2015 Medicare Changes, Premiums and Deductibles

Have you been wondering about next year's Medicare changes and what you will be paying in basic premiums in 2015?  According to articles by Kiplinger and MarketWatch, here is the information you will want to know.

2015 Medicare Premiums and Deductibles

The good news is that almost everyone's Medicare Part B premiums, which are deducted from the Social Security benefits of the majority of recipients, will remain unchanged at $104.90 a month.

For those who rely on basic Medicare alone, they will find that, in addition to no change in your basic Medicare premiums, your total deductibles will change very little, as well. For example, the Part B deductible will remain the unchanged at $147.

If you are admitted to a hospital under Medicare Part A, your deductible will increase $44 over the 2014 rates.  This means the deductible will rise to $1,260 in 2015 for the first 60 days you are in a hospital.

If you go into a skilled nursing facility, you will now pay $157.50 a day, but only for days 21 through 100.   For the first 20 days, you will continue to pay nothing.

On average, stand-alone Part D (drug) premiums are rising only by about $1 a month, to $32, according to Kiplingers.  However, this can vary quite a bit, depending on your Part D plan.  When the Kaiser Family Foundation did a nationwide analysis, they found that the average stand-alone Part D plan will actually rise to nearly $39, up from about $37.27.  My husband's Blue Shield Part D drug plan is $74.50 a month. You need to check with your provider to see what your actual premium will be.

Premiums for High Income Earners

If you have an adjusted gross income of $85,000 for an individual or $170,000 for a married couple filing jointly, you will have to pay an additional surcharge on your Medicare premiums.  Depending on your income, the surcharge can range from $42 to $230.  The highest rate is only for those single individuals who earn over $214,000 or married couples who earn over $428,000 ... which pertains only to a tiny percentage of retirees.  With the basic rate and the surcharge added together, the wealthiest people will pay $335.70 a month per person for their basic Medicare premiums.

Filling in the Gaps

Most people are not satisfied with the medical coverage provided under basic Medicare alone, since it can leave patients with large medical bills.  The majority of retirees usually either choose to use a Medicare Advantage plan or a Medigap Supplemental Insurance plan.  In every state, there are a variety of Medicare Advantage plans and Medigap Supplemental Insurance plans available.  There are many factors you need to consider in choosing a plan ... from which ones your favorite doctors will accept, to the drug coverage they provide and the premium you can afford.

Approximately 320,000 people who are in Medicare Advantage plans across the United States will have to change plans at the end of 2014.  A few companies have discontinued plans and others have launched new plans.  Nationwide there will be 1,945 Medicare Advantage plans available.  Even those people who do not have a plan that is being discontinued may want to do some comparison shopping before deciding whether or not they are better off staying with the plan they have.  The open enrollment period is from October 15 through December 7, 2014, so you can make changes starting today.

Many hospitals and senior centers will hold seminars during the next few weeks to help you choose the policy that is right for you.  Even if you already have a policy you like, it can still be worthwhile to attend the seminars to see if there is an even better program available or one at a more affordable price.  If you have not received any announcements in the mail, you may want to call your local hospital or insurance provider to see if there are any informational meetings being held in your area.

In addition, you can compare policies at this website:  eHealthMedicare.com.

The more information you have, the more likely you are to be satisfied with your Medicare plan.

Add-ons You May Wish to Include

Most policies offer you the option of also buying a dental and/or vision plan.  I highly recommend that retirees get these additional benefits, which can cost an extra $20 to $60 a month.

Source of 2015 Rate Change Information:

http://www.kiplinger.com/article/retirement/T039-C001-S003-what-you-ll-pay-for-medicare-in-2015.html

http://www.marketwatch.com/story/some-retirees-face-big-medicare-changes-in-2015-2014-10-13

Use the tabs at the top of this page to find links to hundreds of other retirement articles.

You are reading from the blog:  http://www.baby-boomer-retirement.com

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What Is Your Retirement Number?

Have you figured out your retirement number, yet?  Until recently, I had never heard of the extremely helpful retirement planning book called "The Number: What Do You Need For The Rest of Your Life and What Will It Cost?"

This is one of the more fascinating retirement planning books I have read.  To make it even better, the author includes a touch of humor in the way he discusses this very serious topic.  It was even mentioned in a recent segment on "Good Morning America."

What I appreciate most about this book is that it gives you simple, easy-to-follow guidance in coming up with a reasonable estimate of the amount of money you need to save and the amount of income you should have in order to enjoy the type of retirement that will be comfortable for you.  This is not an average of what most people need; it is a way of estimating the very specific needs of you and your spouse.

What Numbers Do Retirees Need to Know?

Retirement Income:  Have you come up with an estimate of how much income you will have when you retire?  How much will you need?  This author estimates that most people will need about 85% of their final working income.  In other words, if your last year's salary was $75,000, then you will need about $64,000 a year to retire with a lifestyle that is similar to the one you enjoyed during your working years.  Of course, if you make dramatic changes, your actual expenses could be higher or lower than that.  How are you going to reach that $64,000?  Half of it or more could come from Social Security.  The rest will need to come from a pension, a retirement job or investment income.

Retirement Savings:  This book suggests that people should have put aside eight times their last year's income.  If you are earning that same $75,000, that means you should have saved $600,000.  Again, this may change from person to person depending on other sources of retirement income you may have and your planned lifestyle after retirement.  Some of this retirement savings may be what you have put aside in an IRA or 401(k).  Some of it could come from the equity in your home or other property if you sell it and move someplace less expensive.

Withdrawal Rate:  While there was a time that people estimated they could withdraw 7% a year from their savings, this is considered far too aggressive today.  Instead, most people should limit their withdrawals to about 3% to 5% if they want the money to last the rest of their lives.  It is best to withdraw less in the early years and more in the later years when you may not have the ability to work part-time or do other things to supplement your income.  If you have managed to accumulate the $600,000 mentioned above, at 3% this would come to about $18,000 in income a year.  At 5%, this would amount to about $30,000.  If your goal is to reach the $64,000 in retirement income that you would need to replace a $75,000 salary, and you and your spouse together have at least $34,000 in Social Security benefits, then this gives you "your number."

This book is not only informative, but humorous and will help many Baby Boomers, as well as younger adults, put more thought into how they are going to achieve their number ... and what they will do if that number seems impossible to achieve.  Don't worry.  This book will not leave you feeling as though there is no way for you to reach a "number" that will work for you.

If you would like to pick up a copy of this book, here's a quick link to help you find it on Amazon:

"The Number:  What Do You Need For The Rest of Your Life, and What Will It Cost?"

If you want to read about other approaches to retirement planning, use the tabs at the top of this page to find links to hundreds of articles about money issues, family relationships after retirement, health concerns, and where to retire, both in the United States and other countries.

You are reading from the blog:  http://www.baby-boomer-retirement.com

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How to Manage Your Retirement Funds Yourself

Recently, this blog has covered the issue of converting your retirement savings into retirement income.  I have discussed rolling over your 401(k) into an IRA, choosing a good investment adviser and how to select an annuity for retirement income.

