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Traditional vs. Hybrid Long-Term Care Insurance: Which is Appropriate for You?

Growing old is simply one thing you can’t avoid. The goal is to enjoy your retirement years as you imagined after a lifetime of working. One aspect of growing old that young people may overlook is long-term care insurance and how expensive it can be if you need it and don’t plan for it. According to Money.com, long-term care expenses can run upwards of $9,000 per month. When you are young, the prospect of declining health 30+ years down the road isn’t at the forefront of your mind. However, it can’t be overstated how critical it is to be prepared for the possibility that you may need care later in life. For those that see a benefit to investing in a long-term care insurance policy, one question you may have is which type of policy to choose – hybrid or traditional? What is long-term care insurance? Long-term care insurance is typically used for expenses that Social Security generally doesn’t cover; for example, home health care, assisted living facilities, and nursing homes. Social Security provides retirement, disability, and survivor benefits instead of long-term care costs. What is the difference between traditional and hybrid long-term care insurance?
  • Traditional long-term care insurance (use it or lose it) – Traditional long-term care is a stand-alone policy where you pay regular premiums over time. Should you need long-term care, the policy will pay for covered services up to a limit. If you don’t ever need care, the money you paid toward the premiums, much like homeowner’s insurance, are not returned to you or your heirs.
  • Hybrid long-term care insurance – Hybrid long-term care is what sounds like, a combination of long-term care insurance with life insurance. This type of insurance provides added financial security; if you need care, the policy can help cover those expenses. If you never need care, the policy offers a death benefit to your heirs.
How do the costs compare?
  • Traditional long-term care premiums are generally lower initially but tend to increase over time because of rate increases.
  • Hybrid policies typically have a fixed premium but tend to be higher upfront.
Which policy is more flexible?
  • Hybrid long-term care insurance is typically more flexible because the policies offer a “return-of-premium” feature that permits you to cancel the policy and recover a portion or all of your premiums paid should your long-term needs change.
Are there specific cons I should be aware of?
  • As in anything, you have the pros and cons. As mentioned earlier, traditional long-term care insurance is to “use it or lose it,” whereas hybrid will generally be distributed to your heirs if it isn’t used.
  • The cost of hybrid long-term care has a higher price than traditional long-term care. Also, it may not offer as significant long-term care coverage as a stand-alone traditional policy.
How do I know which one would work for me?
  • Consider consulting a financial professional to review your financial situation, help you design a strategy, and determine which type of long-term care could benefit you and your financial goals.
        Important Disclosures: This material contains only general descriptions and is not a solicitation to sell any Long Term Care insurance product, nor is it intended as any financial advice. For information about specific insurance needs or situations, contact your insurance agent. This article is intended to assist in educating you about insurance generally and not to provide personal service. They may not take into account your personal characteristics such as budget, assets, risk tolerance, family situation or activities which may affect the type of insurance that would be right for you. In addition, state insurance laws and insurance underwriting rules may affect available coverage and its costs. Guarantees are based on the claims paying ability of the issuing company. If you need more information or would like personal advice you should consult an insurance professional. You may also visit your state’s insurance department for more information. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy. This article was prepared by LPL Marketing Solutions Sources: Traditional vs. Hybrid Long-Term Care Insurance: Pros and Cons (2023) (annuityexpertadvice.com) Is Hybrid Life and Long-Term Insurance Worth Buying? | Money LPL Tracking # 1-05376456
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Figuring Out a 401(k) Strategy That Works for You

Matching your tolerance for risk with your investment objectives   Everyone wants a comfortable retirement, but the road you take there will depend on your specific situation. When you invest, you assume a certain level of risk (but like everyone you’re hoping that your holdings will increase in value). One of the most challenging aspects of investing involves matching your tolerance for risk with your investment objectives.

Beyond Your 401(k)

Have you taken the time to really project the amount of money you may need in retirement? While setting aside a percentage of your income in a 401(k) is an important step, chances are you will need more than current limitations may allow you to save. Most people supplement their employer-sponsored retirement benefits and Social Security income with personal investments. In order to develop a fitting plan, you need to have your goals in sight. In 2022, your elective deferral (contribution) limit for your 401(k) is $20,500. If you’re age 50 or older, you may save an additional $6,500. While the contribution often rises in upcoming years and your employer may match contributions above this limit, will your employer-sponsored plan allow you to save enough? Cast your net as far as possible—can you contribute to your 401(k) and afford to invest in other opportunities? Increasing your savings rate now may help you later.

