Author: Dan Hoelscher

Dan Hoelscher founded Seniormark in 2007 in an effort to help individuals make a successful transition into retirement. Dan is a Certified Financial Planner™ Practitioner and holds Certified Senior Advisor (CSA)© and Certified Kingdom Advisor™ certifications. Since founding Seniormark, Dan has helped thousands of retirees throughout Ohio.

“Broadway Joe” Namath Isn’t Giving You the Whole Story

“Broadway Joe” Namath Isn’t Giving You the Whole Story

By:  Dan Hoelscher, President & Founder, Seniormark, LLC


If you haven’t already had enough of the Celebrity-Sponsored Medicare Commercials, then buckle up!  With the Medicare Annual Enrollment (AEP) season quickly approaching, you are soon to be inundated with them.  They will feature celebrities such as NFL great Joe Namath, Good Times Jimmy Walker and Ernie Hudson of Ghostbusters fame.  They are obviously effective!   Since Joe Namath became the spokesman for the Medicare Coverage Hotline. we have had more calls regarding Medicare Advantage plans than ever before.  Joe encourages you to not miss out on “New Medicare Benefits” and to make sure you get the “Medicare Benefits You Deserve.”

Benefits such as:

  • Rides to Medicare Appointments
  • Private Home Aides
  • Doctor’s and Nurse’s visits by telephone
  • Home delivered meals
  • Dental, Vision, Hearing and Prescription Drug Coverage


Some even offer a premium credit to your social security check for your Part B Medicare premium.  I spent some time recently watching numerous such commercials.  And what the commercials said was true, to the extent that it was said.  However, what is left unsaid is what is most crucial for you to make a wise decision.


There are a couple of things you need to consider before you race to your phone to “Call Now.” First, Joe Namath, while he may be a perfectly upstanding gentleman, is no Medicare expert.  He is a paid endorser.  In fact, I doubt he even understands what a Medicare Advantage plan is.  Even if he is on a Medicare Advantage plan, I doubt he is concerned with the potential out of pocket costs involved.  I believe his $25 million net worth may place him a little out of touch with the average American budget. Second, be aware that he is speaking on behalf of the Medicare Coverage Hotline, not Medicare.  And if you were to pause the commercial on the last slide, you would see that The Medicare Coverage Hotline is a for-profit lead generation campaign.  This means that they are simply trying to get you to call their 800 number so they can sell you as a lead to an insurance agent.


At Seniormark, we can help you with both Medicare Supplement and Medicare Advantage plans.  And we want you to choose your coverage based on the plan you believe it right for you, based on all the information, not just the information a salesperson wants you to hear.  You deserve a fair comparison!


Please join us for our next workshop on October 6th at 10:00 a.m. at our Sidney office (2551 Michigan Street, Sidney, OH) where we will disclose the details that have been left out of the Joe Namath commercial.  Call our office at 937-492-8800 to save your seat, or you may RSVP online at

Medicare Supplement vs. Medicare Advantage: The Pros and Cons of Each

Medicare Supplement vs. Medicare Advantage: The Pros and Cons of Each

You may have encountered these buzzwords in television commercials, email blasts, or the piles of mail you’ve likely received from insurance agencies, but what do they mean? What is the difference between a Medicare Advantage Plan and a Medicare Supplement? Which is the best option for you?


First off, it is important to address that regardless of which option you choose, you need to sign up for original Medicare (Parts A and B) first.   As long as you’ve determined that you shouldn’t delay part B (because you plan to remain actively employed after 65), you should sign up for both within the 7-month period starting 3 months before your 65th birthday month.


Medicare Supplement, or “medigap” insurance as it is aptly nicknamed, fills in some of the gaps of what original Medicare does not cover.  However, Medicare is still the primary payer of your claims.


On the other hand, Medicare Advantage is an alternative; it replaces original Medicare as the primary payer of your claims and is offered through subsidized private insurance companies that have contracted with Medicare.


This difference makes a big difference when considering the benefits and detriments of each option—in dollar signs, security, and convenience. Because of this, let’s consider the pros and cons of each carefully.


Medicare Supplement (Pros)

Minimal Out-of-Pocket Spending – Although there are differences in coverage among each of Medicare’s lettered plans (A-N), supplements cover more gaps (such as deductibles, coinsurance, and copays) than Medicare Advantage.

