Do You Know Someone on Medicare? And Understanding Risk in Investment Solutions

There are some big things coming up with Medicare for next year, and the one number that will help you understand what type of returns to expect AND normal fluctuations!!! Are you okay with them??? The more you know the better!!! As always if you or anyone you know may have questions about these topics or would like a review, they can always reach out to me via phone or email.

Medicare is probably one of the biggest things that are on folk's minds as healthcare in retirement is one of the largest concerns and can be very costly if not handled correctly. As many of you know since going independent I have so much more freedoms and flexibilities allowing me to add different services to my practice There are a few BIG events that are occurring next year that will affect everyone currently on options B, C, D.

Max Out of Pocket Cost & Prescription Drugs

In 2025 they will be LOWERING the max out of pocket costs annually from $8000 to $2000 dollars!!! Now that has some pros and cons to it. The obvious plus is for people know need prescriptions it is a money saver for them!!! However, if you think about it, this means that the insurance companies that you may be working with is on the hook for more!

This means they are going to adjust! Which could be dropping service providers, different drug coverages, and other services. They may Increase their monthly costs. The Federal government may step in and raise the price for working individuals. This has not been made clear yet. I believe that it is important to know what is covered and what is not in your healthcare plan regardless of what it is!

I have a free tool you can use on your own or we can walk through together. However, this process takes time as I would need a signed federal form called "the scope of appointment" signed two days prior to the meeting. The good news is it can be done electronically!!!

?Merger of Healthcare Plans

For anyone currently utilizing Tufts, Health New England or Harvard Pilgrim, these three companies are merging together!!! What does that mean? Again, yet to be seen. However, not all three companies offer the same benefits or cost of services. I will update as more news arrives, and again that same free tool can be used to fill in the blanks on PCPs, Specialists, Prescriptions, Additional Benefits, Updated Costs.

This will not be complete before the Annual Election Period (AEP) is complete, so it is not as urgent of an issue, but it is something to think about and for anyone with a current plan only has a few week window to make the choice for their next year's coverages from Oct 15th-Dec 7th.

I'm not saying that those are necessarily bad or scary, and I want to make sure people understand how Medicare Specialists get paid for their services. If you work with an agent, the state you reside in has a set rate for every insurance company to compensate the agent from the Insurance company. It just means that in a true fiduciary manner, they should be acting in their best interest. And there is ZERO out of pocket cost to the agent assigned to assist. Also, you have someone to walk you through the entire process, help with paperwork and processing.

One Important Number - Downside Production

The world of finance can be confusing. What do I actually own? How does the news I see or hear affect me? I'm getting close or In retirement I don't want to take on as much risk! I've got two kids, a car payment, maybe student loans, and a mortgage, I don't want to take on too much risk! Do any of these sound familiar?

Now those who have worked with me know I pride myself on not talking over someone's head. Alpha, Beta, R Squared, CAPM, Blah Blah Blah. But how would you feel about knowing not that happens 66% of the time, 95% and 99% of the time? I have covered things in the past about "fact sheets" and information that needs to be given and updated quarterly or annually in those big fire starter packages you receive via reg mail or email.

Have you ever wished that you could have some guaranteed protection especially in an election year, geopolitical conflict, insert your concern here? I want to protect against a 10, 20, 100% guarantee my investment will be protected. And I'd like to keep money liquid? Well there are now options for that. A ton of advisors I know talk about the average returns, or set it and forget it as "these are long term investments".

There is something called standard deviation, and it will help you understand and help manage your expectations. Again, this will help you understand what the fluctuations are 66,95, 99% of the time! The less risk you would like the lower number you would like to see. The more that they would like to take on, the higher risk for higher return potential the higher the number.

What is Standard Deviation in an investment portfolio? ( youtube.com )

Conclusion

As always, feel free to reach out about any of these topics and anything else on your mind! I grow my business through referrals so if you know of anyone that may like this information, it would be the biggest compliment to me to help link us up.

Zach Bass – Chartered Retirement Planning Counselor (CRPC)

A Fee-Only Financial Advisor & Fiduciary

Securities offered through?Osaic Wealth, Inc.?member FINRA/SIPC.?Osaic Wealth?is separately owned and other entities and/or marketing names, products or services referenced here are independent of?Osaic Wealth.? Wealth Management Resource Group is independently owned and operated.