Retirement Question

[kthompson]

From Page 8 on have read I think all of "k0ua" comments here an as life and health agent of near 30 years agree with each comment he has made. Nope do not know him that I am aware of and not likely due to distance we are apart. One thing I will expand on if I may, I read Dan's comment on his parents as well past 65 and if that is true the prices can be a good bit higher.

Medicare Supplements are underwritten for Dan's parents most likely but Medicare Supplements do not face the toughest underwriting and each company does vary with their requirements. It is amazing how prices will vary as k0ua has pointed out, if you are dealing with an agent who is not able to show you rates with my rule of thumb at least four companies you are dealing with wrong agent. The big name companies most people think of right off are often the biggest premium ones as you get older. Find you an agent who works in this market and talk with them. Not one who have only 30 minutes and only wants to write an application. kt

 

[k0ua]

From Page 8 on have read I think all of "k0ua" comments here an as life and health agent of near 30 years agree with each comment he has made. Nope do not know him that I am aware of and not likely due to distance we are apart. One thing I will expand on if I may, I read Dan's comment on his parents as well past 65 and if that is true the prices can be a good bit higher.

Medicare Supplements are underwritten for Dan's parents most likely but Medicare Supplements do not face the toughest underwriting and each company does vary with their requirements. It is amazing how prices will vary as k0ua has pointed out, if you are dealing with an agent who is not able to show you rates with my rule of thumb at least four companies you are dealing with wrong agent. The big name companies most people think of right off are often the biggest premium ones as you get older. Find you an agent who works in this market and talk with them. Not one who have only 30 minutes and only wants to write an application. kt

It sounds like we are in the same line of work. I am a fairly new agent, but my lovely wife has been in the business for a long time. Don't reckon I know you either, but howdy from Branson Mo.

I know some on here think us Life and Health agents might not be such good folks. But I will assure you that my philosophy in this business is to look out for the interests of our clients, as I want a long term relationship with them and their referrals. Yes I want to make a living, but I also want to keep you as a client, and I want you to refer me to all your friends and family as someone that has helped them through difficult and costly challenges in their life.

The issues to be dealt with and understood about healthcare boggle the mind. I have said many times I have no idea how the government expects seniors to understand medicare and all of its intricacies. I work with this every day, and there are still things that I have to look up or have explained to me. No wonder seniors eyes glaze over when you give them the "guide to understanding medicare" or try to explain some of the details.

All I can do it to try to do my best to explain the details and help seniors pick a plan that will help them the most and fall within their budget.

KT you mentioned that Dan's folks may have had to go thru medical underwriting. And perhaps that is the reason for the extra money. This illustrates the importance of when you are in your 7 month window (3 months prior, the month of your birthday, and 3 months post) of open enrolement of getting the right plan the first time and not blowing the one time in your entire life when you can pick the plan you want and need no matter how ill you are or will become. Do it right the first time as you may never have that chance again if you are ill and cannot clear underwriting.

If you don't understand what I am talking about, you can ask it here, or better yet find a local agent you trust.

 

[ultrarunner]

^^^ This is the elephant in the room.

None of the Seniors I know really have a clue and it gets more complex all the time... there are a few exceptions like the retired Hospital Biller and a CPA friend.

Most are really at the mercy of what they are told... one has been on a prescription drug for 7 years and is almost 90... his Part D did send out a list of meds not covered going forward... he had no clue... went to pick up his prescription and the pharmacist said that will be $440 for the month.

I know old people that said in seriousness that they hope they die soon... not because of pain or disability... it is because they simply feel they are burden and dumber than rocks when it comes to stuff like this... it is sad when the system does this people... health is often as much emotional as physical.

How many have thought they were covered for something only later to find out they were not?

I had a run in yesterday with Mom's pharmacist...

A few weeks ago, I asked for a summary of her 2015 prescription expenses and was told they can only release that information to her... OK, not a problem.

She has not been feeling well lately so it was yesterday on my way home for work that we stopped... waiting an honest 15 minutes in line and then it was our turn... Pharmacist knows Mom and all Dad's expensive Cancer Meds came through him.