Predictability – Not only is your coverage guaranteed to stay the same, the price is reasonably consistent from year to year. Although we recommend re-shopping your plan every 4-5 years to avoid the slow creep in premium prices, there won’t be any shocking or unprecedented changes.

Out-of- State Coverage – Supplements cover you in all states, not just your home state.

No Networks – You are able to use any doctor or hospital that accepts Medicare, not just ones within the preferred network of a specific insurance company.


Medicare Supplement (Cons)

Higher PremiumMedicare supplement premiums can range from around $70-270 with the average Medicare supplement premium in 2020 hanging around $134 a month for people aged 65-70. This is significantly higher than the average Medicare Advantage plan premium.

No Drug Plan – You have to buy a stand-alone Part D prescription drug plan, which has an average premium cost of 32.74 in 2020.



Medicare Advantage (Pros)

Low to No Premium– The Average Medicare Advantage plan cost in 2020 is about $36 per month in 2020 and a few are offered at no cost!

Built-in Prescription Drug Plan – Almost all Advantage plans include a drug plan, which means less hassle and no extra premium.


Medicare Advantage (Cons)

High Out-of-Pocket Spending  – Medicare Advantage may appear to cover more because they offer perks like vision, dental, and hearing (which are usually not worth covering ). They may even throw in a free gym membership. However, they usually cover less, employing more of a pay-as-you-go approach. For you, this means higher copays, coinsurance, and unexpected costs.

Unpredictability – Since the government subsidizes Advantage plans, your plan’s benefits and premium costs may vary widely from year to year.

Out-of-State Coverage…Sometimes – You can only receive coverage outside of your home state in emergencies.

Networks – Different Advantage plans have various preferred hospitals and doctors. If you do not use your plan’s preferred providers, you may find yourself with less coverage or—depending on the plan—no coverage at all.


The Bottom Line

All in all, the pros and cons of these two options can be summarized quickly and concisely: A Medicare supplement is more costly but with better benefits (leading to less hassle and more peace of mind); while a Medicare Advantage plan is inexpensive, but with fewer benefits (often leading to unexpected costs and stress).


But the bottom line is that both options do their jobs. They both limit the potentially high out-of-pocket spending that is left by Medicare alone. Whatever you choose, don’t leave yourself vulnerable to coverage gaps.  There are no pros to remaining with Medicare alone!


Turning 65 soon and not sure what to do? Click here to sign up for our free Medicare workshop. No high-pressure sales pitches here, just in-depth discussion about the ins and outs of Medicare!  Click here to sign up for our next workshop.

2020 AEP Checklist

Annual Enrollment Period (AEP) To-Do List

  1. Write the important Annual Enrollment dates to remember on your Calendar, and clip your calendar on your fridge.
  2. Don’t eat that midnight snack until you’ve read the dates at least once.
    1. October 1st— we can talk about your options!
    2. October 15th— The AEP games begins.
    3. December 7th—AEP comes to exhausting close.
    4. January 1st— Plan changes go into effect.
  3. Compare your medications to the formulary (drug list) mailed to you by your drug plan company.
  4. Consider changing your drug plan if some of your medications are no longer covered or if the premium is too high (call OSHIIP at 800-686-1578 to reshop your plan).
  5. Call us and set up an appointment to have a good chat about your Advantage plan.
    • Consider switching Advantage Plans if:
    • Your hospital or doctor went out-of-network
    • Plan changes for the following year result in jaw-dropping out-of-pocket spending or a high premium.
    • Your medications are no longer covered or are costing a lot.
    • Your Advantage plan is (all around) a bit of a drag.

6.  Remember — you can change your Medicare Supplement any day of the year.  If you currently have a supplement, you are not bound by AEP in order to switch companies.  However, if you want to switch from a Medicare Supplement to a Medicare Advantage plan or if you want to switch from a Medicare Advantage plan to a Medicare Supplement, you must do that during this time.

7.  As a golden rule, your ultimate to-do list item is …plan ahead!

Still confused about what to do?  Give our office a call at 937-492-8800.  We are here to help!


