Category: Life Insurance

When you retire, healthcare may become your single largest recurrent cost. That’s especially true if your home is paid off by the time your career ends.

That’s why it’s critical to understand what to expect from Medicare when the time comes to begin receiving coverage. However, according to new Fidelity research, older Americans aged 58 to 76 lack a critical understanding of Medicare coverage and enrollment. And this might lead to a world of financial hardship.

Closing a Huge Knowledge Gap

When Fidelity questioned Baby Boomers about when Medicare enrollment starts, 57% said age 62. While seniors can join Social Security at that age, Medicare eligibility doesn’t start until age 65.

Early retirees may face difficulties if they’re unaware of this. If you decide to quit the workforce at age 62, assuming you’ll be covered by Medicare, only to find out that you won’t be for another three years, you may struggle to afford a new health plan.

Moreover, 41% of Baby Boomers polled by Fidelity claimed Medicare has out-of-pocket spending restrictions. However, enrolling in a Medigap plan is the only method to reduce out-of-pocket expenses (supplemental insurance). If you don’t know, you might be on the hook for a slew of medical bills you can’t afford.

Finally, 40% of Baby Boomers believe Medicare pays the cost of nursing home care. That’s incorrect. When it comes to healing from an injury or treating an actual sickness, Medicare will cover the cost of a stay in a skilled nursing facility. However, Medicare won’t cover custodial care or assistance with daily living. Long-term care insurance is required to obtain this coverage.

Don’t Set Yourself Up For Financial Stress

Not understanding how Medicare works might put you in a situation where you’re ill-equipped to cover your future healthcare costs, which is something you should avoid. And you may do so by spending some time researching Medicare before you decide to retire.

At the same time, it’s a good idea to set aside money for future healthcare costs, and a health savings account (HSA) is a smart way to do so. HSA funds never expire, so you may contribute to them during your working years, invest the money you don’t need right away, and carry a comfortable balance into retirement.

You may have heard that an HSA cannot be used to cover Medicare expenditures, but that’s not true. While you cannot contribute to an HSA once enrolled in Medicare, you can withdraw funds to cover Medicare deductibles and copays.

In fact, while you’re researching Medicare, you should also learn more about HSAs. Knowing such information may motivate you to make wise decisions that will help you to cover your future healthcare bills with less worry.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

A novel method has been devised to better aid senior folks all over the world who are enrolled in Medicare in monitoring what occurs during their medical appointments.

This method was created to help track what takes place. In addition, it can assist in the investigation and prevention of fraudulent activity concerning Medicare.
My Health Care Tracker is a tool provided by Senior Medicare Patrol to its customers. This tool walks Medicare beneficiaries through the process of comparing the treatments, examinations, and medical supplies they receive to what was invoiced for those expenses on their Medicare bills. Senior Medicare Patrol is the company that offers this tool to its customers.

My Health Care Devices are anti-fraud technologies made openly accessible to participants by the SMP system. My Health Care Trackers provide the services, including a location for individuals to document the health care goods and services they have gotten as well as make remarks regarding their visits, directions on how to match the health care treatments, testing, and hospital equipment products that are reported in the trackers to what was invoiced on the beneficiaries’ Medicare statements.

This may result in the beneficiary owing a lower total amount and could reveal whether or not a medical identity has been stolen. When individuals checking their Medicare statements look for and report errors, they are helping to safeguard the Healthcare system for future generations.

Medicare fraud can be committed not only against the government but also against senior persons who are enrolled in the programs, as stated by Seth Boffeli, an adviser for the AARP Fraud Watch Network. He noted that the most efficient way to protect oneself from falling prey to scams was to act as one’s own private investigator and investigate any suspicious activity.

Boffeli noted that identifying fraudulent activity at an early stage is extremely important since not only does it help customers save money, but it may also have implications for getting treatment in the future. He went on to say that Medicare beneficiaries can protect themselves from fraud by taking a few simple precautions.
Boffeli suggested that patients seek advice from their primary care physicians before offering their Medicare data or consenting to an exam or handset that Medicare will pay for. Boffeli said that it was just essential when you’re offering out your Medicare data or consenting to an exam or a machine that Medicare will be paying for.

The Fraud Watch Network of the AARP provides advice papers on more than 70 different types of fraud that target elderly people. My Health Care Tracker also provides details on the state insurance help program. These programs offer Medicare-eligible people, as well as their families and caregivers, reputable local advice, and assistance.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

According to a study conducted by Bank of America, while they are superior at making investment decisions, the rate at which women make investments remains low compared to their male counterparts. Time and time again, the data proves the advantage of women in self-control, conducting research, and even determining risk aversion when it comes to investing. With only 46% of women feeling as though they have a small degree of influence over investing, it’s no wonder they are held back by obstacles. What are some of these roadblocks, and how are younger women pioneering future generations toward an open conversation about finances?

Financial freedom is dependent upon both short-term and long-term financial planning and the confidence to progress in that direction. Long-term finances happen to be one of the biggest issues faced by women of today. Up to 94% of women feel they will become solely responsible for finances within their lifetime, with only 28% of said women feeling empowered enough to succeed. Among the women within this study, 44% struggle to pay down debt, with other issues including emergency funds, retirement savings, and the ability to build wealth.