Asset Allocation and Diversification

Are you an aggressive, moderate, or conservative investor? Your answer probably depends in large part on your stage in life and your financial resources, and will most likely change over time. Aggressive investors tend to have a longer time frame—as many as 35 years or more to save and invest until they reach retirement—and a greater capacity to withstand loss. For example (the following percentages will vary greatly by investor and their definition of the terms aggressive and conservative investments), stocks may account for 85% of a relatively aggressive portfolio compared to 40% for a more conservative portfolio. As investors near retirement, their asset allocation strategies generally change to account for lower risk tolerance and an emphasis on income over growth. With a 401(k), you become responsible for managing your portfolio, not your employer. While one aspect of a retirement savings plan is investing for the long term, it is still important to stay involved and make adjustments as needed. Choosing to be an active money manager rather than a passive investor can help you maintain the appropriate allocation strategies and pursue your long-term goals. Remember that it may be important to diversify within asset categories. For example, spread your equity investments among large-cap, mid-cap, and small-cap stocks, as well as vary your fixed-income investments with different types of bonds and cash holdings. The diversification strategy you choose for your 401(k) should complement your strategies for investments outside of your retirement plan.

Tax Considerations

Because retirement plans offer tax benefits, they carry certain restrictions, such as when withdrawals can be made without penalty. While funds in a 401(k) are made with pre-tax dollars and have the potential for tax-deferred growth, withdrawals made before the age of 59½ may be subject to a 10% Federal income tax penalty, in addition to the ordinary income tax that will be due. Some 401(k) plans are featuring the Roth 401(k) too. If your employer offers this option, you may be able to designate all or part of your elective salary deferrals to a Roth account. Although contributions are made with after-tax dollars, earnings and distributions are tax free, provided you have held the account for five years and are at least 59½ years old when you access funds. If you’re looking to save specifically for retirement, in addition to your 401(k), consider a Roth IRA, which allows earnings to grow tax free. While contributions are made with after-tax dollars, your withdrawals will be tax free provided you are older than age 59½ and have owned the account for five years. Early withdrawals may be subject to a 10% Federal income tax penalty, unless you qualify for an exemption. Certain income limits apply. Taking advantage of the tax benefits retirement arrangements offer is a valuable strategy, but also consider building more liquidity and flexibility into your overall savings and investment plan. In the event you need access to funds before retirement, have a contingency plan such as an emergency cash reserve and relatively liquid investments. However, keep in mind how accessing savings in the short term will affect your long-term goals. As you look toward retirement, consider increasing your overall savings rate, maintaining appropriate asset allocation and diversification strategies, and planning for taxes. Over time, your investments will inevitably be affected by legislative reform and market swings, but with a long-term outlook and continued involvement you are better positioned to manage the fluctuations and changes to work towards your objectives. Investment returns and principal values will change due to market conditions and, as a result, when shares are redeemed, they may be worth more or less than their original cost. Past performance is no guarantee of future results.    
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
Asset allocation does not ensure a profit or protect against a loss.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
The Roth IRA offers tax deferral on any earnings in the account. Withdrawals from the account may be tax free, as long as they are considered qualified. Limitations and restrictions may apply. Withdrawals prior to age 59 ½ or prior to the account being opened for 5 years, whichever is later, may result in a 10% IRS penalty tax. Future tax laws can change at any time and may impact the benefits of Roth IRAs. Their tax treatment may change.
This information is not intended to be a substitute for specific individualized tax advice. We suggest that you discuss your specific tax issues with a qualified tax advisor.
This article was prepared by AdviceIQ.
LPL Tracking #1-05306507
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5 Compelling Reasons to Rethink Social Security

Relying extensively on social security may not meet your retirement needs

  When it comes to planning for retirement, Social Security benefits have traditionally been viewed as a safety net for many individuals. However, in recent years, there has been growing concern about the long-term viability and sustainability of the Social Security system. As a result, it is becoming increasingly important for individuals to reconsider relying solely on Social Security benefits as a retirement plan. Here are five compelling reasons why you should not solely depend on Social Security as part of your retirement plan.

Uncertain Future

One of the key reasons to be cautious about relying heavily on Social Security benefits is the uncertainty surrounding the future of the program. The Social Security Administration has projected that the trust funds supporting the system will be depleted by 2034. While this doesn't mean that Social Security will disappear entirely, it does suggest that future benefits may be significantly reduced. Depending solely on a benefit that might be subject to cuts or modifications is a risky proposition.