Know Your Investment Lingo! 5 Terms Every Soon-to-be Retiree Should Know

Know Your Investment Lingo! 5 Terms Every Soon-to-be Retiree Should Know

Smile and nod…smile and nod, you think as some financial advisor spews jargon about diversification or risk tolerance or ETFs. You begin to realize he’s saying more words that you don’t know than words that you do, and pretty soon his voice starts to sound like Charlie Brown’s teacher. You know he’s offering priceless advice about your portfolio as you transition into retirement, but those little nuggets of gold are buried beneath layers of acronyms and complicated concepts.


There are many soon-to-be retirees just like you. This is why I am here, to translate the foreign language of finance and investments into something a lot easier to understand. Here’s a compiled list of the top 5 terms you are likely to come across on your journey to a secure retirement investment strategy.


1.  Annuity

An annuity is an investment option that puts an insurance company between you and the ups and downs of the market. This insurance company guarantees you an income throughout your lifetime. Or it may guarantee that you will always be able to cash out the amount you place in their care.


However, here’s the catch: you often have to pay higher fees and can rarely take out your money in a lump sum without paying a stiff penalty. That is the trade off. It is not always the best choice (see our blog “Why Annuities aren’t worth it”), but an annuity is an increasingly popular choice for retirees desiring a guarantee.


2.  Diversification

This is best explained by the adage “don’t put all your eggs in one basket.” When investing, it is rule number one. Or maybe rule number two, if you include “buy low and sell high.” The idea is to decrease risk by putting your money in a variety of investments and asset classes, so—if one investment tanks—you won’t be in financial ruin.


3.  Asset Allocation

Have you ever heard these words thrown around at a cocktail party as investors brag about their business ventures: short term bond, large cap growth, small cap value, etc? These terms are categorizations of investments called asset classes, grouped together because they tend to behave similarly in the market.


Asset allocation, then, is just spreading your money among these various asset classes according to your unique financial situation and risk tolerance…which leads me to my next term.


4.  Risk Tolerance

In the game of investments, you have to be willing to risk losing money in order to make money. Some people are conservative—they want to avoid tragic losses even if it means less than impressive returns. Some are more aggressive—they are exactly the opposite.  Yet others are in-between. Your risk tolerance (often expressed as a number) shows where you fall on that continuum.


The driving question to determine your risk tolerance is this: how much are you comfortable to lose in order to gain the possibility of higher returns? Analyzing your risk tolerance helps ensure that you won’t make any poor, fear-based decisions to sell when the market isn’t doing well.


5.  Active vs. Passive Management

Some investors try to outperform the market by forecasting which investments will go up or down in value. They spend a lot of time moving money around, aiming to make big money in a short amount of time. This approach is called active management. Although it can lead to some lucrative gains, it is often dangerous because no one can predict the future consistently (See our blog:  “Investing Fact Check:  No One Can Predict the Future”).


Passive management, then, is the exact opposite. It involves diversifying your portfolio, matching it to your risk tolerance, and then letting the money sit, allowing the steady growth of the market to do its work. Sure, slight changes can be made as needed, but this approach is for people who are in the market for the long haul.


Well, if you have just finished this blog post, your financial literacy just increased! You are one step closer to understanding the jargon-strewn world of investing, and therefore, one step closer to a retirement investment strategy that will help ensure your financial security!


Want a Certified Financial Planner to analyze your portfolio at no cost to you? Call Seniormark at 937-492-8800 for a free consultation.


Is Your Financial Advisor Giving You What You Want or What You Need?

Is Your Financial Advisor Giving You What You Want or What You Need?

From my 20+ years in the financial planning industry, I’ve found that the best advisors will challenge you. They aren’t just yes men who tell you want you want to hear. Rather, they coach you into making the most strategic decisions that may or may not feel best to you in the moment. The relationship of a financial advisor to his advisees should be similar to that of a doctor to his patients. He or she should identify your financial ills and prescribe you a plan that you will both carry out together, hand in hand.


The reason I’m bringing this up today is because it came up in a conversation I had with another financial advisor recently. In said conversation, I was very impressed by the man’s expertise and concern for his clients; in fact, I was so impressed that I was thinking about working with him in some capacity. But when we got into talking about annuities, our opinions diverged.