When it comes to financial independence, though, just 47% of women recognized paying off debt as the cornerstone of financial freedom. Additional concerns include unexpected expenses, funding education for future generations, and caring for aging parents. Putting money away for retirement is another concern for men and women alike, with over 40% of women feeling uncertain about enjoying a comfortable retirement. Unfortunately, most women beginning to reach retirement age have already resigned themself to relying solely upon a fixed income through Social Security benefits.

As pioneers toward open conversations regarding finances and investing, younger women may be the key to changing the course of history for themselves and future women. Women between the ages of 22 to 39 feel more comfortable conversing over finances with others, such as financial advisors, than their aging counterparts. Could this be the cause behind upwards of 65% of younger women freely willing to discuss new investment opportunities, whereas 59% are more confident in requesting raises throughout the workplace?

This isn’t just a problem in the United States, but a worldwide struggle for women alike. Words such as “male-dominated,” “patronizing,” and “untrustworthy” are just a few of the more prominent phrases used by women with a strong aversion to the stock market. Shockingly enough, although most of the women who participated in another British-based study were solely responsible for the majority of the household finances, not one had ever invested in stocks. Ultimately, more than one-third of the women who chose to participate in either study noted the availability of a trustworthy source for financial advice could mean a world of difference.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].

Pursuing your retirement goals is challenging without making specific, frequent, and easily preventable errors. Here are eight significant blunders to avoid, if at all possible.

1. Not taking taxes into account

In a letter addressing French scientist Jean-Baptiste Le Roy, Benjamin Franklin penned what may have been his final significant remark. It reads as follows:

“Our new constitution is now in place, and everything seems to indicate that it will be strong; yet, in this world, only death and taxes are certain.”

The taxes you will have to pay on withdrawals from your retirement accounts should be considered when you make retirement planning decisions. Retirement distributions from standard 401(k) and IRA accounts are taxed as ordinary income. The tax bracket in retirement will determine how much you’ll pay in taxes. It’s crucial to make plans for these tax payments so they don’t come as a surprise, even if you think your marginal tax rate would be lower in retirement than it is today.

2. Poor preparation (or no planning)

You are not immediately entitled to retirement when you reach a specific age. After you quit the job, you will need income because relying just on Social Security may not be sufficient.

The total reserves of the trust funds that pay out retirement and disability benefits will run out by 2035, according to the Social Security and Medicare Board of Trustees’ 2020 annual report.

Nevertheless, Social Security will still exist at that point since ongoing taxes will be sufficient to pay for 79% of the benefits provided to retired and disabled workers. But it implies that you might not want to rely on government services to ensure your retirement.

Poor planning can be expensive. Completely failing to plan for retirement can hurt your future. A recent survey from the US Federal Reserve found that almost 25% of Americans have no pension or retirement savings. Although saving for retirement is a lifelong effort, it is easy to lose sight of it when retirement is decades away.

3. Quitting a job before receiving 401(k) vested benefits

In a retirement plan like a 401(k), vesting refers to acquiring ownership of the account’s money. Employer payments are not always 100% owned by you, even though you always contribute your own money to the plan.

You acquire a larger percentage of your account each year (or own). You will own all the money in that account once you have reached 100% vesting.

Your employer won’t be able to forfeit or take the money back at that point for any reason. However, if you quit a job before you have fully vested, you will lose the employer contribution to your 401(k).

You can be forced to quit a job before earning all your benefits due to circumstances beyond your control. Maybe you’re just not the right fit for the job. However, leaving voluntarily means leaving money on the table because you don’t yet possess 100% of the money in your account.

To avoid losing out on those additional funds if you have to leave your work, think about how much you have invested.

4. Taking a payout too soon

Cashing out your retirement funds early could be unavoidable amid severe financial difficulties. The COVID-19 pandemic demonstrated this. Thank goodness the senate enacted the CARES Act, which exempts qualified individuals from paying the 10% early withdrawal penalty that would normally apply to payouts up to $100,000.

Cashing out your retirement savings is often a costly error unless there is an emergency. Your future retirement savings are lowered if you withdraw money from the market too soon. Mainly, this is because you lose out on compound growth, drastically reducing your earnings. Unfortunately, the compounding interest impact is lost if you miss it. Avoid withdrawing your retirement funds before retirement unless it is essential.

5. Put aside the bare minimum

You estimate the amount you’ll need for retirement and how much you’ll need to save to meet your financial objectives using online retirement calculators. You should consider various variables while making these projections, including your expected retirement age, potential additional income sources, the expected returns on your investments, and inflation, among others. With some preparation, you can calculate how much money you’ll need to attain your retirement objectives. However, life does happen.

The minimal required quantity of savings might not be sufficient in practice. You might not receive enough money from your investments, Social Security can stop paying benefits, or you might incur unanticipated medical expenses that cost more than you had saved. Even though you might be able to meet your retirement goals by saving only the bare minimum, it’s better to leave yourself some breathing room.

Contact Information:
Email: [email protected]
Phone: 2129517376

Bio:
M. Dutton and Associates is a full-service financial firm. We have been in business for over 30 years serving our community. Through comprehensive objective driven planning, we provide you with the research, analysis, and available options needed to guide you in implementing a sound plan for your retirement. We are committed to helping you achieve your goals. Visit us at MarvinDutton.com . Tel. 212-951-7376: email: [email protected].