1
00:00:00.000 –> 00:00:01.030
Thank you for joining us.

2
00:00:01.145 –> 00:00:02.565
Uh, my name is Amy Warner.

3
00:00:02.565 –> 00:00:03.885
Uh, I’m the chief, uh, retail

4
00:00:03.885 –> 00:00:05.605
and marketing officer here at the Village Bank.

5
00:00:05.765 –> 00:00:07.085
I wanna thank you for joining us.

6
00:00:07.305 –> 00:00:09.685
Um, tonight we’re going to be doing, uh, part

7
00:00:09.685 –> 00:00:11.085
of our learning series, uh,

8
00:00:11.175 –> 00:00:13.165
showcasing our wealth management department.

9
00:00:13.185 –> 00:00:14.485
Uh, for those of you who don’t know,

10
00:00:14.485 –> 00:00:16.725
we do offer wealth management services here, uh,

11
00:00:16.725 –> 00:00:17.925
to our customers at the Village Bank,

12
00:00:18.025 –> 00:00:19.925
or even if you’re not a customer in the Village Bank

13
00:00:19.925 –> 00:00:21.925
and just wanna utilize our wealth management services.

14
00:00:22.505 –> 00:00:23.925
Uh, we have a wonderful team here.

15
00:00:24.225 –> 00:00:27.125
Um, I would be remiss if I didn’t introduce our CFO, um,

16
00:00:27.125 –> 00:00:29.205
Eric Bocher, Eric, um, overseas, um,

17
00:00:29.225 –> 00:00:30.365
our, our wealth management.

18
00:00:30.625 –> 00:00:32.645
Um, and you’ll get to meet some of the team tonight.

19
00:00:32.785 –> 00:00:34.285
Uh, social Security and Medicare.

20
00:00:34.285 –> 00:00:35.565
This is a pre timely topic,

21
00:00:35.985 –> 00:00:37.965
so we’re really excited that you’re here.

22
00:00:38.425 –> 00:00:39.965
Um, just some housekeeping rules.

23
00:00:39.975 –> 00:00:41.005
Again, we have some, um,

24
00:00:41.005 –> 00:00:42.405
refreshments in the back of the room.

25
00:00:42.865 –> 00:00:45.085
Um, restrooms are through those back doors.

26
00:00:45.185 –> 00:00:46.645
And to the right. Um,

27
00:00:47.305 –> 00:00:50.045
we are videotaping tonight’s, um, event.

28
00:00:50.185 –> 00:00:53.005
Uh, so there’ll be on our website in a few, uh, weeks.

29
00:00:53.465 –> 00:00:55.805
Um, and we’ll, we’ll use some vignettes of that as well.

30
00:00:55.865 –> 00:00:58.205
So if you don’t want to be reported, uh,

31
00:00:58.215 –> 00:00:59.325
don’t stand in front of the camera.

32
00:01:00.545 –> 00:01:03.365
By law, I need to let you know that we are videotaping, uh,

33
00:01:03.875 –> 00:01:05.125
this, this, this event.

34
00:01:05.625 –> 00:01:06.685
So, uh, we’ll continue

35
00:01:06.685 –> 00:01:08.765
to have some more learning series throughout this year.

36
00:01:08.865 –> 00:01:10.405
So, you know, we’ll send them out via

37
00:01:10.405 –> 00:01:11.725
email, uh, on our website.

38
00:01:11.945 –> 00:01:14.085
Uh, and just in communications within our branch.

39
00:01:14.105 –> 00:01:16.045
We are grateful that you are here tonight.

40
00:01:16.385 –> 00:01:17.565
Uh, so I’m really excited.

41
00:01:17.745 –> 00:01:19.965
Um, Paul Henry here in the middle.

42
00:01:20.105 –> 00:01:22.965
Uh, Paul oversees, uh, the day to day and, and, and,

43
00:01:22.965 –> 00:01:25.325
and sort of runs, uh, our wealth management division.

44
00:01:25.385 –> 00:01:27.325
And he’s joined, uh, by Bill Canal.

45
00:01:27.665 –> 00:01:29.285
Uh, will be one of our first speakers.

46
00:01:29.505 –> 00:01:31.525
And we are lucky enough to have, um,

47
00:01:32.255 –> 00:01:34.085
Kevin here tonight for Lincoln Financial.

48
00:01:34.085 –> 00:01:36.045
We’ll do a, a big presentation on, uh,

49
00:01:36.065 –> 00:01:37.445
the Social Security and Medicare.

50
00:01:37.505 –> 00:01:40.125
So without further ado, um, I will turn it over.

51
00:01:49.285 –> 00:01:50.615
Good evening everybody. Thanks for coming.

52
00:01:54.085 –> 00:01:57.335
What are the unknowables of a retirement journey?

53
00:01:58.285 –> 00:02:01.295
What can you control fully or partially?

54
00:02:01.875 –> 00:02:04.975
The pre presentation I’m about to give will review

55
00:02:05.405 –> 00:02:06.615
what you need to be thinking about

56
00:02:07.555 –> 00:02:10.055
as you evaluate your retirement readiness.

57
00:02:12.035 –> 00:02:14.455
The first slide here, I know it’s hard to see

58
00:02:14.455 –> 00:02:18.055
for people in the back, but the first slide here is the

59
00:02:18.055 –> 00:02:19.055
retirement equation,

60
00:02:19.155 –> 00:02:21.455
or at least one of the retirement equations.

61
00:02:21.455 –> 00:02:24.455
There’s a lot out there. This shows that

62
00:02:25.075 –> 00:02:27.695
we only have control over some parts

63
00:02:27.835 –> 00:02:31.775
of the retirement planning, total control over

64
00:02:31.875 –> 00:02:35.255
how we invest and whether we save

65
00:02:35.275 –> 00:02:39.625
or spend some control over our earnings

66
00:02:40.445 –> 00:02:44.545
and how long we work some control over our longevity,

67
00:02:45.875 –> 00:02:49.105
completely out of our control market.

68
00:02:49.135 –> 00:02:51.465
Returns and tax

69
00:02:51.465 –> 00:02:55.185
policy Slide buzz.

70
00:02:56.995 –> 00:03:00.485
First off, we, we don’t know how long we’re gonna live,

71
00:03:01.105 –> 00:03:03.805
so we don’t know how long we have to fund our retirement.

72
00:03:04.665 –> 00:03:06.325
So that’s, that’s an important one.

73
00:03:07.395 –> 00:03:09.605
This slide shows that

74
00:03:10.485 –> 00:03:14.565
a married couple age 65 today has certain probabilities

75
00:03:14.865 –> 00:03:18.805
of living to a certain age, 71%

76
00:03:19.265 –> 00:03:22.925
to age 85, at least one, again, at least one of the couple.

77
00:03:23.735 –> 00:03:27.045
44 to 90, 44% for age 90

78
00:03:27.785 –> 00:03:29.085
and 17%.

79
00:03:29.745 –> 00:03:32.965
95 we’re living longer. That’s good.

80
00:03:34.145 –> 00:03:35.725
But we have to fund that longer life.

81
00:03:36.545 –> 00:03:41.285
So we have to plan for longevity also, if you are,

82
00:03:41.635 –> 00:03:43.925
it’s a higher percentage if you’re a non-smoker

83
00:03:44.185 –> 00:03:45.405
in excellent health.

84
00:03:45.545 –> 00:03:46.885
So this is partially a

85
00:03:46.965 –> 00:03:48.845
anti-smoking campaign that I’m on here.

86
00:03:51.905 –> 00:03:55.485
The next slide shows life expectancy probabilities

87
00:03:55.785 –> 00:03:57.085
for same sex couples.

88
00:03:59.065 –> 00:04:03.445
For at least one of a female couple, there’s a 52% chance

89
00:04:03.445 –> 00:04:04.685
that you’ll live to age 90.

90
00:04:05.905 –> 00:04:09.845
For men, couples, it’s a 35% chance to live to age 90.

91
00:04:10.295 –> 00:04:14.525
Again, we have to plan for longevity. Next slide, please.

92
00:04:18.665 –> 00:04:21.805
We have to manage our expectations of the ability to work.

93
00:04:24.105 –> 00:04:25.445
The slide shows here that

94
00:04:26.155 –> 00:04:28.085
when asked current work is expectations

95
00:04:28.265 –> 00:04:31.845
of working till 65, 70 or older.

96
00:04:31.845 –> 00:04:36.565
70% said they would, 28%

97
00:04:37.725 –> 00:04:39.815
actually did the median.

98
00:04:40.135 –> 00:04:43.015
Re median retirement age is expected to be 65,

99
00:04:43.715 –> 00:04:46.375
but ultimately is shown in this at 62.

100
00:04:47.235 –> 00:04:48.455
Why is it lower?

101
00:04:50.605 –> 00:04:52.935
Well, fortunately, you could be laid off

102
00:04:53.115 –> 00:04:55.735
or your skillset would be possibly diminished.

103
00:04:56.275 –> 00:04:59.095
You or your spouse could have health problem or disability,

104
00:05:01.315 –> 00:05:04.455
or you, uh, might receive a early retirement package.

105
00:05:05.475 –> 00:05:07.735
So again, you may not have complete control

106
00:05:08.805 –> 00:05:10.895
over when you are actually gonna retire.

107
00:05:12.445 –> 00:05:17.175
Next slide, please, if

108
00:05:17.315 –> 00:05:21.855
you can work, will you want to or be able or need to?

109
00:05:22.765 –> 00:05:27.235
This slide shows that in 20 23, 20

110
00:05:27.235 –> 00:05:31.915
7% of those aged 65 to 74 were working

111
00:05:33.625 –> 00:05:36.035
75 and over was 8%.

112
00:05:36.485 –> 00:05:39.475
Those numbers creep up. Why? ’cause we’re living longer.

113
00:05:41.065 –> 00:05:42.795
Some people are motivated by wants,

114
00:05:42.855 –> 00:05:45.075
and some people are motivated by needs.

115
00:05:46.135 –> 00:05:49.915
The need would be to avoid reducing their nest egg.

116
00:05:50.455 –> 00:05:52.235
Things are more expensive now,

117
00:05:54.115 –> 00:05:56.015
or some people just like to work

118
00:05:56.035 –> 00:05:58.645
and they want to stay active and involved,

119
00:05:58.865 –> 00:06:00.165
and this is a way to do so.

120
00:06:01.355 –> 00:06:05.565
Next slide, please. Next slide’s about saving

121
00:06:05.665 –> 00:06:06.845
and starting this.

122
00:06:06.845 –> 00:06:08.405
This slide’s about starting early

123
00:06:08.425 –> 00:06:12.125
and being consistent with our investing strategies.

124
00:06:12.755 –> 00:06:16.965
This slide shows that if you invested $200 a month

125
00:06:19.825 –> 00:06:22.285
And from age 25 to 65,

126
00:06:22.385 –> 00:06:25.045
and you earned 7.25% per year,

127
00:06:26.265 –> 00:06:28.485
that’s the high portfolio here.

128
00:06:29.825 –> 00:06:31.925
The late saver who didn’t start till 35,

129
00:06:31.985 –> 00:06:33.445
but still invested the same amount

130
00:06:33.945 –> 00:06:38.925
and went from 35 to 65 ends up here.

131
00:06:41.065 –> 00:06:44.045
The, the early saver an investor, but then stops

132
00:06:44.045 –> 00:06:46.405
after 35 is also much lower.

133
00:06:46.985 –> 00:06:49.965
And the next point is the consistent saver,

134
00:06:49.965 –> 00:06:53.725
but not invested in the markets where there is risk,

135
00:06:53.825 –> 00:06:58.445
but also historically been good returns ends up low as well

136
00:06:58.445 –> 00:07:01.365
because they just have had their investments in cash.

137
00:07:02.865 –> 00:07:04.645
The early and consistent investor,

138
00:07:05.245 –> 00:07:06.285
investor has the best results.

139
00:07:06.735 –> 00:07:11.045
There is a cost of waiting and or stopping investing.

140
00:07:11.875 –> 00:07:16.685
Next slide, please. These are the sources

141
00:07:16.825 –> 00:07:17.845
of retirement funding.

142
00:07:18.275 –> 00:07:21.365
Kevin’s gonna talk about social security, which is a source

143
00:07:21.385 –> 00:07:23.925
of funding for many retirees.

144
00:07:24.075 –> 00:07:28.605
Some people have pensions, although fewer recently.

145
00:07:30.265 –> 00:07:32.405
You can take money from a health savings account if

146
00:07:32.405 –> 00:07:33.445
you have one tax free.

147
00:07:34.065 –> 00:07:37.085
You can take tax free withdrawals from a 401k Roth

148
00:07:37.105 –> 00:07:40.325
or an IRA Roth taxable accounts.

149
00:07:40.325 –> 00:07:42.005
You could get some tax exempt interest,

150
00:07:43.105 –> 00:07:44.965
but you have to remember that ordinary dividends,

151
00:07:44.965 –> 00:07:47.285
qualified dividends and realized capital gains

152
00:07:48.225 –> 00:07:49.525
or are taxable.

153
00:07:50.835 –> 00:07:54.485
Also, some of your income impacts the percentage

154
00:07:54.485 –> 00:07:56.765
of your social security that is actually taxed.

155
00:07:58.225 –> 00:07:59.285
And even worse,

156
00:08:00.515 –> 00:08:02.845
your Medicare Part B premium can go up if

157
00:08:02.845 –> 00:08:03.925
your earnings are too high.

158
00:08:05.305 –> 00:08:08.605
I’m sure Kevin will talk about that in his presentation.

159
00:08:09.825 –> 00:08:13.045
So retirement funding sources are not created equal.

160
00:08:13.865 –> 00:08:14.965
Be aware of income taxes

161
00:08:17.185 –> 00:08:19.565
and additional required Medicare premiums.

162
00:08:20.595 –> 00:08:21.325
Next slide, please.

163
00:08:25.475 –> 00:08:27.965
Well, we can’t talk about retirement without talking about

164
00:08:28.205 –> 00:08:32.005
spending and inflation and how it impacts as you get older,

165
00:08:32.185 –> 00:08:33.605
you spend money on different things

166
00:08:34.345 –> 00:08:36.405
and different things have different inflation rates.

167
00:08:36.575 –> 00:08:38.725
Think of college or healthcare.

168
00:08:39.395 –> 00:08:42.085
When you get older, you spend more money on healthcare.

169
00:08:43.315 –> 00:08:46.165
16% on average for those 75

170
00:08:46.425 –> 00:08:50.725
and over, were only 7% for those aged 35 to 44.

171
00:08:52.185 –> 00:08:53.685
So you have to have a long-term view

172
00:08:53.705 –> 00:08:54.885
of spending and inflation.

173
00:08:57.235 –> 00:09:00.605
Next slide, please. Also,

174
00:09:00.805 –> 00:09:02.325
spending volatility, right?

175
00:09:02.395 –> 00:09:05.165
It’s never the same amount year to year

176
00:09:05.865 –> 00:09:07.205
you might need to replace a roof.

177
00:09:07.745 –> 00:09:10.205
You may have other things that you have to spend money on.

178
00:09:10.305 –> 00:09:13.765
So you have to build in the expectation of volatility

179
00:09:15.765 –> 00:09:17.205
compared to the year before in retirement.

180
00:09:17.205 –> 00:09:19.605
The slide shows that six in 10 new retirees

181
00:09:20.255 –> 00:09:23.045
experience spending volatility in the first

182
00:09:23.045 –> 00:09:24.205
three years of retirement.

183
00:09:24.235 –> 00:09:28.325
That means 20% per year fluctuates more than 20%.

184
00:09:30.305 –> 00:09:34.165
So you have to prepare for those spending fluctuations.

185
00:09:34.395 –> 00:09:39.045
Next slide. This next slide has a lot going on,

186
00:09:39.045 –> 00:09:41.725
on on it, but really all it means is

187
00:09:41.725 –> 00:09:44.925
that there is an element of luck to when we retire

188
00:09:45.425 –> 00:09:50.085
and how we invest below here on the same

189
00:09:50.275 –> 00:09:54.085
returns over that period in inverse order

190
00:09:54.635 –> 00:09:56.605
with an average return of 5%.

191
00:09:58.315 –> 00:10:01.215
But one portfolio had a great start and a bad end.

192
00:10:02.605 –> 00:10:05.095
This one, one had a bad start

193
00:10:05.095 –> 00:10:07.995
and a great end who ended up with more money.

194
00:10:09.385 –> 00:10:12.395
Well, the great start bad end is up here,

195
00:10:15.635 –> 00:10:17.635
steadily average is here.

196
00:10:18.695 –> 00:10:22.835
But a bad start really caused a lot

197
00:10:22.835 –> 00:10:25.955
of problems ran out of that hypothetical amount of money

198
00:10:26.225 –> 00:10:28.195
between 20 and 25 years.

199
00:10:31.175 –> 00:10:34.555
So how do we mitigate retiring into declining markets?

200
00:10:35.265 –> 00:10:36.515
That has to be thought about.

201
00:10:40.075 –> 00:10:42.675
I think about, you know, we, we talk about the,

202
00:10:42.775 –> 00:10:45.715
the retirement red zone like five years before

203
00:10:45.815 –> 00:10:48.115
and five years after the most important years.

204
00:10:48.935 –> 00:10:50.955
So you have to be paying attention to your portfolio.

205
00:10:53.505 –> 00:10:55.555
This next slide is a great one I

206
00:10:55.555 –> 00:10:56.675
love to use with my clients.

207
00:10:57.695 –> 00:10:59.355
You have to plan to stay invested.

208
00:11:00.665 –> 00:11:03.035
This slide shows that over the 20 years started

209
00:11:03.035 –> 00:11:07.515
January 3rd, 2005, in ending December 31st, 2024.

210
00:11:09.005 –> 00:11:11.025
If you had stayed fully invested in the s

211
00:11:11.025 –> 00:11:14.945
and p 500, your average returns were 10.4%.