However, what if you do not want to hire an investment adviser, buy an annuity, or let someone else manage your money?  What are the do-it-yourself options for selecting the best investments and funds?

Use a Discount Broker

Discount brokers like Schwab and TD Ameritrade have large menus of products that are geared towards people who feel confidant in their ability to choose their own investments.  Both of them have NTF (no-transaction-fee) funds from which you can choose.  However, this does not mean that there are no hidden costs involved with the selection of these funds.  For example, Vanguard and Dodge & Cox will not pay the necessary fees that would make their funds available to consumers for free.  Since these two companies operate some of the best-performing funds, you could lose out on potential future performance if you opt for a less successful fund simply because you do not want to pay an up-front fee.  Consequently, while you can get NTF funds at the discount brokers, you also need to decide if you would be better off paying a fee in order to put your money into a fund that has a better performance record.  Make sure you take the time to do your research.

Purchase an ETF

A few month's ago, I wrote a blog post about Warren Buffet's advice for retirees.  It was based on a speech he gave at one of the annual meetings for Berkshire-Hathaway.  In his speech, Warren Buffet recommended that most retirees would do best at handling their investment savings if they simply purchased ETFs (Exchange Traded Funds) in a variety of industries over a ten year period.  In this way investors would take advantage of dollar cost averaging and they would also be diversified over a number of different industries.

In a recent Money Magazine article titled "The One Retirement Move You Must Get Right," the authors also suggested that do-it-yourself investors should consider purchasing ETF's.  It's a good investment strategy that doesn't require you to pick individual stocks and cross your fingers that you have chosen winners.  So, both Warren Buffet and Money Magazine concur ... go with ETF's.

Set Up an Automatic Monthly Investment Account

Another approach to handling your own investments is to set up an automatic monthly investment account.  Some discount brokers offer their clients the opportunity to invest monthly in funds for free or for just a few dollars a month.  It is a great way to invest and spread the expense out over a long period of time.

Pay a Fee to Get the Fund You Want

Another option is to select the highest performing fund that interests you and pay the fees, which can range from $17 at Scottrade, $50 at Ameritrade or $76 at Schwab.  These fees can be well worth it to you if you are going to get a higher rate of return or save on annual expenses.

As I mentioned before, you will have to do the research to see which investment options are the most affordable and practical for you, while offering you the best rate of return.  Ask the different brokerage firms to send you information on all the funds and ETF's that you are considering.  Read all the information thoroughly.  Once you feel confident, form a plan and move forward with your choices in an organized, consistent manner.

You may also want to read these recent articles:

Should You Rollover Your 401(k) into an IRA?
How to Choose a Good Investment Adviser
How to Choose an Annuity for Retirement Income

Source:

"The One Retirement Move You Must Get Right," Money Magazine, July 2014, page 44

If you are planning to retire soon, use the tabs at the top of this page.  They contain links to hundreds of articles about where to retire, financial planning, medical issues, and family relationships.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.morguefile.com

How to Choose an Annuity for Retirement Income

How can you guarantee that you will not run out of your retirement savings before you die?  One idea that is recommended by many financial advisers is to put a portion of your savings into an annuity.  Doing this can insure that you will always have at least some reliable income in addition to your Social Security benefits.  While not everyone will want an annuity because their assets are permanently tied up, others appreciate the secure income flow that annuities can create with a higher return than you would receive from bank interest.

In a "Money" magazine article, "The One Retirement Move You Must Get Right," the author discusses how to transition from saving for retirement to receiving a lifetime income from your savings.  As part of this article, the author demonstrates how you can lock-in a lifetime income with an annuity.  While they do not recommend doing this with all the proceeds of your 401(k) or IRA, they do see it as one part of a well-designed investment plan.  Which type of annuity is right for you ... a variable annuity or an immediate annuity?

Variable Annuities

Investment advisers who work for insurance companies are likely to advise you to purchase a variable annuity.  These investment products combine an income with the potential for your investments to continue to grow.  Approximately 75% of the annuities that are sold in the United States are variable annuities, primarily because the potential for asset growth sounds so appealing.

The downside of variable annuities is that the guaranteed income is lower and you may pay an extra 2% or more (6% vs. 4%) in up-front commissions as well as management fees of 2% or more per year of assets under management.  If you still decide that this is the best type of annuity for you, try to find one that only charges 1.5% a year for the assets under management.  If you pay 2.5% or more, you are unlikely to have enough asset appreciation to make the lower earnings worthwhile.

Fixed or Immediate Annuities

"Money" magazine suggests that most people will do better with a simple fixed or immediate annuity.  With this type of annuity, you pay a lump sum up front and receive a guaranteed lifetime income.   One advantage is that the commissions are usually 4% or less, compared with 6% for a variable annuity.  In addition, you do not pay the 2% annual management fee.  You can compare the commissions and estimated earnings for various fixed annuities at a website called immediate-annuities.com.

Rather than relying on the potential of appreciation in a variable annuity, with a fixed annuity you can put a portion of your retirement savings into the annuity and then invest the remainder of your savings in a low-cost mutual fund or exchange traded fund.  Research has shown that people tend to do better with this combination than they do when they put everything into a variable annuity.

Whichever type of annuity you choose, you will not want to rely solely on annuities for all of your retirement planning.  The more diverse your portfolio and the types of retirement tools you are using, the fewer problems you will have during a stock market decline, such as the one that began in 2007.

You may also want to read these other posts that were based on the Money magazine article:

Should You Rollover Your 401(k) Into an IRA?
How to Choose a Good Investment Adviser

Source:

"The One Retirement Move You Must Get Right," Money Magazine, July 2014, page 44.

If you are planning your retirement, you may want to use the tabs at the top of this page.  They contain links to hundreds of articles about financial planning, where to retire, medical issues and family relationships.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.morguefile.com

How to Choose a Good Investment Adviser

In last week's blog post, I discussed "Should You Rollover Your 401(k) into an IRA?"  In making up your mind how to invest your 401(k) or IRA savings, many retirees will want to enlist the aid of a good investment adviser.  However,  with 300,000 financial advisers in the United States, how do you know if you are choosing someone reputable and who will give you the best advice?

In addition to getting the best investment advice, you also want to make sure you follow IRS tax guidelines so that you do not needlessly pay taxes on the proceeds.

Some advisers will push you to make decisions that are in their best interest, not necessarily yours.  For example, they may push you out of a 401(k) with a Fortune 500 company into an IRA, simply because they can charge you higher fees once your money is in an IRA.  While there are times when you may be better off in an IRA, you do not want to make the change simply because your adviser wants to earn higher fees.

How Can You Choose the Best Investment Adviser for You?

*  Ask the adviser you are interviewing a lot of questions.  For example, if they want to switch your plan so they can invest your savings in certain types of stocks or bonds, ask why that can't be done in your current plan.  Make sure you get satisfactory answers to all your questions.  Go home and think about what they said. You may want to interview another adviser, as well, to see if they give you similar advice.

