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6 Things to Look for Regarding Dental Insurance and Medicare

One of the most surprising things I learned about my teeth when I was already in my 40s was that losing my teeth is not preordained. I always thought that everyone loses their teeth and someday I would have to wear dentures. Not so said my dentist. Instead, it can come down to good dental hygiene to help me prevent developing a gum disease or wearing out of my teeth before I wear out. Since then I have strived to see a dentist twice a year to help me remove plaque and tartar (leading causes of teeth decay) as well as identify cavities via x-rays. I’ve been fortunate, I’ve had health insurance throughout the years that has helped pay for my dentist visits. However, now that I’m older and can see the Medicare train down the road I’ve learned that generally Medicare does not have dental service coverage (medicare.gov)!

So, what can be done now that we know something to plan for?

Since you can receive Medicare through the Original Medicare plan or through a Medicare Advantage plan then we need to consider how dental coverage can be received through either plan.

If you have Original Medicare, then the best way to get dental coverage is to pay for a separate individual dental plan.

If you have a Medicare Advantage plan, then you want to verify that your plan does indeed have dental coverage. Advantage plans come at a price of flexibility, you have to use those doctors in that particular plan, pay those particular deductibles and be ready to change if your plan changes and leaves you behind.

Either way you go you’ll want to verify these features in your dental plan:

What do they cover? (Preventative, oral surgery, etc.,)
What will be the deductible amounts?
When will your coverage begin?
What is the maximum amount they will cover?
Is your dentist on their list of approved dentists?
Do you have upcoming dental high costs needs that you need to consider?

My preferred method is to apply for Original Medicare, this is not always the best way but is my preferred way. And while you are still working and if you are eligible, save money in a Health Savings Account so that you can afford to pay for an individual dental plan during your Medicare Years. This takes early planning so start working on it as soon as possible. Overall, this method should give you the most flexibility.

Turning Aside

My mom passed away in October of 2022. During that time, I was in the process of grieving but also reading through my devotional. In particular I was in Exodus 3, which I had read several times before but this time I received new insight:

“Now Moses was tending the flock of Jethro his father-in-law, the priest of Midian. And he led the flock to the back of the desert, and came to Horeb, the mountain of God. And the Angel of the LORD appeared to him in a flame of fire from the midst of a bush. So he looked, and behold, the bush was burning with fire, but the bush was not consumed. Then Moses said, “I will now turn aside and see this great sight, why the bush does not burn.”

So when the LORD saw that he turned aside to look, God called to him from the midst of the bush and said, “Moses, Moses!” And he said, “Here I am.”

A few points stood out to me this time:

1. Moses saw a fire that was not consumed.
2. Moses didn’t just walk on by but ‘turned aside’ to see why it was not consumed.
3. God did not speak to Moses until he saw that he turned aside.
4. God called Moses.
5. Moses responded “here I am”.

My mom become a Christian somewhere in her late 40’s. That was when I saw her, and my dad, turn their lives around and start walking with God. Someone in her life influenced her, she saw the spiritual fire burning in their lives and she willfully stopped to see this flame in their heart. She wanted to know more. When God saw that she turned aside, i.e., she wanted to pursue Him, He called her and She responded, “Here I am”.

From that point forward my mom continually read and studied the Bible. She also encouraged and led others to Christ herself. She continually challenged her children, grand-children and great-grandchildren to do the same and better.

No everyone is going to ‘turn aside’ they may see the flame burning in others but they don’t want the same thing. They are content and happy to walk on by and God will let them chose. I am forever thankful that my mom turned aside and said “Here I am”. She was a godly person and I was blessed to be her son.

Health Saving Accounts & Medicare

What is a Health Savings Account and how can you use as you get ready to enter your Medicare years?

A Health Savings Account (HSA) was created as part of the Medicare Modernization Act of 2003.

According to IRS, the key benefits of an HSA are:

You can claim a tax deduction for contributions you, or someone other than your employer, make to your HSA even if you don’t itemize your deductions on Schedule A (Form 1040).
Contributions to your HSA made by your employer (including contributions made through a cafeteria plan) may be excluded from your gross income.
The contributions remain in your account until you use them.
The interest or other earnings on the assets in the account are tax free.
Distributions may be tax free if you pay qualified medical expenses. See Qualified medical expenses.
An HSA is “portable.” It stays with you if you change employers or leave the work force.