Demographic Challenges

The aging population is placing immense strain on the Social Security system. As baby boomers retire and life expectancy continues to rise, there is an increasing number of retirees relative to the number of workers paying into the system. This demographic shift is expected to result in a decline in the worker-to-beneficiary ratio, potentially leading to reduced benefits in the future. Relying solely on Social Security benefits means exposing yourself to the risk of diminished financial support in retirement.

Inadequate Replacement Income

Social Security benefits were never intended to replace one's entire income in retirement. The formula used to calculate benefits replaces a higher percentage of income for lower earners and a lower percentage for higher earners. For individuals with higher incomes or those who have invested in building substantial retirement savings, relying solely on Social Security benefits may not provide the financial security needed to maintain their desired standard of living. It is essential to consider other income sources and savings to supplement your retirement plan.

Rising Healthcare Costs

Healthcare expenses are a significant concern for retirees, and Social Security benefits alone may not be sufficient to cover these costs adequately. As medical advancements and inflation drive healthcare costs higher, individuals may find themselves struggling to afford necessary medical care and long-term care services. Planning for retirement should include provisions for healthcare expenses, which may necessitate seeking additional sources of income beyond Social Security benefits.

Lack of Control

Dependence on Social Security benefits puts your financial future in the hands of government policy and economic factors beyond your control. Changes to legislation, such as adjustments to the retirement age or modifications to benefit formulas, can have a substantial impact on the amount of benefits you receive. By diversifying your retirement plan and not solely relying on Social Security, you gain more control over your financial destiny, allowing you to adapt to changing circumstances.

Your Financial Professional

While Social Security benefits can be an important part of retirement income, relying solely on them may not be sufficient to meet your financial needs. Engaging the services of a financial professional can provide valuable expertise, tailored advice, and a comprehensive approach to retirement planning. By understanding your unique goals, creating a diversified investment strategy, managing tax efficiency, and providing ongoing guidance, a financial advisor can help you build a robust retirement plan that goes beyond accounting for Social Security benefits. Investing in professional assistance today can set you on the path towards pursuing a confident and fulfilling retirement tomorrow.    
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
This article was prepared by FMeX.
LPL Tracking #1-05373781
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Finances and Fireworks: 5 Strategies to Help Preserve and Celebrate Your Financial Freedom

Your finances are probably one of the last places you want to experience fireworks—unless they are celebratory. With new year's resolutions firmly in the rearview mirror, the summer months allow you to revisit your financial goals and evaluate your progress. This Independence Day may be a good time to take stock of your path toward financial independence with the help of these five tips.

Set Goals

If you do not already have a plan for where you would like to be in five years or more, now is the time to create one. If you are renting, do you want to own a home? Are you hoping to advance in your career or have more children? Having broad goals may give you something to work toward—and working backward from these goals may give you options for the direction you prefer.

Pay Off "Bad" Debt

Not all debt is created equal—and abiding by a strict debt-free lifestyle could leave you unable to purchase a home, go to college, or make other major expenses. However, some debt—including most credit card debt and paycheck advance loans—comes with high-interest rates and strict repayment terms. The more you waste on interest, the less you have to pay the principal. Decreasing your interest payments may help you get ahead of this "bad" debt for good. For example, you may accelerate the payoff or transfer a balance from a high-interest card to a lower-interest card.

Automate Your Savings

One of the most solid pieces of financial advice is to "pay yourself first." By having 401(k) or Health Savings Account funds automatically withdrawn from your paycheck before it even hits your bank account—or setting up an auto-transfer from checking to savings—you may adopt an "out of sight, out of mind" approach to your savings. Over time, you may be surprised at how quickly these funds accumulate when they are unavailable to spend in your checking account.

Balance Your Investment Portfolio

If it has been a while since you looked at your investments in detail, now may be a good time to evaluate them. As some investments increase in price while others may remain stable or even fall, your overall asset allocation may shift to favor those higher-priced assets. Consider a sample portfolio of 50% U.S. large-cap stocks, 30% international, and 20% bonds. If international stocks have a particularly good year, they may make up 40 or 45% of your portfolio, allocating lower percentages to the other two components. For this example, selling some international stocks and buying more bonds or large-cap stocks may help rebalance your portfolio.