*  Find out how the adviser is paid.  If he works for a brokerage firm, bank or insurance agency, it is likely that he is being paid primarily from commissions on the products that he sells you.  If he is a registered investment adviser, he is likely to be paid an annual percentage of the assets under management.  Some advisers charge a one-time up-front fee in the range of $800 to $1500 and, in return, they do not get commissions on products and they do not receive an annual fee on your assets that are under their management.  Some advisers are paid in several different ways.  You want to make sure you fully understand how the adviser you choose will be paid.

*  Try to determine the biases of the the investment manager you are considering.  Are they trying to steer you towards certain products because the commissions are larger for them?  Are they trying to switch you out of a perfectly good 401(k) into an IRA because they can then charge an annual fee for managing your assets?  Are they opposed to certain types of financial vehicles, like annuities or exchange traded funds, even though you are interested in including them in your portfolio?  Is their comfort level with risk similar to your own?

*  Make sure you understand what commissions you will be charged, up-front and in the future.  How do the fees and commissions compare to the return that you can expect on your money?  There is no point in paying a money manager so much that you barely get any return on your assets.

*  Ask the adviser about all the services they provide.  There could be a benefit to choosing an adviser who can help you with tax and estate planning, for example.  You also need to talk to them about the types of investments they prefer and make sure that their style is compatible with yours.  Are they more or less aggressive than you are?  You should also ask for their Form ADV Part II Brochure which will describe their services, fees and investment strategies.

*  Finally, but perhaps most importantly, DO A BACKGROUND CHECK. Countless people have been cheated by advisers who have a checkered past.  The first thing you should do is enter their name into FINRA Broker-Check at finra.org.  This will give you information on any "disclosure events" such as disputes with customers and, more seriously, felony convictions.  You may also want to do a Google search on their name to see if there are any other red-flags that you will want to know about.  If they are a principal in a small firm, do a Better Business Bureau check and a Google check on the name of the firm to make certain that people have been satisfied with the services they provide.  You literally cannot be too careful.

While following this advice will not guarantee that you are getting the best advice possible, it will help lesson the chances that you will run into problems.

Sources:

"The One Retirement Move You Must Get Right," Money Magazine, July 2014, page 44.

You may also want to read:

"Should You Rollover Your 401(k) into an IRA?

If you are planning to retire soon, you will also want to check out the tabs at the top of this article.  They contain links to hundreds of additional articles on financial planning, where to retire, medical concerns and family relationships.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit: www.morguefile.com   

Should You Rollover Your 40l(k) into an IRA?

In the July, 2014 issue of "Money" magazine, there was an article about "the one retirement move you must get right."  What they were talking about is how you should handle the money in your company 401(k) when you decide to retire and in the years prior to retirement.  If you make the right decisions, your money will ideally last the rest of your life; if you go wrong, you could run out of funds just at the point when you are the most vulnerable.

Can You Totally Rely on the Advice of Your Current 40l(k) Provider?

It may seem natural to simply follow the advice of your 401(k) provider and allow them to handle an IRA rollover for you.  In fact, that is what approximately half of all retires do.  This works out well for the providers because rollovers are very lucrative for financial advisers, brokers, insurance agents and fund companies.  Handling an IRA is twice as profitable as running a 401(k).  As a result, your 401(k) provider has a huge incentive to encourage you to let them transfer your funds into an IRA.  However, converting to an IRA is not always the best idea for the account holder.

This is a time when many people who have contributed faithfully to a 401(k) for decades are now uncertain about the best way to convert that savings into retirement income.  The amount of money involved can be significant.  Workers over the age of 60 who have been earning over $100,000 a year had an average 401(k) balance of $414,000 in 2013.

Common Misconceptions About Converting to an IRA

The Government Accountability Office had an undercover investigator call 30 plan administrators and ask them what he should do with an old 401(k) for a former employer.  Much of the advice he was given was misleading and, in some cases, completely untrue.

In several cases, the investigator was told that he would not be able to keep an old 401(k) and must convert the money into an IRA or accept a cash payout.  In general, the truth is that you can usually keep it, as long as it is worth at least $5,000.

About one-third of the plan administrators told the undercover investigator that the funds could not be rolled over into a new employer's retirement plan.  In truth, you can almost always roll the proceeds of one retirement plan into a new one. 

Personally, I found this misconception particularly interesting because it happened to me when I worked for a California public school.  The Human Resources Department at the district office told me that I could not roll my savings from one state retirement plan into another one.  However, when I contacted the two retirement plans directly, they both told me that it was simple and completely legal to move the money into my new retirement plan and they sent me the short forms necessary to complete the transfer. 

My own experience, combined with the research in the "Money" magazine article seems to indicate that there is a lot of confusion about the process, even among people who should be knowledgeable about handling retirement savings.

The Difference in 401(k) and IRA Fees

Many large 401(k) plans have very small fees.  Once you transfer you assets into an IRA, you can expect the fees to increase, especially if you add premium services such as individualized advice.  The employees and reps for these companies have large incentives to get you to sign up for these services, since they receive substantial commissions.  Therefore, it may be wise in many cases to keep your money in your 401(k) as long as possible.  However, there are exceptions.

What Should You Do With Your 401(k)?

According to the "Money" magazine article, here are your best choices for handling your 401(k):

*  If you work for a large Fortune 500 company, keep your money in their 401(k) as long as possible.  Some companies match your deposits, so it is especially advantageous to hold onto your 401(k).

*  If you change jobs from one major firm to another one, move your savings directly from your old 401(k) into the new one.

*  On the other hand, if you are with a small company, your 401(k) may have high fees.  In addition, if the money is invested in company stock, that could be a risky choice for your retirement funds. If this is the case, it is possible that you should switch to an IRA, pay lower fees and invest the principal in an index fund.

*  Listen to the advice of your 401(k) investment manager if you want to optimize the mix of stocks and bonds in your plan.  Periodically re-balancing your account is important for your financial security.  Their advice is often offered over the phone and can help you determine the right mixture of stocks and bonds for your age, health and situation. Later, your plan administrator can help you determine how much you can withdraw each year after you retire.  Expect to pay an annual fee of 0.6% a year, or more, in addition to your regular fund fees.

*  Another choice is to buy a target-date fund in your 401(k) plan.  It will automatically adjust your portfolio so that the investments become less risky as you age.

*  If you have at least $250,000 you may wish to consult with a local investment adviser.  This is a good idea for people who like to talk with someone face-to-face.  You can hire an adviser by the hour and pay a one-time, up-front fee in the range of $800 to $1500 for the advice you need rather than spend 1% to 2% a year for the remainder of your life.

More Information To Help You Make Wise Decisions

In the next three weeks, I will also post a series of articles that cover how to choose a good investment adviser, how to use an annuity as part of your retirement income and advice for people who manage their retirement funds themselves.

If you are planning your retirement, use the tabs at the top of this page to find links to hundreds of additional articles on financial planning, where to retire, medical concerns, family relationships and more.