212
00:11:15.845 –> 00:11:19.585
Pretty good. Those were mostly good years, obviously,

213
00:11:20.805 –> 00:11:23.025
but if you decided it was time to get out

214
00:11:23.285 –> 00:11:25.145
and you missed 40, 50,

215
00:11:25.285 –> 00:11:27.705
or 60 of those days, over 20 years,

216
00:11:29.965 –> 00:11:32.265
you lost money over that same period.

217
00:11:33.275 –> 00:11:34.895
You have to plan to stay invested.

218
00:11:35.595 –> 00:11:38.375
And the interesting point is that seven of the 10 best days

219
00:11:40.055 –> 00:11:42.535
occurred within two weeks of the 10 worst days.

220
00:11:42.715 –> 00:11:44.535
We see that seesawing in the market

221
00:11:45.205 –> 00:11:46.455
down a bunch, up a bunch.

222
00:11:46.995 –> 00:11:48.455
You may not even get back to level,

223
00:11:48.515 –> 00:11:50.615
but that update really helps the

224
00:11:50.615 –> 00:11:51.895
portfolio over the long run.

225
00:11:52.285 –> 00:11:56.205
Next slide, please. One of the things I try to work

226
00:11:56.205 –> 00:12:00.205
with my clients is retirement’s not just about money.

227
00:12:01.995 –> 00:12:04.695
You have to have a plan for what you’re gonna do

228
00:12:04.805 –> 00:12:07.015
with your time, how you’re gonna stay active.

229
00:12:07.755 –> 00:12:10.015
So this just so shows you have to have purpose.

230
00:12:11.075 –> 00:12:15.095
You have to use your time to work, help others stay active,

231
00:12:16.295 –> 00:12:17.825
socialize with friends and family,

232
00:12:19.325 –> 00:12:20.865
and foster healthy behaviors.

233
00:12:23.135 –> 00:12:26.305
There’s an article that I read recently,

234
00:12:30.165 –> 00:12:32.865
the 10 things No one Tells People about Retirement.

235
00:12:33.445 –> 00:12:35.625
It was in the financial planning magazine recently.

236
00:12:35.625 –> 00:12:39.635
Financial Advisor Magazine, sorry, Number one,

237
00:12:39.805 –> 00:12:41.115
retirement is empty.

238
00:12:41.895 –> 00:12:43.755
That’s right, there’s nothing there.

239
00:12:43.765 –> 00:12:47.235
Retirement is a made up manufactured phase of life

240
00:12:47.235 –> 00:12:49.395
that doesn’t hold or contain anything.

241
00:12:50.265 –> 00:12:53.715
That means it’s up to retirees to fill it up with the things

242
00:12:53.715 –> 00:12:57.515
that they value want to do and are important to them.

243
00:13:00.985 –> 00:13:05.675
Next slide. Please can’t talk about retirement

244
00:13:05.675 –> 00:13:07.275
without talking about the potential

245
00:13:07.275 –> 00:13:09.155
for higher expenses in the long run.

246
00:13:09.305 –> 00:13:10.635
What could that typically be?

247
00:13:12.105 –> 00:13:14.155
Unfortunately, if you live long enough,

248
00:13:14.255 –> 00:13:17.155
you may need some form of care, which is very expensive.

249
00:13:18.335 –> 00:13:20.475
So you have to plan for a possible progression

250
00:13:20.475 –> 00:13:21.715
of the care needs you may need.

251
00:13:22.955 –> 00:13:25.765
This says that lifetime probability of needing assistance

252
00:13:25.765 –> 00:13:28.445
with two or more activities of daily living.

253
00:13:29.355 –> 00:13:33.725
75% for women, 64% for men.

254
00:13:35.445 –> 00:13:38.125
I read another article recently that referred

255
00:13:38.125 –> 00:13:40.245
to an Alzheimer’s Association study.

256
00:13:41.305 –> 00:13:43.005
The number of people living with

257
00:13:43.515 –> 00:13:46.925
Alzheimer’s was roughly 6 million in 2020.

258
00:13:48.955 –> 00:13:52.255
And that’s the us It’s expected to rise

259
00:13:52.275 –> 00:13:56.375
to 13.85 million by 2060.

260
00:13:58.245 –> 00:14:02.295
Some other hard kind of sobering facts, 60%

261
00:14:02.295 –> 00:14:03.975
of caregivers are women.

262
00:14:05.555 –> 00:14:06.935
One third our daughters,

263
00:14:08.835 –> 00:14:11.655
and two thirds of those with Alzheimer’s are women.

264
00:14:13.115 –> 00:14:14.855
So we have to think about long-term care,

265
00:14:14.855 –> 00:14:18.015
and we have to, as a society, find ways to find the workers

266
00:14:18.015 –> 00:14:21.415
that are going to, uh, take care of people as they age.

267
00:14:22.085 –> 00:14:25.255
Next slide, please. Since that was kind of depressing,

268
00:14:25.335 –> 00:14:28.455
I thought I’d end on a, on a happier note.

269
00:14:29.325 –> 00:14:31.415
This is the stock market since 1900.

270
00:14:34.225 –> 00:14:35.535
We’ve been through a lot as a country.

271
00:14:37.035 –> 00:14:41.845
Two World Wars, great depression, Korean War, Vietnam

272
00:14:44.875 –> 00:14:48.525
Tech, boom, COVID, we’ve been tested.

273
00:14:50.425 –> 00:14:52.805
Has it been rough? Yes, it’s rough in various time,

274
00:14:53.115 –> 00:14:56.205
time periods that you see here, but what else do you see?

275
00:14:57.135 –> 00:15:00.285
We’re always ultimately up into the right.

276
00:15:00.915 –> 00:15:03.245
Another reason to stay invested.

277
00:15:03.535 –> 00:15:06.125
Thank you, Paul, you coming up?

278
00:15:16.265 –> 00:15:17.565
Uh, thank you. Thank you, bill.

279
00:15:17.865 –> 00:15:19.965
Um, my, again, my name is Paul Hungary.

280
00:15:20.065 –> 00:15:22.605
Um, I’m the program manager of Village Wealth Management.

281
00:15:22.835 –> 00:15:24.605
Just a little disclosure, uh,

282
00:15:25.115 –> 00:15:29.805
village Wealth Management is a, um, like an arm of the bank.

283
00:15:30.025 –> 00:15:31.405
We are bank employees,

284
00:15:31.625 –> 00:15:34.165
but we are representatives, our disclosures there of,

285
00:15:34.165 –> 00:15:35.365
of LPL Financial

286
00:15:35.705 –> 00:15:37.085
and LPL Financial is one

287
00:15:37.085 –> 00:15:39.085
of the biggest financial firms in, in the industry.

288
00:15:39.465 –> 00:15:41.005
So we, in a way, I feel like

289
00:15:41.005 –> 00:15:42.045
we have the best of both worlds.

290
00:15:42.045 –> 00:15:43.405
We’re in this great little community bank,

291
00:15:43.745 –> 00:15:45.885
but we have the resources of LPL Financial.

292
00:15:45.885 –> 00:15:48.005
So we can do a lot for our, for our clients.

293
00:15:48.545 –> 00:15:52.205
So what I wanted to do is talk about, um, you know, taking,

294
00:15:52.345 –> 00:15:54.005
how do we take the retirement equation

295
00:15:54.545 –> 00:15:56.805
and apply it to our own life situation,

296
00:15:57.065 –> 00:15:59.845
and what, what steps do we need to do to get

297
00:15:59.845 –> 00:16:01.125
through all these different situations?

298
00:16:01.545 –> 00:16:04.765
So the main point of it is by doing a,

299
00:16:05.245 –> 00:16:08.645
a personalized detailed financial plan, which shows us

300
00:16:09.175 –> 00:16:11.805
where we are now, what our goals are moving forward,

301
00:16:12.035 –> 00:16:13.125
what we need to get there,

302
00:16:13.705 –> 00:16:16.565
but also incorporating all these issues

303
00:16:16.595 –> 00:16:18.085
that we say we have some control,

304
00:16:18.095 –> 00:16:19.525
total control or no control.

305
00:16:20.025 –> 00:16:22.805
Uh, so first off, longevity, um, again,

306
00:16:23.145 –> 00:16:24.845
as pill in indicated, you know,

307
00:16:24.845 –> 00:16:26.085
we don’t know when we’re gonna pass.

308
00:16:26.625 –> 00:16:30.365
Uh, when we run financial plans, we, uh, run it

309
00:16:30.425 –> 00:16:34.205
for both clients to live to H 95, right?

310
00:16:34.665 –> 00:16:37.085
But if someone says, well, you know,

311
00:16:37.245 –> 00:16:38.685
I have a lot of longevity in my family.

312
00:16:38.685 –> 00:16:42.085
Well, we’ll up that, but we just use 95 as as the minimum.

313
00:16:42.505 –> 00:16:45.245
And that being a pretty conservative way to,

314
00:16:45.385 –> 00:16:46.605
to, uh, to plan.

315
00:16:47.185 –> 00:16:49.525
And then during retirement years, right?

316
00:16:49.545 –> 00:16:50.765
We have the retirement goal.

317
00:16:51.185 –> 00:16:53.925
We have to look at what resources do we have,

318
00:16:54.115 –> 00:16:56.725
cash flow retirement plans through the employer.

319
00:16:57.025 –> 00:16:59.365
But what is the ultimate goal we’re trying to get to in

320
00:16:59.365 –> 00:17:02.485
that circles back to what level of lifestyle

321
00:17:03.145 –> 00:17:07.285
and what, you know, that clients want to main, you know,

322
00:17:07.285 –> 00:17:08.645
achieve and maintain throughout,

323
00:17:08.645 –> 00:17:09.805
throughout their retirement years.

324
00:17:10.105 –> 00:17:11.325
So we run projections

325
00:17:11.345 –> 00:17:13.765
and we can show a client, here’s where we are.

326
00:17:13.895 –> 00:17:16.565
These, this is the path we’re on. Are we on track?

327
00:17:16.565 –> 00:17:20.405
We’re not. And then that in turn educates the client so

328
00:17:20.405 –> 00:17:23.085
that they can make better day-to-day decisions if they know

329
00:17:23.085 –> 00:17:25.285
they’re on track, right?

330
00:17:25.755 –> 00:17:28.205
They can enjoy life a little bit more, right?

331
00:17:28.205 –> 00:17:30.125
There are some people who are

332
00:17:30.145 –> 00:17:32.125
so worried about spending any money,

333
00:17:32.505 –> 00:17:34.805
and I’ll show them like, you’re, you’re in good shape.

334
00:17:34.805 –> 00:17:37.325
You’ve done a phenomenal job saving time

335
00:17:37.585 –> 00:17:39.405
to enjoy the fruits of your labor.

336
00:17:39.705 –> 00:17:42.205
So it’s really about, you know, developing relationships

337
00:17:42.225 –> 00:17:45.485
and helping people see what their, what their, uh,

338
00:17:45.485 –> 00:17:46.685
financial picture looks like.

339
00:17:47.105 –> 00:17:50.965
The other, uh, balance is working with a couple.

340
00:17:51.135 –> 00:17:53.485
Oftentimes there’s different points of view, right?

341
00:17:53.545 –> 00:17:55.845
So you kinda have to bring the two together,

342
00:17:55.845 –> 00:17:57.045
which can be challenging sometimes.

343
00:17:57.585 –> 00:18:01.205
Um, so, uh, so saving versus spending.

344
00:18:01.205 –> 00:18:02.445
What’s our level of lifestyle?

345
00:18:02.785 –> 00:18:05.285
Uh, then once we see where we’re headed,

346
00:18:05.465 –> 00:18:08.565
we can get into the asset allocation, right?

347
00:18:08.565 –> 00:18:11.485
What’s our investment strategy? So it’s twofold.

348
00:18:11.625 –> 00:18:15.565
One is, what is the, um, risk tolerance, uh, of,

349
00:18:15.665 –> 00:18:18.045
of the client age, how far they have to go.

350
00:18:18.545 –> 00:18:21.125
Um, and we use as a starting point,

351
00:18:21.125 –> 00:18:23.485
we call it like a moderate, moderate type of portfolio.

352
00:18:24.055 –> 00:18:26.285
60% stocks, 40% bonds.

353
00:18:26.385 –> 00:18:28.245
You might have heard it, you know, the 60 40.

354
00:18:28.625 –> 00:18:30.645
Um, so that’s kind of our starting point.

355
00:18:30.705 –> 00:18:33.645
But then working with clients, we will adjust that up

356
00:18:33.645 –> 00:18:36.325
or down based on their age and risk tolerance, uh,

357
00:18:36.325 –> 00:18:37.845
but also what their needs are, right?

358
00:18:37.985 –> 00:18:41.045
So we saw in, in difficult periods

359
00:18:41.045 –> 00:18:42.445
of time in the marketplace, right?

360
00:18:42.745 –> 00:18:46.645
The, um, I’ve had situations where, you know,

361
00:18:46.645 –> 00:18:49.565
my el you know, elderly clients are like, you know what?

362
00:18:49.915 –> 00:18:51.005
This is too much for me.

363
00:18:51.035 –> 00:18:53.685
Like, I don’t wanna be worried about what’s

364
00:18:53.685 –> 00:18:54.765
going on in the marketplace.

365
00:18:55.185 –> 00:18:58.405
So we look at, well, how can we scale back their risk,

366
00:18:58.425 –> 00:19:00.325
but still keep them on, on track for their goals?

367
00:19:00.705 –> 00:19:03.125
So again, it’s really about developing relationships,

368
00:19:03.125 –> 00:19:04.725
knowing someone’s situation,

369
00:19:04.725 –> 00:19:07.485
and be being able to provide a, a like guidance, uh,

370
00:19:07.705 –> 00:19:08.765
for everything moving forward.

371
00:19:09.305 –> 00:19:12.085
Uh, you know, as we said, we can’t control, uh,

372
00:19:12.085 –> 00:19:14.725
market returns, but we can, you know, plan it, plan ahead

373
00:19:14.725 –> 00:19:18.645
of those, um, getting it back into the retirement component.

374
00:19:19.265 –> 00:19:23.485
So part of it is getting people to the point where

375
00:19:24.235 –> 00:19:27.565
they, um, they’re going to work because they want to, not

376
00:19:27.565 –> 00:19:28.725
because they have to, right?

377
00:19:28.745 –> 00:19:31.725
And that’s a very empowering position to be in. Now.

378
00:19:31.725 –> 00:19:33.725
It’s like, hey, people tend to like,

379
00:19:33.725 –> 00:19:35.645
work better when it’s not forced on them.

380
00:19:35.825 –> 00:19:40.605
So, um, getting people to that point in time, then once

381
00:19:40.605 –> 00:19:42.325
that’s established, figuring out, well,

382
00:19:42.325 –> 00:19:44.165
what’s gonna be our transition strategy?

383
00:19:44.605 –> 00:19:47.965
’cause once you retire, right, your paycheck’s going away.

384
00:19:48.025 –> 00:19:51.005
So how are we going to regenerate that paycheck

385
00:19:51.005 –> 00:19:52.765
through 401k plans?

386
00:19:53.065 –> 00:19:54.965
And someone has a pension. Social security.

387
00:19:55.345 –> 00:19:57.885
So seeing what their guaranteed sources are,

388
00:19:58.145 –> 00:20:00.365
and then filling in the gaps with all the savings

389
00:20:00.395 –> 00:20:02.445
that they’ve done, that they’ve done over time.

390
00:20:03.265 –> 00:20:06.445
And then once that’s established, we have to plan for the,

391
00:20:06.585 –> 00:20:09.125
um, uh, uncertain events, right?

392
00:20:09.265 –> 00:20:11.085
Um, health issues.

393
00:20:11.865 –> 00:20:15.165
Um, we have homes to, to upgrade.

394
00:20:15.625 –> 00:20:18.405
Um, buying a new, I’ve had people needing

395
00:20:18.405 –> 00:20:19.485
to buy a new car recently.

396
00:20:19.485 –> 00:20:21.285
Cars of $50,000, right?

397
00:20:21.665 –> 00:20:25.125
So how do we fund buying a car, taking money out

398
00:20:25.125 –> 00:20:28.645
of a portfolio to buy a, you know, a depreciating asset?

399
00:20:29.025 –> 00:20:30.965
So figuring out what’s the best way to do that.

400
00:20:31.105 –> 00:20:32.805
And, uh, one thing I always tell clients,

401
00:20:32.835 –> 00:20:34.765
it’s not black and white.

402
00:20:34.795 –> 00:20:36.005
It’s not all or nothing.

403
00:20:36.115 –> 00:20:40.205
Like we can touch on a d number of different sources to,

404
00:20:40.225 –> 00:20:41.245
to fund this goal.

405
00:20:41.545 –> 00:20:45.885
Um, for example, if we have a, a portfolio that is, um,

406
00:20:46.535 –> 00:20:48.365
generating dividends

407
00:20:48.365 –> 00:20:50.605
and income that we’re reinvesting in the portfolio,

408
00:20:50.785 –> 00:20:52.565
we can like kick that to the client,

409
00:20:52.905 –> 00:20:54.085
uh, on an ongoing basis.

410
00:20:54.145 –> 00:20:57.045
So there’s different ways to, to accomplish these goals.

411
00:20:57.505 –> 00:20:59.565
Um, then the, the, the biggest

412
00:21:00.265 –> 00:21:03.005
one we talked about is the long-term care issue, right?

413
00:21:03.105 –> 00:21:07.245
So we know that the odds

414
00:21:07.245 –> 00:21:11.045
of a couple needing long-term care is, is well over 50%.

415
00:21:11.145 –> 00:21:14.565
Now, we talked about longevity, uh, Alzheimer’s.

416
00:21:15.025 –> 00:21:20.005
Um, the long-term care component is the hardest part of,

417
00:21:20.185 –> 00:21:22.285
of being, of doing financial planning

418
00:21:22.285 –> 00:21:23.365
and helping people along.

419
00:21:23.805 –> 00:21:25.165
’cause it, it’s very emotional.

420
00:21:25.585 –> 00:21:28.005
You would, you talk about it, the, the idea

421
00:21:28.005 –> 00:21:29.285
of going into a nursing home.

