Financial Information!

Do You Know the Answers to the 4 Most Important Financial Questions?

  1. What rate of return do you have to earn on your savings and investment dollars to be able to retire at your current standard of living and have your money last through your life expectancy?
  2. How much do you need to save on a monthly or annual basis to be able to retire at your current standard of living and your money last till life expectancy?
  3. Doing what you are currently doing, how long will you have to work to be able to retire and live your current lifestyle till life expectancy?
  4. If you don’t do anything different than what you are doing today, how much will you have to reduce your standard of living at retirement for your money to last to your life expectancy?

WHY Life Insurance Works

  • The death benefit can complete college saving plans if wage earner dies
  • Cash value in a life insurance policy is not defined as an asset for federal financial aid calculations.
  • The cash value in a permanent life insurance policy accumulates tax-deferred
  • The cash value has no restrictions on use, and as long as the policy is sufficiently funded, the cash value can help with multiple goals. If educational plans or goals change, the cash value can pivot to the new need
  • Many types of life insurance offer protection from market volatility
  • Offers early access to the Death benefit through Accelerated Benefits Riders if you experience a qualifying illness or injury

Life Insurance you don’t have to die to use

Accelerated Benefits Riders are optional, no-additional cost riders that can allow you to access all or part of your death benefit, while living, if you experience a qualifying terminal, chronic, or critical illness, or critical injury.  The use of the benefit is unrestricted with the exception that ABR proceeds for chronic illness in the state of Massachusetts can only be used to pay for expenses incurred for Qualified Long-Term Care services.

Since the benefit is unrestricted, once you qualify, you can use the benefit for any reason.  Benefits might be used for, but are not limited to:

  • Household expenses
  • Adult Day Care
  • Home modifications
  • Regular bills
  • Nursing home care
  • Qualities of life expenditures

What is a Fixed Index Annuity?

A fixed index annuity is a contract backed by the financial strength and claims paying ability of the issuing company.  This guarantees contract owners a retirement vehicle designed to protect assets while allowing for growth opportunities.  It does this through a combination of powerful benefits:

  • Principal Protection
  • Guaranteed Income
  • Tax-Deferred Growth
  • Liquidity
  • May Avoid Probate

How a Fixed Index Annuity Works

The long-term retirement product is purchased with an insurance provider that, in turn, guarantees principal protection, tax-deferred growth on assets and a reliable income stream.   Though out the course of the contract, the fixed index annuity can earn additional interest credits based, in part, on equity index increases.

As an insurance product, the fixed index annuity is not directly tied to any index.  So, there are none of the exposure risks associated with direct stock or share ownership.  The annuity cannot lose money due to index volatility and the interest credited will never be less than zero.

Who can get Medicare?

Legal residents must live in the U.S for at least 5 years in a row, including 5 years just before applying for Medicare.

You must meet one of the following requirements:

  • Age 65 or older
  • Younger than 65 with a qualifying disability
  • Any age with diagnosis of end stage renal disease or ALS

How do I enroll?

  • You should be automatically enrolled in Medicare Part A and Part B if you are receiving Social Security or Railroad Retirement Board benefits when you become eligible. Go to to enroll online or call or visit your local Social Security office.

Turning 65

You are eligible for Medicare at age 65

Your Initial Enrollment Period (IEP) is 7 months long.  It includes the month you turn 65, the three months before and the three months after.  It begins and ends a month earlier if your birthday is the first day of the month.

Sign up early.

Coverage begins the first day of your 65th birthday month if your enrollment is completed during the first three months of your IEP.  It begins the month before if your birthday is on the first.  Your coverage start date may be delayed if you sign up later.

You have choices

You may enroll in Medicare Part A (hospital insurance), Medicare Part B (medical insurance) or both.  You may have other coverage once you enroll in Medicare, such as Medicare Advantage plan (Part C), a prescription drug plan (Part D) or a Medicare supplement insurance plan.

Working past 65

You still have an Initial Enrollment Period.

You have Medicare decisions to make at age 65 even if you have coverage through an employer plan (yours or your working spouse’s).  Your IEP happens when you turn 65, whether you continue to work or not.

Be proactive.

Make sure you know your IEP dates.  Medicare will not notify you about your eligibility unless you are receiving Social Security or Railroad Retirement Board benefits when you turn 65.

Medicare may work with employer coverage.

Many people with employer coverage enroll in just Part A during their IEP.  Part A is premium free for most people, and it may provide additional hospital coverage.  Some employers require you to take full Medicare benefits (Part A and B) at age 65.  Check with your employer plan benefits administrator.

Pay attention to details.

You must stop contributing to a health savings account (HSA) once you enroll in part A and B.  Also, get a notice of “creditable of coverage” from your plan administrator.  You must have this documentation to avoid penalty if you want to enroll in a Part D plan later.