Monthly Newsletter from Castell Insurance

N e w s Y o u C a n U s e

C a s t e l l I n s u r a n c e

December 2012 Newsletter ~ www.castellinsurance.com

This will be our last newsletter for 2012! It's true that time flies when you're having fun. The Open Season for Part D makes Castell Insurance as busy as Santa's Workshop! Our team pulled together once again - and became stronger as we worked to help so many clients review and change prescription plans for 2013.
We laughed with visitors who stopped in during the hustle and bustle receiving a warm greeting from Boris our official greeter. Boris has requested a vacation for some much needed Rest and Relaxation! Many thanks for all the holiday goodies dropped at the office which helped to keep our spirits high.
The agency gained many new clients and we welcome you to our monthly newsletter with the inside view to our business and getting to know the team at Castell Insurance.

Castell Insurance, " A local agency providing GREAT local service"

Part D News

We have just finished with one deadline and are now facing another one, and I am not referring to the "fiscal cliff", a daily subject for the media.

A new deadline of December 31st is the annual calendar year end for folks to have taken their Required Minimum Distributions (RMD's) from their retirement accounts.

Let me explain briefly what an RMD is and who is affected by this deadline.

Millions of Americans have retirement accounts that enabled them to save for retirement and not pay any tax on their retirement savings or even their earnings until they withdrew the funds from the account.

These accounts are commonly referred to as IRA's or 401k's. IRA is an acronym for an Individual Retirement Account and the term 401k refers to the tax code that allows their existence.

IRA's were primarily set up by individuals whereas 401k's were through an employer. In addition there are a whole slew of other retirement accounts that fall under the same basic rules, these include but are not limited to SEP-IRA's, 403b's, 457 plans etc.

While the government allowed for the deferral of taxes on the savings and earnings this deferral was never intended to avoid the taxation entirely. It is meant to defer taxation until a person retired and needed an income at which time the taxes would be due and payable.

The IRS rules state that a person has to start taking a Required Minimum Distribution from these accounts during the year in which they turned age 70 ½. Technically they could even delay it further to April 15th the following year, but that would necessitate that person taking two distributions in that year causing a higher tax bill.

Many people have to take funds out of their retirement accounts regardless of whether they need the income or not. This is Uncle Sam saying you have shielded those funds for long enough and it is time to pay!

The RMD uses a factor that is based upon your age and life expectancy. At age 70 ½ a person would have to withdraw slightly less than 4% of their previous year-end balance, this percentage will increase slightly and is based upon a life expectancy of 115 years old.

If you or a spouse have retirement accounts and have not yet figured out your RMD situation, do not worry, you still have time. Not a lot, but time nonetheless.

This is an area I have specialized in as a Retirement Income Planner. I can work with you to review your specific situation and advise how best to meet your income needs while attempting to reduce any taxes that can be either avoided or deferred.

A tip many people are not aware of having is that if you have retirement accounts scattered through different custodians or previous employers, you do not have to take the same percentage out of each account. You can total the value of all your retirement accounts and then take a distributions from just one of the accounts if you choose.

If you have any questions or need assistance in determining your RMD please feel free to call and make an appointment.

Phil@Castellinsurance.com

We Need Your Help!

We have the opportunity to make a difference and we could really use your help. Supporting the Salvation Army for the second year ~ please bring canned and dried food donations to Castell Insurance. You can be assured that these donations will be distributed locally.

Giving Back

John and Sharon begin the Salvation Army
food donation.

Donations

Trish Nelson from Safeco arrives with a much appreciated big donation - thank you!

Christmas Cheer

Many thanks for the generous gifts!

Merry Christmas & Happy New Year

The Water Cooler

watercooler

In this final newsletter of 2012, I shall look forward to 2013 rather than to recap what has happened in 2012.

What is ahead for 2013 you ask, what does my crystal ball foresee?

Well, first the Mayans will be proven wrong. The world will not end on the 21st of December, so enjoy the holidays as best you can and wish someone a Merry Christmas, Happy Hanukkah, or "Festivus for the rest of us."

Now for the rest of the story. The Medicare part B premium, that amount that mysteriously disappears from your Social Security check each month is going up to $104.90 per month. This is about a 5% increase. The deductible for part B, currently $140.00 annually is going up to $145.00, about a 3.5% increase. These are the numbers we have been anxiously awaiting ever since we heard that Social Security would have a cost of living increase of 1.7%.