422
00:21:29.595 –> 00:21:31.205
It’s, it’s overwhelming, right?

423
00:21:31.625 –> 00:21:35.925
Um, many people, they just try

424
00:21:35.925 –> 00:21:39.245
to avoid the, the, the, the discussion altogether, right?

425
00:21:39.745 –> 00:21:43.805
And even if you’ve done good planning, so example, my, uh,

426
00:21:43.995 –> 00:21:45.845
parents are 92, 91.

427
00:21:46.265 –> 00:21:49.445
My dad’s having health issues, and me

428
00:21:49.445 –> 00:21:51.765
and my siblings are, you know, we, I’ve done the planning

429
00:21:51.765 –> 00:21:53.325
for them being the advisor, right?

430
00:21:53.325 –> 00:21:54.725
So I’ve done the work. Um,

431
00:21:55.505 –> 00:21:57.445
but they’re, they’re stubborn, right?

432
00:21:57.585 –> 00:21:59.045
I’m not sure, I’m sure that’s not a surprise

433
00:21:59.045 –> 00:22:00.805
for most people, but they’re very stubborn.

434
00:22:01.465 –> 00:22:03.285
The thought of giving up independence,

435
00:22:03.305 –> 00:22:05.605
having someone coming into the home is a challenge.

436
00:22:06.065 –> 00:22:07.845
So us in the background,

437
00:22:07.855 –> 00:22:09.285
we’re doing, getting everything aligned.

438
00:22:09.285 –> 00:22:12.005
We’re making the phone calls, getting the healthcare lined

439
00:22:12.005 –> 00:22:14.045
up for if and when they need it.

440
00:22:14.245 –> 00:22:15.405
’cause we don’t know, uh,

441
00:22:15.405 –> 00:22:16.765
and we don’t wanna wait till it’s too late.

442
00:22:16.925 –> 00:22:19.205
’cause they, you know, they keep putting the blocks on us,

443
00:22:19.205 –> 00:22:20.805
like everything we try to do, like, no,

444
00:22:20.825 –> 00:22:21.925
no, no, we’ll be fine.

445
00:22:22.345 –> 00:22:23.525
And they’re, they’re not gonna be.

446
00:22:23.625 –> 00:22:26.405
So we have a lot of, you know, it’s just so emotional

447
00:22:26.405 –> 00:22:28.765
and hard, hard to get people over

448
00:22:28.765 –> 00:22:29.805
the hump for, for that type.

449
00:22:29.825 –> 00:22:32.045
And I’m sure everyone in this room has had some,

450
00:22:32.045 –> 00:22:33.405
some type of experience we’ve had.

451
00:22:33.465 –> 00:22:37.845
So, uh, you know, to kind of like wrap it all together, uh,

452
00:22:38.335 –> 00:22:41.445
doing a really deep dive financial plan

453
00:22:41.465 –> 00:22:43.685
and analysis, figuring out

454
00:22:43.685 –> 00:22:45.525
what our projections are, where we’re headed.

455
00:22:45.985 –> 00:22:47.445
And again, that’s the guidepost

456
00:22:47.465 –> 00:22:49.565
to help help us make better decisions.

457
00:22:50.025 –> 00:22:53.325
Not emotional decisions. Uh, again, market’s tough.

458
00:22:53.325 –> 00:22:56.885
People were nervous 11 weeks ago. What was going on?

459
00:22:57.665 –> 00:23:01.605
Um, that, uh, what, what, what did, what did, uh,

460
00:23:01.605 –> 00:23:04.085
Trump call it again, liberation Day, right?

461
00:23:04.115 –> 00:23:07.285
That was 11 weeks ago, right? Market dropped like 20%.

462
00:23:07.615 –> 00:23:09.205
We’ve already almost recovered all that.

463
00:23:09.265 –> 00:23:11.325
So things are, are more and more volatile over time.

464
00:23:11.705 –> 00:23:14.365
So having a good plan in place has helped us, uh,

465
00:23:15.065 –> 00:23:16.525
uh, navigate our way through.

466
00:23:16.825 –> 00:23:19.965
So thank you for your time. Uh, Kevin, it’s up to you now.

467
00:23:29.445 –> 00:23:32.055
Good afternoon, good evening. Uh, grateful to be here.

468
00:23:32.145 –> 00:23:33.615
Again. My name is Kevin Flynn.

469
00:23:33.655 –> 00:23:36.855
I work with Lincoln and I have the dubious honor of going

470
00:23:36.855 –> 00:23:38.015
through this lovely content

471
00:23:38.125 –> 00:23:39.895
with you all tonight with Smiling Faces.

472
00:23:40.675 –> 00:23:43.135
So thrilled to go through Social Security and Medicare.

473
00:23:43.205 –> 00:23:46.725
Here we go. Um, so again, I love this conversation

474
00:23:46.785 –> 00:23:48.765
and these topics for two separate reasons.

475
00:23:48.865 –> 00:23:51.605
Number one is that we’re phenomenal procrastinators.

476
00:23:51.625 –> 00:23:53.485
And sometimes we don’t know what we don’t know.

477
00:23:54.025 –> 00:23:56.245
But I would say we all have a story, right?

478
00:23:56.245 –> 00:24:00.045
Social security is very situational in nature, right?

479
00:24:00.045 –> 00:24:01.685
It’s not, it’s not a cup of coffee,

480
00:24:01.685 –> 00:24:03.205
it’s my cup of coffee, right?

481
00:24:03.445 –> 00:24:04.525
It’s very, very personal

482
00:24:04.855 –> 00:24:07.885
where I would say Medicare is very factual in nature.

483
00:24:08.065 –> 00:24:10.805
So my goal, my hope tonight is to try and break down

484
00:24:10.865 –> 00:24:14.165
and simplify the various elements of Medicare.

485
00:24:15.025 –> 00:24:16.325
But first what we’re gonna do is we’re

486
00:24:16.325 –> 00:24:17.365
gonna talk about social security.

487
00:24:17.545 –> 00:24:19.965
And with this, I’d like to try and spend about 20

488
00:24:20.105 –> 00:24:22.605
or so minutes on Social Security, about 20

489
00:24:22.605 –> 00:24:23.765
or so minutes on Medicare.

490
00:24:23.865 –> 00:24:24.965
Try and give you the high points.

491
00:24:25.065 –> 00:24:28.685
But really my biggest ask for you all, um, is

492
00:24:28.685 –> 00:24:29.845
to continue the conversation.

493
00:24:30.185 –> 00:24:32.765
You have some fine individuals here at Village Wealth

494
00:24:32.765 –> 00:24:35.845
that can help you go deeper, put together the plan, uh,

495
00:24:35.845 –> 00:24:37.725
that Paul and Bill were speaking so passionately about.

496
00:24:38.075 –> 00:24:39.725
That is my biggest ask. Okay?

497
00:24:40.385 –> 00:24:42.925
Uh, before I jump into the presentation, I always like

498
00:24:42.925 –> 00:24:44.005
to kick things off and have a

499
00:24:44.005 –> 00:24:45.085
little bit of fun with a story.

500
00:24:45.545 –> 00:24:48.205
Uh, is anyone here familiar with a gentleman by the name

501
00:24:48.205 –> 00:24:50.125
of Timothy Bowers?

502
00:24:50.225 –> 00:24:52.725
Any, anyone familiar with this gentleman heard his story?

503
00:24:53.065 –> 00:24:54.805
All right, I’m seeing some nods. No. So here we go.

504
00:24:55.385 –> 00:24:58.645
Uh, Timothy Bowers was a pharmaceutical sales representative

505
00:24:58.745 –> 00:25:00.485
his entire career, okay?

506
00:25:00.505 –> 00:25:03.205
He was not married. He had, uh, he had no children.

507
00:25:03.345 –> 00:25:05.565
He ultimately lived his job. Okay?

508
00:25:06.145 –> 00:25:07.605
Um, at the age of 62,

509
00:25:07.605 –> 00:25:09.805
Timothy gets a call from his boss saying,

510
00:25:09.835 –> 00:25:10.885
come on into my office.

511
00:25:10.985 –> 00:25:14.125
Sit down. We need to have a little chat again.

512
00:25:14.125 –> 00:25:15.285
Timothy was 62 years old.

513
00:25:15.305 –> 00:25:17.245
See some smiles, some nods, uh, shaking here.

514
00:25:17.245 –> 00:25:19.005
So you know where I’m going. As it turns out,

515
00:25:19.005 –> 00:25:21.565
as a story goes, Timothy’s company was downsizing

516
00:25:22.705 –> 00:25:23.845
and they were letting him go.

517
00:25:24.745 –> 00:25:28.645
So here Timothy sits 62 years old asking himself the

518
00:25:28.805 –> 00:25:30.325
question, what’s my plan?

519
00:25:30.615 –> 00:25:32.325
Right? Am I hireable? Am I marketable?

520
00:25:32.345 –> 00:25:34.445
Can I stay in the same profession, change professions?

521
00:25:34.475 –> 00:25:36.805
What am I gonna do? Now, of course,

522
00:25:36.805 –> 00:25:38.085
this happens on a Friday, right?

523
00:25:38.085 –> 00:25:39.365
To eliminate confrontation.

524
00:25:39.365 –> 00:25:43.245
Timothy takes the entire weekend to conjure up his plan.

525
00:25:43.865 –> 00:25:45.325
Monday morning, strolls around,

526
00:25:45.345 –> 00:25:47.045
he walks into his local bank in Ohio.

527
00:25:47.045 –> 00:25:48.565
That’s where the story heals from.

528
00:25:48.955 –> 00:25:51.325
Timothy walks up to the teller window, hands, a teller,

529
00:25:51.485 –> 00:25:54.245
a slip of paper that says, this is a bank robbery all,

530
00:25:54.325 –> 00:25:56.005
I can’t make this story up, okay?

531
00:25:56.425 –> 00:25:57.925
The slip of paper said, I want you

532
00:25:57.925 –> 00:26:01.005
to hand me four $20 bills, right?

533
00:26:01.005 –> 00:26:04.205
80 bucks. Now, as you’re probably aware, Timothy, uh, uh,

534
00:26:04.205 –> 00:26:07.085
the teller was trained to comply with Timothy’s request.

535
00:26:07.765 –> 00:26:09.085
I love your face right now. You’re like, what?

536
00:26:09.085 –> 00:26:12.085
How did he do this? Uh, tellers were, uh, uh, trained

537
00:26:12.105 –> 00:26:13.285
to comply with his request

538
00:26:13.325 –> 00:26:15.445
to give Timothy the $80 to the front door.

539
00:26:15.445 –> 00:26:18.965
He goes, where there just happened to be a security guard.

540
00:26:19.195 –> 00:26:22.205
Timothy put his, puts his hands out, says, congratulations,

541
00:26:22.265 –> 00:26:23.565
you just foiled the bank robbery.

542
00:26:24.645 –> 00:26:25.965
Security guard didn’t know what was going on.

543
00:26:25.965 –> 00:26:27.885
Long story short, they take Timothy into custody.

544
00:26:29.275 –> 00:26:31.445
Does anyone wanna hazard a guess as to

545
00:26:31.445 –> 00:26:34.205
how many years in prison Mr. Bowers was sentenced to?

546
00:26:34.205 –> 00:26:35.325
And please don’t guess 20.

547
00:26:35.325 –> 00:26:37.165
That always seems to be the popular answer.

548
00:26:37.915 –> 00:26:42.805
Anybody Life, no love the participation. Thank you.

549
00:26:44.835 –> 00:26:46.885
It’s not zero, it’s between zero and life.

550
00:26:49.555 –> 00:26:54.325
Anybody 10? No. How old did I say Timothy was?

551
00:26:55.585 –> 00:26:57.725
No three.

552
00:26:59.585 –> 00:27:00.685
Can you guys believe this?

553
00:27:01.835 –> 00:27:04.245
This guy did the research to find out

554
00:27:04.245 –> 00:27:07.005
what a first time petty bank theft robbery would get.

555
00:27:07.025 –> 00:27:10.245
And it was three years in prison. So what did he get?

556
00:27:11.435 –> 00:27:13.965
Free room and board free healthcare.

557
00:27:14.515 –> 00:27:16.165
This guy got a hot in a cot in

558
00:27:16.165 –> 00:27:17.405
a roommate for three years, right?

559
00:27:17.405 –> 00:27:21.245
But the funny thing is, if you Google, she loves the story.

560
00:27:21.245 –> 00:27:24.405
That’s great. If you google a retirement income plan

561
00:27:24.405 –> 00:27:27.205
that comes with mugshots, this story will pop up.

562
00:27:27.275 –> 00:27:29.525
Alright? And funny again, I can’t make this up.

563
00:27:30.065 –> 00:27:32.685
Um, when you read the story, if you read the article,

564
00:27:33.155 –> 00:27:34.165
when Timothy was

565
00:27:34.165 –> 00:27:36.565
before the judge, he actually asked the judge

566
00:27:36.625 –> 00:27:39.605
to sentence him to prison for three years.

567
00:27:39.665 –> 00:27:40.885
He said, Timothy, help me understand.

568
00:27:40.885 –> 00:27:42.165
Why do you wanna go to prison for three years?

569
00:27:42.865 –> 00:27:44.205
He said, unfortunately, judge,

570
00:27:44.405 –> 00:27:46.205
I didn’t take the advice that was given to me.

571
00:27:46.395 –> 00:27:48.845
This is not the plan that I have for myself,

572
00:27:49.185 –> 00:27:51.085
but it’s the only plan that’s available to me.

573
00:27:51.785 –> 00:27:54.685
And I promise you, when I get outta prison, right, I’ll have

574
00:27:55.605 –> 00:27:57.165
Medicare eligible at 65,

575
00:27:57.735 –> 00:27:59.725
he’ll be getting partial social security.

576
00:27:59.745 –> 00:28:00.965
And I promise you, judge, you’ll

577
00:28:00.965 –> 00:28:02.085
never hear from me ever again.

578
00:28:03.065 –> 00:28:05.325
And that’s exactly what happened.

579
00:28:06.425 –> 00:28:08.445
So I share that with you for two reasons.

580
00:28:08.445 –> 00:28:10.725
Number one is, you know, we don’t plan to fail.

581
00:28:10.725 –> 00:28:12.565
We, you know, we don’t plan to fail. We fail to plan.

582
00:28:12.705 –> 00:28:15.565
We right? We’re for, for we’re phenomenal procrastinators.

583
00:28:16.135 –> 00:28:18.365
Again, my biggest ask is continue the conversation.

584
00:28:18.525 –> 00:28:21.565
’cause I don’t want anyone here to be like Timothy Bowers.

585
00:28:21.565 –> 00:28:22.725
Alright, here we go. Next slide.

586
00:28:23.025 –> 00:28:24.805
So with social security, we’re gonna talk about the common

587
00:28:25.085 –> 00:28:27.005
challenges, the status of social security, some

588
00:28:27.005 –> 00:28:28.005
of the filing ages.

589
00:28:28.185 –> 00:28:31.085
My goal is to try and walk through what are the benefits

590
00:28:31.085 –> 00:28:34.325
and eligibility for spouses, divorced spouses,

591
00:28:34.365 –> 00:28:35.965
widowed spouses, and really working

592
00:28:36.065 –> 00:28:37.845
and collecting at the exact same time.

593
00:28:37.845 –> 00:28:39.325
Those are the biggest questions

594
00:28:39.715 –> 00:28:42.405
that I get asked when we talk about social security, uh,

595
00:28:42.405 –> 00:28:44.325
and how it ties into your overall retirement income plan.

596
00:28:44.325 –> 00:28:46.445
Next slide, please. So again,

597
00:28:46.445 –> 00:28:47.765
your your retirement timetable.

598
00:28:47.765 –> 00:28:48.805
We won’t spend a lot of time on this.

599
00:28:48.805 –> 00:28:50.845
We have your retirement continuum. Please keep going.

600
00:28:52.065 –> 00:28:54.565
So your top retirement concerns, I think Paul

601
00:28:54.625 –> 00:28:56.645
and Bill did a phenomenal job talking about this

602
00:28:56.675 –> 00:28:59.325
with respect to, you know, changes to our economy,

603
00:28:59.705 –> 00:29:02.085
not having enough to live on paying my bills,

604
00:29:02.375 –> 00:29:04.685
unforeseen healthcare expenses, that’s a big one.

605
00:29:04.835 –> 00:29:07.045
Running outta money, et cetera, et cetera. Next slide.

606
00:29:07.705 –> 00:29:10.645
Um, but social security is so much more

607
00:29:11.955 –> 00:29:14.205
than just a monthly paycheck.

608
00:29:14.625 –> 00:29:18.485
You get predetermined lifetime income payments, okay?

609
00:29:18.795 –> 00:29:22.085
That has a cost of living adjustment or a cola, if you will.

610
00:29:22.345 –> 00:29:24.685
And in my humble opinion, the biggest hidden gem

611
00:29:25.305 –> 00:29:26.885
within social security is a

612
00:29:27.085 –> 00:29:28.125
survivor benefit that’s available.

613
00:29:28.125 –> 00:29:29.525
And we’ll talk about that as we cascade

614
00:29:29.525 –> 00:29:30.645
through the presentation.

615
00:29:30.645 –> 00:29:33.005
Next slide please. So again, the current status

616
00:29:33.025 –> 00:29:35.245
of social security, again, probably no surprise.

617
00:29:35.745 –> 00:29:39.125
Um, next slide. That demographic demographics, excuse me,

618
00:29:39.145 –> 00:29:42.765
are threatening the long term viability of social security.

619
00:29:42.775 –> 00:29:45.805
Fewer workers are paying into the system just following the

620
00:29:45.805 –> 00:29:47.525
baby boomer generation, right?

621
00:29:47.975 –> 00:29:50.285
Along those lines, it is expected.

622
00:29:50.445 –> 00:29:51.645
A lot of questions come up with,

623
00:29:51.645 –> 00:29:53.245
is social security gonna be there for me?

624
00:29:53.695 –> 00:29:54.765
Right? I’m sure raise hands

625
00:29:54.765 –> 00:29:56.165
how many people feel the same way, right?

