Financial Health

SHINE ON…
Changes Help Many Save On Medicare Drug Costs

By Sonja Brewer
Changes in the law have made it easier to qualify for “Extra Help,” the federal program which assists those with limited income and assets in paying for Medicare Part D prescription drug plans. That’s because, starting with the new year, many items no longer are counted as income and assets. One example: life insurance policies.

And you now may be eligible, even if you applied before and were denied. Find out by contacting Social Security.

If you are an individual with income below $16,476 and assets below $12,510 or a married couple living together with income below $22,092 and assets below $25,010, you may be eligible for this Extra Help.

For more information about Extra Help with Medicare drug plan costs, visit www.socialsecurity.gov or call Social Security at 1-800-772-1213.

If you do not qualify for this help, there is a state program, Prescription Advantage, which helps to lower your drug costs. This program allows a higher income level and has no asset limit. You can reach Prescription Advantage at 1-800-AGE-INFO (1-800-243-4636), then press or say 2.

For help applying for either of these programs, call your senior center and ask for a SHINE appointment. Trained SHINE volunteers offer confidential counseling on all aspects of health insurance for persons eligible for Medicare and for disabled adults. SHINE program counseling services are free. If you need help locating a SHINE counselor, call 1-800-AGE-INFO (1-800-243-4636), then press or say 3.

(Ms. Brewer is the Cape & Islands Regional Director of SHINE, a division of the Massachusetts Executive Office of Elder Affairs.)

Part-Time ‘Bridge Employment’ Called Good For Senior’s Health

By Denise M. Dever
Those seniors who work temporary or part-time jobs have fewer major diseases and will enjoy better day-to-day function than their contemporaries who choose to stop working altogether, according to a new national study.

Researchers say the findings are significant even after factoring in subjects’ physical and mental health before retirement. The study’s authors refer to this transition between career and complete retirement as “bridge employment,” which can be a part-time job, self-employment or a temporary position. The findings are reported in the October issue of the Journal of Occupational Health Psychology, published by the American Psychological Association.

The authors said their findings “highlight bridge employment’s potential benefits.” And they suggest that “given the economic recession, we will probably see more people considering post-retirement employment.”

They added that employers concerned about a labor shortage due to numerous Baby Boomers beginning to retire in large numbers, might consider bridge employment options for their own retirees.

According to the U.S. Department of Labor projections, the over-55 population will account for nearly 93 percent of the net increase in the labor force in the decade ending in 2016.

The researchers considered only physician-diagnosed health problems, such as high blood pressure, diabetes, cancer, lung disease, heart disease, stroke and psychiatric problems. They controlled not only for baseline physical and mental health but also for age, sex, education level and total financial wealth. The results showed the retirees who continued to work in a bridge job experienced fewer major diseases and fewer functional limitations than those who fully retired.

One popular part-time job option for older adults is senior care-giving. Seniors make great caregiver companions for other older adults who need a little extra help around the house or just a friend with whom to spend time and enjoy activities.

A Road Map Can Be Critical For Any Financial Planning

By G. Robert King II, CFP®, AIF®
While on family vacations, we love to explore. We head off for the weekend without the faintest idea of where we want to go, just to see where we will end up!  However, we always bring along our GPS or a roadmap. No one likes to feel lost, especially far from home.

Yet, in our business, we are often surprised by how many people approach their personal financial planning without a map. The consequences for a lack of planning often are painful and can be felt by all family members, often for decades. As in traveling, we suggest that your financial plan also have a Financial GPS to keep you on course. It’s never too late, but, obviously, the earlier the better!

For those interested in financial planning we often begin the process by introducing our concept of the Financial GPS; a “goal-based” planning approach. It’s important to determine client’s personal goals in life and separate them into short and long-term goals, the latter we call Milestones.

To get started on your Financial GPS, divide the first worksheet into two sections; short-term goals on top followed by long-term goals:

• Short-Term:  an activity or objective that you want to accomplish in less than five years;
• Long-Term Goal: usually involving a time frame of more than five years.

The second worksheet will list your Milestones.

