Memory: Is Mine Normal?

Presented by Mark Phillips

How is your memory these days? Do you remember your grocery list from last week or even the name of a friend you met a month ago? In this AARP magazine article, we find that approximately 5.4 million Americans suffer from Alzheimer’s disease, and researchers predict the number will nearly triple by 2050. These should be startling statistics but the good news is there is hope to improve cognitive function with proper rest, nutrition. To read more please click the article link below.

Click here for article

A New Watchdog is Guarding Your Money

Presented by Mark Phillips

Skip Humphrey is probably a name most folks are not familiar with.  His role however is big and important: to protect 50 million older Americans from financial abuse and exploitation. As the head of the Office for Older Americans at the Consumer Financial Protection Bureau (CFPB), he has a lot on his plate.  In the current economic environment, growing elderly population, growth of technology and the internet, the rise of scams targeted towards older Americans is growing.

Please read further by clicking on the link: A New Watchdog Is Guarding Your Money

Preparing to Care for Aging Parents

Presented by: Mark Phillips

Aging can be a tough topic for everyone - both the one going through it and their families. Are bills getting missed and is memory loss starting to show up daily? Although a sensitive topic, there are ways to approach the conversations, one of which is to learn about your parents’ needs and wishes. Please read on to learn more what kinds of questions to ask to yield the best result for everyone involved.

Click here for article

1 in 4 Seniors Have Meager Savings

Presented by Mark Phillips

We found this article that we thought was interesting about the savings situation of seniors. Particularly disturbing is that one-quarter of the Medicare beneficiaries have less than $11,300 in their retirement and financial accounts.

“Most people on Medicare are of modest means with relatively low incomes, low savings and low home equity,” said Gretchen Jacobson Associates Director of the Medicare policy program at Kaiser Family Foundation.

While our practice is focused on designing and implementing retirement income for clients of moderate to high means we understand that there are some people in your life, that matter a lot to you, that are in this group with very limited means. For you as our clients we urge you to have them meet once off with us such that we might help them focus on those behaviors that may help them not slip into a financial black hole.

Of course we welcome an introduction to your friends of moderately to high means as they too want to maximize their “lifestyle” with the resources, and to manage the risk in their life going forward.

We are here to help create financial stability and security for you and your friends.

Access the full Article  - Enjoy!

When Will Your Long-Term Care Benefits Kick In?

Presented by Mark Phillips

Long-term care refers to a broad range of medical and personal services for people with chronic disabilities who have lost the ability to function independently. Long-term care services can be divided into three levels:

·         Skilled care is continuous, around-the-clock care designed to treat a medical condition from which the patient is expected to recover. Skilled medical personnel, such as registered nurses or professional therapists, perform this type of care under a physician’s orders.

·         Intermediate care is intermittent nursing and rehabilitative care provided by registered nurses, licensed practical nurses, or nurse’s aides under the supervision of a physician.

·         Custodial care is designed to help an individual perform the activities of daily living (ADLs). It can be provided by someone without professional medical skills but is supervised by a physician.

Medicare and other forms of health insurance do not pay for custodial care, which is why your long-term care policy benefits are so important.

When will you qualify for custodial care?

If you own long-term care insurance (LTCI), you can qualify for custodial care if:

·         Your doctor certifies it is medically necessary.

·         You have a severe cognitive impairment.

·         You are unable to perform a certain number (usually two to three) of the six ADLs for 90 days or more. The ADLs are:

-          Eating

-          Bathing

-          Dressing

-          Toileting

-          Transferring (into or out of bed, a chair, or a wheelchair)

-          Continence and personal hygiene

Be sure to check the details of your LTCI policy to determine the specific medical conditions it covers.

This material has been provided for general informational purposes only and does not constitute either tax or legal advice. Although we go to great lengths to make sure our information is accurate and useful, we recommend you consult a tax preparer, professional tax advisor, or lawyer.

IRS CIRCULAR 230 DISCLOSURE:

To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (including any attachments) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing, or recommending to another party any transaction or matter addressed herein.

For IARs: Mark Phillips is a financial advisor located at Mark Phillips & Associates, 19712 MacArthur Boulevard, Suite 225, Irvine, CA 92612. He offers securities and advisory services as an Investment Adviser Representative of Commonwealth Financial Network^®, Member FINRA/SIPC, a Registered Investment Adviser. He can be reached at (949) 333-6394 or at mark@phillipswealthmanagement.com.

© 2014 Commonwealth Financial Network^®

 

Medicare Enrollment, and Changes to Enrollment… When?

Presented by Mark Phillips

Recently the Journal of Financial Planning provided a run down on five of the most common windows for Medicare enrollment and for making Medicare plan election changes. The following Graphic is a helpful guide:
 

Click on above image to access larger version

The Squared Away Blog (The Center for Retirement Research at Boston College) provided the following Critical Dates:
 

·         Failing to enroll in basic Medicare (parts A and B) three months before or during the month of one’s 65^th birthday creates at least a two-month delay in coverage.

·         People can buy or switch their Medicare Advantage and Part D drug plan between Oct. 15 and Dec. 7.   But Advantage plan disenrollment dates are Jan. 1 – Feb. 14, when simultaneous Part D enrollment is also permitted.