626
00:29:56.725 –> 00:29:59.405
Probably quite a few of you. There have been a number

627
00:29:59.465 –> 00:30:01.845
of proposals that are out there, okay?

628
00:30:01.985 –> 00:30:04.525
It is expected that by 2035,

629
00:30:04.645 –> 00:30:07.005
I think it’s more like 20 34, 20 33,

630
00:30:07.515 –> 00:30:10.165
that the Social Security Trust fund reserves

631
00:30:10.475 –> 00:30:11.485
will be depleted.

632
00:30:11.495 –> 00:30:14.365
We’ve already tapped into the Social Security

633
00:30:14.365 –> 00:30:15.605
Trust fund reserves.

634
00:30:15.715 –> 00:30:18.485
It’s expected by, again, early 2030s

635
00:30:18.485 –> 00:30:20.805
that those Social Security Trust fund reserves will be

636
00:30:20.805 –> 00:30:24.405
depleted and current individuals on social security

637
00:30:24.955 –> 00:30:27.645
will receive roughly 80% of their benefit.

638
00:30:28.075 –> 00:30:30.685
Alright? I don’t passionately believe it’s gonna go away,

639
00:30:31.105 –> 00:30:33.005
but I think maybe for my kids’ generation,

640
00:30:33.125 –> 00:30:35.485
I still don’t think it’s gonna impact me quite candidly.

641
00:30:35.485 –> 00:30:38.125
And I’m almost 50, don’t let this young face

642
00:30:38.145 –> 00:30:39.485
and a clean haircut fool you.

643
00:30:39.565 –> 00:30:40.925
I am allowed out on a school night

644
00:30:40.925 –> 00:30:42.965
and do have permission for my mother to be here.

645
00:30:42.965 –> 00:30:44.245
Just so you all know that, okay?

646
00:30:44.665 –> 00:30:46.405
Uh, but there’s a number of different reforms

647
00:30:46.405 –> 00:30:47.925
that are on the table with respect

648
00:30:47.925 –> 00:30:50.165
to increasing the full retirement age

649
00:30:50.265 –> 00:30:53.325
or delaying the earliest age that you can file.

650
00:30:54.065 –> 00:30:56.605
The biggest one that I think has the most legs

651
00:30:56.625 –> 00:31:00.925
to it is increasing or eliminating altogether.

652
00:31:01.105 –> 00:31:02.125
The wage cap.

653
00:31:02.435 –> 00:31:04.445
Nodding your head, perhaps you’ve seen this, right?

654
00:31:04.545 –> 00:31:09.285
So right now in 2025, we pa we cap out in terms

655
00:31:09.285 –> 00:31:13.045
of paying FICA taxes at around roughly $170,000.

656
00:31:14.025 –> 00:31:15.925
So highly compensated individuals

657
00:31:15.925 –> 00:31:18.485
that are making more than $170,000,

658
00:31:18.795 –> 00:31:20.005
they don’t pay any FICA taxes.

659
00:31:20.555 –> 00:31:21.965
They’re not paying into the system.

660
00:31:22.545 –> 00:31:24.965
So the thought is, if we were to increase that limit,

661
00:31:25.065 –> 00:31:28.325
or maybe have a tiered system, so it might be phased out.

662
00:31:28.325 –> 00:31:31.165
So okay, fine, we pay FICA taxes up to 200 K.

663
00:31:31.555 –> 00:31:33.725
It’s phased out to say 400 K.

664
00:31:34.025 –> 00:31:37.645
If you make over $400,000 FICA taxes kicks back in.

665
00:31:38.105 –> 00:31:40.245
You guys follow me, right? There’s number

666
00:31:40.265 –> 00:31:42.245
of different proposals that are on the system.

667
00:31:42.715 –> 00:31:46.285
Nothing has yet been set in stone, I believe.

668
00:31:46.315 –> 00:31:47.645
Just my humble opinion.

669
00:31:47.735 –> 00:31:49.085
It’ll be at the bottom of the nine,

670
00:31:49.085 –> 00:31:52.885
two out two on when they need to make a decision.

671
00:31:52.985 –> 00:31:56.565
But I really don’t see anybody on either side of the aisle

672
00:31:57.715 –> 00:31:59.085
getting rid of social security.

673
00:31:59.375 –> 00:32:01.965
Don’t see it happening again, will it affect me?

674
00:32:01.965 –> 00:32:04.245
Or maybe my children’s generation? Probably.

675
00:32:04.545 –> 00:32:06.405
But current individuals that are on it,

676
00:32:06.705 –> 00:32:07.925
it will not impact you.

677
00:32:08.435 –> 00:32:09.885
Okay, next slide please.

678
00:32:10.945 –> 00:32:12.845
So again, some social security vocabulary.

679
00:32:12.865 –> 00:32:14.405
We have our early retirement age,

680
00:32:14.405 –> 00:32:16.565
which we’ll talk about your FRA

681
00:32:16.585 –> 00:32:18.005
or your full retirement age,

682
00:32:18.005 –> 00:32:20.565
obviously predetermined based on the year in

683
00:32:20.565 –> 00:32:21.645
which you were born, right?

684
00:32:21.705 –> 00:32:24.565
I’d say most people here, it’s gonna be between 66 and 67

685
00:32:25.065 –> 00:32:27.485
and a delayed retirement age, believe it

686
00:32:27.485 –> 00:32:29.445
or not, social security pays you to wait, right?

687
00:32:30.065 –> 00:32:31.965
Um, we already talked about the cola

688
00:32:32.025 –> 00:32:35.605
and then your p your primary insurance amount.

689
00:32:35.745 –> 00:32:38.805
By definition that is the monthly benefit

690
00:32:38.805 –> 00:32:41.645
that you’re entitled to receive upon attainment

691
00:32:41.865 –> 00:32:44.045
of your full retirement age.

692
00:32:44.275 –> 00:32:47.005
Next slide please. So just following along within

693
00:32:47.005 –> 00:32:50.725
that continuum, if you file early, you can absolutely do so,

694
00:32:50.745 –> 00:32:54.325
but you are permanently reducing your benefit

695
00:32:54.425 –> 00:32:57.285
to roughly 75% if you do so at age 62.

696
00:32:57.675 –> 00:33:00.925
Alright? Again, we’re gonna, uh, uh, hypothesize

697
00:33:00.925 –> 00:33:03.205
or assume that our full retirement age is 67

698
00:33:03.625 –> 00:33:05.965
and then again you get paid 8% a year.

699
00:33:05.965 –> 00:33:07.165
Where else can you get 8%?

700
00:33:07.225 –> 00:33:08.485
Now granted it’s only for three

701
00:33:08.485 –> 00:33:11.365
or four years depending on your full retirement age,

702
00:33:11.365 –> 00:33:13.365
but that could be meaningful, right?

703
00:33:13.365 –> 00:33:15.045
So let’s just say for the sake of the argument,

704
00:33:15.145 –> 00:33:17.045
my full retirement age is 67.

705
00:33:17.785 –> 00:33:21.285
My monthly benefit based on my work history is $2,000.

706
00:33:22.825 –> 00:33:25.365
If I file early, I’m permanently

707
00:33:26.805 –> 00:33:28.565
reducing my benefit down to 1500 bucks.

708
00:33:28.905 –> 00:33:32.485
And the only way I can get a raise is through the cola,

709
00:33:32.805 –> 00:33:36.205
a cost of living adjustment, which historically is

710
00:33:36.205 –> 00:33:38.005
around 1.5 to 2% annually.

711
00:33:38.435 –> 00:33:43.165
Okay? Conversely, if I delay my benefit out to age 70,

712
00:33:43.585 –> 00:33:46.445
that’s round figures $2,500, right?

713
00:33:46.505 –> 00:33:50.205
So 1500 at 62 2000 at 67

714
00:33:50.825 –> 00:33:53.685
and call it 2,500 at, uh, at age 70.

715
00:33:54.025 –> 00:33:56.205
And there’s a wide host of all scenarios.

716
00:33:56.215 –> 00:33:59.885
Again, I mentioned social security is situational in nature

717
00:33:59.945 –> 00:34:02.205
and there’s a monthly incremental benefit

718
00:34:02.755 –> 00:34:07.085
that will bring you from 75% all the way up to a hundred

719
00:34:07.595 –> 00:34:10.125
upon your attainment of full retirement age.

720
00:34:10.555 –> 00:34:11.885
Okay, next slide please.

721
00:34:12.705 –> 00:34:14.685
So this is essentially just showing kind

722
00:34:14.685 –> 00:34:17.525
of the breakeven point of the crossover point, right?

723
00:34:18.025 –> 00:34:22.125
Um, I can tell you exactly the day that you should file

724
00:34:22.145 –> 00:34:23.245
for your social security benefit.

725
00:34:23.345 –> 00:34:26.485
If you’ll tell me what, oh look, you gonna live

726
00:34:27.505 –> 00:34:29.485
or your expiration date is,

727
00:34:29.485 –> 00:34:31.805
my mom affectionately refers to it, so to speak.

728
00:34:32.905 –> 00:34:35.085
You know, at the end of the day it’s

729
00:34:35.085 –> 00:34:37.165
around high seventies, low eighties.

730
00:34:37.225 –> 00:34:39.165
If you have longevity in your family

731
00:34:39.705 –> 00:34:41.925
and you’re gonna be living later on, you know,

732
00:34:41.925 –> 00:34:44.605
in life along those lines, it might make sense to foster

733
00:34:44.995 –> 00:34:47.605
that delayed retirement credit strategy

734
00:34:47.705 –> 00:34:48.885
as the purpose of the slide.

735
00:34:48.885 –> 00:34:51.965
Next slide please. Again, your decision,

736
00:34:52.365 –> 00:34:54.565
probably no surprise, will de will depend

737
00:34:54.565 –> 00:34:56.045
upon a couple different things.

738
00:34:56.625 –> 00:34:59.125
My personal opinion is the top two, right?

739
00:34:59.305 –> 00:35:02.285
How healthy are you? Okay, can you continue to work?

740
00:35:02.625 –> 00:35:05.085
And what’s your life expectancy again, based on,

741
00:35:05.135 –> 00:35:06.725
based on your family, you know, your,

742
00:35:07.245 –> 00:35:08.285
a history along those lines.

743
00:35:08.755 –> 00:35:10.645
Believe it or not, I didn’t share this on one

744
00:35:10.645 –> 00:35:13.805
of the previous slides, but roughly 50% of individuals

745
00:35:14.615 –> 00:35:16.605
don’t consult with someone like Paul or Bill.

746
00:35:16.605 –> 00:35:17.925
They go direct to social security

747
00:35:18.265 –> 00:35:19.565
and file at a reduced benefit.

748
00:35:20.075 –> 00:35:22.085
Alright? Two thirds of individuals don’t wait

749
00:35:22.085 –> 00:35:23.365
until full retirement age.

750
00:35:24.185 –> 00:35:25.845
And I passionately believe it’s

751
00:35:25.845 –> 00:35:27.365
because of one of those two factors,

752
00:35:28.425 –> 00:35:29.805
or believe it or not, it’s a burden.

753
00:35:29.825 –> 00:35:31.765
The hand versus two in the bush mentality.

754
00:35:31.765 –> 00:35:32.885
They don’t trust the government.

755
00:35:32.945 –> 00:35:34.845
I’m just gonna take what’s, what’s given to me

756
00:35:35.145 –> 00:35:37.685
and I’ll worry about the rest later on down the line, right?

757
00:35:37.945 –> 00:35:40.605
That’s what I find most people do. Next slide please.

758
00:35:41.305 –> 00:35:42.645
So again, life expectancy.

759
00:35:42.645 –> 00:35:44.845
Again, these two fine gentlemen talked a lot about it.

760
00:35:45.065 –> 00:35:48.725
Um, I would just say that the oldest person, I guess, we’ll,

761
00:35:48.725 –> 00:35:49.965
we’ll throw it out, out to the audience

762
00:35:49.965 –> 00:35:51.165
here, a couple things.

763
00:35:51.165 –> 00:35:53.885
Number one, how many of you have, uh, parents of people

764
00:35:53.885 –> 00:35:56.525
that you know, aunts, uncles, relatives, et cetera,

765
00:35:56.745 –> 00:35:59.445
in their nineties slash hundreds, right?

766
00:35:59.765 –> 00:36:03.245
A few. So how many people are, who wants to take a guess as

767
00:36:03.245 –> 00:36:05.325
to who’s the oldest person in the world?

768
00:36:05.915 –> 00:36:10.885
What number would you put on them? Very close. One 17.

769
00:36:11.545 –> 00:36:16.045
The oldest person in the United States is close.

770
00:36:16.065 –> 00:36:17.885
One 13. So you’re right there.

771
00:36:17.885 –> 00:36:19.765
Alright, so I read an article in, uh,

772
00:36:19.765 –> 00:36:22.125
I think it was national geographical a while ago that was,

773
00:36:22.185 –> 00:36:24.885
you know, kind of speculating that with, you know,

774
00:36:24.885 –> 00:36:27.085
healthcare being the way that it is, et cetera,

775
00:36:27.085 –> 00:36:30.005
an individual born today can make it to 150, right?

776
00:36:31.195 –> 00:36:34.525
Yeah, exactly. So I joke and it, and I say, if you gasp

777
00:36:34.525 –> 00:36:36.885
and think that’s depressing, okay?

778
00:36:36.885 –> 00:36:38.085
Just wait until the 100

779
00:36:38.105 –> 00:36:40.005
and 20-year-old kids come to move back home with you.

780
00:36:40.265 –> 00:36:43.565
All right? So the bottom line here is we just got a plan.

781
00:36:43.985 –> 00:36:45.045
All right, next slide please.

782
00:36:45.705 –> 00:36:47.245
So knowing your benefits, next slide.

783
00:36:47.545 –> 00:36:49.445
So there’s a few different ways to learn about your benefit.

784
00:36:49.665 –> 00:36:52.285
The easiest is through ssa.gov.

785
00:36:52.425 –> 00:36:54.645
If you have not yet enrolled here,

786
00:36:55.095 –> 00:36:57.085
trust me when I tell you it’s the government,

787
00:36:57.085 –> 00:36:58.245
they know who you are.

788
00:36:58.245 –> 00:37:01.365
They’re gonna be asking you very personalized questions

789
00:37:01.745 –> 00:37:03.045
to confirm that it is you.

790
00:37:03.665 –> 00:37:05.285
If you are over age 60,

791
00:37:05.285 –> 00:37:07.165
you’re gonna receive a statement every year.

792
00:37:07.225 –> 00:37:10.285
If you’re under age 60, it’s every five years.

793
00:37:10.985 –> 00:37:13.205
Or you can always call and request a statement as well too.

794
00:37:13.205 –> 00:37:16.205
Next slide. This is what a sample statement looks like.

795
00:37:16.225 –> 00:37:18.085
We can skip over that just for the sake of time,

796
00:37:18.145 –> 00:37:20.045
how your benefits are determined very quickly.

797
00:37:20.045 –> 00:37:22.805
They’re taking a look at a very comprehensive formula

798
00:37:23.795 –> 00:37:24.885
most people take a look at.

799
00:37:24.955 –> 00:37:27.285
They say, ah, it’s just my last three or my best five

800
00:37:27.305 –> 00:37:28.605
or something along those lines.

801
00:37:28.655 –> 00:37:31.205
Trust me when I tell you it is so much more comprehensive

802
00:37:31.945 –> 00:37:34.685
and that they’re looking your highest 35 years

803
00:37:34.685 –> 00:37:36.365
between the ages of 22

804
00:37:36.905 –> 00:37:40.605
and 62, adding all those years on up, dividing

805
00:37:40.625 –> 00:37:43.245
by a factor in getting what’s called your average index

806
00:37:43.245 –> 00:37:46.325
monthly earnings, which turns into next slide.

807
00:37:46.795 –> 00:37:48.605
Your primary insurance amount.

808
00:37:49.165 –> 00:37:51.285
I just kind of highlight this is a little outdated,

809
00:37:51.385 –> 00:37:55.045
but the maximum benefit is probably closer to $4,000.

810
00:37:55.225 –> 00:37:58.925
Now the average social security benefit is

811
00:37:58.925 –> 00:38:00.405
around 17, $1,800.

812
00:38:00.405 –> 00:38:04.125
Next slide. So can you, can you work after age 62?

813
00:38:04.885 –> 00:38:07.005
Absolutely, yes. It can only help.

814
00:38:07.145 –> 00:38:08.645
It cannot hurt your benefit.

815
00:38:09.155 –> 00:38:12.285
Essentially what can happen is the years that you continue

816
00:38:12.305 –> 00:38:16.645
to work beyond age 62 could possibly result in having some

817
00:38:16.825 –> 00:38:20.325
poorer, uh, some poor, I guess not poorer, some poor years

818
00:38:20.425 –> 00:38:22.165
or maybe years that you did not work.

819
00:38:22.745 –> 00:38:25.925
Uh, be reflected or recalculated into your overall equation.

820
00:38:25.995 –> 00:38:28.605
Just helping your benefit, not hurting your benefit.

821
00:38:28.915 –> 00:38:31.565
Next slide. Um, working

822
00:38:31.665 –> 00:38:33.485
and collecting at the exact same time.

823
00:38:33.555 –> 00:38:36.685
This is a big one. People are saying, you know what Kevin,

824
00:38:36.825 –> 00:38:37.925
I’m getting a little tired.

825
00:38:38.245 –> 00:38:40.485
I want to maybe go and work part-time

826
00:38:40.585 –> 00:38:42.165
and start collecting benefits early.

827
00:38:42.425 –> 00:38:45.725
Can I work and collect my benefits?

828
00:38:45.745 –> 00:38:49.725
The answer is yes with an asterisk. Okay?

829
00:38:49.745 –> 00:38:53.725
It really depends upon where are you with respect

830
00:38:53.845 –> 00:38:55.645
to your retirement timeline,

831
00:38:55.645 –> 00:38:57.245
your retirement timetable if you will.

832
00:38:57.275 –> 00:38:58.965
Alright? So there’s a couple numbers

833
00:38:58.965 –> 00:39:00.805
that you’re seeing on the left hand side there.