He wanted to provide most of his retired (or nearly retired) clients with a guaranteed income stream by placing a significant portion of their nest egg into an annuity. I thought that the guaranteed income wasn’t nearly worth the price they would have to pay.


Now, I am not against the right annuity for the right person, although I do think there are some things everyone should be fully aware of before buying one (click here for our blog about things everyone should know about annuities). And I certainly wasn’t against him or his business. But I did have a problem with his rationale.


You see, when I pressed him about the illiquidity of annuities and the high fees that often drain returns, I could tell he understood quite well that he knew these products weren’t always the best fit for his clients. We went back and forth for a little while with arguments for and against annuities, and—at the end of it all—he eventually settled into a very telling statement:


“Well, Dan, are you giving your clients what they want or what you want?”


When it came down to it, his advice was about the client’s wants. An annuity provides the warm fuzzy of a guaranteed income for life. It soothes fears of outliving one’s nest egg. In most cases, it just gives clients what they want (absolute assurance of income) rather than what they need (slow steady portfolio growth over time). It’s an easy sell that is often hard on the long-term returns.


Going back to the “doctor to patient” relationship I mentioned earlier…

Imagine your doctor says to you, “You have anemia, and you need an injection once a month if you are going to live.” Yanking on your collar a little bit, you reply, “But doctor, I don’t really want to. I’m scared of needles.”


What is he going to say? Is he going to offer you a daily pill and say, “I know this isn’t nearly as effective as the needle, but at least you won’t get the jitters”?

No, he is going to give you what you need, what is best for you.


It’s the same thing with an advisor. And this goes far beyond annuities. What if you want to cash out of the stock market during a downturn in a whirl of negative emotions? What if you want to invest in individual stocks rather than a balanced, diversified portfolio? What if you want to stay in an aggressively invested, risky portfolio much later in life?


I’m not saying your advisor should twist your arm to make you do something you aren’t willing to do, but—as I said before—he or she should challenge you to treat your financial ills, even if it doesn’t pad his pockets, even if it’s not what you want to hear.


Want a Certified Financial Planner to analyze your portfolio at no cost to you? Call Seniormark at 937-492-8800.



4 Things Every Retiree Must Know Before Buying an Annuity

4 Things Every Retiree Must Know Before Buying an Annuity

Why is the world of retirement finances so scary? The answer is one you’ve probably come to know all too well: the future is uncertain. You’re uncertain about how long you’ll live because, after all, you don’t want to outlive your assets. And the nightmarish vision of forever losing one’s nest egg to an uncertain stock market can reel like an old-school motion picture.


For some, this is just a little jitter in the stomach every now and again, and for others, the fear of an unpredictable future is persistent and gnawing. But it is the same for everyone: the lack of full assurance is a nasty pill no one wants to swallow.


Enter Annuities.


These products offer some sort of a guarantee; for instance, that you’ll never lose your principal amount or that they will pay you a set amount until the day you die. In other words, it comes with a reassuring promise to put your fears and uncertainty to rest, which is probably why annuities are such a popular choice nowadays (and why it is such an easy sell for agents).


But here’s what you need to understand about annuities: all “guarantees” will come at a very high cost. Insurance companies are masters at risk and reward, so they aren’t going to offer you a product in which they lose at the numbers game. I’m not here to say that all annuities are the spawn of hell like some advisors are in the habit of doing. But I do want to make sure you don’t buy one without knowing the downsides and complications. There are many of them, but here are just a few.


The Upfront Promises Can Change—Check the Fine Print

As I just said, these products are complex. Some disclosure documents are 100 pages longs. In fact, I’ve come across some variable annuity disclosures that were over 700 pages (some light reading for an August evening, right?).


And within the acres of legalese, there are often some measures that will protect the insurance company if times get rough. For instance, from what I’ve seen, they can increase rider fees, lower interest rate caps, increase spreads, and let participation rates plummet. To translate, in simple terms, that means “if the promise we made you is getting us into trouble, we’ll just back out of it.”


I know this from personal experience. Back in my earlier, more naïve days of financial planning, I suggested that my dad buy an indexed annuity. The product promised a 110% participation rate, which means that whatever the S&P 500 was doing, he would get 110% of that. But I noticed something peculiar tucked away in the pages: that rate could drop to 50% at the company’s discretion. We talked with the company representative and he assured us again and again how unlikely it was for it to drop. So, I dismissed it and sold it to my dad.