Educate Yourself

Financial practices, rules, and regulations are always changing—from individual retirement accounts (IRA) and 401(k) limits to your ability to deduct certain expenses. No one knows everything there is to know about personal finance. However, keeping abreast of major changes may give you the necessary insights. Being informed may help you decide when to change your savings rate, rebalance your investments, take a risk on a rental property, or invest in your small business.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.
Asset allocation does not ensure a profit or protect against a loss.
Rebalancing a portfolio may cause investors to incur tax liabilities and/or transaction costs and does not assure a profit or protect against a loss.
This article was prepared by WriterAccess.
LPL Tracking #1-05370157
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A Fall Financial Checklist

For many, autumn is the best time of year. The return of cool breezes, comforting foods, and pumpkins can be invigorating. It’s also a bookmark of sorts, especially for your finances—a perfect time to take stock of your spending after the summer’s over to see what lies ahead. These tips can help you make simple, sensible choices and take action to make the most of your money, from your food choices to your financial options to protecting your most valuable assets. Bask in the Bounty Autumn is all about fresh food, and you can get more bang for your buck with these tips. Fall Fruits & Veggies: This one’s all about supply and demand: you can usually get good prices on in-season fruits and veggies because they’re so plentiful. So stock up on autumn produce like apples, beets, pomegranates, squashes, and sweet potatoes, to name a few. They’ll be bursting with flavor and health benefits—especially at the local farmers market—without busting your budget. Store Up Soup: Speaking of fresh vegetables, they go really well in soup, another fall favorite—making it easier for you to maximize the produce you buy. A bonus for your bottom line: soup also freezes quite well. It can last up to three months frozen, so you can make one large pot of it and feed your family for weeks. Focus on Financials It’s been said that planning is bringing the future into the present so you can do something about it now, and that’s especially true when it comes to your end-of-year finances. Work Benefits: Company benefits often begin on January 1, so pay close attention to your company’s open enrollment period to determine the best insurance option for you and your family. Consider benefits like a flexible savings account (FSA), a health savings account (HSA), and a 401(k) (especially if there’s company matching) to determine what would best suit your family. Two important things to keep in mind: just because your benefit choices worked for you this year, it doesn’t mean they will next year, and for an existing FSA, make sure to use your money if there’s an end-of-year deadline! Finally, any company-sponsored discounts (such as a weight-loss program or gym membership) need to be submitted by the end of the year, so make sure to submit the paperwork to cash in. Education: If you have kids in college, look ahead to the spring semester. Granted, you may think “They just went back to school,” but now’s the time to focus on financial education planning. Keep an eye out for federal financial aid (FAFSA) application deadlines (which usually open in early fall). Spring tuition for many colleges can be due as early as November and as late as January, so mark it on your calendar and plan accordingly—especially with holiday bills also on the horizon—to avoid getting docked with late fees. Investments: Things change all the time in the finance world, especially taxes and laws, and these tend to go into effect in the new year. If you’re looking ahead with your other investments, such as your stock portfolio or loans, be well educated about your options and about what’s happening—and expected to happen—going forward. The best course of action? Touch base with your financial advisor, who can steer you on the path that’s right for you. Holiday Shopping: Many times, I’ve paid the price (literally and figuratively) for waiting until December to take care of my holiday shopping—when you’re desperate, stock is depleted, and the calendar is dwindling down, you’ll tend to pay full price. But if you’re smart about it, you can plan ahead and enjoy the holiday rush. During the next several weeks between now and Black Friday be intentional as you prepare for what you want to buy—and what you want to pay for it. Scour the internet, and keep a spreadsheet of prices; that way, you’ll get a sense of what you can expect to spend and what’s a good deal. Also, be sure to set aside a little money out of every paycheck for the holidays—or do what I do: know your calendar. If you get paid biweekly, two months out of the year have an extra payday; October is one such month this year. See if you can dedicate part or all of your extra check to your holiday shopping, which will really help when the January credit card bills arrive. Don’t Wait for Winter Take advantage of the lovely autumn weather to cut down your bills—and prevent costly ones. Home: Fall is a great time to get your home ready inside and out for winter, which can offer big cost savings. Cleaning out your gutters in late autumn, when all the leaves have fallen, can help you avoid drainage trouble in winter, when it might also be difficult to remedy the situation. If your driveway or sidewalk needs repair, do it now before rain and ice seep into the cracks and holes, potentially causing costly underlying damage. And speaking of ice, if you live in a cooler climate, make sure that you remove outdoor hoses, turn off your water supply to outdoor spigots, and drain the spigots; otherwise, when the nighttime temperatures creep toward freezing later in the season, you may find yourself in a world of financial hurt when your pipes freeze. Inside, you can cut down on future bills by ensuring your home is warm during the coming months. Have your furnace (and fireplace, if you have one) serviced and change its filter so it’s at peak capacity, and check your windows and doors for drafts and cracks, sealing where needed. Car: Much like you can with your home, taking necessary steps to winterize your car now can save you financial headaches down the (icy) road. Check your antifreeze level and temperature, tread life and balance of your tires (which should also be rotated), and the status of your wipers and windshield fluid. Have your heater and defrosters checked to make sure they are functioning well, and make sure you have an emergency kit.   LPL Tracking #1-05175159
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Reading, Writing, and Education Planning