He greets her and then asks for ID... which she doesn't have because I tell her to keep safe at home... it's been left at church and the grocery store...

The Pharmacist said it doesn't matter that he knows her and me... no ID he can't give her the printout...

Blue Cross Anthem keeps encouraging her to do prescription by mail.... she refuses saying she likes to go where they know her... lot of good that did.

It really is a complicated world and will only get worse... I do feel sorry for those that should be enjoying their golden years only to have worry and anxiety thrust upon them.

 

[California]

it gets more complex all the time...

Amen to that. I feel fortunate to have Kaiser Plan, an all encompassing HMO. Dealing with their bureaucracy can occasionally be like going to the DMV but the medical side isn't like that, they all seem professional and dedicated to maintaining the customer's health.

I've never paid more than $50 co-pay, it's nearly always zero or $10. And I never pay attention to the billing details Kaiser sends because I've already paid the co-pay and everything else is included in the flat monthly rate.

Particularly for a confused elder or someone facing medical catastrophe, this assurance that the billing department won't stab you in the back is a huge advantage for Kaiser. I hope more HMO's follow their example.

 

[ultrarunner]

Never had Kaiser... wouldn't mind giving it a try.

My friend had an inoperable brain tumor and their was a new treatment offered only in Sweden... Kaiser made it happen.

 

[RedNeckGeek]

I had Kaiser. They were great until I needed a real doctor. Took me three years to get straightened out from all the stuff their quacks got wrong that had to be undone or redone. They're great when you're young and never need a doctor, but any doctor that is any good can do far better for him/her self in private practice. And that's were you need to go if you want the best care.

Now a question for the agents that deal in healthcare insurance:

How do we find an agent that knows what they're talking about? I'm nearing medicare eligibility, and don't even know where to start...

 

[k0ua]

I had Kaiser. They were great until I needed a real doctor. Took me three years to get straightened out from all the stuff their quacks got wrong that had to be undone or redone. They're great when you're young and never need a doctor, but any doctor that is any good can do far better for him/her self in private practice. And that's were you need to go if you want the best care.

Now a question for the agents that deal in healthcare insurance:

How do we find an agent that knows what they're talking about? I'm nearing medicare eligibility, and don't even know where to start...

Look for an independent agent with a good reputation in your community. An independent agent can look at different insurers to find a plan that is right for you and fits your budget. A captive agent cannot do that. He/She sells only one "brand" of insurance. If you want my opinion, You should stay with A rated insurers, and in my opinion stay away from the lure of Advantage plans (these are the ones that advertise low or no premiums). They typically have copays for everything, and also have large out of pocket expenditures when and if you become really ill. There is no such a thing as a free lunch. You are going to have to pay for good health care.

A good supplement plan like a G plan from a good A rated company is in my opinion the way to go. In my opinion Advantage plans are great right up to the point you become ill. They offer very low or even no monthly premiums and as long as you are healthy, they will save you money. After all which would you rather pay $29 a month or $129 a month or more? Well of course you would rather pay $29 a month right?

Here is where the rub come in. Lets say you sign up for one of these Advantage plans, You are now out of traditional Part A and Part B medicare, and now have what is called a Part C advantage plan. The Government lets you "test drive" this plan for 1 year. After that one year lets say you become very ill with hospital stays and expensive Dr visits etc. What is your maximum yearly out of pocket expenses? Many of these plans have maximum out of pocket expenses of around $6700. This is money out of your actual pocket.

Now which would you rather have, a plan you pay $29 a month for and have to shell out $6700 each year for out of your pocket because you are ill, or a plan you pay $129 a month for and has an annual out of pocket of $166? The choices are yours, and many millions of people choose Advantage plans, but I don't like those frantic calls in the middle of the night, crying and wailing and asking how am I going to pay the out of pocket expenses and why did you sell me this thing and how do I get change over to a medsup and back on original medicare.