Reference:

"The One Retirement Move You Must Get Right," Money Magazine, July 2014, page 44.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit:  www.morguefile.com

The North Hollywood Senior Arts Colony

Are you a retiring Baby Boomer who has always dreamed of living in a vibrant artist's colony?  Now you have that option in one of the most exciting cities in the world.  The NoHo Senior Arts Colony is a rental apartment community in the heart of North Hollywood in Los Angeles, California.  It gives retirees ages 62 and older the opportunity to live in a modern, fully equipped one or two bedroom apartment with access to amenities that include a pool, exercise equipment, art studios, literary programs, a theatre and a wellness program.

This community first came to my attention when it won the Community of the Year award from the National Association of Home Builders - 2014 Best of 50+ Housing.  I thought that winning this award was especially remarkable for a senior apartment complex and wanted to learn more about it.

Apartments at NoHo Senior Arts Colony

The modern apartments in this complex have gourmet kitchens with granite counters and a full appliance package, including refrigerator and microwave.  Each unit has a private washer and dryer, as well as either a private balcony or patio.  Residents have a choice of using either cable or DIRECTV.

This community is pet friendly and there is an underground, gated parking garage.  Rentals are competitive with other apartment complexes in Los Angeles and are within the means of many couples who are both receiving Social Security.

One bedroom apartments start at $1620 a month.
Two bedroom apartments start at $2120 a month.

Community Amenities

*  Heated Swimming Pool
*  Fully equipped fitness center
*  Billiards Room
*  Visual Arts Studio
*  Digital Arts Studio
*  Literary Studio
*  Artist's Lounge and Terrace for socializing
*  A wellness program operated by EngAGE
*  A 78-seat performing arts theater operated by The Road Theatre Company

Neighborhood Amenities

In addition to the wonderful community amenities that are available to artists, writers, actors and art lovers, this community is also located in the heart of North Hollywood.  This means you are only a short distance away from restaurants, live theater and museums.  It is located near the Art Institute of California - Hollywood, the North Hollywood Regional Library, and the North Hollywood Recreation Center.

In addition, residents are just a short drive to the Bob Hope Airport, Providence/St. Joseph Hospital, Griffith Park, the Hollywood Bowl and Universal Studios.

Living in Southern California provides you with pleasant weather the year around, as well as access to beaches, shopping, sporting events and charming neighborhoods.  Being in North Hollywood means that you will be living in the heart of all that Los Angeles has to offer.

If you have ever wanted to live in a vibrant artist's/writer's/actor's community, it is hard to imagine one with more opportunities than this one has to offer.


Sources:


http://www.nohoseniorartscolony.com/

"The 50+ Housing Awards" Where To Retire Magazine, May/June 2014, page 14.

If you are retired or planning your retirement, use the tabs at the top of this page to find links to hundreds of articles about where to retire, financial planning, medical concerns, family issues and more.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo of Hollywood sign is courtesy of www.morguefile.com

Your Rights When Planning a Funeral

Sooner or later, most of us will have to plan a funeral. It could be the funeral of your parents or your spouse; it could be that of a close friend or relative.  When that time comes, it is important that you know your rights.  In fact, this is one of those articles that you may want to print out and keep with your will or other important documents because, when the time comes, you do not want to be doing research on the computer.

What Kind of Funeral are You Planning?

Whether you are pre-planning your own funeral or making arrangements for someone else, you need to decide the type of funeral you want.  Will the body be buried, cremated, or donated to science?  What are you legally required to buy?  Can you have an environmentally friendly or green burial?  How much do you want to spend?  It is important to think about these things in advance, not at a time when you are under emotional stress.

The Funeral Rule

The Federal Trade Commission enforces The Funeral Rule.  According to this legislation, you are only required to buy the funeral goods and services that you want and need.  You do not have to buy a package deal if it includes items you don't want.

Your Rights Under the Funeral Rule

*  You have the right to buy only the services and items (such as caskets) that you want.

*  You have the right to get price information over the phone and you do not have to give them your name, address or phone number in order to get the prices.

*   You have the right to get a General Price List that you can keep.

*   You also are entitled to a written list of the casket prices ... including the price of cheaper caskets that may not be on display.

*   You have the right to know the price of the outer burial containers.  They are not required by state law, at least in California; however, some cemeteries require them.  You will want to know this before choosing a cemetery, expecially if cost is a concern.

*   Before you pay for anything, you are entitled to a written statement that itemizes exactly what you are buying and the cost of each individual item.   This statement should include an explanation of anything you are paying for that is required by the cemetery, crematory or law.

*  You are entitled to choose an alternative to an expensive casket if you are planning a cremation.  This alternative can be made of pressed wood, unfinished wood, cardboard or fiberboard.

*  You have the right to provide the funeral home with a casket or urn that you have purchased somewhere else ... at Costco, for example.  The funeral home cannot refuse to use it and they can't require that you be there to accept delivery.

*  You have the right to refuse embalming if there is not going to be a public viewing.  You can request that the body be refrigerated until it is buried or cremated, instead.

More Ways to Save Money on a Funeral

In addition to knowing your rights, there are other ways you can save money on the funeral expenses.

*  Compare prices on caskets and on the use of a funeral home.  These will probably be the most expensive items, and prices vary widely.

*  Use the least expensive casket options.  Those that have long warranties and other options are not necessary.  No casket can permanently prevent decomposition.

*  Avoid the expense of embalming and body preparation by doing without a public viewing.  Instead you can opt for an immediate burial or direct cremation, which are the two least expensive options.

*  You do not have to have a funeral service at a funeral home.  Instead, you can have a service in a church, home or other location.

*  If you are a veteran or an immediate family member, you may be eligible to be buried for free in a national cemetery.  However, the family still needs to pay for private services, transportation, etc.

Even though this is a very emotional time, it will only be made worse if you end up spending more money than you can afford on the funeral of a loved one.  Take the time to consider all the options, whether you are pre-planning your own funeral or planning one for someone you love.

If you are retired or planning to retire, you may also want to check out the tabs at the top of this article to find more information about Medical Concerns, Family Issues and Where to Retire in the United States and abroad.

Sources:

http://www.consumer.ftc.gov/articles/0303-choosing-funeral-provider

"Funerals: Points to Consider,"  2014 Answer Guide, the Orange County Council on Aging, page 126.


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Depression Is Not a Normal Part of Aging

As a resident of an over-55 active adult community, most of the people I encounter each day are active, involved, happy and enjoying their retirement years ... even people who are in their 80's or older.  However, I also recognize that there is a dark underside to our community.  I have far too many neighbors who are rarely seen outside of their homes.  They are not participating in any of the dozens of activities that go on in our community each day.  They are not getting exercise or socializing with others.

According to the Orange County Council on Aging in their article "When Is It More Than Just The Blues?" approximately 15% to 20% of adults over the age of 65 have experienced depression.  They based this estimate on a 2008 study done by the Geriatric Mental Health Foundation. 

Among my personal friends, I know of several women who have complained that their husbands seem to be depressed now that they have stopped working.  However, I also know of several women who seem depressed, as well.

Causes of Depression

According to the Council on Aging, depression is often triggered in a susceptible person when they experience a significant life change such as a major move, death of a spouse, or declining health.  I have also noticed that it can be triggered when some people give up their careers or when their children grow up and leave home, especially if they move far away.  Since there has also been a large increase in the number of divorces in couples over the age of 50 over the past decade, this could also be a trigger for many people.