834
00:39:01.465 –> 00:39:05.935
If you have not attained the year that you, uh,

835
00:39:05.935 –> 00:39:07.695
that you turn full retirement age.

836
00:39:07.765 –> 00:39:10.735
Alright, so let’s just say my full retirement age is age 67.

837
00:39:11.355 –> 00:39:14.015
I’m working in collecting at s age 64, right?

838
00:39:14.175 –> 00:39:16.615
I have not yet reached the year

839
00:39:16.615 –> 00:39:21.215
that I turn full retirement age, I can make $22,320.

840
00:39:22.005 –> 00:39:26.295
Okay? If I make above that limit, I’ll have $1 withheld

841
00:39:26.295 –> 00:39:29.495
for every $2 above that value.

842
00:39:29.765 –> 00:39:32.375
Alright? So you could have some social security earnings

843
00:39:32.375 –> 00:39:35.175
being withheld from you along those lines, okay?

844
00:39:35.915 –> 00:39:39.775
The year that you turn full retirement age,

845
00:39:40.555 –> 00:39:41.655
you can make a little bit more.

846
00:39:41.715 –> 00:39:45.175
So, for example, for me, the year that I turned 67,

847
00:39:45.715 –> 00:39:47.935
and I’ll disclose to you all that I was born on Halloween.

848
00:39:48.095 –> 00:39:49.855
I don’t know if I was a trick

849
00:39:49.855 –> 00:39:51.015
or treat, you gotta ask my mom.

850
00:39:51.915 –> 00:39:53.735
It was maybe a little bit of both, perhaps, I don’t know.

851
00:39:54.115 –> 00:39:56.295
Um, so from January to September,

852
00:39:57.315 –> 00:39:58.855
it doesn’t include the month

853
00:39:58.855 –> 00:40:00.455
that I turn full retirement age.

854
00:40:00.455 –> 00:40:03.095
Everybody with me on that. From January to September

855
00:40:03.895 –> 00:40:05.535
I can make 59,520.

856
00:40:06.565 –> 00:40:10.495
Okay? And then upon the attainment of full retirement age

857
00:40:11.295 –> 00:40:15.855
IE October and beyond, there’s zero limit on my earnings.

858
00:40:15.935 –> 00:40:17.495
I can make however much I want to

859
00:40:17.515 –> 00:40:19.455
and I’ll have nothing withheld along those lines.

860
00:40:20.275 –> 00:40:22.495
So again, it really depends on where are you

861
00:40:23.185 –> 00:40:25.175
along your retirement continuum.

862
00:40:25.955 –> 00:40:28.415
If you wanna work in collecting the exact same time,

863
00:40:29.435 –> 00:40:31.095
how much can you make along those lines?

864
00:40:31.285 –> 00:40:32.415
Alright, next slide please.

865
00:40:33.525 –> 00:40:34.775
Some planning questions, again,

866
00:40:34.775 –> 00:40:36.015
we’ll go into a lot of detail.

867
00:40:36.015 –> 00:40:37.375
Again, these fine gentlemen can help,

868
00:40:37.375 –> 00:40:39.215
but are you working in a job that you enjoy?

869
00:40:39.715 –> 00:40:41.055
If you’re married and you’re both a working,

870
00:40:41.075 –> 00:40:42.815
do you wanna retire at the exact same time

871
00:40:43.405 –> 00:40:44.855
concerned about retirement income,

872
00:40:45.015 –> 00:40:48.015
spending down assets too quickly, et cetera, et cetera.

873
00:40:48.015 –> 00:40:49.735
Next slide. So, alright,

874
00:40:49.735 –> 00:40:50.775
so we’re getting into the meat here.

875
00:40:50.805 –> 00:40:51.975
Spousal benefit. Next slide.

876
00:40:51.995 –> 00:40:54.495
See you already, you like, you know the presentation,

877
00:40:54.495 –> 00:40:55.575
Chris, I love you so much.

878
00:40:55.575 –> 00:40:58.255
It’s a beautiful thing. Alright, so spousal benefits.

879
00:40:58.915 –> 00:41:00.895
So I’m gonna go back to the example

880
00:41:00.895 –> 00:41:03.135
that I mentioned a few slides ago with respect

881
00:41:03.135 –> 00:41:07.775
to my monthly benefit, assuming for me is $2,000 a month.

882
00:41:08.245 –> 00:41:10.775
Okay? I’ll introduce you to my spouse, Kristen,

883
00:41:10.945 –> 00:41:12.975
who’s here virtually, okay?

884
00:41:13.115 –> 00:41:15.655
If, uh, is she beautiful? I love it. You guys are too kind.

885
00:41:16.035 –> 00:41:19.015
Um, so Kristen can take a spousal benefit off of,

886
00:41:19.115 –> 00:41:23.535
my record is so long as a, we’ve been married

887
00:41:23.535 –> 00:41:26.215
for at least a year, married for 25, going

888
00:41:26.215 –> 00:41:27.495
to Greece in, uh, in a couple weeks.

889
00:41:27.495 –> 00:41:29.135
Can’t wait to celebrate. Um,

890
00:41:29.595 –> 00:41:31.135
so we’ve been married for at least a year.

891
00:41:31.395 –> 00:41:33.605
And number two is I’ve opened up my file.

892
00:41:34.755 –> 00:41:37.085
I’ve started to collect my $2,000.

893
00:41:37.085 –> 00:41:40.005
Kristen is not entitled to receive anything off of me

894
00:41:41.335 –> 00:41:43.845
until I’ve started collecting benefits, okay?

895
00:41:44.145 –> 00:41:46.365
But the benefit for Kristen is this, is that again,

896
00:41:46.465 –> 00:41:48.245
I’m still alive, okay?

897
00:41:48.875 –> 00:41:51.205
Once I open up, because again, I’ve been asked off in a lot

898
00:41:51.445 –> 00:41:53.085
of my seminars, I’m gonna do it again tonight.

899
00:41:53.085 –> 00:41:54.445
So I hope you guys are okay with that.

900
00:41:54.865 –> 00:41:58.165
So I’m still alive, I’ve opened up my file, okay?

901
00:41:58.165 –> 00:42:01.325
Kristen is entitled to receive 55 0%

902
00:42:01.345 –> 00:42:03.365
of my benefit, okay?

903
00:42:04.145 –> 00:42:05.685
In that regard. So long as we’ve been married

904
00:42:05.685 –> 00:42:07.525
for at least a year and I’ve opened up my file

905
00:42:07.665 –> 00:42:09.005
and we’re at full retirement.

906
00:42:09.085 –> 00:42:10.085
H okay?

907
00:42:10.745 –> 00:42:12.125
So let’s just assume

908
00:42:12.125 –> 00:42:15.885
that Kristen’s monthly benefit on her own retirement work

909
00:42:15.885 –> 00:42:18.405
history is $750.

910
00:42:19.705 –> 00:42:22.845
So here’s a question. Can Kristen collect her seven 50

911
00:42:22.895 –> 00:42:26.445
retirement benefit in addition to her

912
00:42:26.965 –> 00:42:28.565
thousand dollars spousal benefit?

913
00:42:28.905 –> 00:42:31.005
Yes or no?

914
00:42:32.105 –> 00:42:35.005
No family feud, we good with? No.

915
00:42:36.425 –> 00:42:38.645
All right, you guys are correct. So here’s

916
00:42:38.645 –> 00:42:39.805
what happens is you’re absolutely right.

917
00:42:39.865 –> 00:42:42.325
So Kristen gets the greater of the two, but not both.

918
00:42:43.145 –> 00:42:46.445
So what social security will do is pay Kristen on her seven

919
00:42:46.655 –> 00:42:50.725
51st and kick in an additional $250

920
00:42:50.825 –> 00:42:54.645
to bring her up to the thousand dollars spousal benefit.

921
00:42:54.735 –> 00:42:57.205
She’s entitled to receive. Everybody with me on that.

922
00:42:57.745 –> 00:43:01.125
If Kristen’s monthly benefit on her own retirement accord is

923
00:43:01.125 –> 00:43:05.525
$1,500, then there’s no spousal benefit,

924
00:43:06.185 –> 00:43:07.565
et cetera that she would receive

925
00:43:07.565 –> 00:43:10.245
because her $1,500 retirement benefit

926
00:43:10.825 –> 00:43:12.765
is greater than the spousal benefit

927
00:43:12.795 –> 00:43:14.405
that she’s entitled to receive.

928
00:43:15.055 –> 00:43:16.965
Again, she gets a greater the two, not both.

929
00:43:17.675 –> 00:43:19.325
Well, let’s just assume though that we’re, uh,

930
00:43:19.325 –> 00:43:23.125
that example was we’re both 67 at full retirement age.

931
00:43:24.695 –> 00:43:27.725
Let’s just assume we’re both 62, right?

932
00:43:27.785 –> 00:43:30.365
So I file at 62 on my benefit.

933
00:43:30.515 –> 00:43:35.245
What did I just do to my $2,000? I reduced it, okay?

934
00:43:35.825 –> 00:43:38.325
But also because Kristen has not yet attained

935
00:43:38.875 –> 00:43:41.485
full retirement age status, she gets reduction as well too.

936
00:43:42.505 –> 00:43:45.365
So it’s kind of a double whammy along those lines.

937
00:43:45.385 –> 00:43:48.485
So you need to be very, very cautious of, you know,

938
00:43:48.575 –> 00:43:50.165
who’s the primary wage earner?

939
00:43:50.505 –> 00:43:52.765
How old are they? When do you want to file

940
00:43:52.865 –> 00:43:53.925
for spousal benefits?

941
00:43:53.925 –> 00:43:55.685
Along those lines, again,

942
00:43:55.835 –> 00:43:58.485
everybody’s got a story very situational in nature.

943
00:43:58.975 –> 00:44:01.165
These two fine gentlemen can help you along those lines

944
00:44:01.165 –> 00:44:02.205
in terms of going deeper.

945
00:44:02.345 –> 00:44:04.405
But again, whether you would come in here saying,

946
00:44:04.465 –> 00:44:07.165
I’m gonna file at 62 and, and that’s okay,

947
00:44:07.865 –> 00:44:09.965
but I at least want you to be cognizant of

948
00:44:09.995 –> 00:44:11.725
what you might be leaving on the table.

949
00:44:11.945 –> 00:44:13.845
Not necessarily just for yourself,

950
00:44:14.785 –> 00:44:17.725
but for a spousal benefit who could take a, a, a be entitled

951
00:44:17.785 –> 00:44:21.085
to, excuse me, a benefit off of your work history.

952
00:44:21.435 –> 00:44:25.245
Okay, next slide. So spousal benefit example, just

953
00:44:25.245 –> 00:44:27.685
so you showing this pictorially, there’s Sue and Sam.

954
00:44:28.335 –> 00:44:31.405
Sam’s PIA is $2,100, Sue is 900.

955
00:44:32.035 –> 00:44:35.645
Once Sam opens up his file, Sue’s entitled to 1,050.

956
00:44:36.105 –> 00:44:38.605
So she gets a 900 her own retirement benefit.

957
00:44:39.305 –> 00:44:42.045
We make up the difference with the other one 50. Okay?

958
00:44:42.045 –> 00:44:45.445
Next slide. We’re looking at spousal, excuse me,

959
00:44:45.725 –> 00:44:49.645
divorced spousal benefits operates very, very similarly

960
00:44:50.635 –> 00:44:53.325
with respect to the amount that you can collect

961
00:44:53.435 –> 00:44:55.365
that being 50%, okay?

962
00:44:55.705 –> 00:44:59.645
And that will be varied if you take a spousal benefit

963
00:44:59.775 –> 00:45:00.845
early as well too.

964
00:45:01.585 –> 00:45:03.805
But this one, social security makes you earn

965
00:45:05.085 –> 00:45:08.885
IE your marriage must have lasted for 10 years.

966
00:45:09.675 –> 00:45:13.685
Okay? So I joke with some, some anecdotal, um, you know,

967
00:45:13.685 –> 00:45:16.125
folks on out there, I think Johnny Carson had three

968
00:45:16.295 –> 00:45:19.045
ex-spouses, I believe two of the three were married

969
00:45:19.385 –> 00:45:20.805
to Johnny for 10 years.

970
00:45:21.545 –> 00:45:25.605
So both of them are fully entitled to a spousal benefit,

971
00:45:25.605 –> 00:45:28.005
including his current spouse if he was married

972
00:45:28.005 –> 00:45:29.365
for at least a year, right?

973
00:45:29.365 –> 00:45:31.805
What we just talked about, the late Larry King,

974
00:45:31.885 –> 00:45:34.405
I think he had nine, um, ex-spouses

975
00:45:34.405 –> 00:45:37.565
and I believe only two of them, uh, were entitled

976
00:45:37.625 –> 00:45:40.485
to the spousal divorce spousal benefit along those lines.

977
00:45:40.485 –> 00:45:42.965
Alright? So just a couple fun fact trivia

978
00:45:42.965 –> 00:45:44.125
for you along those lines.

979
00:45:44.825 –> 00:45:47.685
Um, the one other thing I’ll mention is this third bullet

980
00:45:47.685 –> 00:45:51.165
point is with Kristen and I, right?

981
00:45:51.365 –> 00:45:54.605
I had to open up my file prior

982
00:45:54.605 –> 00:45:56.845
to Kristen receiving benefits off of me.

983
00:45:57.355 –> 00:46:00.765
This is a scenario where so long as the divorce was, was uh,

984
00:46:01.025 –> 00:46:04.565
beyond two years, the other spouse does not have

985
00:46:04.565 –> 00:46:07.685
to open up their file for the, uh, spouse to be able

986
00:46:07.685 –> 00:46:09.325
to collect a spousal benefit off of them.

987
00:46:09.425 –> 00:46:11.845
So there’s no, you know, animosity type of deal

988
00:46:11.845 –> 00:46:13.885
where one spouse says, I’m not opening up my file

989
00:46:13.885 –> 00:46:16.045
because I don’t want you to get any income type of deal.

990
00:46:16.075 –> 00:46:18.685
That kind of takes that off the equation. Next slide please.

991
00:46:19.075 –> 00:46:21.845
Alright, survivor benefits, again, in my humble opinion,

992
00:46:21.845 –> 00:46:25.005
this is a biggest hidden gem within social security, okay?

993
00:46:25.225 –> 00:46:26.285
And the thought and the idea

994
00:46:26.285 –> 00:46:29.445
and the concept here is to have the higher wage earner,

995
00:46:29.895 –> 00:46:33.245
again, whether it’s Kevin or Kristen, if you will try

996
00:46:33.245 –> 00:46:37.325
and boost out their benefit to age 70, okay?

997
00:46:37.555 –> 00:46:41.605
Because in doing so, so let’s just say for the sake

998
00:46:41.605 –> 00:46:43.965
of the argument, again, I boost my benefit out to,

999
00:46:43.985 –> 00:46:45.205
to $2,500.

1000
00:46:45.265 –> 00:46:48.165
As I mentioned earlier, Kristen’s getting a thousand dollars

1001
00:46:48.235 –> 00:46:49.765
spousal benefit, everything’s great,

1002
00:46:50.185 –> 00:46:54.085
but if something happens to me, alright, I pass away first,

1003
00:46:54.475 –> 00:46:56.445
Kristen essentially surrenders her

1004
00:46:56.965 –> 00:46:58.485
thousand dollars spousal benefit

1005
00:46:59.065 –> 00:47:03.405
and she can step up to my primary insurance amount,

1006
00:47:03.675 –> 00:47:08.485
including any delayed retirement credits earned.

1007
00:47:09.385 –> 00:47:12.165
And that could be incredibly meaningful when you consider

1008
00:47:12.165 –> 00:47:15.005
where our healthcare costs going to be,

1009
00:47:15.005 –> 00:47:18.125
which we’re gonna talk about next, you know, for Kristen,

1010
00:47:18.215 –> 00:47:19.685
along those lots, right?

1011
00:47:19.715 –> 00:47:22.645
That could be incredibly meaningful for her from a planning,

1012
00:47:22.745 –> 00:47:24.005
uh, perspective as well too.

1013
00:47:24.465 –> 00:47:26.525
The other thing I’ll mention that’s not mentioned, uh,

1014
00:47:26.525 –> 00:47:29.365
here on this slide is that you can actually,

1015
00:47:29.425 –> 00:47:31.165
if you’re a widow or widower

1016
00:47:31.165 –> 00:47:33.965
or survivor, what have you, you can actually choose

1017
00:47:34.655 –> 00:47:36.165
which benefit you want to take.

1018
00:47:36.225 –> 00:47:40.325
You can take a widow benefit as early as age 60, by the way.

1019
00:47:40.935 –> 00:47:45.085
Allow your own benefit to grow and then switch on over.

1020
00:47:45.835 –> 00:47:48.845
Alright? So they really are, um,

1021
00:47:50.245 –> 00:47:51.445
I don’t wanna say catering to,

1022
00:47:51.445 –> 00:47:53.085
that’s absolutely not the right word,

1023
00:47:53.145 –> 00:47:55.925
but they’re, they’re, they’re, um, they’re considerate.

1024
00:47:55.925 –> 00:47:57.005
Thank you Bill. Appreciate you.

1025
00:47:57.155 –> 00:48:00.285
They’re considerate of a survivor in terms of allowing them

1026
00:48:00.285 –> 00:48:03.965
to choose the path that will benefit them the most from a,

1027
00:48:04.105 –> 00:48:06.005
uh, from a widow survivor benefit standpoint.

1028
00:48:06.125 –> 00:48:09.285
Next slide. So again, here’s a pictorial example.

1029
00:48:09.295 –> 00:48:12.005
Going back to Sue and Sam as a household.

1030
00:48:12.035 –> 00:48:15.125
They’re collecting the $3,000 plus again,

1031
00:48:15.145 –> 00:48:18.485
one individual passes away, you surrender the lower benefit

1032
00:48:18.985 –> 00:48:20.285
and step up to the higher benefit.