Guess what fell to 50% the very next year?


You see, what you have to realize about annuities, is that the company is always doubly protected. Like the old saying goes, if it sounds too good to be true…well…I think you know the rest.


You Can Really Tie Up Your Money

The worst part of many annuities is that they have surrender periods. In the case of my dad, his surrender period was seven years. Even though he hated it, he couldn’t get out of his annuity without paying steep surrender penalties. Typically these periods are around seven to twelve years, but I’ve seen some as high as seventeen. And the penalties for cashing out early? They might be anywhere from 8-20% of your principal.


This doesn’t necessarily mean annuities are terrible products. It just means they are really, really hard to escape. So make sure you understand what you are getting into!


There Are Often Large Fees—Or Whatever They Call Them

The fees in an annuity are usually as high as 3-4% once you add up the rider fees, mutual fund fees, and mortality and risk fees.


And what if someone told you that the annuity they’re selling doesn’t have any fees? In that case, just remember that the insurance company will make that money back somehow. For instance, in a fixed annuity, they often have a cap on the amount of return you can get. I’ve found that these kinds of hidden costs come out to around 3-4% most of the time—maybe even worse. Just because they aren’t called fees, doesn’t mean they won’t cost you big time!


There Are Huge Conflicts of Interest

Agents who sell annuities often make high commissions. I’ve seen them as high as 10% upfront, maybe even more. And, for many annuities, agents aren’t even required to have a securities license to sell them because the annuity is considered an insurance product (even if it requires the salesperson to give investment advice). Here’s where that can get really sticky: you don’t have to disclose any conflicts of interest for insurance products. Therefore, a salesman can sell you an annuity without telling you about his fat commission. You can see why this has led many experts in the industry to the conclusion that annuities are sold, not bought. The products you buy should help your retirement plan. It shouldn’t help someone else’s and hurt yours in the process.


The Bottom Line

I’m not against the annuities as long as the buyer is making the choice after a fair representation of the pros and cons, but that is exactly the problem: It isn’t very often that people are given a fair representation that isn’t overblown with sales propaganda. That is why it is always a good idea to put the brakes on before getting into an annuity. Think about getting a second (or even a third) opinion. You won’t regret it.


If you want a second opinion on a specific annuity option and whether it is right for you, you can always call Seniormark at 937-492-8800. We specialize in the retirement transition, and we are here to help!

How to Find Trustworthy Help For Retirement Planning

How to Find Trustworthy Help For Retirement Planning

Good help is difficult to come by these days. And when it comes to choosing an expert to help you make critical decisions for retirement, rollover your 401(k), or manage your investments, those willing to act in your best interest seem few and far between. There are just too many ways advisors can take advantage of their clients for financial gain.


Some people are just crooks. I’ve definitely seen enough of that! And others, though they aren’t bad people, are led astray by high commissions that line their pockets at the client’s expense.


That’s why you need some guidelines for finding a retirement planner who truly has your best interests in mind. They all say they do, but it takes some discernment to know which ones are the most trustworthy.


Without further ado, let’s put first things first…


Don’t Get Stuck With A Sales Person—Choose a Fiduciary!

This is by far the most important way to find good help.




Well… fiduciaries are ethically and legally required to act in your best interest. That doesn’t mean they always will. After all, legislation cannot make a dishonest person honest. However, you are significantly better off choosing a fiduciary who is held to a legal standard than someone who isn’t.


There are other governmental standards for advisors and financial planners who aren’t fiduciaries, but they are significantly more lax. And, unfortunately, some people take advantage of the extra slack on the leash.


In deciding whether someone is a fiduciary or not, don’t be misled by titles such as “financial advisor” or “wealth manager.” There’s nothing wrong with these titles, but anyone can slap them on a business card. So, when it comes down to assessing quality—the titles don’t mean much of anything. Just because someone says they are an advisor, doesn’t mean it’s in their heart to give you the best advice.


Instead of relying on titles, you should simply ask (point blank) if he or she is legally mandated to pursue your best interest. In other words, it is best to just ask, “Are you legally required to act as a fiduciary on my behalf?” It is even better if you can get the statement in writing.


