JBL Financial Services, Inc. Jeff & Erin Lapidus President 7710 Carondelet Ave Suite 333 Clayton, MO 63105 MO: 314-863-0008 FAX: 314-863-0009 [email protected]http://www.jblfinancial.com The Coach's Corner September 2017 Life Is for the Living, and So Is Life Insurance Medicare and Your Employer Health Plan Cartoon: College Time How do economists measure inflation, and why does it matter to investors? The Coach's Corner From your Retirement Coaches and Advisors Tips for Stress-Free Air Travel See disclaimer on final page Happy September! Back to school is in full swing and now that the kids are out of the house, the grandkids don’t need your constant attention, and your back to your old routine – remember – check in on your finances. Start calculating how much you plan to spend during the holiday season or get a jump-start on planning a financially stress-free vacation for when the cold temperatures creep in. The theme of this month’s newsletter is “life is for living” and we’re here to guide you on how to take the proper precautions so you can do just that (without burning a hole in your pocket)! We are continuing to accept new clients. Call us at 314-863-0008 to set up your complimentary coaching session or client review. This meeting is cost-free and obligation-free. -The Coaches We hope you enjoy our show, Straight Talk On Retirement, on the 550KTRS Saturday's at 10:00 A.M. You've seen the disturbing viral videos of long lines at crowded airports and angry passengers on planes. Maybe you've even witnessed these scenes yourself. Inclement weather, an airline computer outage, or even just bad luck can disrupt travel plans for anyone at any time. Before your next flight, consider these tips to help reduce stress on your next airport visit. Travel off-peak Certain days and/or times are busier than others. As a result, you may want to avoid peak travel times, such as during the holidays or the afternoon/evening. By adjusting your travel schedule by one day or even just a few hours, you might face fewer crowds and decrease your travel time. Take the road less traveled Avoid travel hubs with the most air traffic. Instead, try searching nearby, smaller airports to see whether they offer flights to your destination. Smaller airports may offer cheaper flights and often have fewer delays and less traffic to and from the airport. You can also research whether a specific airline or flight route is usually on time or late by checking its on-time performance. Do your homework Save time at check-in by doing what you can before you leave for the airport. Most airlines have a streamlined ticketing/boarding process that allows you to select your seats and complete the check-in process at home. The lighter, the better Most airlines have restrictions on the number of carry-on or check-in bags passengers can bring. Many also charge extra for heavy bags. As a result, only bring necessities and try to avoid overpacking for your trip in order to stay within your airline's luggage limits. The early bird gets to relax Avoid the long lines and traffic by leaving as early as possible on your scheduled day of travel. If you're worried about waiting around the airport for too long, bring your laptop or extra reading material to keep yourself occupied. Have a backup plan No matter how much you plan ahead, flight delays and missed connections can happen, so you'll want to be prepared to make adjustments to your travel plan (e.g., renting a car if you miss your connecting flight). Keeping an open mind and being flexible can make it easier to deal with any travel glitches that may arise. Don't forget the essentials Keep copies of your travel itinerary, necessary photo identification (e.g., driver's license, passport), medications, and a change of clothing with you in case your luggage is lost or delayed en route to your destination. You'll also want to make sure that you have plenty of snacks and beverages to help tide you over if your flight is delayed. Make sure that your electronic devices (e.g., laptop, phone, e-reader) are fully charged and bring chargers so you can plug them in, if necessary, at the airport. And if you are traveling with kids, be sure to bring along toys/games to keep them occupied. Stay connected Want real-time flight information on departures and arrivals? There are numerous mobile apps that can help make air travel more efficient. Check with your airline to see if you can sign up for flight status updates that go directly to your phone. Prepare for the worst It's important to remember that even the most well-thought-out travel plans may not proceed without a hitch. The important thing is to stay calm and be prepared for the unexpected travel mishap. Page 1 of 4
The Coach's Corner September 2017Life Is for the Living, and So Is Life Insurance
Medicare and Your Employer Health Plan
Cartoon: College Time
How do economists measure inflation, andwhy does it matter to investors?
The Coach's CornerFrom your Retirement Coaches and Advisors
Tips for Stress-Free Air Travel
See disclaimer on final page
Happy September!
Back to school is in full swing and now thatthe kids are out of the house, the grandkidsdon’t need your constant attention, andyour back to your old routine – remember –check in on your finances. Start calculatinghow much you plan to spend during theholiday season or get a jump-start onplanning a financially stress-free vacationfor when the cold temperatures creep in.
The theme of this month’s newsletter is “lifeis for living” and we’re here to guide you onhow to take the proper precautions so youcan do just that (without burning a hole inyour pocket)!