While these are all legitimate reasons for people to feel depressed, it does NOT mean that we have to accept it as simply a normal part of aging.

Symptoms of Depression

What are some of the signs of depression in the elderly?  Like people of other ages, they may seem sad, moody, angry or bitter.  In the elderly, they may talk about having nothing left to live for or that they have lived too long.  Other symptoms could include alcohol or prescription drug abuse, withdrawing from activities, poor diet, difficulty sleeping or sleeping too much, and a host of medical conditions.

Treatment for Depression

There is no reason why depression in the elderly should be considered a normal part of the aging process.  There is no more reason why senior citizens should suffer from this debilitating condition than people of any other age.  There are effective treatments including medication, exercise, and therapy.

In addition, simply encouraging the elderly to get out of the house, socialize and get exercise can make a tremendous difference in their state of mind.  Volunteering is also an effective antidote to mild depression.  Owning a pet can be effective in helping some people.

It is important that family members and physicians pay attention to the state of mind of senior citizens.  The sooner a problem is identified, the easier it will be to treat.

Source:

"When Is It More Than Just The Blues?" Answers Guide, The Orange County Council on Aging, page 41.

If you are retired or planning to retire soon, you may want to check out more of the helpful articles in this website by using the tabs at the top of the page.  They have links to hundreds of other sources of information to assist you.

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How Hospice Care Works

As I've gotten older, one of the phrases that I have come to dread is when I hear that a friend or relative is now on hospice care.  What I learned over the past few years is that this means they are probably only going to live a few more months because of a serious health issue such as inoperable cancer or failing organs.  However, I never wanted to ask the patients I knew who were on hospice any detailed questions about their care, so I was never quite sure what it entailed.  As a result, I was pleased to read an article about it in the "Answers" book provided by the local Council on Aging.

Since this is something that many Baby Boomers will encounter at some point in their lives, either for themselves, their aging parents or a spouse, I thought many of you might want to know more about this service, too.

The Goal of Hospice

The reason for hospice care is simple.  It is there to prevent and relieve the suffering of a dying person, while providing them with a better quality of life during their final months of life.

A Team Approach

Hospice care involves a team of medical personnel who are there to provide emotional, social and spiritual support for both the patient and their loved ones.   Typically, the team will include a hospice doctor, a nurse, a social worker, a hospice aide and other staff members such as chaplains or volunteers.  The patient's personal doctor may also work with them to provide continuity of care.

When Does the Care Start?

Usually people are referred to hospice when they are only expected to live six months or less.  However, length of time can be extended if the person survives longer than expected.  In fact, it can go on as long as the patient continues to meet the criteria.

Where Does the Care Take Place?

Usually the care takes place in the patient's home, even if their home is an assisted living facility, a nursing home or some other type of long-term care facility. Of course, it can also take place in a private home where the patient is being cared for by family or home healthcare assistants.

What Types of Care are Provided?

There are different levels of care, depending on the patient's needs, and the type of care the patient receives can change as time goes by.  The care may include prescription drugs and over-the-counter medications to ease suffering, as well as medical equipment and supplies to treat their medical condition and make them more comfortable.

Does Insurance Cover Hospice?

Hospice care is covered under Medicare, MediCal and most private insurance companies. For people on Medicare and MediCal, there is no cost to the patient or family.  Coverage varies for people with private insurance, so you need to contact your insurance company for details.

What are the Benefits?

Many people with a terminal disease prefer to spend their last weeks or months of life at home, rather than in a hospital.  Hospice care makes this possible for the majority of patients.  They will provide whatever level of care is necessary to prevent the patient from needing to be hospitalized.  If a problem arises, the patient can call their hospice provider, rather than 911.

What If You Change Your Mind?

In some situations, a patient may change their mind about receiving hospice care and may decide they want to try to fight their medical condition longer.  This is particularly true if a new type of treatment becomes available.  If so, the patient can revoke their hospice placement and return to acute care services.

How Do You Find a Provider?

Most communities have a variety of hospice care providers.  If you or a loved one has reached this stage of life, your doctor, hospital, insurance company, or case worker can give you a list of  local companies that provide this service.  You may also want to talk to the families of people who have used the services of the various providers.

Before you select a company, be sure to do a little research on them and get your questions answered.  Find out if there are costs that may not be covered by insurance or Medicare, how many people will be on your team, how often they will visit, the services that will be provided, whether or not a doctor will visit and if there is a 24-hour care program, should that become necessary. 

In most cases you have a choice of providers so you want to be sure to select a hospice company that will provide the patient with the best quality of life possible.

You can get more information from:

http://www.hospicefoundation.org
800-854-3402

If you are interested in learning more about medical issues or other concerns that could affect you in retirement, use the tabs at the top of this page to find links to hundreds of additional informative articles.

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Heart Attacks - The Top Cause of Death in Women

As I write this post, it has been less than a week since my husband suffered a heart attack.  I took him to the emergency room six days ago with chest pains and indigestion.  They immediately began testing him for signs of a heart attack and, within 36 hours, surgeons had completed an angiogram and inserted a stint in one of his coronary arteries.

While heart disease has long been recognized as a common health issue for men as they age, many doctors are less likely to be concerned about it in women.  This is despite the fact that, according to the Centers for Disease Control, the number one cause of death in all women, regardless of race or ethnicity, is heart disease.  Even when broken down by groups, heart disease is the top cause of death in both black and white women, and is the number two cause of death (after cancer) in women who are Hispanic, American Indian or Asian/Pacific Islander.

I recently attended a heath fair that was sponsored by the Laguna Beach Community Clinic and they provided me with detailed information about heart disease in women.  This is an issue that every women should worry about, particularly since many women and their doctors still think of heart disease as a man's illness.

While a man having a heart attack is likely to experience extreme fatigue, feelings of indigestion, sweating and chest pain, a women will have symptoms that can be much more subtle.  For this reason, it is important that every woman be able to recognize when she should see her doctor or insist on being taken to the hospital.

Symptoms of Heart Disease or a Heart Attack in Women

Feeling extremely tired, even after a good night's sleep
Difficulty breathing
Difficulty sleeping
Indigestion or nausea
A pain in the belly, above the belly button
A nervous, scared feeling for no clear reason
New or worse headaches than you have ever had
An ache, heaviness, tightness or burning feeling in the chest
An unusual pain in the back, especially between the shoulder blades
A tightness or pain in the chest, especially if it spreads to the neck, jaw, shoulders, ears or inside the arms.

If you are experiencing the above feelings, and especially if you are suffering from several of them, seek medical attention right away.  Do NOT be too embarrassed to go to the emergency room.  Far too many people have died because they didn't want to be embarrassed by going to the hospital when all they had was a bad case of gas or indigestion.  It is much better to have it checked out than wait until it is too late.

How to Reduce Your Risk of Heart Disease

Fortunately, there are a few things that people can do to reduce their risk of developing heart disease.  While you may not be able to eliminate it completely, you will still want to postpone it as long as possible.