Consider a Fee-Only Advisor

Fee-only advisors don’t receive commissions based on their sales. They are paid either a flat fee or a percentage of your assets that they manage, and that is it. A fee-based manager, on the other hand, is also paid commissions on the products they sell. Most of the time, this isn’t a big deal.


But what if one of these said products awards them a fat commission with every sale?  And what if, despite the fact that the product isn’t at all right for you, they decide to sell it to you anyway? Do you see the conflict of interest and the potential devastation to your portfolio?


This is why it is best to choose a fee-only manager, or at least maintain a healthy level of skepticism with those who have significant conflicts of interest.


Beyond this, I would just ask that you remain sensitive to any red flags. Before you choose to work with anyone during this crucial time of financial transition, ask yourself the following questions:

  • Do they take the time to educate you about your options?
  • Can they back up their advice with sound, understandable reasoning?
  • Do they begin and end with an analysis with your unique situation?
  • Do they give you time to process without rushing your decisions?


Sound retirement planning advice is always educational. It is always transparent. It is always you-centered. It is never rushed.


This doesn’t necessarily mean they will lecture you about the ins and outs of the stock for hours on end, and it doesn’t mean they won’t ever miss a relevant aspect of your financial situation when giving you advice. I’m not trying to hold retirement planners to impossible standards.


But I’m also trying to keep you safe from those who only seek to take advantage of you. According to ARRP’s article, Managing Your Money Manager,” “the government estimates that Individual Retirement Accounts alone lose $17 billion a year to ‘me first’ investment advice from salespeople who wring commissions and fees from their trusting clients.”


We don’t want your money to become a part of that statistic.


Want a Certified Financial Planner to analyze your investment portfolio at no cost to you? Call Seniormark at 937-492-8800 for a free no-obligation consultation.


Why You Should Consider Working In Retirement

Why You Should Consider Working In Retirement

(Even If You Don’t Need the Money)

Work? Retirement? The two words don’t even sound like they belong in the same sentence. After all, retirement is for relaxation. Retirement is for grandkids. Retirement is for vacations and bucketlisting.


But wait just a minute.


Although all of those things are true, studies show that regular work is also on the agenda, nestled in-between the couch sitting as well as babysitting. According to a Merill Lynch Retirement Study, 72% of pre-retirees age 50 and up will work in some capacity during their retirement.


This raises the question: Why are so many soon-to-be retirees planning to spend time working, the same thing they’ve likely been doing for the last 40 years?


It’s Not All About the Dollar Signs

As it turns out, there are a lot of reasons, and not all of them are financially related. Participants of the Merrill Lynch Study reported working in order to

  • Stay mentally active
  • Stay socially connected
  • Maintain a sense of identity and self worth

…as well as many other valid reasons. Surprisingly, staying mentally active was the number one cited reason. Money was still a consideration, especially considering that many retirees have not saved enough for a 20-year-or-more retirement, but those other motives definitely pulled their weight in the statistics.


And, fortunately, these desires were not left unfulfilled. The study also indicated that retirees who are working in retirement get out what they put in. As it turns out, working retirees reported feeling 10% prouder, 17% more connected to others, and 17% more stimulated than their non-working counterparts! It seems the sense of accomplishment, social interactions, and work environment provided a sense of overall well-being.


The Bottom Line

The point is today’s retirees and pre-retirees refuse to see retirement as the end. They are, instead, viewing it as a new horizon, a new beginning, a springboard instead of a landing pad. According to the study, many do take a 2.5 year break from work after retiring, but they are using that rest to recharge rather than wind down.


From working with my clients, I’ve heard some of their ideas for work. One client of mine does woodworking projects for people. Others give private music lessons. I even know a couple that travels down the east coast, selling kettle corn at local festivals during the summer. I remember them telling me all about the fun of traveling from year to year and the relationships they’ve built with some of the locals. Doesn’t that sound like fun?


You see, work and retirement only sound like they don’t belong in the same sentence if you consider work to be stressful or boring. However, if you can make money doing what you like, working will turn into a passion rather than a drag. In fact, you just might find that work and retirement is a match made in heaven.


Do You Have Retirement Questions?

