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Greetings! ,
Wow! Who turned off the heat. Last Wednesday morning my outdoor thermometer read 1.4 degrees and my heat pump was doing its best to keep up. And although I must admit that the snow was absolutely beautiful, I am so ready for Spring and some warmer weather. Who's with me?
Well, until that day arrives, I hope everyone can warm their toes by the fire, curl up with a good book, hot toddy or your best friend and dream of warmer days ahead.
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6 Birthdays You'll Either Love or Hate
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When we're young there's always a birthday to look forward to, whether it's for getting a driver's license at 16 or being able to buy a drink at 21. But there comes a point where most people stop looking forward to the next birthday. But if you're approaching retirement age, there are several birthdays at which certain benefits and entitlements kick in, giving you something to look forward to as you hit your golden years. Here are six age milestone to mark on your calendar. AGE 59 1/2 You may have been in preschool the last time you counted half birthdays, but the Social Security Administration still does. When you turn 59 1/2 you can celebrate by starting your withdrawals from your retirement plan or IRA. You can finally do so without being subject to the 10% penalty you'd generally have to pay at a younger age. AGE 60 This is the earliest that a widow or widower can collect benefits from Social Security (if the surviving spouse is disabled, this benefit kicks in at age 50). As a general rule, over the course of a lifetime early survivor's benefits will give about the same total as regular Social Security survivor's benefits. However, the installment amounts will be smaller to take into account the longer period you will receive them. As a survivor, you can receive these benefits at any time between your 60th birthday and your full retirement age. However, the earlier you start, the more your survivor's benefits are reduced--they will dwindle at a fraction of a percent for each month before you reach your full retirement age. AGE 62 Regardless of when you reach your full retirement age, you can choose to begin receiving Social Security retirement benefits at age 62. However, if you start taking benefits before your full retirement age, those proceeds will be reduced. If your full retirement age is 67, then your starting benefits will be reduced by 30%. That percentage goes down the closer you get to your full retirement, with a 6.7% reduction for withdrawing at age 66. Age 62 also marks the point when you are old enough to qualify for a reverse mortgage. AGE 65-67 Sometime between the ages of 65 and 67 is when you'll reach your full retirement age, which is when you can begin to collect full Social Security benefits. When your specific retirement age hits depends on how old your are. It was 65 for anyone born in 1937 or earlier, and is gradually increasing to age 67 for anyone born in or after 1960. AGE 70 If you don't need to dip into your Social Security benefits when you hit full retirement age, you can delay your retirement, and your benefits will be increased based on your birth date. However, once you reach age 70, the benefit increase no longer applies, even if you continue to delay taking benefits. Age 70 1/2 Another half birthday to celebrate, this one at age 70 1/2, is when you must begin taking your required minimum distributions from your IRA's, whether you've retired already or not. RMDs apply each year beginning with the year the account owner turns age 70 1/2. The distributions are calculated by dividing the IRA account balance as of December 31 of the prior year by the applicable distribution period or life expectancy. Michael Katz Savvy Social Security Planning No matter which Birthday you are celebrating it is never to early to consider Social Security Planning.
Visit our new Social Security Website at
And learn how a wise Social Security Strategy will help you increase your Social Security Benefit for life. Or give us a call at 410-758-1680 |
You Might Be Texting With A Senior
With all the different communication styles we have today, texting seems to be the mode of choice.
However, with so many different codes used in texting,
it is sometimes hard to understand
what is being said.
If you happen to see the codes below
while you are texting,
"You might be texting with a Senior. "
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YOUR HEALTH
Don't Get Trapped By Medicare Rules
Retiring past age 65? You may choose to stick with your employer's health plan rather than signing up for Medicare. But you could risk going without insurance for several months, and pay an annual penalty for life, if you don't follow Medicare's strict enrollment rules.
When you turn 65, you're eligible to sign up for Medicare Part B, which covers outpatient services. You may decide that it's easier or cheaper to continue with your employer coverage--either opting to take corporate retiree medical benefits or going with COBRA. Under the federal COBRA law, companies with at least 20 employees must allow former workers to buy into the group health plan for up to 18 months.
That could be a big mistake. When you turn 65 you can forgo Medicare without consequence if you're still working and are covered by your employer's group health plan. But once you leave the job, you must enroll in Part B within eight months after the month you retire, even if you continue to be covered by your employer's health plan. This eight-month period is known as the "special enrollment period." If you miss this deadline and your employer coverage expires, you could find yourself uninsured for many months. You will not be allowed to enroll in Medicare Part B until the next "general enrollment period," which runs from January 1 to March 31. Your coverage won't begin until July. Plus, you may be subject to late penalties. "You should enroll in Part B as early as you can," says Joe Baker, president of the nonprofit Medicare Rights Center. "The penalties and waiting periods for not doing so can be substantial and ongoing."