Be aware if heart disease runs in your family
Get preventative care by seeing your doctor regularly for check-ups
Do not smoke and avoid second-hand smoke, especially if you use birth control
Have your blood pressure checked and take medication, if necessary
If you have diabetes, keep it under control
Have your cholesterol levels checked regularly and take medication, if necessary
Get exercise; just taking a daily walk can make a big difference
Eat a healthy diet, including reducing the salt in what you eat
Control your stress by practicing yoga, meditation or other stress control measures

Follow your doctor's recommendations regarding any other steps you should be taking to maintain your health.  Some of these measure, such as not smoking, will also protect you from the second leading cause of death in women ... cancer.  Therefore, no matter which medical issue worries you the most, the lifestyle changes mentioned above are still a good idea.

If you are interested in learning more about medical concerns that could affect you as you age, use the tab at the top of this article.  You will want to check out the other tabs, too, for help with your retirement planning.

Sources:

http://www.cdc.gov/women/lcod/2010/WomenRace_2010.pdf

http://www.gov/womensheartheath


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Investigate Exchange Rates Before Moving Overseas

This blog has covered a number of wonderful places to retire overseas, including Thailand, Mexico, South America and Europe.  Some retirees choose to move overseas because they feel it will be less expensive than living in the United States.  Others have made the choice because they are attracted to the lifestyle in a certain region.

While I have covered international retirement destinations as diverse as San Miguel de Allende, Mexico, small towns in Panama, Hua Hin, Thailand, and the east coast of Italy, one of the subjects that I have not mentioned is the need to consider fluctuations in the exchange rates when you investigate where you can afford to live.

It recently came to my attention that many people from the United Kingdom who retired to France, Spain and Greece about a decade ago are moving back to their homeland because the pound has weakened dramatically against the Euro.

One of the articles I read about the British ex-pats who are wanting to return home said that 39% of Brits in Greece and 34% of those in Spain are trying to sell their properties, often at a large loss,  because property values have dropped in both of these countries, as well as in France.

Of course, lower property values are not a concern for ex-patriots who are extremely wealthy, which I discovered when I read a blog post on ExpatForum.com about the situation in Spain.  While ex-pats in some areas are suffering, those living in the more affluent areas of Europe seem to be doing just fine.

While the largest issues I found involved citizens of the United Kingdom who moved to the continent of Europe 10 to 12 years ago, Americans need to think about this risk as well if they decide to move to another country.  It is important for ex-patriots to leave some room in their budget for fluctuations in the currency.

For example, if you and your spouse have a combined income from Social Security of $2500 to $3000 a month (about average) and you plan a lifestyle that requires you to use all of it every month, what happens if the exchange rate fluctuates even a modest 10 percent? Would you be able to stay in your new country, or would you have to pack up and return to the United States?  Do you have enough savings to weather a temporary fluctuation?

Of course, fluctuations in the exchange rate can go the other way, too.  It is possible that there will be some years when the dollar will rise against foreign currencies and you will find that you can indulge yourself a little, eat out more frequently, and travel occasionally because the exchange rate is working in your favor.  The problem is that there is no way to predict the future.

Bottom line:  If you want to insure yourself of a comfortable retirement in another country, make sure you leave room in your budget for monetary fluctuations and put aside a little nest egg to get you through the tough times.  At the very least, you will retire overseas with a bit more peace of mind.

If you are looking for more information about retiring overseas, or other retirement topics, use the tabs at the top of this page for links to hundreds of other articles.

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Sources:

Now They Want to Come Home! British Ex-pats Flee the Continent to Get Away from Eurozone Turmoil

Hello Fellow ex-Pats in Spain - How is the Recession Affecting Your Area?

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Financial Survival for Retirees

Many of the Baby Boomers I know are still working, even some of those who are well past the age of 65.  Among our friends, I know of several salesmen, a doctor, several business owners, some lawyers, an engineer, an insurance broker, a number of financial planners and many other people in a variety of occupations who are continuing to work as long as they can because they do not want to face the possible lifestyle change that could occur if they stop working.

As a result, I frequently expose my readers to a variety of approaches to retirement planning that will help people assure themselves that they will not outlive their retirement savings ... one of the biggest fears of the Baby Boomer generation.

On one hand, it is exciting to know that many of us will live 20 to 30 years after we retire, or even longer.  For some of us, however, it is also frightening, especially if we do not feel we have adequately prepared for retirement.

As a result, I recently reviewed the short book, "The Baby Boomers Retirement Survival Guide" by Certified Financial Planner Rich Paul, for the online magazine Squidoo.  You can read my full review here:

http://www.squidoo.com/book-review-the-baby-boomers-retirement-survival-guide

In his book, he discusses important investment strategies that Baby Boomers will want to understand, especially if they plan to invest and manage their own savings, while assuring themselves that their money will last the rest of their lives.  For example, he talks about the importance of asset reallocation and balancing your portfolio so that too much of it does not end up in one risky investment.

One of the things I like about this book is that it is written in easy-to-understand language that clearly explains things in a way that is helpful to both the novice and the experienced investor.

Since most Baby Boomers have only saved a modest amount towards their retirement, and they want to make sure their money lasts as long as possible, it is important that we all understand how to make wise investment decisions that limit our risk.

Rich Paul's book is one that is very useful for anyone who plans to manage their own retirement funds.  It is also a valuable resource for someone who is letting professionals manage their money, since they need to understand whether or not the experts are doing a good job.  Far too many people have turned all their assets over to someone else to handle, only to be disappointed at the results.

In addition to this book, if you are trying to learn how to handle your retirement savings, you will want to use the Retirement Money tab at the top of this blog to find links to dozens of other articles about investment strategies that are recommended by other well-known investors and investment advisers.

You will also find links to hundreds of other retirement articles by using the other tabs at the top of this blog.

There is no single approach to retirement that is right for everyone.  It is extremely important that you do your research, explore your options, and then follow the plan that seems right for you.

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Photo credit:  Photo of book cover is courtesy of www.amazon.com

Gavilan for Retirees in Rancho Mission Viejo, California

With the incredible number of Baby Boomers who are reaching age 65 (approximately 10,000 a DAY), the need for retirement housing is immense and growing larger all the time.  Consequently, a number of home builders have stepped up to build senior housing in a wide variety of price ranges.  Here in Southern California, retirees frequently want to stay in the area and, fortunately, there are a plethora of options available to them ... from Palm Springs to the Pacific coast (shown in this photo).

Until recently, those residents who wanted to live in a senior community in Orange County were limited primarily to older communities.  Now, however, there is a new option for home buyers.

Gavilan in Rancho Mission Viejo

One of the newer communities that is gaining in popularity in Orange County, California is the gated senior community of Gavilan in Rancho Mission Viejo.  There are three builders who are developing Gavilan, each offering their own styles and price options:

Standard Pacific Bungalows - 2 bd/2 bath/2 car garages - $500,000 - $600,000

Standard Pacific Casitas - 2 bd/2 bath/2 car garages - $600,000 - $700,000

Shea Single Family Homes - 2 bd/ 2 1/2 bath/2 car garages - $750,000 - $850,000

Del Webb Single Family Homes - 2-3 bd/2 1/2 bath/2 car garages - $800,000 - $900,000+

This gives home buyers a variety of options whether they can afford to spend $500,000 or twice that amount.