And the criteria for eligibility for a HSA

You are covered under a high deductible health plan (HDHP)
You have no other health coverage except what is permitted under Other health coverage.
You aren’t enrolled in Medicare.
You can’t be claimed as a dependent on someone else’s 2022 tax return.

A key point to be aware of is that contributions to an HSA are not allowed if you are a participant in Medicare. Pre-planning, years ahead, is essential.

Second key point is that HSA accounts go hand-in-hand with High Deducible Health Insurance Policies. If your employer has this type of medical insurance plan then you are allowed to open an HSA. Contributions are tax deductible, and 2003 limits are $3,850, additional $1,000 allowed if you are 55 or older.

Your balance rolls over year to year, you don’t lose it if you don’t use it. Similar to a Retirment account you can designate a beneficiary and generally can be used to cover spousal medical expenses too. Also, in some cases your spouse can have his/her own HSA account doubling the opportunity.

You can use the monies in the HSA to take care of current medical needs or save for future expenses. Many people are surprised to learn that Medicare has it owns deductibles, generally doesn’t cover vision, dental and hearing aids. Setting aside money before the Medicare years will be advantageous.

A Health Savings Account can be a very smart move as you prepare for future medical needs. Definitely worth looking at and seeking wise counsel on the best way to open an account and allocate monies for this type of savings plan.

When should I sign-up for Medicare?

Individuals are generally able to sign up for Medicare at age 65. If you are already receiving Social Security benefits, you’ll automatically be enrolled in Medicare. Otherwise, you’ll be eligible to sign up 3 months before your 65th birthday. You could sign up earlier if you have a disability, End-Stage Renal Disease, or Lou Gehrig’s disease.

However, if you plan to continue working and will be taking advantage of your employer’s health insurance then you might want to consider only signing up for Medicare Part A. Most individuals that have been working for more than 10 years (have earned 40 credits) already paid into Medicare so there should be no extra charge for Part A. Part A is considered “Hospital Insurance” and helps cover inpatient care in hospitals and a few other items.

As for Part B, “Medical Insurance” and Part D, “Drug Coverage” these areas would be generally covered by your employer health insurance if you are still working.

Part C, “Medicare Advantage” is an alternative to “Original Medicare” plan above. This will be covered in more detail in a different post.

These decisions can be daunting especially if you have lots of other things going on. Seek qualified help in working through these issues, especially since missing some of the deadlines can cause life-long financial penalties.

Be aware that these are general guidelines.

Have I mentioned you should seek qualified help in making these decisions?

A good resource to use medicare.gov – lots of great information.

How to keep up with your digital passwords, for estate planning purposes.

Passwords, ugh, love them hate them but we gotta deal with them, for now.

In today’s digital world, it is critical to protect our accounts from potential security breaches. One of the most effective measures for safeguarding our passwords is to use a password management program. Password Management programs allow you to create strong, unique passwords for each of your accounts and store them securely in an encrypted vault. Additionally, some of these programs have various security features such as two-factor authentication, password auditing, and alerts for breached passwords to ensure maximum protection.

Password Management programs are not only a powerful security tool but also a valuable estate planning resource. The best of these programs allow you to designate a trusted emergency contact, you can grant them access to your account information after you pass away, ensuring that your digital assets are protected and accessible to your loved ones.

In the past, I struggled to manage and secure over 200 account passwords that I had jotted down on notecards. But since I started using a password management program, I’ve found it to be an efficient and secure solution for managing my passwords.

I wouldn’t want to leave you without giving you my recommendation of a good password managment program, I’ve used Lastpass for several years and have found it a good solution for myself and my clients. Just don’t forget that we are the weakest link, we’ll always be the weakest link.

Annuities – Qualified vs Non-Qualified

When learning about annuities, it’s common to come across the terms “qualified” and “non-qualified accounts.” A qualified account is connected with an Individual Retirement Account (IRA) and Tax Sheltered Accounts such as 401(k) or 403(b). These accounts receive tax-sheltered status, meaning that the money invested in them has not yet been taxed and won’t be taxed until it’s withdrawn. However, when the money is withdrawn, it will count as ordinary income and will be taxed as such.