1033
00:48:20.385 –> 00:48:24.125
My biggest question for all the seminars that I do is

1034
00:48:24.225 –> 00:48:26.005
how would retirement be different for you

1035
00:48:27.385 –> 00:48:29.045
if you only have one social security check?

1036
00:48:29.495 –> 00:48:31.605
Right? That could be, that could be very, very impactful

1037
00:48:31.705 –> 00:48:33.765
for a lot, a lot of individuals along those lines.

1038
00:48:33.955 –> 00:48:35.285
Okay, next slide please.

1039
00:48:36.465 –> 00:48:38.885
So I am not a CPA full disclosure,

1040
00:48:39.225 –> 00:48:41.445
and Bill alluded this to this a little bit as well too,

1041
00:48:41.445 –> 00:48:44.525
but it is possible for a portion

1042
00:48:45.345 –> 00:48:47.645
of your social security benefits to be taxable.

1043
00:48:48.385 –> 00:48:51.405
Now, I’ve been doing this presentation for over 50

1044
00:48:51.425 –> 00:48:52.525
and maybe close to 20 years.

1045
00:48:52.525 –> 00:48:54.965
I’ve been in the business for 26, 27 years or so,

1046
00:48:55.345 –> 00:48:58.085
and I am mind boggled over the fact

1047
00:48:58.085 –> 00:48:59.485
that there’s been a lot of inflation.

1048
00:49:00.355 –> 00:49:03.365
This, as these two fine gentlemen talked a little bit about.

1049
00:49:03.425 –> 00:49:05.325
But these numbers have not changed

1050
00:49:05.905 –> 00:49:09.325
and I think they’re dangerously low just by humble opinion.

1051
00:49:09.665 –> 00:49:11.645
But that being said, if you’re a single tax file

1052
00:49:11.645 –> 00:49:14.525
and making over $34,000 combined income,

1053
00:49:15.075 –> 00:49:16.645
your social security benefits could be taxable.

1054
00:49:16.645 –> 00:49:21.405
85% in married filing jointly it’s over 44,000

1055
00:49:21.585 –> 00:49:22.805
in combined income.

1056
00:49:22.985 –> 00:49:26.005
By definition, it’s kind of written in the, in the, in the,

1057
00:49:26.005 –> 00:49:27.805
in the parentheses here, it might be challenging for you

1058
00:49:27.805 –> 00:49:30.285
to see, but it’s your modified adjusted gross income

1059
00:49:30.875 –> 00:49:34.445
plus half of your social security benefits,

1060
00:49:34.555 –> 00:49:36.525
plus any non-taxable interest

1061
00:49:36.525 –> 00:49:38.565
that you might earn in municipal securities

1062
00:49:38.565 –> 00:49:40.085
for a brokerage account, et cetera.

1063
00:49:40.715 –> 00:49:43.565
That is the formula that could perhaps put you into those

1064
00:49:43.735 –> 00:49:46.205
tiers and you have a portion

1065
00:49:46.225 –> 00:49:48.125
of your social security benefits be taxable.

1066
00:49:48.415 –> 00:49:50.645
Again, just something to be cognizant of along those lines.

1067
00:49:50.715 –> 00:49:52.765
Next slide please. So again, the role

1068
00:49:52.765 –> 00:49:54.285
of social security in your overall plan.

1069
00:49:54.285 –> 00:49:56.885
Next slide again, social security was never meant

1070
00:49:56.885 –> 00:49:59.205
to be one sole source of retirement income,

1071
00:49:59.205 –> 00:50:01.685
but for many individuals it absolutely is.

1072
00:50:02.055 –> 00:50:04.645
We’re kind of fostering in, you know, other assets

1073
00:50:04.715 –> 00:50:06.325
with respect to a 401k

1074
00:50:06.745 –> 00:50:09.045
or brokerage account assets, et cetera, et cetera.

1075
00:50:09.245 –> 00:50:12.365
I passionately believe every single one of us, okay,

1076
00:50:12.365 –> 00:50:15.845
we don’t retire off of the, um, off

1077
00:50:15.845 –> 00:50:17.325
of the assets that we’ve accumulated.

1078
00:50:17.345 –> 00:50:19.765
We retire off the income that those assets can generate

1079
00:50:19.945 –> 00:50:22.805
for us and really having that plan in place

1080
00:50:22.865 –> 00:50:24.845
to be intentional with your expenses.

1081
00:50:25.825 –> 00:50:28.525
Um, food, travel, leisure, shelter, healthcare,

1082
00:50:28.525 –> 00:50:30.605
which we’ll talk about next, if you would be gracious enough

1083
00:50:30.605 –> 00:50:31.845
to migrate over to the next one

1084
00:50:31.845 –> 00:50:33.085
for healthcare, the next tab.

1085
00:50:33.255 –> 00:50:36.205
Thank you Chris. Um, as we migrate into healthcare,

1086
00:50:36.395 –> 00:50:39.085
that is going to be a fairly large expense.

1087
00:50:39.085 –> 00:50:40.565
So we’re gonna transition at this time.

1088
00:50:41.275 –> 00:50:45.085
Well, how we doing on time? Doing okay. So, okay, super.

1089
00:50:45.865 –> 00:50:48.485
Um, so again, making the transition here.

1090
00:50:48.485 –> 00:50:51.085
Social security, very situational in nature, right?

1091
00:50:51.115 –> 00:50:53.725
Everybody’s got a story we can help you put

1092
00:50:53.885 –> 00:50:55.085
together a plan in that regard.

1093
00:50:55.685 –> 00:50:58.205
Medicare is the, you know,

1094
00:50:58.225 –> 00:51:00.045
the 800 pound gorilla in the corner of the room

1095
00:51:00.045 –> 00:51:01.365
that nobody wants to talk about.

1096
00:51:01.385 –> 00:51:04.405
And I joke with people, when you become Medicare eligible,

1097
00:51:04.865 –> 00:51:07.765
you’re gonna get a pallet delivered to your front door

1098
00:51:07.765 –> 00:51:10.365
that’s got a whole host of def information on out there.

1099
00:51:10.475 –> 00:51:12.285
Love that. You laugh at my jokes. This is beautiful.

1100
00:51:12.825 –> 00:51:16.085
Um, and it’s how do we wade through all the information

1101
00:51:16.145 –> 00:51:17.445
and data that’s on out there.

1102
00:51:17.585 –> 00:51:20.965
So, next slide, as we talk about the agenda, well,

1103
00:51:20.965 –> 00:51:22.245
healthcare continues to be your concern.

1104
00:51:22.325 –> 00:51:23.565
I think we know that. We’ll skip on over

1105
00:51:23.565 –> 00:51:24.765
that just for the emphasis of time.

1106
00:51:25.115 –> 00:51:26.125
This is important though.

1107
00:51:26.635 –> 00:51:29.405
When you take a look at the price tag, dare I say,

1108
00:51:29.405 –> 00:51:31.765
that’s on healthcare, it’s expected

1109
00:51:31.765 –> 00:51:35.245
that out-of-pocket healthcare costs for a 65-year-old couple

1110
00:51:35.865 –> 00:51:38.405
can exceed a couple hundred thousand dollars

1111
00:51:39.395 –> 00:51:40.445
through retirement.

1112
00:51:40.465 –> 00:51:42.045
And I know that’s a big number,

1113
00:51:42.185 –> 00:51:44.925
but take, just take comfort in the fact

1114
00:51:44.925 –> 00:51:47.565
that many people have navigated these waters before you

1115
00:51:48.265 –> 00:51:50.725
and many people are gonna navigate these waters after you.

1116
00:51:50.725 –> 00:51:52.125
Alright? I know that’s a big number,

1117
00:51:52.185 –> 00:51:55.525
but I passionately believe we can make it through, you know,

1118
00:51:55.525 –> 00:51:57.405
this cost and this expense with a little bit

1119
00:51:57.405 –> 00:51:58.485
of help and a little bit of guidance.

1120
00:51:58.905 –> 00:52:00.925
And that’s my goal here tonight. So next slide.

1121
00:52:00.925 –> 00:52:02.325
So we’re gonna talk about, look,

1122
00:52:02.635 –> 00:52:04.285
your out-of-pocket costs may vary.

1123
00:52:04.495 –> 00:52:06.805
Again, age in retirement, years in retirement,

1124
00:52:06.805 –> 00:52:08.485
general health, probably no surprise.

1125
00:52:09.225 –> 00:52:11.605
And how, how, what’s your, you know,

1126
00:52:11.605 –> 00:52:12.845
level of risk, if you will.

1127
00:52:12.845 –> 00:52:14.245
And as you’ll see as we go through this,

1128
00:52:14.245 –> 00:52:15.805
there’s two traditional options

1129
00:52:15.805 –> 00:52:18.645
or true traditional paths, if you will,

1130
00:52:18.645 –> 00:52:20.325
when you’re making your Medicare decision.

1131
00:52:20.985 –> 00:52:23.485
One has a little bit more risk than the other.

1132
00:52:23.505 –> 00:52:25.605
And we’ll talk about that as we, as we go through.

1133
00:52:26.745 –> 00:52:28.525
So here we go. This is, I was getting ahead

1134
00:52:28.525 –> 00:52:29.605
of myself, Chris, forgive me.

1135
00:52:29.645 –> 00:52:31.045
I was getting to this agenda slide.

1136
00:52:31.045 –> 00:52:33.645
So we’re gonna talk about Medicare estimating your annual

1137
00:52:33.735 –> 00:52:35.925
costs, taking stock of funding resources,

1138
00:52:35.925 –> 00:52:37.645
and again, creating a plan.

1139
00:52:37.645 –> 00:52:39.725
Keep going. Alright, so here we go.

1140
00:52:41.435 –> 00:52:45.205
Part A of Medicare covers your hospital insurance.

1141
00:52:45.435 –> 00:52:48.045
Alright, so this is inpatient hospitalization,

1142
00:52:48.045 –> 00:52:49.565
skilled nursing facilities,

1143
00:52:49.565 –> 00:52:51.165
home healthcare, hospice, et cetera.

1144
00:52:51.785 –> 00:52:53.045
As we’ll see, there’s no monthly

1145
00:52:53.145 –> 00:52:57.725
or annual premium with respect to part A of Medicare.

1146
00:52:58.155 –> 00:53:01.965
Your greatest financial risk is in elongated hospital stay.

1147
00:53:02.995 –> 00:53:06.005
Part B of Medicare covers your medical insurance. All right?

1148
00:53:06.025 –> 00:53:09.325
So that’s, um, uh, you know, durable medical equipment,

1149
00:53:09.325 –> 00:53:10.965
outpatient services, your ability

1150
00:53:10.965 –> 00:53:12.605
to see your doctor on a routine basis,

1151
00:53:12.605 –> 00:53:14.885
preventative benefits, things along those lines.

1152
00:53:15.705 –> 00:53:18.925
You will see that part B of Medicare does come with a,

1153
00:53:19.115 –> 00:53:20.845
with a premium and we’ll talk about that.

1154
00:53:20.915 –> 00:53:22.885
Alright? Part D,

1155
00:53:23.105 –> 00:53:25.525
the easiest way I’ve remembered this is part D is for drugs,

1156
00:53:25.885 –> 00:53:27.085
D is for drugs, okay?

1157
00:53:27.665 –> 00:53:30.885
And then you have supplemental plans that you can purchase

1158
00:53:30.985 –> 00:53:33.805
as well as Medicare advantage plans or part C.

1159
00:53:34.305 –> 00:53:36.965
Um, also synonymous in nature. So next slide please.

1160
00:53:37.865 –> 00:53:40.325
So getting into this a little bit deeper, again,

1161
00:53:40.365 –> 00:53:43.045
I just mentioned there’s no annual

1162
00:53:43.305 –> 00:53:45.565
or monthly premium with respect to Part A.

1163
00:53:45.565 –> 00:53:48.445
Your greatest financial risk is an elongated hospital stay.

1164
00:53:48.465 –> 00:53:51.965
So there’s a $1,600 deductible round figures

1165
00:53:52.825 –> 00:53:57.285
for each 60 day stay in a hospital, okay?

1166
00:53:57.865 –> 00:54:01.045
And your Costco up against 61 to 90, 91 to one 50.

1167
00:54:01.045 –> 00:54:04.165
And then day one 50, we bear all costs.

1168
00:54:04.505 –> 00:54:06.845
That’s a hundred percent on us, right?

1169
00:54:06.865 –> 00:54:10.845
And we cover roughly the first 21, you know, days in a, um,

1170
00:54:10.865 –> 00:54:12.605
in a skilled nursing facility as well too.

1171
00:54:13.505 –> 00:54:17.365
So this is, if you are physically admitted to the hospital,

1172
00:54:17.835 –> 00:54:19.525
I’ve been to far too many seminars,

1173
00:54:19.545 –> 00:54:21.845
far too many conversations with individuals such

1174
00:54:21.845 –> 00:54:23.485
as yourself, you come up to me afterwards

1175
00:54:23.485 –> 00:54:25.285
and say, you know what, I was on Medicare,

1176
00:54:26.085 –> 00:54:29.045
I was hospitalized, I was there for greater than 24 hours

1177
00:54:29.065 –> 00:54:31.885
and I got a massive bill in the mail.

1178
00:54:32.465 –> 00:54:34.975
Why? The reason why is

1179
00:54:34.975 –> 00:54:37.695
because you are quote unquote held for observation

1180
00:54:38.675 –> 00:54:41.895
and not physically admitted to the hospital.

1181
00:54:42.875 –> 00:54:45.735
So literally ask the question, if you’re on Medicare

1182
00:54:45.835 –> 00:54:48.735
and you go to the hospital in the admitting office,

1183
00:54:48.915 –> 00:54:50.975
ask them, are you admitting me

1184
00:54:51.635 –> 00:54:53.495
or are you holding me for observation?

1185
00:54:53.495 –> 00:54:55.655
Because if you’re being held for observation, that falls

1186
00:54:55.655 –> 00:54:57.255
underneath Medicare Part B,

1187
00:54:58.145 –> 00:54:59.735
which we’re gonna talk about next, please.

1188
00:55:01.285 –> 00:55:02.855
Part B of medical insurance,

1189
00:55:02.905 –> 00:55:05.615
again covers durable medical equipment, your ability

1190
00:55:05.615 –> 00:55:07.215
to see your doctor on a routine basis,

1191
00:55:07.755 –> 00:55:12.695
but 20% co-insurance, co meaning we share in that cost.

1192
00:55:13.355 –> 00:55:15.335
So again, if you have an outpatient care,

1193
00:55:15.365 –> 00:55:17.095
your health observation,

1194
00:55:17.555 –> 00:55:19.695
you have a substantial bill from the hospital,

1195
00:55:20.105 –> 00:55:22.455
we’re on the hook for 20%, right?

1196
00:55:22.455 –> 00:55:24.215
So that’s important to know along those lines.

1197
00:55:24.315 –> 00:55:27.655
But the biggest element of part B of Medicare

1198
00:55:28.435 –> 00:55:29.695
is your monthly premium.

1199
00:55:30.325 –> 00:55:34.175
Okay? So for a, a single tax filer, 2025

1200
00:55:35.155 –> 00:55:39.655
new enrollees to Medicare making $106,000 or less,

1201
00:55:39.675 –> 00:55:41.215
or $212,000

1202
00:55:41.235 –> 00:55:44.535
or less, you’re paying $185 per month per person.

1203
00:55:45.215 –> 00:55:48.945
Alright? And then you also, for high wage earners,

1204
00:55:49.005 –> 00:55:52.785
you have what’s called the Irma Lovely hurricane on Irma,

1205
00:55:52.785 –> 00:55:57.025
if you will, the income related monthly adjustment.

1206
00:55:57.575 –> 00:56:02.545
Okay? So if you are a high income earner, it is possible

1207
00:56:02.545 –> 00:56:03.785
that as you migrate

1208
00:56:03.785 –> 00:56:05.785
or transition through retirement,

1209
00:56:06.245 –> 00:56:09.425
you can possibly pay a much higher Medicare Part B

1210
00:56:10.015 –> 00:56:11.425
premium along those lines.

1211
00:56:12.175 –> 00:56:14.145
Okay? And by the way, when you file,

1212
00:56:15.175 –> 00:56:17.955
or excuse me, when you enroll in Medicare,

1213
00:56:18.585 –> 00:56:20.395
they are looking at your tax returns

1214
00:56:20.465 –> 00:56:21.755
from the last two years.

1215
00:56:22.385 –> 00:56:25.925
Okay? Now I’ll, I’ll say it’s not the two years combined,

1216
00:56:25.925 –> 00:56:27.325
please no misunderstands,

1217
00:56:27.325 –> 00:56:29.725
but if you’re enrolling for Medicare in 2025,

1218
00:56:30.035 –> 00:56:32.605
they’re looking at your tax returns from 2023.

1219
00:56:33.155 –> 00:56:36.125
Alright? Just because of how the tax filing deadlines work,

1220
00:56:36.395 –> 00:56:39.325
they’re looking at your tax returns from two years prior

1221
00:56:39.835 –> 00:56:41.685
when you approach retirement

1222
00:56:41.945 –> 00:56:44.765
or when you reapproach your, uh, enrollment, excuse me,

1223
00:56:45.145 –> 00:56:46.645
in Medicare Part B.

1224
00:56:47.155 –> 00:56:51.885
Alright? So important to note here that if you do not enroll

1225
00:56:52.505 –> 00:56:53.725
in part B when you

1226
00:56:53.725 –> 00:56:56.405
otherwise should, there’s a very substantial

1227
00:56:56.405 –> 00:56:57.485
penalty along those lines.

1228
00:56:58.305 –> 00:57:02.125
So for example, you know, me and Kristen we’re 65 years old.

1229
00:57:02.895 –> 00:57:04.285
We’re in relatively good health.

1230
00:57:04.345 –> 00:57:06.325
We don’t see our doctor on a routine basis.

1231
00:57:07.065 –> 00:57:11.245
We retire at 65 and we self-insure for say, three years.

1232
00:57:12.075 –> 00:57:14.805
Okay? At 68, our health is starting to go downhill.

1233
00:57:14.805 –> 00:57:16.925
We wanna see our doctor on a more routine basis.