The earlier you start saving, the easier it will be to send your kids to college

  The month of August is when many parents are preparing to send children back to school this fall. While the checklists grow and the kids soak in the last few minutes of summer break, it’s important to remember college planning and back-to-school shopping. While getting an education can be difficult at times, paying for it can feel like climbing up an unending hill. More and more adults are going back to school, so this doesn’t just apply to kids. According to the U.S. Census, in the 40+ years since 1980, college costs have increased by 169% – while earnings for workers between the ages of 22 and 27 have increased by just 19%.

Rising Costs of College

Today, the average cost for college – which includes tuition, room and board, and supplies – is $54,800 for private colleges and $27,330 for public in-state colleges (that rises to $44,150 for public out-of-state students). Planning ahead for your children’s education can alleviate the burden on your family when you or your student must write a check or take out an education loan.

College Savings Plans

College savings plans offer many great benefits. For example, some taxpayers are eligible for a state income tax credit of up to 20% of contributions to a 529 account, which can add up to thousands of dollar per year. With a 529 plan, you put away money that grows tax-free, as long as you use it on education. These types of savings accounts are also very flexible. Just because a student has a 529 account set up in Kansas, doesn’t mean the assets cannot be used to attend a school in California or Texas, as long as the institution is eligible under the specific 529 rules. Many plans allow for hundreds of thousands of dollars per beneficiary to be held in a 529 account, with few income or age restrictions. Another great benefit of a 529 is the donor retains control of the account and makes the decision for when withdrawals are made and for what reason.

Talk to Your Financial Professional

It’s important to consult a financial professional or a 529 plan manager with specific questions regarding how each state’s plan works. Back-to-school season is a great time to teach children and young adults about budgeting and giving priorities to certain purchases. While parents get ready for that time of the year where they make sure lunches are made and homework is completed, it’s wise to look ahead and begin, if they have not already, planning for their kids’ college education. With rising tuition costs, the earlier you start planning and saving, the easier sending a child off to school can be.    
Important Disclosures
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security. To determine which investment(s) may be appropriate for you, consult your financial professional prior to investing.
Prior to investing in a 529 Plan investors should consider whether the investor's or designated beneficiary's home state offers any state tax or other state benefits such as financial aid, scholarship funds, and protection from creditors that are only available for investments in such state's qualified tuition program. Withdrawals used for qualified expenses are federally tax free. Tax treatment at the state level may vary. Please consult with your tax advisor before investing.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by FMeX.
LPL Tracking # 1-05317563
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5 Tips for Saving and Investing as a Small-Business Owner

As a business owner, putting all your profits back into the business may be tempting, especially during the lean years. However, when it comes to saving and investing as a business owner, there are other paths you could consider for the long run without so much emphasis on the short term.

Maintain Liquid Assets

Everyone needs to have savings. For small business owners, savings are critical. Liquid assets may help you weather challenging times and make you a more attractive candidate for a loan. When times are tough, cash may help carry you through.

Engage a Financial Professional

You may assume you do not have enough money to make paying a financial professional a worthwhile investment. You may believe you cannot afford one. However, as a small business owner, you may benefit from getting help from a financial professional. A financial professional may help manage your tax burden and your operating expenses, with a focus on cash flow.

Do Not Overinvest in Physical Space and Equipment

It may be tempting to purchase or rent a storefront for your new business. However, it may help to avoid falling into the trap that hurts many business owners—the urge to quickly invest in a brand-new office, buy a company car, or otherwise overcommit to physical overhead as soon as the money starts coming in. By expanding at a more reasonable pace as your business growth demands, you may be able to maintain a more sustainable level of growth.

