Planning for healthcare in retirement – some pros & cons of investment products
- 401(k), financial planning, Health Care, Healthcare Costs, Life Insurance, Medicare, Retirement, Roth, Roth 401(k), Roth 403(b), Social Security
As you may already know by now, you will have a mandatory expense in retirement known as health coverage, and surprise! – it will be determined by the amount of income you will have in retirement.
In 1993 there were changes to Social Security’s Program Operations Manual System (POMS). A person receiving Social Security Retirement benefits must also accept Medicare Part A, or else face the penalty of having to forfeit all current, future, and even past Social Security benefits.
Granted, Medicare Part A is free if you meet the same 40 quarters definition for Social Security. But Medicare Parts B & D are not free, and they both come with a late penalty for delaying enrollment past age 65. There are also surcharges to the Part B & D premiums for anyone earning “too much” income.
The income test that is used, as defined by Social Security, is “your adjusted gross income plus any tax exempt interest you may have or everything on line 37 and 8b on the IRS form 1040.” The technical term for this income is Modified Adjusted Growth Income, or MAGI.
Some examples of income that are part of MAGI: Wages, Social Security, most Capital Gains, all Dividends, Rental & Pension Income, withdrawals from most retirement savings plans, and even most Annuities.
Unfortunately, certain Medicare premiums and all surcharges due to income, along with any late penalties, are automatically deducted from any Social Security benefit you may receive. So what you think you may be getting in terms of a benefit may not actually be what you ultimately receive.
Below is a list of some of the popular retirement options, and how they may or may not affect your future health costs. (more…)Read more
Save Social Security??? Then increase the benefits for everyone!
Over the years there has been plenty of rhetoric about Social Security becoming insolvent in the very near future. So far those predictions have not come to fruition. However, recently the rhetoric has been ramped up again. Syndicated radio talk show host Mark Levin has dedicated countless hours on the subject. Barons has written numerous articles on it. Now there are even Congressmen who are taking up this issue. What is surprising is that in order to actually save Social Security all that is needed is to provide even more benefits than before. (more…)Read more
Another Debt Crisis could mean more to the U.S. Postal Service and Retirees
- Baby Boomers, Congress, Dan McGrath, Debt Crisis, Demographics, financial planning, Health Care
While the Debt Ceiling debate is once again starting to make some headlines, not enough attention has been focused on rules put into place giving the federal government ways to still keep spending, no matter what. In 2012, the Treasury […]Read more
Immigration…Can it and should it last?
- Dan McGrath, fertility rates, Fidelity Health Care, Healthcare Costs, illegal immigration, immigration, Medicare, Social Security
Many people may take the position that no matter where they look, it seems there are more and more people. Schools are overcrowded, traffic is backed up in our cities and on our highways, every flight is packed to the […]Read more
Chris Christie’s plan to save Social Security by taking away your benefit. Unfortunately it has already be done!!!
- 401(k), Chris Christie, Dan McGrath, Fidelity Health Care, Healthcare Costs, Medicare, Medicare Modernization Act, Social Security
Do you ever get the feeling that the country has either checked out as a whole, or has been brought back to life by Dr. Frankenstein using Abby Normal’s brain?
New Jersey Governor Chris Christie announced his steps to save the Social Security program for the entire country the other day in New Hampshire, and the frightening part is that he’s either just laughing his ample arse off because he knows that too many Americans have no idea what has already happened to them, or he too is truly Abby Normal.
Mr. Normal’s plan – that is, Gov. Chris Christie’s plan – is to “reduce Social Security benefits for retired seniors earning more than $80,000 and eliminating the benefit entirely for individuals making $200,000 and up in other income, along with raising the retirement age to 69 from 67”.
Here is the punchline, folks: IT HAS ALREADY HAPPENED! (more…)Read more
Sex changes in prisons, not the only high health costs tax payers will face
- Doctors in Prison, Gotti, Health Care, Healthcare, Inamtes health, Prison, Prison costs, Retirement
Many in this country have by now heard about the most recent case of a California inmate successfully suing that state for a sex change, setting taxpayers back about $100,000.
A federal judge ruled in favor of the inmate, stating that under the 8th Amendment within the United States Constitution, any denial of treatment “violates her rights to adequate medical care.
On the surface, this may seem absurd: a man, who committed a crime and was sentenced to spend time in jail, can receive funds to undergo a complete sex change.
But believe it or not, if the person who is imprisoned can prove that the services to be rendered to them are behavioral, then that person is protected by the 8th Amendment, which states that “no cruel and unusual punishment can be inflicted.”
Thus, services have to be rendered, and such was the case in Massachusetts where a “transsexual inmate convicted of murder” was “entitled to a taxpayer-funded sex change operation as treatment for her severe gender identity disorder.” (more…)Read more
The war on the middle-class. How the average American family is being shamed by the large insurance carriers
In a recent conversation with AXA’s head of National Accounts and Business Development, a startling (at least to me) statistic popped up that the Senior Executive seemed to revel in: Household Disposable Income in the United States is at an all-time high.
In his opinion, it was a forgone conclusion due to recent data from the likes of the Organisation for Economic Co-operation and Development (OECD), that in fact the economy is great, and that investments into the markets as well as insurance and annuities purchases would remain steady.
He went on to explain the the average household is actually doing much better than ever before and had evidence to prove this theory.
According to OECD’s “Better Life Index”, it has been concluded that Americans have on average, a “household net-adjusted disposable income per capita of $39,531 USD a year”. The problem, as stated by this AXA executive, is that the average American just isn’t saving enough for his or her retirement, let alone for their financial future. But is he right?Read more
Social Security and Medicare are hand in hand
- Dan McGrath, Jester Financial, late penalty, mandatory, Medicare, Medicare Part B, Medicare Part D, Money Guide Pro, Part B, Part D, Social Security
What may be flying under the radar at many of the Social Security seminars being held across the country is that in order to even receive this benefit one must, when eligible, enroll into Medicare or else.Read more
Medicare Means Testing (IRMAA)
- ACA, Affordable Care Act, Dan McGrath, financial planning, Healthcare Costs, Income, IRMAA, Means Testing, Medicare, Medicare Modernization Act, Part B, Part D
Within Medicare if you are earning too much in retirement will be subject to higher premiums than others through its Income Related Monthly Adjustment Amount or IRMAA. What is it? As defined by Medicare: “If you have higher income, the […]Read more
And the Regulations will be Televised
- 401(k), ACA, Affordable Care Act, Congress, Dan McGrath, Fidelity Health Care, financial planning, Healthcare, Healthcare Costs, Healthview, Medicare, Modern Healthcare, Obamacare, Part B, Part D, Retirement, Social Security, the Budget
Back in 1997, our government began its quest to tackle the unsustainable increase in healthcare spending by enacting legislation which created a formula, aptly titled “the Medicare Sustainable Growth formula”, through the Balanced Budget Act of 1997 (BBA).
This formula was designed to limit the “growth in spending for physicians’ services by linking updates to target rates of spending growth. The law provides for a mechanism for enforcement of the target rate of growth. When spending increases exceed the targeted rate of growth, payments are automatically reduced across the board”. (more…)Read more