The Difficult Discussion
Have this discussion before a crisis forces the family to make decisions at a time of stress.
The longer you put the discussion off, the more difficult it becomes. Aging parents do not want to lose their independence. Have discussions with your siblings, cousins, uncles and aunts, and others close to your parents about how they see mom and dad getting along. Dementia and Alzheimer’s are less obvious and come on more slowly than other conditions. Continue reading “Long-Term Care Planning Checklist: How to Help Your Aging Parents”
Every year, higher-income Medicare beneficiaries receive a letter from Social Security telling them how much Medicare will cost. This letter outlines their income-related Medicare adjustment amount (IRMAA), which occurs if enrolled in Medicare Parts B and D and if their modified adjusted gross income, taken from their tax return two years prior, was over $85,000 (single) or $170,000 (joint). This is important as IRMAA surcharges can increase the annual cost of Medicare over $6,000 per year for high-income retirees. This cost is in addition to Medicare supplemental insurance, deductibles, co-payments and long-term care costs. Since most retirees have Medicare premiums deducted right from their Social Security check they don’t even see the money going right back to the government. Continue reading “Avoid Paying More for Medicare by Planning Ahead”
- Making Medicare decisions without a basic understanding of how Part A, Part B, Part C, and Part D of Medicare work. Medicare.gov, the booklet titled “Medicare and You,” and your state SHIIP (Senior Health Insurance Information Program) can help you learn the basics about Medicare.
Continue reading “7 Common Medicare Mistakes & How to Avoid Them”
When meeting with clients and preparing financial plans, long-term care, or “facing incapacity,” is by far the most difficult subject to bring up. Clients seem to have little difficulty facing their own mortality and preparing to provide for survivors after they are gone. Bring up long-term care, including the possibility of needing help with daily activities and care due to memory loss, and the client conversation gets shut down quickly. Long-term care, provided either at home or in a facility, can cost $30,000 to $100,000 a year or more. Many clients are in denial of this reality. As Certified Financial Planning™ professionals, we view it as our job to confront the tough facts when a client hires us to prepare a retirement plan. The basic subject areas a person needs to address when planning for retirement are Social Security, Medicare, long-term care, IRAs, investments, life insurance, and taxes past the age of 62. While each of these is singularly important in crafting a sufficient retirement plan, they all play a crucial role when strategizing your specific plan for long-term care coverage. Focusing on the long-term care implications of each planning subject will help illuminate the importance of having a complete retirement plan to save you and your family from the complications, panic, and pain that can come with aging. Continue reading “Long-Term Care: The Most Overlooked Decision in Retirement Planning”
Hans (John) E. Scheil, CFP®, is the president of North Carolina-based Cardinal Retirement Planning, Inc., and the author of “The Complete Cardinal Guide to Planning for and Living in Retirement.” In his book, “The Complete Cardinal Guide to Planning for and Living in Retirement,” John addresses the major problems retirees can face and provides simple strategies that can be put in place with the help of a qualified professional. John is a Certified Financial Planner™ professional (CFP®) as well as a Chartered Life Underwriter (CLU®), Chartered Financial Consultant®(ChFC®) and Chartered Advisor for Senior Living® (CASL®). He also holds life and health insurance licenses in all 50 states and the District of Columbia and is an investment advisor representative.