Avoid Ultra-Risky Stocks

Running a business is a gamble in and of itself, so adding a risky stock portfolio on top of this may expose you to extraordinary risk. Investing in individual stocks may be too risky. Instead, consider index funds that track one of the major market indices that might be less risky. However, be aware that no investment is risk-free.

Plan Your Succession

One frequently overlooked part of a successful small business strategy is having a contingency plan for transferring ownership at the time of your retirement or demise. As a business owner, you should have, at minimum, a last will and testament and life insurance in place. Your will might include instructions to keep things running in your absence (like managing payroll), while life insurance may provide funds for the loved ones you leave behind. A succession plan is a strategy worth pursuing rather than leaving this issue unmanaged.    
Important Disclosures: The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) or insurance product(s) may be appropriate for you, consult your financial professional prior to investing or purchasing. Investing involves risks including possible loss of principal. No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments. All indexes are unmanaged and cannot be invested into directly. Although index funds are designed to provide investment results that generally correspond to the price and yield performance of their respective underlying indexes, the trusts may not be able to exactly replicate the performance of the indexes because of trust expenses and other factors. Please keep in mind that insurance companies alone determine insurability and some people may be deemed uninsurable because of health reasons, occupation, and lifestyle choices. This information is not intended to be a substitute for individualized legal advice. Please consult your legal advisor regarding your specific situation. This article was prepared by WriterAccess. LPL Tracking #1-05372579
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5 Tips for Navigating Medicare in Retirement

One of the main concerns about retirement is health care. As healthcare costs continue to rise, medical bills may quickly derail your retirement plan. The good news is when you turn 65, you will be able to apply for Medicare, which provides you with coverage for some of the larger bills you may face during your retirement. Though navigating Medicare is a little tricky, the following tips can make the process less daunting.

1. Watch Your Dates

There are deadlines for Medicare. The first is the Initial Enrollment Period. If you sign up during this time, you can avoid a significant amount of hassle. This enrollment period starts three months before you turn 65 and extends until three months after. Failing to sign up on time may result in up to $6,500 more in premiums over 20 years. This occurs because you may be assessed a 10 percent penalty for each year that passes without enrollment.1

2. Find the Correct Doctor

A change in insurance may mean you need to change physicians. Providers have the option of accepting the Medicare program in different ways or not accepting it at all. If your doctor is a participating provider, they agree to the Medicare fee and will take that as the entire covered portion, which means you will likely only be responsible for 20%. If your doctor is a non-participating provider, they will accept Medicare as a form of payment but may charge you up to 15% more, which you will have to pay out of pocket.1 You may also want to consider switching to a doctor that specializes in geriatrics so that they have more experience in issues that you may encounter as you age.

3. Understand All the Benefits

There are many benefits of Medicare that people often overlook. These benefits are designed to make your life easier and help you stay on top of your health. With Medicare, you are entitled to an annual wellness visit where your doctor will perform a physical and order any necessary screenings. If you have difficulty traveling to appointments, you might take advantage of Medicare's virtual consultations. They also offer nutritional counseling as part of your plan.1

4. Schedule Procedures Strategically

If you are close to retirement and have an upcoming procedure planned, you may want to compare the costs between your current plan and Medicare. In some cases, Medicare may offer more coverage for the procedure, so it may be beneficial to wait if possible.2  

5. Keep Good Medical Records

Good medical records will help your physicians and healthcare facilities properly manage your conditions. Keeping proper records may also prevent you from overpaying as well. Just like any insurance, Medicare is confusing when it comes to billing, and mistakes will happen. Keep track of your explanation of benefits and payments to ensure you don't double-pay or overpay for appointments and procedures.2    
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
LPL Tracking # 1-05305304.
Footnotes
17 Tips on How Best to Use Medicare, AARP,  www.aarp.org/health/medicare-insurance/info-2019/tips-for-medicare.html
25 Medicare Tips for New Retirees, Money.com, money.com/5-tips-medicare-tips-new-retirees/
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Six Keys to More Successful Investing

A successful investor maximizes gain and minimizes loss. Though there can be no guarantee that any investment strategy will be successful and all investing involves risk, including the possible loss of principal, here are six basic principles that may help you invest more successfully.

