A recent local news article about Sound Community Bank purchasing three branches of Columbia Bank in Jefferson and Clallam County is the reason behind this column today.

Both institutions are very well capitalized and from my understanding, it was purely a convenience to both.

What piqued my interest was that the news article actually gave very specific details on the transaction.  It gave the amount on deposit at the three branches involved, the price paid to purchase those deposits and also the interest on average those deposits were being paid.

For a self-admitted numbers geek like me, I was in heaven. It was like someone had lifted the curtain and allowed me a minor glimpse into how high finance really works in a very practical manner.

Here's why this should be of interest to you, regardless of funds in those specific banks, or any other local bank.

I was amazed to see that Columbia Bank was paying an average of 0.14% interest on their deposits. So on $100,000 that would mean $140 interest for a whole year, or less than $12 per month.

That got me thinking...  What are the local banks paying on CD's, money markets and other saving accounts?

This might not be a surprise to many of you, but they aren't paying a whole lot more, and frequently even less. When I opened an HSA (Health Savings Account) for myself at First Federal, I was given an interest rate of 0.03%. In other words, my $3,300 deposit would earn $0.99 if left for the whole year. Yup, that's less than $1 for the whole year.

Even with 5 year CD's, you are lucky to get much above 1.5% if you shop around and have over $100,000 to deposit.

It makes me realize that as an insurance agent with access to safe, secure fixed annuities I might have something of interest for you.

Even with today's market, I have access to a 5 year CD style fixed annuity where you can earn as much as 3% per year. Yes 3%, I kid you not.

Traditionally annuities have been for long-term savers, but with the historically low interest rates we've all endured in recent years, it might well be worth your consideration.

Annuities do have penalties for early surrender that are similar to banks, but frequently with a higher penalty. If you have cash lying around getting lazy, why not put it to work and make it earn a little more for you. As the old adage goes, "You can work hard for your money, or you can make your money work hard for you".

If this is something you might be interested in, please give me a call or send me an email.

For the last number of years, Castell Insurance has offered a free service for Medicare Part D clients. We have reviewed your drug list and researched the programs available, then recommended the plan most suitable for your needs. This service has been hugely popular in the past but we are unable to continue this service in the future.

Two of the primary reasons are the sheer volume of folks who take us up on our free review offer, and secondly, the overlapping enrollment period between both the Medicare programs and the new Affordable Care Act (Obamacare) plans.

At Castell Insurance we are not just going to ignore your situation, but are developing programs to teach you to review your options yourself.  We want to give you the tools to be self-reliant in choosing your Medicare Part D plan.

Give a man a fish you feed him for a day. Teach a man to fish and you feed him for a lifetime.

We will be conducting seminars prior to, and during the annual enrollment period which begins in October. We will provide handouts that will walk you through the process of using the Medicare web site (Medicare.gov).  Some topics will include entering information, reading formularies and limitations, reviewing deductibles and finally enrolling in a plan.

This process is facilitated by the Medicare.gov website that is a rock solid tool used by individuals throughout the country. Medicare has created a fantastic web site that rarely has problems and often exceeds our expectations on a regular basis.

We will also be outlining what other resources are available in assisting you in reviewing your Part D needs.  These resources can include family/friends, community volunteers as well as 1-800-MEDICARE.

Wishing everyone a fun filled Summer and I hope to see you out and about enjoying all the things that Sequim has to offer.

Mice

Have you mowed your lawn lately?  If so, you may have put your house and homeowners insurance in jeopardy!  

Okay, so mowing your lawn by itself isn't usually a life threatening chore, but recently I experienced one side effect that I didn't expect from having our field mowed.  

Living in Sequim, many of you know that the field grass around here seems to grow six inches overnight this time of year.  We recently had our field mowed which resulted in a fresh, clean looking back yard.  It also must've disturbed some of the little critters that had found refuge in the tall stuff.

After a family gathering the same weekend we mowed, we noticed that our pantry had an unwanted visitor.  Apparently when you mow down a field, you are inviting FIELD MICE into your house!!!  

Field mice are just part of living in a more rural area, however they aren't always part of your Homeowners insurance policy.  As we continue to battle these little critters in our crawlspace, I figured it would be a good reminder to all of you homeowners out there to periodically set traps if you think you may be prone to mice, rats, gophers etc.  Gradual damage to your home caused by "vermin" is most often excluded from your insurance policy and you'd be on the hook for the entire bill.  

When we talked to our new pal, the exterminator, he suggested leaving a few traps armed year round in your crawl space (visible from the entrance) so you can periodically just lift the access door and see if you have any action.  In many cases with your home maintenance, continual upkeep is the key to success!  Happy weeding, mowing, pruning and mulching season!

June is the month for Congratulations, whether it is a graduation, wedding or new baby.  

These kinds of life events may enable you to make changes to your health insurance through a Special Enrollment Period or SEP.  

Now that open enrollment has ended, the only way a change can be made to a major medical plan is through an SEP.   An event needs to be reported within 60 days of occurring.    

A special enrollment period may be opened if one of the following events occurs during the year:  

• Getting married 
• Giving birth or adopting a child 
• Permanently moving to a new area 
• Involuntarily losing other coverage
• Change in income or household status  
• Loss of employment 

An SEP may be opened if you previously have purchased your health insurance through the Washington State Health Plan Finder and you have a change in income or household status that would affect your eligibility for tax credits or cost sharing reduction status. Voluntarily losing coverage (ie dis-enrolling in a COBRA plan) or losing your coverage due to non-payment of premium will not be considered an occasion to open a special enrollment period.

If you experience a life change between now and November 15, 2014 when open enrollment re-opens, please call us.  If you are unsure whether or not the change in your life will qualify please call us. We are here to help you navigate your special enrollment period.

Until next month, Congratulations to the Class of 2014!