We are continuing to accept new clients.Call us at 314-863-0008 to set up yourcomplimentary coaching session or clientreview. This meeting is cost-free andobligation-free.
-The Coaches
We hope you enjoy our show, StraightTalk On Retirement, on the 550KTRSSaturday's at 10:00 A.M.
You've seen thedisturbing viralvideos of long linesat crowded airportsand angrypassengers onplanes. Maybeyou've evenwitnessed thesescenes yourself.Inclement weather,
an airline computer outage, or even just badluck can disrupt travel plans for anyone at anytime. Before your next flight, consider these tipsto help reduce stress on your next airport visit.
Travel off-peakCertain days and/or times are busier thanothers. As a result, you may want to avoid peaktravel times, such as during the holidays or theafternoon/evening. By adjusting your travelschedule by one day or even just a few hours,you might face fewer crowds and decreaseyour travel time.
Take the road less traveledAvoid travel hubs with the most air traffic.Instead, try searching nearby, smaller airportsto see whether they offer flights to yourdestination. Smaller airports may offer cheaperflights and often have fewer delays and lesstraffic to and from the airport. You can alsoresearch whether a specific airline or flightroute is usually on time or late by checking itson-time performance.
Do your homeworkSave time at check-in by doing what you canbefore you leave for the airport. Most airlineshave a streamlined ticketing/boarding processthat allows you to select your seats andcomplete the check-in process at home.
The lighter, the betterMost airlines have restrictions on the number ofcarry-on or check-in bags passengers canbring. Many also charge extra for heavy bags.As a result, only bring necessities and try toavoid overpacking for your trip in order to staywithin your airline's luggage limits.
The early bird gets to relaxAvoid the long lines and traffic by leaving asearly as possible on your scheduled day oftravel. If you're worried about waiting aroundthe airport for too long, bring your laptop orextra reading material to keep yourselfoccupied.
Have a backup planNo matter how much you plan ahead, flightdelays and missed connections can happen, soyou'll want to be prepared to make adjustmentsto your travel plan (e.g., renting a car if youmiss your connecting flight). Keeping an openmind and being flexible can make it easier todeal with any travel glitches that may arise.
Don't forget the essentialsKeep copies of your travel itinerary, necessaryphoto identification (e.g., driver's license,passport), medications, and a change ofclothing with you in case your luggage is lost ordelayed en route to your destination. You'll alsowant to make sure that you have plenty ofsnacks and beverages to help tide you over ifyour flight is delayed. Make sure that yourelectronic devices (e.g., laptop, phone,e-reader) are fully charged and bring chargersso you can plug them in, if necessary, at theairport. And if you are traveling with kids, besure to bring along toys/games to keep themoccupied.
Stay connectedWant real-time flight information on departuresand arrivals? There are numerous mobile appsthat can help make air travel more efficient.Check with your airline to see if you can sign upfor flight status updates that go directly to yourphone.
Prepare for the worstIt's important to remember that even the mostwell-thought-out travel plans may not proceedwithout a hitch. The important thing is to staycalm and be prepared for the unexpected travelmishap.
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Life Is for the Living, and So Is Life InsuranceLife can be busy. The requirements of work andfamily often leave little time to step back andthink about where you've been and whereyou're heading. But as your responsibilitiesgrow, so does the need to evaluate what wouldhappen if life for you stopped. September is LifeInsurance Awareness Month and a good timeto reflect on how life insurance can help thoseyou leave behind — the living.
Your spouse or life partnerA successful marriage is often predicated onsharing and providing for one another, and thatincludes each other's financial obligations. Ifyou were suddenly no longer in the picture,would there be enough money to pay for yourfinal expenses, cover debt, and buy some timeto allow your significant other to adjust to a newway of life? Life insurance can provide funds tocover immediate expenses and income to helpsupport your surviving loved one.
Your childrenYou've worked hard to provide for your kids, togive them the chance to realize their hopes anddreams. Your children are likely your greatestresponsibility — a responsibility that doesn't endwith your passing. Whether your children are indiapers or about to enter college, if somethinghappened to you or your spouse, or both ofyou, would there be enough income to continueto provide financially for your children? Lifeinsurance can help provide the resources fortheir continued growth and maturation.
Your homeBuying a home may be the largest singleexpenditure of your life. While being ahomeowner is exciting, mortgage payments,often lasting 30 years, along with maintenance,utility costs, homeowners insurance, and realestate taxes can add up to a long-term financialcommitment. Adequate life insurance protectioncan provide funds that could be used to coverthese expenses, allowing your family to remainin their home.
Your businessDo you own your own business? Life insurancecan fit into your business plan in many ways. Itcan be part of an employee benefit program,with coverage under a group plan. Lifeinsurance purchased on the lives of certain keyemployees can protect your company from theloss of talented and valuable workers. And lifeinsurance can be used to fund a buy-sellagreement.