• Milestone: a special event, important to you, that you would love to accomplish at some point in your life; the exciting things you hope and dream of doing.  Milestones can include both short and long-term goals, often a combination creating a single Milestone.

Some simple rules:

• Write everything down on paper;
• For couples, each should complete this exercise separately. Remember, what is important to you might not be for your partner. This can be quite revealing and may result in some interesting discussions and compromises;
• Keep track of the dates when goals and milestones are set and achieved
• Keep your goals simple. Divide difficult, complex goals into multiple short-termers;
• Keep goals realistic. Unattainable goals are self-defeating
• Keep this information fresh in your mind. Update and review your goals at least once a year so it remains fresh in your thoughts.

Hint: Keep your goals worksheet with your tax records and review annually at tax time.

And be sure to celebrate the completion of any goals with a toast and, for Milestones, maybe take a trip.

(Mr. King, President of The Capital Group, Inc., is a Certified Financial Planner in Hyannis, 508-790-7100 or info@capitalportfolios.net.)

You Need To Protect That Nest Egg So It Can Hatch When You Need It

By Brian D. Kashner
Asset Protection. What is it and why do we need it? Common questions, indeed.

Asset protection is a planning and implementation process to make sure your assets will remain with you should you need long-term care, whether assisted living or admission to a nursing facility. It also can ensure you have sufficient assets for retirement and to leave something for your loved ones.

Anyone who has experienced a reduction in their savings in the last couple of years now realizes how tenuous their plan for retirement—401ks and other investments—can be. The 50 percent reduction in 401k funds experienced by many Americans can take up to 10 years to recover. Just remember the many seniors who had to work during their retirement years as a result of the economic downturn in the 90s.

Another pressing reason to protect your retirement nest egg, including your home, is the distinct possibility of needing some form of long-term care. According to the U.S. Department of Health and Human Services and the American Association of Homes and Services for the Aging, there is about a 70 percent chance that anyone over the age of 65 will need some sort of long-term care services.

The average length of stay is two-and-a-half years and the national average annual costs of a private room in a nursing home are about $77,000 and $35,000 for an assisted living facility. That’s a big pill to swallow for most middle-income families.

Most people work their entire lives to trying to save for retirement, have a nice home and maybe leave something for the grandkids.

Employing a compressive asset protection plan can provide a financial umbrella.

(Mr. Kashner is associated with Healthy Assets of Wareham, 508-291-7000 or www.haprotect.com.)

Shifting Sands Created To Ease Stress & Pain As Seniors Downsize

By Valerie R. Gresh
On a clear spring day in the breakfast room of an old sea captain's house, Ingrid Heath-Russ, Linda Sheldon and I created Shifting Sands Transitions. We were looking for a business that would allow us to work hard for a client, have the pleasure of dealing with seniors and feel good about our accomplishment at the end of the day.

That was two years ago. Since then we have helped dozens of seniors transition to a new lifestyle, most from large homes where they have lived for decades, many after the loss of a spouse.

The first step is to visit with the client in their home. Usually an assisted or independent living facility, senior housing or skilled nursing facility has been chosen. If the client isn't sure where they would like to move, we can suggest some of the places we are familiar with and that we revisit on an ongoing basis.

Next we determine what furniture and items will be appropriate for their new living space. Most facilities have no storage area, so paring down is a must.

The client chooses the mover, but, again, we are glad to make suggestions. Our movers know that when they arrive we will be there, all boxes will be packed, and we can tell them exactly what to take. When the crew gets to the new home, they just have to unload the furniture, put the bed together and it’s on to another job.

Our team is there when the movers arrive to supervise the pickup and we meet them at the new residence, which is when most of our work begins. We unpack and remove all boxes. Hang clothes in the closet, set up the room, make the beds, hang curtains and pictures and shower curtain, put out towels and fill the medicine cabinet and stock the kitchen.

Many assisted and independent living facilities will assume the cost of all or part of our services as we act as members of their transition team.

(Shifting Sands Transitions, LLC of Plymouth can be reached at 877-807-8200 or shiftingsandstransitions@gmail.com.)