Category: Retirement Planning

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

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


It’s easy to get confused when someone is talking over your head. And when it comes to the world of investing, it is easy for the jargon to fly a mile high. In fact, even after years of investing experience, I still find myself baffled by some of it! That is why I am determined to translate some of the most commonly misunderstood (but often most important) concepts into terms soon-to-be retirees like you can understand.


Here are 5 important terms to get you started:


1. Fee-only vs. Fee-based Managers

Fee-only money managers are paid by you only. You give them a flat fee or a percentage of your portfolio every year, and that is it.


On the other hand, fee-based managers may charge fees as well, but they also receive commissions on the products they sell. In other words, the companies they represent also pay them via higher fees—not just you.


Here’s why this term is important to understand: although there are conflict of interests with any transaction, a fee-only manager is more likely to act in your best interest.


2.  Average Annual Return

Market fluctuations cause returns to vary. You’ll have some good years, and others in which your investments fail to stay in the black. But the Average Annual Return examines how an investment performs over a block of time—usually over three, five, or ten years—rather than the fluctuations from year to year, giving you a well-rounded evaluation of the investment’s performance.


This number is calculated by taking the beginning value and determining how much it had to increase consistently (or, God forbid, decrease) each year to reach the ending value. Pretty simple, right?


3.  Fiduciary

Fiduciary has to do with trust, coming from the Latin word “Fidere,” which actually means, “trust.” More specifically, in the investing world, a fiduciary is a person who has the ethical and legal obligation to act in your best interest when managing your assets.


Of course, not every fiduciary lives up to this definition. But, when you choose a fiduciary, there’s a better chance he’s making decisions that are the best for you, not for his bank account.


4.  Mutual Funds and ETFs (Exchange-Traded Funds)

Mutual funds and ETFs are very similar in a lot of ways. They are both investment options in which others choose the stocks or bonds for you. However, they differ in a couple ways that are important to note:

  1. When investing in a Mutual fund, the transaction occurs between you and the Mutual Fund Company. With an ETF, you trade directly with other investors.
  2. Mutual funds are sometimes actively managed, while ETFs always track an index (such as the S&P 500).

These differences cause many ETFs to be more cost-effective and easy to use. However, they are the new kids on the block so many people still stick with the old, trusty Mutual Fund.


5.  Required Minimum Distribution (RMD)

Because the government wants you to save, they allow you to invest tax-free in any one of many qualified retirement accounts: IRAs, 401(k)s, 403(b)s just to name a few.


However, because the government still wants to collect tax, they also require you to take out a certain amount each year after you turn 70 and ½. The amount you must take out is also known as your required minimum distribution.


Well, there you have it. Making retirement investment decisions is often overwhelming and scary, but taking this step to understanding your options will help you immensely. If you have come across a term that was not on this list, check out our other blog (See our blog on Five Investment Terms You Should Know) that complements this list or leave a comment. We love to hear from you!


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



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.



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!


How to Lower Health Care Costs in Retirement—The 4 Best Ways

How to Lower Health Care Costs in Retirement—The 4 Best Ways

Did you know that a recent Fidelity study shows that the average couple can expect to spend $260,000 on health care expenses in retirement? Well, unfortunately, that is the current figure circling around the retirement blogosphere. And that isn’t even taking into account the possibility of long term care such as an extended nursing home stay, a consideration which escalates the estimation well into the three hundred thousands.


It can’t be true, can it?


I know, when I saw that figure in print for the first time, I was surprised as well. But as I begin adding up all of the possible costs—really crunching the numbers—I found out it was a lot more probable than I originally thought.


So what are you to do? If you are still working, the answer is common sense: save more to cover the costs. But if you are beginning the retirement transition right now, it’s too late for that strategy. You need something to lessen the burden—and fast!


Although these four ways won’t slash that number in half by any means, they can certainly help keep your health care costs in check:


1.  Sign Up For Medicare On Time To Avoid Penalties

You must sign up during the six-month period surrounding your 65th birthday or else pay hefty penalties that continue for your entire life! Unless you have a qualifying reason, everyone should sign up for Medicare parts A and B. And unless you are on an Advantage plan with a drug plan rolled into the deal, you should sign up for Part D. Because, if you miss it by just one year, you will accrue $4,248 worth of penalties over your lifetime, assuming you live 20 years after 65.


2.  Take Advantage of the Preventive Services Provided by Medicare

Like the old saying goes, an ounce of prevention is worth a pound of cure, and Medicare agrees. While Medicare covers very few things in full, the program covers every penny of many preventive services including (but not limited to) the following:

  • Flu Shots
  • Various cancer screenings
  • Obesity screenings and counseling
  • Annual “wellness” visits
  • Tobacco use cessation counseling

Now I am not saying you should spend all of your golden years sitting in cold waiting rooms. Rather, the core of this advice is simple: take care of yourself. Take the tiny steps now, so you can avoid the big health issues later. Catch the problems in their inception, so what could have been a free office visit and quick fix doesn’t end up costing you an arm and a leg in hospital bills.