1234
00:57:16.945 –> 00:57:20.405
At that time is when we enroll in part B,

1235
00:57:21.075 –> 00:57:24.205
because we self-insured for those three years, we have

1236
00:57:24.205 –> 00:57:27.005
to pay a 10% cumulative

1237
00:57:27.635 –> 00:57:30.365
premium penalty for the rest of our life.

1238
00:57:31.345 –> 00:57:34.645
So 10 we 10% cumulative. So we self-insured for three years.

1239
00:57:35.305 –> 00:57:38.125
So we’d essentially pay a 30% premium

1240
00:57:38.785 –> 00:57:42.525
on the $185 in whatever it adjusts

1241
00:57:42.525 –> 00:57:44.845
to on an annual basis going forward for life.

1242
00:57:45.905 –> 00:57:50.045
So you can have a scenario where, say Kristen goes ahead

1243
00:57:50.045 –> 00:57:51.445
and she separates from service,

1244
00:57:52.105 –> 00:57:54.085
but I’m the one that’s carrying the insurance.

1245
00:57:54.365 –> 00:57:56.605
I still work at Lincoln, okay?

1246
00:57:56.605 –> 00:57:59.085
When she separates from service, there’s no penalty,

1247
00:57:59.875 –> 00:58:02.285
none whatsoever, because she has credible coverage

1248
00:58:02.285 –> 00:58:03.885
through me at Lincoln.

1249
00:58:04.625 –> 00:58:07.645
But when I separate from service, I want to make

1250
00:58:08.165 –> 00:58:12.165
absolutely certain that not only my enrollment date,

1251
00:58:12.165 –> 00:58:16.485
but also Kristen’s enrollment date marries up with the day

1252
00:58:16.485 –> 00:58:18.285
that I’m going to lose coverage.

1253
00:58:18.395 –> 00:58:19.605
Everybody follow me on that?

1254
00:58:19.605 –> 00:58:20.925
That’s how you do not have

1255
00:58:20.925 –> 00:58:23.005
to pay the penalty along those lines.

1256
00:58:23.795 –> 00:58:25.125
Last thing I’ll mention with respect

1257
00:58:25.125 –> 00:58:27.085
to Part B is you could be approaching

1258
00:58:27.085 –> 00:58:29.085
retirement saying, you know what?

1259
00:58:29.565 –> 00:58:31.165
I still have a mortgage left on the house,

1260
00:58:31.225 –> 00:58:32.245
or I want to go ahead and buy

1261
00:58:32.245 –> 00:58:33.685
that Corvette or what have you.

1262
00:58:34.105 –> 00:58:35.885
I’m gonna go ahead and take a liquidation out

1263
00:58:35.885 –> 00:58:37.685
of my retirement account or what have you.

1264
00:58:38.285 –> 00:58:40.645
’cause I just want to eliminate that, uh, that cost

1265
00:58:41.235 –> 00:58:42.285
from my balance sheet.

1266
00:58:42.395 –> 00:58:44.765
Alright, that might sound great in theory,

1267
00:58:45.425 –> 00:58:47.645
but in practice, just being cognizant of what

1268
00:58:47.645 –> 00:58:51.805
that liquidation might do to possibly boost you into

1269
00:58:52.445 –> 00:58:55.525
a higher tier, forcing you to pay

1270
00:58:56.245 –> 00:58:59.325
a higher Medicare part B premium for a year

1271
00:58:59.325 –> 00:59:01.085
or two until you cascade down

1272
00:59:01.585 –> 00:59:02.605
or cascade up,

1273
00:59:02.685 –> 00:59:04.085
I guess I should say this

1274
00:59:04.085 –> 00:59:05.325
chart if everybody follows me on that.

1275
00:59:05.345 –> 00:59:06.565
So just be cognizant

1276
00:59:06.565 –> 00:59:07.805
and aware of

1277
00:59:07.805 –> 00:59:10.845
what your income is when you’re approaching retirement.

1278
00:59:10.845 –> 00:59:13.685
Next slide. So part D again is for drugs.

1279
00:59:13.785 –> 00:59:18.005
We have a similar, um, part D premium as well too

1280
00:59:18.065 –> 00:59:20.085
for new enrollees in 2025.

1281
00:59:20.115 –> 00:59:24.005
It’s $35 per month. Excuse me.

1282
00:59:24.025 –> 00:59:25.205
We have our Irma,

1283
00:59:25.225 –> 00:59:28.165
our income related monthly adjustment here as well too.

1284
00:59:28.745 –> 00:59:31.205
So just be cognizant, uh, of that along those lines.

1285
00:59:31.235 –> 00:59:33.125
Next slide. Alright,

1286
00:59:33.145 –> 00:59:35.245
so I mentioned there’s two traditional options

1287
00:59:35.265 –> 00:59:37.045
or two traditional paths, if you will,

1288
00:59:37.045 –> 00:59:39.205
when you’re making your Medicare decision.

1289
00:59:40.185 –> 00:59:43.845
The lion’s share of people focus on the left hand side, uh,

1290
00:59:44.085 –> 00:59:46.245
o of this presentation here in terms of choosing

1291
00:59:47.285 –> 00:59:49.325
original Medicare, where you have A

1292
00:59:49.325 –> 00:59:52.165
and B part D as well as a supplemental plan

1293
00:59:52.165 –> 00:59:54.605
or a Medigap policy, if you will.

1294
00:59:54.835 –> 00:59:56.045
Alright, there’s a portion,

1295
00:59:56.245 –> 01:00:00.605
I think I wanna say at the last time I looked at about 75 25

1296
01:00:01.105 –> 01:00:02.485
making the choice over here.

1297
01:00:02.485 –> 01:00:03.965
Alright? And you can choose, go back

1298
01:00:03.965 –> 01:00:05.605
and forth, et cetera, as we’ll talk about deeper

1299
01:00:05.635 –> 01:00:07.045
with respect to open enrollment.

1300
01:00:07.545 –> 01:00:10.085
But Medicare advantage plans Part C.

1301
01:00:10.335 –> 01:00:14.445
These are usually the plans that you see on, you know,

1302
01:00:14.445 –> 01:00:15.685
television from the sports.

1303
01:00:15.905 –> 01:00:17.245
Uh, you know, folks, in terms

1304
01:00:17.245 –> 01:00:20.325
of these Medicare Advantage plans, most have A

1305
01:00:20.325 –> 01:00:22.845
and B, most this is available with

1306
01:00:22.845 –> 01:00:24.925
and without prescription drug coverage.

1307
01:00:25.205 –> 01:00:29.885
I have not seen a part C Medicare advantage plan

1308
01:00:29.885 –> 01:00:33.245
that does not have a Part D plan

1309
01:00:33.265 –> 01:00:35.845
or prescription drug plan associated with it.

1310
01:00:36.065 –> 01:00:38.285
All right? But more often than not, these part C

1311
01:00:38.285 –> 01:00:43.165
or Medicare Advantage plans are very, very low, if not no

1312
01:00:43.715 –> 01:00:47.925
premium, but a much higher deductible, um, on the

1313
01:00:47.925 –> 01:00:49.085
outside of the equation.

1314
01:00:49.265 –> 01:00:51.885
So when the beginning of the presentation was talking about,

1315
01:00:52.015 –> 01:00:54.965
bless you, you know, what’s your level of risk,

1316
01:00:55.025 –> 01:00:57.285
what’s your comfort level of risk, along those lines,

1317
01:00:57.905 –> 01:01:01.645
you will absolutely pay more in premium

1318
01:01:02.265 –> 01:01:04.765
for the left hand side of this equation with the knowledge

1319
01:01:04.765 –> 01:01:06.685
and expectation that if you need care,

1320
01:01:07.405 –> 01:01:08.805
Medicare is gonna be there and they’re gonna cover you.

1321
01:01:09.235 –> 01:01:13.365
Okay? The right hand side, your mentality is I’ll take care

1322
01:01:13.385 –> 01:01:16.485
of the, the expense when I need it

1323
01:01:16.545 –> 01:01:18.165
or if I need it, type of deal, right?

1324
01:01:18.165 –> 01:01:21.445
There’s a very, very small difference between the two,

1325
01:01:21.465 –> 01:01:23.245
but there’s, there’s absolutely a difference.

1326
01:01:23.555 –> 01:01:24.605
Okay, next slide.

1327
01:01:25.865 –> 01:01:27.925
So again, here’s just showing you a host

1328
01:01:27.945 –> 01:01:30.725
of different supplemental plans that are on out there.

1329
01:01:31.305 –> 01:01:35.085
Um, again, I joked somewhat serious, somewhat not.

1330
01:01:35.465 –> 01:01:37.685
Um, when you become Medicare eligible,

1331
01:01:37.685 –> 01:01:38.685
you’re gonna get a pallet

1332
01:01:39.025 –> 01:01:41.005
and get a whole host of stuff that’s on out there.

1333
01:01:41.065 –> 01:01:45.205
And I feel as though what individuals receive is a lot

1334
01:01:45.205 –> 01:01:47.485
of information on these different supplemental plants.

1335
01:01:48.225 –> 01:01:50.085
And as if, you know, we couldn’t make it

1336
01:01:50.085 –> 01:01:53.285
that more complicated and complex where we talk about part A

1337
01:01:53.385 –> 01:01:54.605
and part B

1338
01:01:54.605 –> 01:01:58.125
and part D, when you’re looking at supplemental plans,

1339
01:01:58.905 –> 01:02:02.725
it goes by plan A, plan B, plan D.

1340
01:02:02.725 –> 01:02:05.485
Again, don’t shoot the messenger, I apologize, uh,

1341
01:02:05.485 –> 01:02:07.005
but this is kind of alphabet two.

1342
01:02:07.665 –> 01:02:09.925
But when you’re shopping for a supplemental plan,

1343
01:02:09.945 –> 01:02:13.765
you just wanna make certain that you are comparing apples

1344
01:02:13.765 –> 01:02:15.485
to apples, not apples to oranges.

1345
01:02:16.065 –> 01:02:18.845
And what I usually, you know, advise

1346
01:02:18.865 –> 01:02:20.405
or suggest people do

1347
01:02:21.105 –> 01:02:24.005
is you’re seeing all the different Medigap benefits

1348
01:02:24.005 –> 01:02:26.325
that are available, like part B co-insurance

1349
01:02:26.465 –> 01:02:27.765
and different deductibles

1350
01:02:27.825 –> 01:02:30.285
and, you know, pints of blood and all that stuff, right?

1351
01:02:30.385 –> 01:02:34.165
You choose the supplemental plan that’s right for you.

1352
01:02:35.475 –> 01:02:37.485
Then you choose the provider

1353
01:02:38.075 –> 01:02:40.885
that charges you the lowest cost or the lowest premium

1354
01:02:41.275 –> 01:02:43.005
because they all have to cover you

1355
01:02:43.005 –> 01:02:45.045
with the exact same amount, right?

1356
01:02:45.045 –> 01:02:48.485
All these plans are showing you do they cover that benefit,

1357
01:02:48.865 –> 01:02:52.285
yes or no, or up to a certain percentage.

1358
01:02:52.715 –> 01:02:54.845
Everybody follow me on that, is kind of like shopping

1359
01:02:54.865 –> 01:02:56.685
for car insurance along those lines.

1360
01:02:56.785 –> 01:02:58.765
How much collision and all that stuff do you want

1361
01:02:59.375 –> 01:03:00.565
along those lines, right?

1362
01:03:01.475 –> 01:03:03.965
They all have to cover you, yes or no,

1363
01:03:03.965 –> 01:03:05.365
or up to the same percentage,

1364
01:03:05.745 –> 01:03:08.845
but they charge you different premiums for the exact

1365
01:03:09.355 –> 01:03:10.485
same coverage.

1366
01:03:11.185 –> 01:03:13.405
So again, I’m sure you wanna have a reputable company

1367
01:03:13.545 –> 01:03:14.965
and carrier along those lines.

1368
01:03:14.965 –> 01:03:18.525
Again, I’m not, I I’m kind of a, you know, 30,000 foot view.

1369
01:03:18.605 –> 01:03:20.605
I know a lot in that regard to go deeper.

1370
01:03:20.615 –> 01:03:23.125
There are some resources that I’ll shared with you

1371
01:03:23.125 –> 01:03:26.525
that can help you choose the right supplemental plan or,

1372
01:03:26.545 –> 01:03:28.165
or part D plan, et cetera.

1373
01:03:28.165 –> 01:03:30.605
That’s not me. I have enough knowledge to help.

1374
01:03:31.185 –> 01:03:33.965
Um, but that’s what I usually coach people along those lines

1375
01:03:33.965 –> 01:03:34.965
with supplemental plans.

1376
01:03:35.075 –> 01:03:39.485
Next slide. So again, part C Medicare advantage plans

1377
01:03:40.145 –> 01:03:41.965
are usually the biggest Got you

1378
01:03:42.305 –> 01:03:45.645
or gotcha with respect to a Part C

1379
01:03:45.665 –> 01:03:48.285
or Medicare Advantage Plan is right here.

1380
01:03:49.585 –> 01:03:51.295
Costs may increase for out

1381
01:03:51.295 –> 01:03:53.815
of network doctors if you’re on a Medicare Advantage

1382
01:03:53.885 –> 01:03:55.095
plan or a part C plan.

1383
01:03:55.205 –> 01:03:58.055
Usually you need to stay within a certain specific network

1384
01:03:58.635 –> 01:04:00.015
of doctors along those lines.

1385
01:04:00.035 –> 01:04:02.455
And again, usually these are very, very low,

1386
01:04:02.635 –> 01:04:05.295
if not no premiums.

1387
01:04:05.795 –> 01:04:08.655
But if you have an incident episode, et cetera,

1388
01:04:08.655 –> 01:04:09.695
you’re out of pocket.

1389
01:04:09.925 –> 01:04:11.655
Your deductibles are usually eight,

1390
01:04:11.675 –> 01:04:14.575
$10,000 plus along those lines.

1391
01:04:14.925 –> 01:04:16.455
Okay, next slide please.

1392
01:04:17.435 –> 01:04:19.015
So again, which one is right for you?

1393
01:04:19.015 –> 01:04:20.255
This is kind of breaking it down.

1394
01:04:20.275 –> 01:04:22.095
If you wanna take a picture, we can send it out

1395
01:04:22.115 –> 01:04:23.455
to you, uh, to you afterwards.

1396
01:04:23.835 –> 01:04:25.455
Uh, kind of a summation of what we talked about.

1397
01:04:25.585 –> 01:04:29.855
Again, original Medicare, uh, may have higher premiums, uh,

1398
01:04:29.855 –> 01:04:30.975
freedom to choose doctors

1399
01:04:31.445 –> 01:04:33.175
covered anywhere in the United States.

1400
01:04:33.795 –> 01:04:37.495
Um, but again, Medicare Advantage plans may be restricted

1401
01:04:37.495 –> 01:04:39.695
to a, to a certain specific network, is,

1402
01:04:39.795 –> 01:04:40.855
is really the high point there.

1403
01:04:40.925 –> 01:04:44.015
Next slide. So, again, questions to weigh.

1404
01:04:44.305 –> 01:04:47.255
Again, I think the, the biggest question with respect

1405
01:04:47.495 –> 01:04:50.815
to choosing which path is right for you is, is it important

1406
01:04:50.875 –> 01:04:54.455
for you to continue re uh, seeing your same physician?

1407
01:04:54.955 –> 01:04:56.175
And again, it’s my experience.

1408
01:04:56.175 –> 01:04:59.415
If someone has, uh, some type of cancer or diabetes

1409
01:04:59.435 –> 01:05:01.895
or something along those lines, your ability for care

1410
01:05:02.555 –> 01:05:04.935
and expansion of, of coverage, if you will,

1411
01:05:04.995 –> 01:05:06.815
is usually a little bit better if you

1412
01:05:06.815 –> 01:05:08.535
choose original Medicare.

1413
01:05:08.685 –> 01:05:09.855
It’s just been my experience,

1414
01:05:09.925 –> 01:05:12.815
what I’ve heard from folks coming to seminars, et cetera.

1415
01:05:13.365 –> 01:05:17.095
Next slide. So creating a healthcare plan,

1416
01:05:17.125 –> 01:05:19.765
when you take a look at the cost, the earliest,

1417
01:05:20.005 –> 01:05:22.245
earliest slide talked about the out-of-pocket cost is a

1418
01:05:22.245 –> 01:05:23.285
couple hundred thousand dollars.

1419
01:05:24.085 –> 01:05:27.645
Breaking it down again, there’s zero, uh, monthly

1420
01:05:27.905 –> 01:05:30.365
or annual premium with respect to part A.

1421
01:05:30.835 –> 01:05:32.845
Okay? Again, your greatest financial risk is an

1422
01:05:32.845 –> 01:05:33.885
elongated hospital stay.

1423
01:05:34.825 –> 01:05:37.565
I’m assuming that we’re in the first tier from a Medicare

1424
01:05:37.595 –> 01:05:42.245
Part B standpoint, co-insurance covered by by Medigap plan.

1425
01:05:43.355 –> 01:05:44.725
Part D, one of the things I didn’t

1426
01:05:44.725 –> 01:05:45.805
mention, I’ll do so briefly.

1427
01:05:46.025 –> 01:05:48.645
Now, with respect to Part D and prescription drug costs.

1428
01:05:48.755 –> 01:05:51.885
This has changed rapidly over the last five

1429
01:05:51.905 –> 01:05:54.205
or so years with the Affordable Care Act.

1430
01:05:54.555 –> 01:05:56.405
They eliminated the donut hole.

1431
01:05:56.735 –> 01:05:58.125
There was essentially an,

1432
01:05:58.185 –> 01:06:01.405
an area within your out-of-pocket prescription drug costs

1433
01:06:01.405 –> 01:06:03.965
that were strictly born by the beneficiary,

1434
01:06:04.065 –> 01:06:05.325
us the individuals.

1435
01:06:05.785 –> 01:06:07.405
And that has changed over time.

