take advantage of higher interest rates.
Review Debt
Interest rates have increased over the past year, are you paying more on your debt? Could you save by consolidating debt or taking advantage of a lower balance transfer promotional rate? Can you increase your payments and accelerate debt payoff?
Review Charitable Giving
Do you regularly or periodically give to church or charities? Review who, what and how you give. Is it the most tax-advantageous option available to you? Are there organizations you no longer want to give to or new causes you want to support? Review charities you support on Charity Navigator, CharityWatch or GuideStar to evaluate the organization on a number of metrics. Do you want and can you afford to give more? Have you incorporated your charitable giving into your estate planning?
If you would like any help with these areas of your financial life or have any questions or concerns, please reach out to us here at AEGIS Financial. We are always happy to help.
What has changed for you in 2022? This year has been as complicated as learning a new dance for some. Did you start a new job or leave a job behind? That’s one step. Did you marry? There’s another step. Did you retire? That’s practically a pirouette.
If notable changes occurred in your personal or professional life, you might want to review your finances before this year ends and 2023 begins. Proving that you have all the right moves in 2022 might put you in a better position to tango with 2023.
Even if your 2022 has been relatively uneventful, the end of the year is still an excellent time to get cracking and see where you can manage your overall personal finances.
Do you engage in tax-loss harvesting? That’s the practice of taking capital losses (selling securities worth less than what you first paid for them) to manage capital gains. If you are thinking about this move, and haven’t done so already, consider seeking some guidance from one of our wealth managers.
You could even take it a step further. Consider that you can deduct up to $3,000 of capital losses over capital gains from ordinary income. Additional capital losses above that amount can be carried forward to offset capital gains in upcoming years. 1
Do you have the opportunity to convert IRA funds to a Roth IRA? You may benefit from converting a portion of your IRA to a ROTH if your income is down or if you have room to add income to your tax return without going into a higher tax bracket.
Are you thinking of gifting? How about donating to a qualified charity or non-profit organization before 2022 ends? Your gift may qualify as a tax deduction. You can also donate appreciated assets and receive a tax deduction without paying capital gains tax on the appreciation. If you are over 70 1/2 you can also make a Qualified Charitable Deduction (QCD) if you donate to a qualified charity directly from your IRA.
Do you want to itemize deductions? You may want to take the standard deduction for the 2022 tax year, which has risen to $12,950 for single filers and $25,900 for joint filers. If you think it might be better for you to itemize, now would be an excellent time to get the receipts and assorted paperwork together.2
While we’re on the topic of year-end moves, why not take a moment to review a portion of your estate strategy? Specifically, take a look at your beneficiary designations. If you haven’t checked them for some time, double-check that these assets are structured to go where you want them to go, should you pass away. Lastly, look at your will to ensure it remains valid and up to date.
Check on the amount you have withheld. If you discover that you have withheld too little on your W-4 form, you may need to adjust your withholding before the year ends.
What can you do before ringing in the New Year? New Year’s Eve may put you in a dancing move, eager to say goodbye to the old year and welcome 2023. Before you put on your dancing shoes, consider speaking with a financial or tax professional. Do it now rather than in February or March. Little year-end moves might help you improve your short-term and long-term financial situation.