Deciding whether or not to work is just one of many decisions you will have to make as you transition to retirement. Luckily, our Life After Work series of workshops seeks to cover the three critical areas of a successful retirement transition: Medicare, Social Security, and 401(k) planning. You can sign up for just one or all three. No high-pressure sales pitches here, just in-depth discussion about what you need to know as you approach retirement.   Our Welcome to Medicare workshop is Thursday, June 25, beginning at 5:30 on Zoom.  Call our office at 937-492-8800 or head on over to our web page and sign up for a free workshop today!

Will I Be Able to Afford Medicare?

Will I Be Able to Afford Medicare?

The shortest and most honest answer is “I don’t know”. But I know this doesn’t help you answer the most pressing questions weighing on your mind as you approach retirement age. Am I ready? Or Should I delay my retirement? And most of all—how am I going to afford health care without my employer insurance?


So here’s what I am going to do. Using my 20+ years of experience working with retirees, I am going to lay out a framework for what to expect when it comes to Medicare expenses. These will just be “in-the-ballpark” figures, but I believe they will help you come to a decision. You just might find that Medicare falls squarely into your budget.


So let’s get started with some good news.


Medicare Part A (Inpatient Care) Is Free

As long as you’ve paid into Social Security for at least 10 years, social security will return the favor with no associated Part A premium.


The Associated Part B (Outpatient Care) Monthly Premium is $134.00

This figure is adjusted for high income, but most people don’t fall into the high-income category. $144.60 will be your monthly premium unless you make $87,000 per year or more as an individual or $174,000 filing jointly.


From this point, the cost of Medicare is heavily affected by which path you take. You can boil down all the madness into two basic choices: Medicare Advantage or Original (traditional) Medicare.


The Traditional Medicare Route

If you choose the Traditional Medicare route, you will want Medicare Supplement Insurance to fill in the gaps of what Medicare doesn’t cover. Otherwise, there will be no limit to your out-of-pocket spending. The premiums for a Medicare Supplement range from $45-146 per month. However, we often recommend a plan G, which typically costs $110 per month. This is a fairly standard premium. It puts into perspective what you can expect a Medicare Supplement Plan to cost.


To cover your medications, you will also need a Part D prescription drug plan, which will cost in additional premium anywhere between $14 to $128 monthly. The average cost for a drug plan is $42 in 2020. The out-of-pocket costs associated with Part D vary greatly depending on your medications. It is impossible to estimate without knowing your specific situation.


The Medicare Advantage Route

Offered as an alternative to Traditional Medicare, Medicare Advantage is often the cheaper option when it comes to premiums. They are offered for prices within the range of $0-163 monthly with the average premium being approximately $23 per month. The Part D prescription drug plan is almost always rolled into the plan.


Caution: Check For Possible Out-of-pocket Costs

At first glance, it looks like the Medicare Advantage route is the obvious choice. But this fails to take into account the risk of out-of-pocket costs. With a Medicare Supplement (only available with Original Medicare), the maximum out-of-pocket (for Medicare approved expenses) is only $198 annually for Plan G. However, in an advantage plan, it is more of a pay-as-you-go approach. There are less monthly premiums; but copays, coinsurance, and deductibles are much higher. The potential out-of-pocket for an advantage plan can be as a high as $3500-6000 per year or more!


The Costs At a Glance

So there you have it! This should give you a good idea of what Medicare costs for the average 65-year old. But—as I said before—the cost of Medicare is different for every person. If you are still concerned about being able to afford Medicare, contact us for a free consultation. We will assess your financial and health situation to find an overall plan that meets your needs, concerns, and pocketbook. Ensuring you a successful and secure transition into retirement is our number one priority.


There are a lot circumstances that may prevent you from retiring. But I believe that the affordability of health insurance shouldn’t be one.


Disclaimer: Numbers are based on Ohio 45365.


Turning 65 soon and not sure what to do?  Our next workshop is quickly approaching on June 25.  Click here to sign up for our free Medicare workshop. No high-pressure sales pitches here, just in-depth discussion about the ins and outs of Medicare!

Top 5 Retirement Myths You Probably Believe

Top 5 Retirement Myths You Probably Believe

We only use ten percent of our brains. Napoleon was short. It takes seven years to digest a piece of gum.