·         To avoid underwriting rules that may restrict coverage or increase premiums for private Medigap coverage, enroll in Medigap during the six-month period that starts the month of one’s 65^th birthday.

 
Click HERE for full Squared Away Blog Article
 

Memory: Is Mine Normal?

Presented by Mark Phillips

How is your memory these days? Do you remember your grocery list from last week or even the name of a friend you met a month ago? In this AARP magazine article, we find that approximately 5.4 million Americans suffer from Alzheimer’s disease, and researchers predict the number will nearly triple by 2050. These should be startling statistics but the good news is there is hope to improve cognitive function with proper rest, nutrition. To read more please click the article link below.

Click here for article

Preparing to Care for Aging Parents

Presented by: Mark Phillips

Aging can be a tough topic for everyone - both the one going through it and their families. Are bills getting missed and is memory loss starting to show up daily? Although a sensitive topic, there are ways to approach the conversations, one of which is to learn about your parents’ needs and wishes. Please read on to learn more what kinds of questions to ask to yield the best result for everyone involved.

Click here for article

Stay at Home, with Care

Presented by Tracy Chiu

Nearly 90% of people over the age of 65 said they prefer to live at home as long as possible. You may be wondering what the reasons are. Well, comfort in one’s home is probably a big reason. But there is another driving factor behind this preference- the overall savings is much greater when one chooses to stay at home versus moving to a nursing facility (average cost nursing home ~$80,000/yr.). Thus, this trend will most definitely drive up the demand for aides. Read this article from Money Magazine to learn the three steps to finding the right care at home.

Click here for article

 

A New Watchdog is Guarding Your Money

Presented by Mark Phillips

Skip Humphrey is probably a name most folks are not familiar with.  His role however is big and important: to protect 50 million older Americans from financial abuse and exploitation. As the head of the Office for Older Americans at the Consumer Financial Protection Bureau (CFPB), he has a lot on his plate.  In the current economic environment, growing elderly population, growth of technology and the internet, the rise of scams targeted towards older Americans is growing.

Please read further by clicking on the link: A New Watchdog Is Guarding Your Money

Talking to Your Aging Parents About the Future

Presented by Mark Phillips

No one likes having difficult conversations. But having them with our parents—no matter how old we get—can be even harder. It's no surprise that many people dread the prospect of discussing ongoing care issues with their aging parents. Yet, as seniors live longer and the child-turned-caretaker role becomes increasingly common, having that conversation ahead of time is all the more important.

Fortunately, a bit of preparation goes a long way toward a smooth, productive discussion. The tips below can help you start the conversation about your parents' future care and ensure that their needs—and yours—are met.

Read the full article..Click here

The Cost of Living Longer

One of the leading insurers of Long Term Care has come out with their annual cost survey. An interesting picture of what the average cost of an assisted living facility by state is shown below.  

The full article is from the Wall Street Journal here. 

Caring For An Aging Parent

Many baby boomers belong to the “Sandwich Generation”—the growing group of people who care for their aging parents while supporting their own children. According to a 2008 USA Today/Gallup poll, 41 percent of baby boomers who have a living parent assist with the parent’s personal care, financial matters, or both. Another 37 percent expect to take on the care of their parents in the future. If you plan to be involved in an elderly parent’s care, it’s important to understand the array of issues that come into play.

(for the full article with resources click here)

So How Good An “Investment” is That Long Term Care Policy?

Remembering that we hope to live a long life and never really need the benefit of the coverage it is still a fantastic risk management tool. In recent years we have seen insurance companies either discontinue offering new applicants coverage or offer it at significantly higher rates. In a nutshell, the product appears to have been underpriced – and quite likely may still be.

Partly due to improved longevity, and partly due to low return on investments (principally bonds) that insurance companies expect, another Long Term Care insurer has announced another price adjustments to its long-term care product. These changes affect only new applicants and not existing policy holders. This has been a common trend among Long Term Care insurers and the below changes being made by one major insurer are quite typical of what we see from others.

For this insurer the following changes will take effect on September 25, 2012 in all but 15 states (expect the changes to be rolled out in the remaining 15 states in a matter of months):

• A 15-percent increase on all premium rates (new business only)
• Preferred health discount, applicable to single applicants, reduced from 15 percent to 10 percent (This discount is already 10 percent for couples, and that rate will not change.)
• Couples discount reduced:
  

   
• Both spouses approved: Discount will be 20 percent instead of 30 percent
• Married spouse not applying: Discount will be 10 percent instead of 15 percent

Additional changes— On September 25, the following changes will take effect in all states except New York:

• Sale of limited pay options (i.e., single-pay, 10-pay, and pay-to-65) suspended
• Sale of the lifetime (unlimited) benefit period suspended

The theme here is higher pricing by as much as 31% through premium increases and the reduction in discounts as well as more restrictive coverage and payment options. This price increase is on top of the higher cost that one might expect to pay by delaying to begin coverage for one or more years.

So, congratulate yourself for putting coverage in place for yourself, look more favorably upon your now relatively modest rate for that existing coverage, and advocate coverage to your friends and family – especially those with less than $3,000,000 in invested assets whom you may become the caregiver too if/when they need care.