Long-term compounding can help your nest egg grow

It's the "rolling snowball" effect. Put simply, compounding pays you earnings on your reinvested earnings. The longer you leave your money at work for you, the more exciting the numbers get. For example, imagine an investment of $10,000 at an annual rate of return of 8 percent. In 20 years, assuming no withdrawals, your $10,000 investment would grow to $46,610. In 25 years, it would grow to $68,485, a 47 percent gain over the 20-year figure. After 30 years, your account would total $100,627. (Of course, this is a hypothetical example that does not reflect the performance of any specific investment.) This simple example also assumes that no taxes are paid along the way, so all money stays invested. That would be the case in a tax-deferred individual retirement account or qualified retirement plan. The compounded earnings of deferred tax dollars are the main reason experts recommend fully funding all tax-advantaged retirement accounts and plans available to you. While you should review your portfolio on a regular basis, the point is that money left alone in an investment offers the potential of a significant return over time. With time on your side, you don't have to go for investment "home runs" in order to be successful.

Endure short-term pain for long-term gain

Riding out market volatility sounds simple, doesn't it? But what if you've invested $10,000 in the stock market and the price of the stock drops like a stone one day? On paper, you've lost a bundle, offsetting the value of compounding you're trying to achieve. It's tough to stand pat. There's no denying it--the financial marketplace can be volatile. Still, it's important to remember two things. First, the longer you stay with a diversified portfolio of investments, the more likely you are to reduce your risk and improve your opportunities for gain. Though past performance doesn't guarantee future results, the long-term direction of the stock market has historically been up. Take your time horizon into account when establishing your investment game plan. For assets you'll use soon, you may not have the time to wait out the market and should consider investments designed to protect your principal. Conversely, think long-term for goals that are many years away. Second, during any given period of market or economic turmoil, some asset categories and some individual investments historically have been less volatile than others. Bond price swings, for example, have generally been less dramatic than stock prices. Though diversification alone cannot guarantee a profit or ensure against the possibility of loss, you can minimize your risk somewhat by diversifying your holdings among various classes of assets, as well as different types of assets within each class.

Spread your wealth through asset allocation

Asset allocation is the process by which you spread your dollars over several categories of investments, usually referred to as asset classes. These classes include stocks, bonds, cash (and cash alternatives), real estate, precious metals, collectibles, and in some cases, insurance products. You'll also see the term "asset classes" used to refer to subcategories, such as aggressive growth stocks, long-term growth stocks, international stocks, government bonds (U.S., state, and local), high-quality corporate bonds, low-quality corporate bonds, and tax-free municipal bonds. A basic asset allocation would likely include at least stocks, bonds (or mutual funds of stocks and bonds), and cash or cash alternatives. There are two main reasons why asset allocation is important. First, the mix of asset classes you own is a large factor--some say the biggest factor by far--in determining your overall investment portfolio performance. In other words, the basic decision about how to divide your money between stocks, bonds, and cash is probably more important than your subsequent decisions over exactly which companies to invest in, for example. Second, by dividing your investment dollars among asset classes that do not respond to the same market forces in the same way at the same time, you can help minimize the effects of market volatility while maximizing your chances of return in the long term. Ideally, if your investments in one class are performing poorly, assets in another class may be doing better. Any gains in the latter can help offset the losses in the former and help minimize their overall impact on your portfolio.

Consider liquidity in your investment choices

Liquidity refers to how quickly you can convert an investment into cash without loss of principal (your initial investment). Generally speaking, the sooner you'll need your money, the wiser it is to keep it in investments with comparatively less volatile price movements. You want to avoid a situation, for example, where you need to write a tuition check next Tuesday, but the money is tied up in an investment whose price is currently down. Therefore, your liquidity needs should affect your investment choices. If you'll need the money within the next one to three years, you may want to consider certificates of deposit or a savings account, which are insured by the FDIC, or short-term bonds or a money market account, which are neither insured or guaranteed by the FDIC or any other governmental agency. Your rate of return will likely be lower than that possible with more volatile investments such as stocks, but you'll breathe easier knowing that the principal you invested is relatively safe and quickly available, without concern over market conditions on a given day. Note: If you're considering a mutual fund, consider its investment objectives, risks, charges, and expenses, all of which are outlined in the prospectus, available from the fund. Consider the information carefully before investing.