Some retirees realize they have made a mistake when the group health plan rejects their claims. When you turn 65, a retiree health plan or COBRA will pay only for medical expenses that Part B won't cover, says Baker. Even if you decide not to enroll in Medicare, your former employer's plan will consider the government insurer to be the primary payer.
In some cases, it could take time for the health plan to realize that the beneficiary is eligible for Medicare. Once the insurance company discovers its error, though, it could stop paying claims and may try to recoup the benefits it already paid out.
Falling Into A Coverage Gap These enrollment rules came as a big surprise to Kent Evanson, who lives in Glenn Ellen, Ill. He left Merrill Lynch as a financial adviser at the end of June 2008 at age 69. Because he liked his employer plan, he decided to go on Cobra rather than enroll in Medicare.
Over the next year or so, the plan rejected a couple of Evanson's medical claims. Its reason: Because he was eligible for Medicare, the plan considered itself to be the secondary payer. "I was paying $1000 a month in premiums for nothing," he says. "I wanted out."
By that time, however, Evanson had missed the eight-month enrollment window. When he went to sign up for Medicare in July 2009, he was told he would have to wait until January 1, 2010, to apply, and that coverage would not begin until July 1, 2010.
Even if you leave your job before you turn 65 you could face trouble if you ignore the enrollment rules. Assume you retired in January 2012 and went on COBRA. You turned 65 nine months later, in October 2012. In this case, the "initial enrollment period" applies to you. The initial enrollment period starts three months before the month of your 65th birthday and ends three months after your birthday month. Because your 65th birthday was in October 2012, your initial enrollment period would have run until the end of January 2013.
Let's say you decided instead to stick with COBRA for the full 18 months, until it expired in June 2013. You would not be able to enroll in Part B until the next general enrollment period starting January 1, 2014. And you would not be covered until July 2014, about a full year after your COBRA coverage ends.
To add insult to injury, you'll also be hit with lifetime penalties for missing an enrollment period. For each 12-month period you delay enrolling when you're eligible, you'll pay a penalty of 10% of your Part B premium--forever.
Kiplinger
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Sincerely,
Mike Zimmer & Rebecca Thacker
Bay State Insurance Agency Limited
410-758-1680
1-877-411-3702
"Your Safe Money Team"
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"WINTER SCULPTURES" Created by Our Good Friend and Veterinarian Dr. E. Mitchell Arion Caroline Veterinary Clinic Ridgely, Maryland 410-634-2666 
Dr. Arion Winter Frog  Out of the Frozen Depths, An Octopus Emerges  And Attacks a Ship 
Going Down 
And Down ______________________________
Quick Links www.mzimmer.sswise.com (Our New Social Security Website) www.yoursafemoneyteam.com Individual Medical Insurance (under age 65) | |
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A Sliver Lining for Your Retirement Account
If you transfer your IRA's, Annuities, old 401(k)s, or any other retirement account to us, one of our major insurance carriers will guarantee you an immediate 11% premium bonus;
$50,000 becomes $ 55,500
$100,000 becomes $111,000
$250,000 becomes $277,500
In addition to your premium bonus, for folks age 40 and above, how would you like to learn how you can add an income rider with a guaranteed 6.25% income growth for up to 10 years with an option to extend for an additional 10 years. This is not a prediction, this is a guarantee. You simply need to take a lifetime income.
Isn't it time you stop gambling in the risky stock market and get a good night's sleep? If you would like to have guaranteed growth and an income you can count on, give us a call at 410-758-1680 to learn how to earn more.
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 Thanks to those you have served, who do serve, and most of all, to those who have made the ultimate sacrifice in service to America. Let Freedom Ring. |
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Thanks to YOU the word is spreading. Thanks to all of our clients and friends who graciously referred us to their friends and neighbors last month! There's no question we have the BEST clients on the entire planet. Our business is built on word of mouth advertising and we would like to thank everyone who has been kind enough to recommend our services to their friends. We promise to treat your friends just like we treated you, with respect and understanding. We promise to always do what is right for our clients.
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The purpose of this newsletter is to provide information of general interest to our clients, potential clients and other professionals. The information provided is general in nature and should not be considered complete information on any product or concept described. For complete information, please contact our office at 410-758-1680
or 1-877-411-3702. _______________________________________ |
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