A non-qualified account, on the other hand, is an account where the principal monies invested have already been taxed and won’t be taxed again when the principal is withdrawn. The gains, however, on the account will generally be taxed as ordinary income when withdrawn.

Knowing the type of account you have is important not only for tax purposes but also for other reasons. For instance, qualified accounts usually have contribution limits and early withdrawal penalties. On the other hand, non-qualified accounts typically have no contribution limits or early withdrawal penalties.

It’s important to note that qualified retirement accounts offer some advantages that investors should consider when planning for retirement. These advantages include compound interest and the potential to lower one’s tax bill. Additionally, contributions to a qualified retirement account may be tax-deductible, which can help reduce taxable income. Overall, investors should be aware of the type of retirement account they have and make informed decisions about saving for their future. As always seek a qualified advisor.

Preparing ourselves for the years ahead:

As we grow older, planning and setting aside money for healthcare expenses become increasingly important. In fact, individuals who are 65 and over typically spend almost 10% of their annual income on healthcare. This is a significant portion of their income and something that should be considered when planning for retirement.

AARP reports that 10% of Medicare beneficiaries spend more than half of their income on healthcare expenses. While Medicare can help cover some of these costs, it does not cover everything. For example, Medicare does not begin paying until after the $1600 deductible amount for 2023 is met, which applies to each benefit period.

Dealing with benefit periods, deductible amounts, coinsurance, and other details can be complicated. Therefore, I recommend keeping it as simple as possible.

Another important factor to consider is how you will receive your Medicare benefits. You can choose between original Medicare and Medicare Advantage plans. Although Advantage plans may seem cheaper, they can end up being more expensive in the long run since insurance companies are constantly seeking ways to reduce costs at the expense of their clients.

It’s essential to seek qualified advice when considering Medicare benefits to ensure that you make informed decisions that will best suit your individual needs.

Looking for Perspective:

When I took a picture of my cat, I was experimenting with the flash on my camera. It was fascinating to see how the light changed her eyes in just a matter of seconds. It reminded me that there was more to her eyes than what I first realized. There is a purpose and design behind this creature.

Similarly, annuities and investment portfolios may seem like a good fit at first, but upon closer inspection, they may not be suitable for your particular situation. They may have been designed for a different purpose and scenario than yours, there is no one-size fits all portfolio. As a financial advisor, I have had the opportunity to work with many clients over the years and have learned that there is no single product or investment that works for everyone.

That’s where my experience and knowledge come in. I can help you understand the ins and outs of a situation and guide you toward the right financial decision. Gain perspective by looking through someone else’s eyes that has seen many types of portfolios and scenarios. So, don’t be afraid to ask for help when it comes to your finances!

Social Security – running out of money?

First, it’s unlikely any sane politician would let the Social Security office run out of money. They’ll continue funding it for as long as they can print money.

Secondly, these are projections only and continue to be adjusted. The previous year’s projection was that by 2035 social security would run out of money but still be able to fund 80% of it’s obligations. They moved the projection forward one year, 2034, due to the pandemic related issues.

Finally, studying the report you can see some of their basic underlying assumptions, all of which are up for debate and change year by year. Such as, the fertility rate, 1.69. Important number to keep in mind since the replacement fertility rate is 2.1.

The health of the trust fund is something to watch and creates a lot of interesting political games.

Bitter Sweet

Saying goodbye to close friends.
Thanking God for good memories of my dad.
Seeing my daughter get married.
Moving from a house of great memories into the next house with great expectations.
Winding down a good church and becoming part of another good church.
Moving from one profession to another, knowing it’s in God’s plan for me and my family.

It’s all bitter sweet, but one day, one day, our Father will take me from this life to the next and it will be sweet, just plain sweet, no bitterness, no regrets, no remorse just beautiful sweetness and I wait for it with anticipation.

Isaiah 25:6 On this mountain the Lord Almighty will prepare a feast of rich food for all peoples, a banquet of aged wine— the best of meats and the finest of wines.