According to a study conducted by Age Wave, pre-retirees and retirees say the two most important ingredients to a happy retirement are health (81% of respondents) and financial security (58% of respondents). The funny thing is that taking preventive measures often helps both.


3.  Cut Prescription Drug Costs

It is not difficult to see that the cost of drugs, especially for those with chronic illness, contributes its fair share to that $260,000 figure in health care expenses. Sure, you have a Part D Drug Plan, but there are still expensive coverage gaps.


But the good news is there are a few things you can do to lessen the burden. You can switch to generics. You can try mail order. Some people are even splitting pills to split the bill with certain medications.


For more specific details to help you cut drug costs, read this:  “How to afford meds in the donut hole”.


4.  Beat the Medicare Supplement Creep by Shopping Around!

If you don’t have a Medicare Supplement, I would strongly recommend getting one. And if you do and you’ve been in the same one for 3-5 years, I strongly recommend that you shop around.




Because Medicare Supplement premiums naturally creep up year-by-year, and they rarely come back down. The best news is you don’t even have to change coverage when you switch. Because of standardization, any and all of Medicare’s 11 lettered plans (A-N) offer the same exact benefits no matter which company you purchase it from. It is not uncommon for people to save $40-50 per month by switching. I’ve even seen savings as high as $100 per month or more.


The point is it pays to bargain shop! And it will pay to put some or all of these health care cost cutting ideas to the test.


Want to check and see what you could save by switching? Use our free Medicare Supplement quoting tool.   No contact information required.   Or call our office and we can give you a free quote over the phone!  937-492-8800

5 Social Security Terms You Need to Know

5 Social Security Terms You Need to Know

As you approach the exciting (but often overwhelming) milestone of retirement, the topic of Social Security comes up much more often, and it is easy to see why. Nearly nine out of ten individuals age 65 and older receive Social Security benefits, and—as an average—these benefits comprise about 33% of the income of older Americans. As retirement age comes around the bend, you will have to make a decision that will affect these benefits for the rest of your life: when to start taking Social Security.


To help you reach a confident decision, you first need to understand the terms. That is why I have compiled a list of 5 terms that you are likely to hear thrown around on the news, in articles, or in conversations with friends or professional advisors. Let’s get started.


1.  Primary Insurance Amount (PIA)

Your PIA is your full retirement benefit based off 35 of the highest earning years of your career. So, that is why it often pays off to work a couple more years if you are making the most you’ve ever made: it could have a significant effect on your PIA!  You will receive this full retirement benefit if you wait to collect your benefits at your full retirement age (which I will discuss next).


2.  Full Retirement Age (FRA)

The FRA, as I previously said, is the age that you can receive your full, unreduced retirement benefit. If you take it early (for instance, at 62), your benefit will be reduced. And if you delay beyond your FRA, it will be greatly increased! This age used to be 65 for everyone, but it is gradually increasing each year. If you were born between 1943 and 1954, your FRA is 66. If not, you can find out your FRA here.


3.  Break-even Point/ Break-even Analysis

When I am discussing when to take Social Security, I always remind people that it is a tradeoff. You can have more, smaller checks now or fewer, bigger checks later. For example, if you claim at 62 right now rather than 66, you will receive 4 more years worth of checks (48 to be exact), but those checks will be 25% smaller.


The break-even point then, is the age when the decision to delay starts paying off. Depending on how you think about Social Security, this can be an important

determination if you have a much lower than average life expectancy. Why? Because you may not live long enough for the bigger checks to pay off.


For a more concrete, thorough explanation of the break-even point, click here.


4.  Survivor Benefits

If someone dies, they can pass on their full benefit to their spouse (or child or parent in special cases). This benefit, called a survivor benefit, can replace the spouse’s benefit if it is higher. This is important to consider, especially for the “breadwinner” of the family. If you are main income earner, it pays even more to wait to take Social Security because your benefit can outlive you, making your personal break-even point (see above) less important.


5.  Cost of Living Adjustment (COLA)

The government realizes that inflation can reduce the buying power of your benefit. Therefore, Social Security increases your benefit every year to keep up with inflation. This is called a COLA, which—although not a carbonated beverage—is also quite refreshing. (Please forgive my lame joke.)


Well, there you have it! If you read through this whole post, you have familiarized yourself with some of the most confusing acronyms and terms you will likely encounter as you explore Social Security. My hope is that this will aid your understanding as you look to make one of the most important decisions of your retirement: when to take Social Security.


Wondering When You Should Take Social Security?