Next, who is raising the rates? Premera Blue Cross has stunned us by announcing that they will not be raising their rates this year. They will hold the line at $171.00 per month ($166.00 with auto deduct). This makes the Plan F with Premera, one of the lowest priced plan F's available for 2013. United Healthcare /AARP will be raising their premiums in April about 4.7%, with Plan F a premium of $176.00. UHC/AARP have the lowest priced Plan N available in Washington, and will be priced at just over $110.00.

Mutual of Omaha has stopped selling Plan F in Washington State. If you have Plan F with Mutual of Omaha, it is still valid, but may become expensive in the future. United of Omaha (a subsidiary of Mutual of Omaha) has replaced them with a very competitive Plan F, $176.00 for a single person and $164.00 per person for a married couple. There are others available and they all can be reviewed in our office or by CLICKING THIS LINK HERE

Now for the real fun. Obamacare is the law of the land, and by this time next year we will be in full swing with the new enrollment procedures. What does this mean? We do not know. How's that for an answer? We do know that the state of Washington is leading the way in the establishment of the new Health Exchanges which are online marketplaces where you buy your medical insurance. You will still be able to use a local agent. We will be utilizing the Health Exchanges as well as private insurance companies. This will provide maximum opportunities for our clients. What we do not know at this time is what the premiums or coverage's will look like. Please rest assured that we intend to be fully informed on all programs and nuances with the new systems. Our clients will have the best possible information for any situation.

For those on Medicare sit back and watch the craziness in the under 65 major medical market.

For those of us involved just repeat after me; "Change is Good" and "Keep calm and carry on".

Until then Merry Christmas, Happy Hanukah, and Festivus for the rest of ya.

I am here to help at any time with any questions that you may have about these changes, so feel free to call or e-mail me. I look forward to helping you.

Please send your questions and comments to

John@Castellinsurance.com

Policy Perceptions

It's that time of year where we must all be conscious about preparing for the harsh cold of winter. Preparation in my mind isn't going out to pick up a new pair of snow boots and a matching parka. Even though spoiling yourself to those new winter goodies can be so fun, I wanted to remind you about the opportunity to set yourself up for the coldest months ahead.

Your home hates the cold too. Trust me, it does. There are plenty of resources out there to give you a "To Do List" that will take up your entire weekend! If you have the time to devote to weatherproofing of your home, then great! If not, hit the most important ones! Inspect the insulation in attics and exterior walls. Water lines cause tons of homeowners sleepless nights in the freezing temperatures so make sure that you have insulated any line that is near to exterior walls. Ensure that you can continue to snuggle up near a nice fire by having your chimney and flue inspected annually (contact the fire department for recommended servicing companies).

Our cars need some care and attention too! Changing those wiper blades you've been waiting to get around to. Inspecting your tires or getting those snow tires ready will go a long way in your preparation. Aside from an emergency roadside kit that we keep in our trunks, we also keep a much needed mini flashlight in the glove box seeing that it's dark more often than it's light now!

So it's not doomsday, but winter is worth respecting enough to know that you'll be ready when the worst of it strikes! If you have any questions about weather related issues with your Home and Auto policies make sure to contact me.

Link to Check List

James Castell is the Home and Auto specialist at Castell Insurance. Send any questions to:

James@Castellinsurance.com

Boris Castell - Greeter

If you have not had the opportunity to meet Boris, the official greeter at Castell Insurance you're
missing out! Boris is James' French Bulldog and comes to work every day to meet our clients and guard the place. He is 5 years old and really lives to make people feel welcome - and hopefully receive a little dog biscuit here and there!

New Sign

With only days left to December 2012, it's hard not to sit back and take stock of last year. As Sequim grows, so does the Castell Agency and that is thanks to the many referrals that we receive from our loyal clients. For this we thank you. The new year ahead will be one of great change, which in turn, brings opportunity. Reinventing ourselves as the healthcare industry evolves promises to be exciting and challenging. With the new additions of Home, Auto and Financial planning we hope to be your local one stop location for all your Insurance needs.

Happy Holidays - Health to the year ahead - Here's to 2013!

Castell Insurance | 426 E. Washington Street | Sequim |WA | 98382

Telephone: 360-683-9284 | Email: info@castellinsurance.com

Web Site: www.castellinsurance.com

Office Hours: Mon-Thurs = 9:00 - 5:00

Fri = 9:00 - 4:00 Closed Weekends