Some of you are probably thinking well heck I will just change over to a medicare supplement (medsup) when and I become ill right? Yeah, if it was only that easy.. The problem is now your 7 month window is over for your open enrollment, your 1 year "test drive" of an Advantage plan (part C) is over, and you are ill. Guess what? you have to go thru medical underwriting. That means your agent gets to ask a whole bunch of medical questions, and if you answer yes to even one of them. You are done! you now find yourself stuck in your Advantage plan and cannot get out.

That is when you call you agent with tears in your eyes and ask "why in he77 did you sell me this thing". THAT is why I don't sell those things in the first place. But lots of agents do, and millions of people have them.

 

[tjkubota93]

I saw my youngest brother go bankrupt over his kids medical bills. This was back in the 80's. He had a infant spend 3 weeks in the hospital at the same time he lost his job. It affected his life to this day. It can be rough for folks out there, thru no fault of their own. Btw, the company closed up, that's how he lost his job.

I hate to hear that. I'm in my 30's with one kid who had heart surgery at 6 mo's and another on the way. There aren't many days that go by I'm not thankful for the good insurance we have.

 

[tjkubota93]

Been watching this thread since it came up. You've got a lot of good advice. Me, I like spread sheets to the point that I drive my wife crazy with them. I retired a few days before I turned 57. Had been thinking about it for a couple years but could not make myself do it. I was afraid of running out of money and having to live on beans and rice while not being able to pay for Internet service to keep up on TBN. That was scary. So I made up a bunch of spreadsheets. The main one had columns for the year, pension for me, pension for my wife, Social Security, payments from 401Ks, and other income. The total was added up into columns for monthly and yearly income. The 401Ks had a column for varying the percentage gained or lost.

Next we made up another spreadsheet for expenses. We took each monthly bill for electric, water, gas, etc. and put the highest for the year on the sheet. For example, we heat with gas so out bill is high in the winter but only a couple dollars in the summer. We put the highest monthly total down for our monthly expense. This weighted out expenses to the heavy side. We pay for all our gasoline with a credit card and I have to say I was shocked at how much we spent on gasoline. But once again we put the highest monthly total down as the average. Got all this added up for our monthly expenses.

I was surprised at my total income if I quit work. I was surprised at how much it cost me to work driving 75 miles each day.

My wife and I have insurance coverage from our jobs. So that was out of play except we do have to pay part of it. This was also on our monthly expense sheet.

So I printed it all out with twelve different scenarios on how the stock market would perform and all our expenses. We took this to our accountant and I threw all the papers down on his desk and asked him if I could afford to retire. When I explained what all the figures were he just started laughing. Said most people that came in and asked him that question didn't even know how much they had in their 401K or in the bank and I had twelve different scenarios printed out. Said if I kept up with it that well then I could keep up with it when I retired and we would be okay.

My point is to know what your expenses will be. WRITE IT DOWN or put it on a spread sheet. Figure your expenses high. Then figure up your income. WRITE IT DOWN. Make allowances for emergencies and travel or whatever else you like to do. If your income is greater than your expenses then go for it. Worked a guy who decided one day that, "I've got enough to make it!" and quit work. He never sat down and wrote it out, just figured it out in his head that he had enough money stashed and quit. Ended up losing nearly everything they had and are still working in their seventies. Have seen others work hard all their lives and retire and die two months later. Left all they money they had saved to a bunch of lazy kids.

Anyway, I am rambling, so my advice is sit down with your wife and write it out. Figure how much you MUST spend each month. Figure out how much your income will be each month. Figure out how much you need each month to enjoy the lifestyle you want. If your income is sufficient now then what are you waiting for? Retire and enjoy life. If your income stream isn't sufficient then work a few more years.

Whatever you do, please sit down and figure out what your expenses/income will be so a year after you retire we won't hear about you working as a door greeter for $7.50/hour after quitting a $35/hour job. I know people who have done that.

RSKY

How do you keep from having lazy kids?

 

[newbury]

How do you keep from having lazy kids?

Contraceptives.