Amenities at Gavilan

Most of the new, modern homes in Gavilan are one story, with the exception of a few styles for those retirees who prefer the two-story option.  Among the green amenities you can expect in your home are: tankless water heaters, Energy Star appliances, water-efficient fixtures, weather sensing sprinklers, extra insulation and high efficiency air-conditioning systems.

The homes in this community surround the beautiful adult rec center known as the Hacienda.  Built around a luxurious salt water pool and spa, the Hacienda has a large, open great-room with a giant flat screen TV and a staffed bar, which makes it an excellent spot to mingle with your neighbors.  The Hacienda also contains a yoga studio, a fitness center, a barbecue area and bocce ball courts.

The community is located just off the Ortega Highway, a short distance east of the coastal community of charming San Juan Capistrano.  

Learn More about Gavilan at Rancho Mission Viego:


http://ranchomissionviejo.com/homes/gavilan/

If you are looking for more ideas about great places to retire, check out the tabs at the top of this blog.  They contain links to hundreds of additional articles about where to retire in the United States and overseas, financial planning, medical issues, changing family relationships, and more.

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(Photo credit:  Photo of the Southern California coast was taken by author, Deborah-Diane; all rights reserved.)

Should You Get a Medicare Advantage Plan with Your Medicare?

As you approach the age of 65, your first step in obtaining Medicare is to contact the Social Security Administration and sign up.  The ideal time to do this is within three months before you turn 65, during the month you turn 65, or during the three month period afterwards.  You can sign up at a later age, but you will pay more, in most circumstances.

You can read more about how to complete this process by reading my article "How to Sign Up for Medicare."

Once you have signed up for Medicare, your next step is to decide if you want to get a Medigap policy (Medicare Supplement Insurance) or a Medicare Advantage Plan.  In this post I will discuss Medicare Advantage plans, similar to the one I have selected.  You may also want to read my article  "Should You Get a Medigap Supplemental Policy with Your Medicare?"  

Medicare Advantage Plans

When you select a Medicare Advantage Plan you are still using Medicare.  You get your Part A and Part B services directly through your Medicare Advantage Plan.  Your healthcare providers are required to provide you with everything that original Medicare offers except hospice care and research studies.  You will still receive those services; Medicare just covers them directly.

The benefit of getting a Medicare Advantage Plan is that they usually offer extra services in addition to those you would get only from straight Medicare.  Depending on the insurer, these extra services could include vision, hearing, dental and wellness programs.  Some Medicare Advantage Plans charge no premium above what everyone must pay for basic Medicare; others charge a small additional premium.

For example, I have chosen to use Kaiser Permanente in California as my Medicare Advantage provider.  The only additional fee they have is an optional $20 a month for their Plus plan, which includes dental and extra vision benefits.  You need to understand your plan, however, because the fees and services vary from company to company.

All Medicare Advantage Plans must follow Medicare's rules and provide you with the basic services.  However, they can charge different out-of-pocket fees and they may have their own rules about their services, such as requiring you to get a referral from a primary care doctor in order to see a specialist.

Different Types of Medicare Advantage Plans 

There are a wide variety of Medicare Advantage Plans available and choices vary from state to state.  You can choose an HMO, a PPO, a Private Fee-for-Service plan, Special Needs Plans, HMO Point-of-Service plans and Medical Savings Account Plans.

A few months before your 65th birthday, most of the providers in your area will start mailing you brochures about their plans and some will have seminars to explain how their plans work.  Hospitals and senior centers in your community may also sponsor informational meetings.  Selecting the right program for you can be very confusing, so I highly suggest that you talk to your friends who are already on Medicare.  Ask them about the type of plan they are using, what they like about it and what they would change.  It is recommended that you discuss your choices with an agent who represents a variety of insurance companies and types of policies.

You may also need to take costs into consideration.  One of the factors which helped me make up my mind to use Kaiser was the fact that the optional premium was only $20 above the cost of basic Medicare and my out-of-pocket costs were very low ... for example, $10 to $15 for office visits.

On the other hand, the disadvantage was that, when I decided to switch from my prior insurance to Kaiser, I had to change all my doctors.  Some people are so attached to their current doctors that they don't want to make such a drastic change.  My husband was one of those, which is why he chose to use a Medigap Supplemental insurance policy rather than a Medicare Advantage Plan.  Since I am quite healthy and never saw my physician except for an annual medical exam, I did not mind making the change.
 
There is a lot more information that you need to know about Medicare Advantage plans.  In addition to reading brochures, attending seminars, and speaking with an agent, you can learn more by contacting Medicare directly.  I have included the contact information below. 

Contact Information for Medicare:

http://medicare.gov/

1-800-MEDICARE  (1-800-633-4227)
TTY 1-877-486-2048

Questions about Eligibility for Medicare:

Social Security Administration:  1-800-772-1213

To Get Personalized Insurance Counseling:

Call the State Health Insurance Assistance Program which is also called SHIP.  The number is different for each state. The one for California is listed below:

California SHIP:  1-800-434-0222

Regardless of your circumstances, nearly everyone should contact Social Security within three months before or after their 65th birthday and decide what they need to do.  This is the first step you should take in the process.

If you are interested in learning more about preparing for retirement, you may want to check out the tabs at the top of this page.  They contain links to hundreds of articles on family relationships after retirement, the best places to retire in the United States and overseas, financial planning and medical issues.

You may also be interested in reading:

How to Sign Up for Medicare
Should You Get Medigap Supplemental Insurance with Your Medicare?

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Should You Get Medigap Supplemental Insurance with Your Medicare?

As I mentioned in a recent post, within three months before or after your 65th birthday, it is important that you contact the Social Security Administration to sign up for Medicare.  This is true even if you already have insurance through an employer or the military.

Once you have completed the paperwork for Medicare, the next thing you will need to decide is if you want to get a Medigap policy (Medicare Supplement Insurance) or a Medicare Advantage Plan.  In this post I will go over the Medigap Supplemental Insurance plans, like the one that my husband has selected.  You may also want to read "Should You Get a Medicare Advantage Plan with Your Medicare?" and "How to Sign Up for Medicare." These articles will help you consider all the options available to you.

Medigap Supplemental Insurance  

The reason why someone would want to have a Medigap policy is because Medicare doesn't pay for everything.  While regular Medicare will cover most of your medical expenses when you are over age 65, there are large deductibles and expenses that are not covered.  Medigap policies are designed to "fill the gap" by covering some of those expenses like copayments, coinsurance and deductibles, so that patients do not end up with a lot of large medical bills.   Some of the Medigap policies also cover things that Medicare does not include at all, such as emergencies during foreign travel, although each plan is different so you need to shop around to make sure you are getting the coverage that meets your needs the best.