Dollar cost averaging: investing consistently and often

Dollar cost averaging is a method of accumulating shares of stock or a mutual fund by purchasing a fixed dollar amount of these securities at regularly scheduled intervals over an extended time. When the price is high, your fixed-dollar investment buys less; when prices are low, the same dollar investment will buy more shares. A regular, fixed-dollar investment should result in a lower average price per share than you would get buying a fixed number of shares at each investment interval. Remember that, just as with any investment strategy, dollar cost averaging can't guarantee you a profit or protect you against a loss if the market is declining. To maximize the potential effects of dollar cost averaging, you should also assess your ability to keep investing even when the market is down. An alternative to dollar cost averaging would be trying to "time the market," in an effort to predict how the price of the shares will fluctuate in the months ahead so you can make your full investment at the absolute lowest point. However, market timing is generally unprofitable guesswork. The discipline of regular investing is a much more manageable strategy, and it has the added benefit of automating the process.

Buy and hold, don't buy and forget

Unless you plan to rely on luck, your portfolio's long-term success will depend on periodically reviewing it. Maybe your uncle's hot stock tip has frozen over. Maybe economic conditions have changed the prospects for a particular investment, or an entire asset class. Even if nothing bad at all happens, your various investments will likely appreciate at different rates, which will alter your asset allocation without any action on your part. For example, if you initially decided on an 80 percent to 20 percent mix of stocks to bonds, you might find that after several years the total value of your portfolio has become divided 88 percent to 12 percent (conversely, if stocks haven't done well, you might have a 70-30 ratio of stocks to bonds in this hypothetical example). You need to review your portfolio periodically to see if you need to return to your original allocation. To rebalance your portfolio, you would buy more of the asset class that's lower than desired, possibly using some of the proceeds of the asset class that is now larger than you intended. Another reason for periodic portfolio review: your circumstances change over time, and your asset allocation will need to reflect those changes. For example, as you get closer to retirement, you might decide to increase your allocation to less volatile investments, or those that can provide a steady stream of income.  
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Get to Know the Rich Relationship Between Your Financial and Social Life

When you think of your financial wellness, you are likely not considering how it may affect your social life or vice versa. While many factors may influence your financial situation, social influence is the component that is given the least attention. Both those who struggle with their finances and those with a more comfortable financial standing may experience changes to their financial wellness based on their social life, so it is crucial to understand the correlation.

Loneliness May Affect Your Financial Health Along With Your Physical Health

The American Psychological Association has made correlations between loneliness and increased levels of inflammation in the body and stress hormones. This may lead to adverse effects, such as an increased risk of cardiac disease and arthritis. Poor health may lead to more costly medical expenses and more time off of work. This expense increase and a loss of work time may eventually lead to problems with your finances.1

Your Social Circle May Lead to Increased Spending

Sometimes an active social life may lead to increased spending, sometimes even more than you can comfortably afford. If your social circle is comprised of friends that constantly spend outside of their means, you may find yourself mimicking their behavior. This may include making large purchases on impulse that may affect your future financial goals.2

Social Pressure May Lead to Poor Financial Decisions

No matter your social circle, fitting in may seem like the most important thing. Unfortunately, trying to impress friends by spending more than you have or making an investment you know may not be ideal may lead to poor financial choices and consequences. Instead of putting yourself under financial strain to fit in with a specific group, it may be better to reevaluate the relationship.1

Having a Strong, Supportive, Social Circle May Help Improve Your Finances

While some aspects of your social life may lead to possible negative consequences, there are some instances where your social life may improve your financial outlook. Being part of a supportive social circle and having friends that you depend on will improve your quality of life and may also improve your financial health. Supportive friends will likely provide you with time and other resources that may help you spend less. This could include lending you money at a lower interest rate or letting you borrow tools, or helping you complete a project instead of paying to have it done.1 Your social life may affect your financial goals in a way that you may not have considered. Take a good look at your social circle and lifestyle to see if it benefits your financial future or if maybe now is a good time to make some changes to prevent it from negatively affecting your financial goals.
Important Disclosures:
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This article was prepared by WriterAccess.
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Footnotes:
1 Financial Well-Being and Social Relationships Closely Linked, Gallup, https://news.gallup.com/poll/187616/financial-social-relationships-closely-linked.aspx
2 Americans unhappy with family, social or financial life are more likely to say they feel lonely, Pew Research Center, https://www.pewresearch.org/fact-tank/2018/12/03/americans-unhappy-with-family-social-or-financial-life-are-more-likely-to-say-they-feel-lonely/
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