1436
01:06:07.465 –> 01:06:11.205
And now the new rules are there’s an out-of-pocket maximum

1437
01:06:11.265 –> 01:06:14.805
of $2,000, which is phenomenal by the way,

1438
01:06:14.805 –> 01:06:16.885
because I, the, the amount of inflation

1439
01:06:16.995 –> 01:06:20.685
that I have seen in prescription drug costs, it’s bananas.

1440
01:06:21.065 –> 01:06:25.285
So having a cap of $2,000 is substantial in a good way.

1441
01:06:26.225 –> 01:06:29.765
Uh, looking at the average cost of a Medigap plan, plan G,

1442
01:06:30.435 –> 01:06:32.085
when you add everything on up, it’s

1443
01:06:32.085 –> 01:06:35.685
around $6,000 per person, about $12,000 per couple.

1444
01:06:36.225 –> 01:06:40.445
You multiply that on out by 20, 25, 30 years plus inflation,

1445
01:06:41.025 –> 01:06:42.605
that’s where they’re getting the estimates

1446
01:06:42.605 –> 01:06:44.605
of a couple hundred thousand dollars, et cetera, et cetera.

1447
01:06:44.605 –> 01:06:46.805
Next slide please. Again,

1448
01:06:46.805 –> 01:06:48.325
taking stock of your funding sources.

1449
01:06:48.565 –> 01:06:50.405
I kind of talk about this before with respect

1450
01:06:50.405 –> 01:06:53.685
to being intentional with a budget for yourself.

1451
01:06:54.155 –> 01:06:57.005
Okay? And these fine individuals have some worksheets

1452
01:06:57.005 –> 01:06:59.725
that we can go through in terms of looking at, you know, uh,

1453
01:06:59.905 –> 01:07:01.965
you know, 50, 60 different line items.

1454
01:07:02.035 –> 01:07:03.205
Have you thought about leisure?

1455
01:07:03.275 –> 01:07:04.965
Have you thought about clothing? Have you talked about,

1456
01:07:05.025 –> 01:07:08.285
you know, excise tax, so many different areas of

1457
01:07:08.285 –> 01:07:11.965
what expenses you are going to incur in retirement.

1458
01:07:12.305 –> 01:07:15.965
And I passionately believe that healthcare should absolutely

1459
01:07:16.505 –> 01:07:18.525
be factored into, you know,

1460
01:07:18.525 –> 01:07:20.365
your essential expenses in retirement,

1461
01:07:20.545 –> 01:07:22.805
and then your layering in your social security,

1462
01:07:22.915 –> 01:07:25.325
your pension assets, et cetera, et cetera.

1463
01:07:25.585 –> 01:07:28.125
And then funding those from guaranteed sources of income.

1464
01:07:28.545 –> 01:07:31.005
And then doing, having a discretionary expense bucket here

1465
01:07:31.005 –> 01:07:32.325
is, well two next slide please.

1466
01:07:33.705 –> 01:07:35.405
All right, so we’ll continue to go with that

1467
01:07:35.785 –> 01:07:37.085
for redundancy appendix.

1468
01:07:37.085 –> 01:07:39.765
All right, next slide. So key some key

1469
01:07:39.765 –> 01:07:41.285
dates, see how we’re doing on time.

1470
01:07:41.315 –> 01:07:42.725
Perfect. Just about there.

1471
01:07:43.345 –> 01:07:46.725
Um, so you have a seven month enrollment window

1472
01:07:47.835 –> 01:07:50.245
with respect to filing for Medicare.

1473
01:07:50.395 –> 01:07:54.165
Alright? It’s three months prior to the month

1474
01:07:54.165 –> 01:07:58.405
that you turn 65, the month that you turn 65

1475
01:07:58.585 –> 01:08:00.445
and then three months after.

1476
01:08:00.755 –> 01:08:02.765
Alright? It’s my humble opinion that

1477
01:08:02.765 –> 01:08:04.525
as you’re approaching age 65,

1478
01:08:04.745 –> 01:08:07.085
unless you are actively contributing to

1479
01:08:08.325 –> 01:08:11.885
a health savings account, alright, it’s my thought

1480
01:08:11.885 –> 01:08:14.605
that you should at least enroll in part A of Medicare

1481
01:08:15.075 –> 01:08:16.605
because again, there’s no monthly

1482
01:08:16.745 –> 01:08:18.325
or annual premium along those lines.

1483
01:08:18.345 –> 01:08:20.685
At least you’re in the system, so to speak.

1484
01:08:20.685 –> 01:08:22.125
And then you can make the decision

1485
01:08:22.655 –> 01:08:25.445
based on your employer’s plan.

1486
01:08:26.795 –> 01:08:29.405
What does the premium look like if you were

1487
01:08:29.405 –> 01:08:32.125
to stay on your employer’s plan relative to

1488
01:08:33.005 –> 01:08:34.565
RPA Medicare, right?

1489
01:08:34.565 –> 01:08:36.165
You can make the decision along those lines,

1490
01:08:36.545 –> 01:08:38.885
but if your

1491
01:08:39.405 –> 01:08:41.605
employer offers a health savings account

1492
01:08:41.605 –> 01:08:44.605
that you’re actively contributing to, you cannot

1493
01:08:46.205 –> 01:08:48.325
actively contribute into that health savings account

1494
01:08:48.905 –> 01:08:50.605
and be enrolled in part A

1495
01:08:50.605 –> 01:08:53.045
of Medicare at the exact same time, right?

1496
01:08:53.045 –> 01:08:55.645
So just be cognizant of that along those lines. Okay?

1497
01:08:56.345 –> 01:08:57.565
So, and then, uh, part A

1498
01:08:57.565 –> 01:09:00.495
and B, that’s when you have that enrollment window.

1499
01:09:00.675 –> 01:09:02.935
As I mentioned, late enrollment penalty, again,

1500
01:09:02.935 –> 01:09:05.615
it’s a 10% cumulative premium penalty

1501
01:09:06.315 –> 01:09:09.575
if you do not enroll in part B when you otherwise should.

1502
01:09:09.965 –> 01:09:13.615
Very, very important. Uh, part D is very, very similar.

1503
01:09:13.755 –> 01:09:15.655
And then there’s usually open enrollment.

1504
01:09:15.655 –> 01:09:17.935
Open enrollment every single year is the same.

1505
01:09:17.935 –> 01:09:22.455
It’s October 15th to December 7th to make changes to, um,

1506
01:09:22.525 –> 01:09:24.255
your plan, your coverage, et cetera,

1507
01:09:24.435 –> 01:09:26.255
or make changes to a supplemental plan.

1508
01:09:26.675 –> 01:09:28.415
You could also be in a situation

1509
01:09:29.105 –> 01:09:31.415
where you’re relatively healthy at 65,

1510
01:09:31.515 –> 01:09:35.535
you start off on part C or a Medicare Advantage plan, right?

1511
01:09:35.535 –> 01:09:38.495
Which is usually much more cost effective.

1512
01:09:39.115 –> 01:09:42.535
And then if you start to have a decline in your health,

1513
01:09:42.595 –> 01:09:43.895
you can always migrate and pivot

1514
01:09:43.915 –> 01:09:45.975
and go on over to original Medicare as well too.

1515
01:09:46.595 –> 01:09:50.015
And you can make those changes during open enrollment. Okay?

1516
01:09:51.155 –> 01:09:53.135
Um, and then, yeah, similar to part C.

1517
01:09:53.135 –> 01:09:56.605
Next slide, I think we’ll wrap it up here with respect to,

1518
01:09:56.605 –> 01:09:59.445
again, Medicare and working beyond age 65.

1519
01:10:00.105 –> 01:10:02.165
The biggest scenario that you need to be cognizant

1520
01:10:02.165 –> 01:10:05.005
as I just mentioned, is are you actively contributing to,

1521
01:10:05.105 –> 01:10:08.445
and does your company offer a health savings account

1522
01:10:08.445 –> 01:10:09.845
that you are contributing to, yes

1523
01:10:09.845 –> 01:10:13.245
or no in terms of what path should you choose

1524
01:10:13.245 –> 01:10:14.485
and select along those lines.

1525
01:10:15.105 –> 01:10:16.845
And last thing I’ll mention, I didn’t mention this

1526
01:10:16.845 –> 01:10:20.485
with respect to social security, is when you file, um,

1527
01:10:20.505 –> 01:10:23.645
for your benefits and you’re on Medicare, let’s just assume

1528
01:10:23.645 –> 01:10:28.405
that $185 part B premium that actually gets subtracted from

1529
01:10:29.035 –> 01:10:31.165
your Social Security, uh, paycheck.

1530
01:10:31.355 –> 01:10:34.845
Alright? Just so you know, so if you happen to file

1531
01:10:34.985 –> 01:10:36.525
for benefits, um,

1532
01:10:37.185 –> 01:10:39.525
or excuse me, if you do not file

1533
01:10:39.545 –> 01:10:42.125
for your social security benefit and you decide to delay,

1534
01:10:42.745 –> 01:10:45.765
but you enroll in Medicare, then you’ll just have

1535
01:10:45.765 –> 01:10:49.405
to pay your Medicare part B premium, okay?

1536
01:10:49.465 –> 01:10:51.525
Out of pocket. Essentially they bill you quarterly,

1537
01:10:51.825 –> 01:10:54.005
and then when you enroll in Social security

1538
01:10:54.005 –> 01:10:55.525
and start collecting your benefits,

1539
01:10:55.705 –> 01:10:57.765
that’s when the Part B premium will start

1540
01:10:57.765 –> 01:11:01.165
to be subtracted from your social security benefit amount.

1541
01:11:02.025 –> 01:11:05.565
Um, last thing that I’ll mention, excuse me,

1542
01:11:06.355 –> 01:11:07.085
need a refill

1543
01:11:11.505 –> 01:11:13.645
are some resources which are

1544
01:11:13.645 –> 01:11:14.725
not listened to this presentation.

1545
01:11:15.305 –> 01:11:18.645
Um, who here is familiar with an outfit called Shine?

1546
01:11:19.915 –> 01:11:20.925
Alright, couple people.

1547
01:11:21.665 –> 01:11:25.045
So every single state has what’s called a state health

1548
01:11:25.075 –> 01:11:27.285
insurance program, okay?

1549
01:11:27.665 –> 01:11:30.925
The state health insurance program in Massachusetts is an

1550
01:11:31.165 –> 01:11:32.205
outfit called Shine.

1551
01:11:32.795 –> 01:11:34.805
It’s an acronym which stands for the following.

1552
01:11:35.235 –> 01:11:38.125
It’s serving the health information needs of everyone.

1553
01:11:38.265 –> 01:11:39.645
And they are amazing,

1554
01:11:40.305 –> 01:11:44.085
but they are absolutely growing in popularity, okay?

1555
01:11:44.185 –> 01:11:47.485
So they are usually staffed at local senior centers

1556
01:11:47.545 –> 01:11:48.565
and community centers,

1557
01:11:48.585 –> 01:11:52.045
and they are outstanding as to helping you wade

1558
01:11:52.045 –> 01:11:53.125
through the minutia.

1559
01:11:53.495 –> 01:11:55.645
Again, I consider myself to be really,

1560
01:11:55.645 –> 01:11:59.005
really good at the high level stop with respect to Medicare,

1561
01:11:59.025 –> 01:12:00.525
but going deeper with respect

1562
01:12:00.525 –> 01:12:04.165
to a specific prescription drug plan or supplemental plan.

1563
01:12:04.605 –> 01:12:07.605
I apologize, I do not have the in-depth knowledge in

1564
01:12:07.605 –> 01:12:11.965
that regard, but I can assure you that Shine does, okay?

1565
01:12:11.965 –> 01:12:14.685
They are a free counseling service that you can tap into.

1566
01:12:15.065 –> 01:12:19.685
If you were to Google okay Shine directory

1567
01:12:20.305 –> 01:12:23.365
by town, you’ll have a PDF that will pop on up

1568
01:12:23.365 –> 01:12:26.605
and tell you, you know, in your town, in your county,

1569
01:12:26.675 –> 01:12:28.805
what have you, where you can find these individuals.

1570
01:12:28.825 –> 01:12:32.925
But again, they are absolutely gaining in popularity

1571
01:12:32.925 –> 01:12:35.525
because of the value add that they provide individuals

1572
01:12:35.525 –> 01:12:38.205
that are approaching Medicare age and eligibility

1573
01:12:38.225 –> 01:12:40.205
and they need help and guidance, right?

1574
01:12:40.205 –> 01:12:42.485
So I just want to give you that resource again,

1575
01:12:42.485 –> 01:12:44.205
I’ve heard nothing but fantastic things.

1576
01:12:44.205 –> 01:12:46.725
Perhaps the people who raise their hands can share

1577
01:12:46.725 –> 01:12:47.885
their accolades as well too.

1578
01:12:48.265 –> 01:12:50.285
But again, I, I think they’re absolutely fantastic.

1579
01:12:51.385 –> 01:12:52.405
So I’ll wrap it up there

1580
01:12:52.405 –> 01:12:55.005
and maybe end where I begin, which is thank you, right?

1581
01:12:55.165 –> 01:12:56.925
I am absolutely grateful to be here.

1582
01:12:57.045 –> 01:12:58.365
I love doing these seminars.

1583
01:12:58.445 –> 01:13:00.565
I guess my questions to you are, was this helpful?

1584
01:13:01.675 –> 01:13:05.125
Alright, I see all yeses. Okay, so love it, love it.

1585
01:13:06.165 –> 01:13:10.045
I guess second question is, is it too much or is it okay?

1586
01:13:11.195 –> 01:13:14.285
Just the right amount. So, so hopefully that was, uh,

1587
01:13:14.285 –> 01:13:16.085
you know, enough to kind of scratch the surface.

1588
01:13:16.135 –> 01:13:17.525
Again, my biggest ask is

1589
01:13:17.525 –> 01:13:18.845
please continue the conversation, right?

1590
01:13:18.845 –> 01:13:21.325
You’ve come this far, be like Fort Gump and keep on going.

1591
01:13:22.785 –> 01:13:24.685
So you guys are already applauded, which I’m grateful for.

1592
01:13:24.705 –> 01:13:26.725
So I guess with that, I’ll turn it back over to you guys

1593
01:13:26.785 –> 01:13:27.885
or sit back on over here

1594
01:13:27.885 –> 01:13:29.685
and we can, uh, answer some questions.

1595
01:13:30.855 –> 01:13:32.765
Great. Thank you Kevin.

1596
01:13:34.265 –> 01:13:35.965
Uh, I, I know we’ve been here for a bit.

1597
01:13:35.985 –> 01:13:37.525
Um, I can’t open the floor to questions.

1598
01:13:37.525 –> 01:13:39.645
Does anyone have any specific questions for Bill,

1599
01:13:39.865 –> 01:13:41.085
uh, Paul or Kevin?

1600
01:13:42.075 –> 01:13:43.365
They will be here. Um,

1601
01:13:43.365 –> 01:13:45.285
so there’s still a little more food left if you wanted

1602
01:13:45.285 –> 01:13:47.245
to come up and, and approach them and talk with them.

1603
01:13:47.305 –> 01:13:52.285
Uh, yes. So Shine is New City Hall, very shine,

1604
01:13:52.345 –> 01:13:55.085
new Newton City Hall for the, for the City of Newton.

1605
01:13:55.935 –> 01:13:59.045
Great, thank you. Well, again, I wanna thank you all

1606
01:13:59.045 –> 01:14:00.205
for joining us here tonight.

1607
01:14:00.225 –> 01:14:02.485
Uh, before we end the presentation, I wanted to bring up,

1608
01:14:02.505 –> 01:14:05.885
um, our president and CEO Joe DeVito, uh, to just thank you

1609
01:14:05.905 –> 01:14:06.925
and, and say a few words.

1610
01:14:07.105 –> 01:14:09.685
Uh, and we also have a, a raffle prize.

1611
01:14:11.115 –> 01:14:13.165
Good evening folks. Thank you for being here.

1612
01:14:13.855 –> 01:14:15.645
Appreciate that. As you heard,

1613
01:14:16.425 –> 01:14:18.165
please continue the conversation.

1614
01:14:19.185 –> 01:14:21.445
Our experts are here for you.

1615
01:14:21.975 –> 01:14:24.765
We’re connected to other experts, please,

1616
01:14:24.955 –> 01:14:26.725
your situation is unique.

1617
01:14:27.255 –> 01:14:29.885
We’re happy to talk to you more about that.

1618
01:14:30.265 –> 01:14:32.205
So please continue the conversation.

1619
01:14:32.695 –> 01:14:33.725
Thank you for being here.

1620
01:14:34.185 –> 01:14:38.245
We do have a lucky winner tonight of the gift certificate.

1621
01:14:38.425 –> 01:14:41.445
Marcia and Howard Johnson. Congratulations.

1622
01:14:46.105 –> 01:14:48.965
So again, it’s Joseph Echo, the sentiment, uh,

1623
01:14:48.965 –> 01:14:50.245
village Wealth Management, uh,

1624
01:14:50.245 –> 01:14:52.045
is here located in in Auburndale.

1625
01:14:52.205 –> 01:14:54.525
I wanna thank, uh, Paul and Bill

1626
01:14:54.545 –> 01:14:56.565
and Yana, uh, who’s also part of their team.

1627
01:14:56.625 –> 01:14:58.245
Uh, so they are a resource here for you.

1628
01:14:58.345 –> 01:14:59.765
Uh, there are packets if you’d like,

1629
01:14:59.765 –> 01:15:00.885
some follow up information.

1630
01:15:01.185 –> 01:15:03.045
And just wanna thank Kevin for joining us as well.

1631
01:15:03.225 –> 01:15:05.405
So I’ll be here. Uh, great here. Thank, rich.

1632
01:15:10.285 –> 01:15:11.965
I want to keep things all. Sure.

1633
01:15:13.905 –> 01:15:16.365
You might be able to, you could pinch up slide or two.

1634
01:15:16.435 –> 01:15:20.365
Yeah, you asked it. Hey, sharp, how are you? Come on. Good.

1635
01:15:20.365 –> 01:15:21.245
How are you? Good to see you.