Myths like these are pervasive and stubborn. Perhaps you are just now realizing the above statements are even myths at all! Regardless, whether you first heard them on an evening sitcom, around the dinner table, or as a warning before your mom gave you a stick of juicy fruit when you were a kid, they were easy to pick up and difficult to get rid of.


But unlike these common household myths, which are basically harmless, widely held false beliefs about retirement can lead to unexpected bills, sore disappointments, or missed opportunities.


That is why I’ve compiled some of the more common and destructive retirement myths, so you can let them go and grab ahold of a better, more secure retirement.


  1. “Health Insurance in Retirement? Won’t Medicare Take Care of All That?”

This is a big one. Many people think that, just because the government provides Medicare for those 65 and over, the program is designed to meet all of their healthcare needs. This is, unfortunately, not the case. In truth, it’s not even close.


You see, Medicare has very costly gaps, ranging from small, pesky copays to potentially devastating out-of-pocket spending. Firstly, Medicare simply doesn’t cover vision, hearing, dental, or long-term care. And then—in other areas such as skilled nursing, hospital stays, medications, and much more—the coverage is limited. These gaps will not always be overly expensive, but—since there is no out-of-pocket spending limit with Medicare—one major health crisis can quickly turn into a financial crisis as well.


That is why we recommend talking to an advisor about getting a Medicare Supplement Plan to fill in those gaps or, if that is too expensive, a Medicare Advantage Plan that will put a cap on your potential out-of-pocket spending.


  1. “Social Security Will Take Care of Most of My Income, Right?”

Although Social Security isn’t going broke and skipping out on promised benefits like some believe, the program is not (and was never) designed to provide anyone’s full retirement income.


In fact, according to Social Security’s website, the government program is only designed to replace about 40% of a person’s pre-retirement income. As a general rule of thumb, many financial advisors predict that retirees will need 70-80% of their pre-retirement income to live comfortably That leaves 30-40% up to your nest egg. Can your nest egg handle it? 



  1. “Work? Retirement? Those Two Words Don’t Belong in the Same Sentence.”

People are living longer, and living longer means having more time on your hands. When people only lived ten or so years after age 65, it made sense to think of retirement as a time to wind down and call it quits. But now that the average life expectancy is approximately 85 years, continuing to work (at least part time) makes a lot of sense.


According to a Merrill Lynch Retirement Study, 72% of pre-retirees 50 and older say that they plan to work at some point in their retirement. Additionally, the same study showed that 47% of current retirees have worked or plan to work sometime in retirement.


  1. “Starting a New Career is For Young People, Not Retirees.”

But perhaps you don’t want to go back to the stress of your former career. Or maybe you the whole reason you retired is because you weren’t physically capable of performing the backbreaking labor.


Well, in that case, why not bust another myth and start afresh? Why not take a hobby or a lifelong aspiration and make a new career out of it?


I think Christian writer and thinker, C.S. Lewis, said it best: “You’re never too old to set a new goal or dream a new dream.”


And, according the aforementioned Merrill Lynch Retirement Study, many agree. In fact, nearly three-fifths (58%) of working retirees believe retirement is a good time to switch careers. So dream big. There’s more room to take career risks when you have a nest egg to lean on.


Maybe you can even start your own business. Did you know that retirees are three times more likely to be business owners or self-employed than pre-retirees?


  1. “Retirement Consists of Two Steps: Clock Out and Walk Out.”

Unfortunately, that’s just how you quit working. It’s not how you truly retire. Retirement involves careful planning and a long list of to-dos. This list must include signing up for Medicare, purchasing supplemental coverage, deciding when and how to take Social Security, considering rolling over your 401(k), as well as other non-financial items such as travel plans or simply deciding how you are going to use your extra 40 plus hours a week.


Do You Need Some Expert Guidance Concerning Your Retirement Transition?

In that case, you are in the right place. In our Life After Work workshops, we discuss retirement transition.  Sign up today for our free workshop.


Our Workshop Promise To You

  1. There will be no high-pressure sales and no obligations, just insight about your retirement transition.
  2. You will feel less overwhelmed and anxious about your decisions and options.


Some may not think we will live up to our promises, but that is just another common retirement myth! Our next workshop will be held virtually on Zoom on June 25 at 5:30 pm.  We hope you will come to learn more.  The workshop is free!  Sign up today at!