You will have to pay a premium with a Medigap policy, in addition to the premiums you pay for Medicare.  You cannot have both a Medigap policy and a Medicare Advantage policy.  You have to choose one or the other.

One of the reasons that people sometimes choose a Medigap policy rather than a Medicare Advantage Plan is because they want to stay with their current doctors rather than be limited only to the doctors that are part of a Medicare Advantage HMO or PPO list of approved providers.   

For example, my husband has CKD (chronic kidney disease) and he was very happy with the doctors who were treating him prior to his 65th birthday.   He contacted all the physicians that he sees and discovered that all of them accepted both Medicare and Blue Shield.  As a result, he chose to buy a Blue Shield Medigap policy so he could stay with his favorite doctors. Conversely, I was not that attached to my physician so I chose a Kaiser Permanente Medicare Advantage plan.  My plan is substantially less expensive, but his plan allowed him to stay with his current physicians, which was important to him.

My husband also chose a Plan "F" Medigap insurance policy.  This is the most expensive Medigap plan.  He pays about $275 a month in addition to the $135 that Medicare currently takes out of his Social Security.  However, when he had a heart attack, we paid no deductible or co-pay.  On the other hand, as of 2019, when this article was updated, I only pay the standard $135 a month to Medicare, which is deducted from my Social Security, to cover the cost of my Kaiser Medicare Advantage plan.  However, spending the same amount of time in the hospital and having heart surgery would have cost me at least $1000 in deductibles and co-pays.  In other words, my husband pays an extra premium, but no co-pays and deductibles.  I do not pay an extra premium, but I do have co-pays and deductibles ... although they are quite reasonable.  

Whatever policy you choose, if you are unhappy with it, you should know that once a year in the fall  open enrollment period (between October 15 and December 7) you can select a different plan to use the following year.  However, if you have end stage renal failure (which means you are on dialysis), there are severe restrictions on switching plans.  This is one reason my husband wanted to keep his current doctors.  He did not want to change doctors, end up unhappy, and then be stuck with new doctors he did not like.

You can find a lot more information on the Medicare website.  In addition, as you approach age 65, you will be contacted by a number of Medigap and Medicare Advantage companies in your state.  You may want to attend their seminars and learn about the differences between what the various companies offer before you make a final decision.

Contact Information for Medicare:

http://medicare.gov/

1-800-MEDICARE  (1-800-633-4227)
TTY 1-877-486-2048

Questions about Eligibility for Medicare:

Social Security Administration:  1-800-772-1213

To Get Personalized Insurance Counseling:

Call the State Health Insurance Assistance Program which is also called SHIP.  The number is different for each state. The one for California is listed below:

California SHIP:  1-800-434-0222

Related Articles You May Want to Read:

Should You Get a Medicare Advantage Plan with Your Medicare? 
How to Sign Up for Medicare

Regardless of your circumstances, nearly everyone should contact Social Security within three months before or after their 65th birthday and decide what they need to do.  This is the first step you should take in the process.

If you are interested in learning more about preparing for retirement, you may want to check out the tabs at the top of this page.  They contain links to hundreds of articles on family relationships after retirement, where to retire in the United States or overseas, financial planning and medical issues.

You are reading from the blog:  http://www.baby-boomer-retirement.com

Photo credit: www.wikipedia.org/commons

How to Sign Up for Medicare

If you are approaching the age of 65, you need to make sure that you sign up for Medicare and select the medical plan that you prefer as soon as possible.  I have just gone through the process and thought that it was somewhat complicated, so I decided to help others understand what is involved in the process.

Contact the Social Security Administration

The first thing you will want to do is sign up for basic Medicare.  You can do this at the Social Security office nearest you or by going to Medicare.com.  Their website does a good job of helping you understand which parts of Medicare are the correct choices for you.  You have a seven month window in which you can sign up without paying a penalty later.  You can sign up during the three months before the month you turn 65, during the month of your birthday, and during the three months after your birthday month.

If you are already collecting Social Security or Railroad Retirement Board benefits, in most cases you will automatically get Medicare Parts A and B on the first day of the month that you turn 65.  The same is true if you are disabled and already collecting benefits, even if you were under 65 when you began to receive payments.

If you are approximately 65 but not yet collecting Social Security, you still need to sign up for Medicare.  If you think that you have signed up, but you do not receive your Medicare card a month or two before your 65th birthday, you should contact Social Security.  Your card will look similar to the one in the attached photo.

Special Circumstances Involving Medicare:

There are specific situations that complicate things for certain people, as you see below:

For example, whether you are already collecting your Social Security benefits or not, you need to contact the Social Security Administration within three months of your 65th birthday if you have end stage renal disease (on dialysis).  This is the one illness that affects your Medicare insurance choices.

In addition, if you are still working and you are covered by medical insurance through an employer, you may initially choose to only get Part A and delay signing up for Part B, without penalty.

On the other hand, if you are on a COBRA plan from a former employer, you should not wait until COBRA ends before you get Part B coverage.  You should sign up at the same time you enroll in Part A.

If you are active duty military at the age of 65, you must sign up for both Part A and Part B of Medicare in order to keep your TRICARE coverage.

As you can see, signing up for Medicare is very complicated and different rules apply to different groups.  Not only that, if you make a mistake and delay signing up for Part A and/or Part B when you should have, you may be required to pay a penalty which will permanently make your premiums higher.

There are a number of variables that can affect different groups of people ... those who are already on a group insurance plan at work, those who have end stage renal failure, those who are on COBRA, and other groups.

Should You Get a Medigap Policy or a Medicare Advantage Plan?

Once you have signed up for basic Medicare, you need to decide if you will want to supplement it with a Medigap policy, to cover things that are not covered by basic Medicare, or whether you want to have your coverage assigned to a Medicare Advantage plan.

At the bottom of this article, see the links to the articles I also wrote about Medigap insurance and Medicare Advantage plans.  Most people will want to have one or the other.

Meanwhile, if you are getting close to your 65th birthday, you need to contact Medicare to make sure you are signed up for the basic Medicare plan that is right for you.  Below, I have given you some contact numbers, as well as some information about how you can get free personalized assistance in making the right decisions for you.

Contact Information for Medicare:

http://medicare.gov/

1-800-MEDICARE  (1-800-633-4227
 TTY 1-877-486-2048

Questions about Eligibility for Medicare:

Social Security Administration:  1-800-772-1213

To Get Personalized Insurance Counseling:

Call the State Health Insurance Assistance Program which is also called SHIP.  The number is different for each state. The one for California is listed below:

California SHIP:  1-800-434-0222

Regardless of your circumstances, nearly everyone should contact Social Security within three months before or after their 65th birthday and decide what they need to do.  This is the first step you should take in the process.

Other Articles You May Want to Read:

Should You Get Medigap Supplemental Insurance with Your Medicare?
Should You Get a Medicare Advantage Plan with Your Medicare?

If you are interested in learning more about preparing for retirement, you may want to check out the tabs at the top of this page.  They contain links to hundreds of articles on family relationships after retirement, where to retire in the United States or overseas, financial planning and medical issues.

You are reading from the blog:  http://www.baby-boomer-retirement.com

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