Read our blog entitled “When to Take Social Security—4 Questions to Ask Yourself Before Making a Decision?” This is a great primer to get you started.


Or, you can call our office and we can answer your questions or direct you to someone who can.  Call us at 937-492-8800.

How to Foster Meaningful Friendships in Retirement

How to Foster Meaningful Friendships in Retirement


At Seniormark, we talk a lot about health insurance and other financial concerns, which makes a great deal of sense. Medicare, Social Security, and 401(k) planning are all essential parts of a successful retirement transition. But I also think it is beneficial to discuss cultivating meaningful relationships in retirement.


Because when you leave work, you aren’t just leaving behind an income stream and your employer health insurance. You are also leaving behind a day brimming with social interactions: chit-chat at the water cooler, lunch in the teacher’s lounge, everything from light office banter to the deep bond of team goals and shared achievement.

And if there is one thing we know about these kinds of social interactions, it is that they are vitally important to nearly every area of your life.  In fact, consider how low social interaction affects just one of your major life domains: your health. Cited by a Merrill Lynch Retirement Study, low social interaction is as bad for your health as

  • Smoking fifteen cigarettes a day
  • Being an alcoholic
  • Never exercising

And it is also twice as bad as obesity!

It’s like all of the worst possible things you can do for your health are not nearly as bad as being friendless.


So, that leaves you with the challenge: how are you going to fill the gaping social hole left behind after you exit full-time employment? Well, to get you started making friends that last, here are some helpful pieces of advice:


  1. Recognize Other Retirees Want Strong Friendships, Too!

According to, 43% percent of seniors report feeling lonely. And I am not talking about once in a while, like when a spouse is gone on a fishing or shopping trip. I am talking about persistent loneliness that drags a person down week after week. The people who comprise that 43% figure are all around you. They’re the neighbor you see on his front porch on your daily walk, the woman behind you in the checkout line at the grocery store, the man who sits in the back pew at church.

Don’t you think they want to make a connection with you, perhaps even more than you want to make a connection with them?

Why is it then that we always think our company will bother, inconvenience, or disinterest others? The thoughts are pervasive and often keep us from taking that first step: She is probably too busy. Why would he want to go grab lunch with me? They’ve got plenty of friends; why would they take the time to make any more?

Luckily, those thoughts just aren’t true. Many retirees struggle to make friends and desire to develop close relationships. Others, although they may have lots of friends, have plenty of room in their life for more. After all, friendships aren’t like marriage; they aren’t exclusive!


  1. Reconnect With Old Friends or Distant Family Members.

Friends move away. Family members get busy with their own lives. And the next thing you know, the only time you see these people is at class reunions and for a brief moment at Christmas or Easter.


But in all of this lies an opportunity. One invitation to go get drinks or coffee could start up a thriving friendship once again. You must remember that these are people you have a history with. It isn’t like striking up a random chat with someone on the street. You have common ground, a place to reconnect.


Now, you might not be able to “pick up exactly where you left off” with everyone, but maybe that’s not always the goal. You can talk about old times to break the ice, but perhaps the relationships will start afresh, not from where you left off, but from where you are right now.


So what are you waiting for? You probably still have their contact information in an address book somewhere or in your phone. Think of the things you used to laugh about together, the things you may still have in common. They are only a call away.


  1. Reach Out to Others In Your Community

As I soon as I decided I was going to write a blog post about the topic of friendship, I knew I had to speak to my mother-in-law to get her two cents. As we discussed, she kept coming back to two simple words: reach out. I think it’s because those two words mean so much to her.


Although she lost her husband recently, she has managed to avoid the isolation and loneliness that often comes with that kind of deep grief. She is now in a small group of widowed women who share life together. They travel—to places like St. Louis and San Antonio. They see movies and visit fireworks shows. But aside from the flashy stuff, they often just sit around and talk.


How did she get so lucky?


Someone reached out to her. In her grief, the group decided to call her up, to comfort her, to invite her to join them on their adventures.


What made them think of her?


She reached out to someone else. When her neighbor, one of the ringleaders of their small gang, lost her husband months before, my mother-in-law decided to visit and comfort her. When the same thing happened to my mother-in-law, you can guess who was the first person on their minds and in their hearts.


The moral of the story is that showing yourself friendly is always the best way to make friends. So volunteer at a blood drive or soup kitchen. Serve in a women or men’s group at church. Go visit the widow across the street who needs your few words of comfort.


In other words, in the wise words of my mother-in-law, reach out.


Seniormark Wants to Reach Out to You During Your Retirement Transition!

Confused about Medicare? Unsure of when and how to take Social Security? Wondering what to do with your 401(k) at work? Seniormark’s staff handles all of these weighty concerns with patient and friendly guidance. Call Seniormark at 937-492-8800 for a free consultation and receive the help you need.