Caring for an aging parent or loved oneAre you caring for an aging parent or lovedone? Would the people who depend on you be
able to afford quality health care and acomfortable place to live without your financialsupport? Life insurance can become extremelyimportant in these situations, helping to providefor these individuals in the event of your death.
Planning for retirementPreparing for retirement probably means you'resaving as much as you can in your 401(k), IRA,or other savings vehicle. If you die before youget to enjoy your retirement, will your retirementplan die for your surviving loved ones as well?Not only will your salary be unavailable to helppay for current living expenses, but yourincome won't be there to build the nest egg forthe retirement of your spouse or life partner.Life insurance can help provide funds that canbe used for your spouse's or life partner'sretirement.
Your health has changedIf your health declines, how will it affect your lifeinsurance? A common worry is that your insurercould cancel your coverage should your healthchange. However, changes to your health willnot affect your current insurance coverage,provided you continue to pay your premiums ontime. In fact, you should take a closer look atyour life insurance policy to find out if it offersany accelerated (living) benefits that you canaccess in the event of a serious or long-termillness.
Leaving a legacyLife insurance can be used to increase the sizeof an estate for your heirs. The death benefitcould provide your beneficiaries with a largerlegacy than might otherwise be possible. Thecost of life insurance may be significantly lessthan the proceeds of the policy paid to yourbeneficiaries when you die.
Charitable givingDonating a life insurance policy to a charity mayenable you to make a larger gift than youotherwise could afford. Further, the governmentencourages charitable giving by providing taxadvantages for certain charitable donations (thecharity must be a qualified charity). This meansthat both you and the charity could benefit fromyour donation (though some charities may notaccept a gift of life insurance for variousreasons).
The cost and availability oflife insurance depend onfactors such as age, health,and the type and amount ofinsurance purchased. Aswith most financialdecisions, there areexpenses associated withthe purchase of lifeinsurance. Policiescommonly have mortalityand expense charges. Inaddition, if a policy issurrendered prematurely,there may be surrendercharges and income taximplications.
Life insurance guaranteesare based on theclaims-paying ability andfinancial strength of the lifeinsurance company issuingthe policy.
Page 2 of 4, see disclaimer on final page
Medicare and Your Employer Health PlanIf you plan to continue working after you reachage 65, you may be wondering how Medicarecoordinates with your employer's group healthplan. When you're eligible for both types ofcoverage, you'll need to consider the benefitsand costs, and navigate an array of rules.
How does Medicare work with yourgroup health plan?You can generally wait to enroll in Medicare ifyou have group health insurance through youremployer or your spouse's employer. Mostemployers can't require employees or coveredspouses to enroll in Medicare to retain eligibilityfor their group health benefits. However, somesmall employers can, so contact your plan'sbenefits administrator to find out if you'rerequired to sign up for Medicare when youreach age 65.
If you have Medicare and group healthcoverage, both insurers may cover yourmedical costs, based on "coordination ofbenefit" rules. The primary insurer pays yourclaim first, up to the limits of the policy. Thesecondary insurer pays your claim only if thereare costs the primary insurer didn't cover, butmay not pay all the uncovered costs.
Who is the primary insurer? If your employerhas 20 or more employees, your employergroup health plan is primary and your Medicarecoverage is secondary. If your employer hasfewer than 20 employees, your Medicarecoverage is primary and your employer grouphealth plan is secondary.
Your employer can tell you more about howyour group health coverage works withMedicare.
Should you wait to enroll in Medicare?Medicare Part A helps pay for inpatient hospitalcare as well as skilled nursing facility, hospice,and home health care. Because Medicarehospital insurance is free for most people, youmay want to enroll in Part A even if you haveemployer coverage. It could be helpful to haveboth types of insurance to fill any coveragegaps. However, if you have to pay for Part A,you'll need to factor the cost of premiums intoyour decision.
Medicare Part B medical insurance, whichhelps pay for physician services and outpatientexpenses, requires premium payments, so itwould be wise to compare the costs andbenefits of Medicare to your employer's plan. Ifyou're satisfied with your employer coverage,you may be able to wait to enroll in Part B.
Late-enrollment penalties typically apply if youdo not enroll in Medicare Part A and Part Bwhen you are first eligible. However, if you arecovered by a group health plan based oncurrent employment, these penalties generallydo not apply as long as you follow certain rules.You can sign up for Medicare Part A and/orPart B at any time as long as you are coveredby a group health plan through your ownemployment or your spouse's employment.When you stop working or your coverage ends,you have eight months to sign up withoutpenalty. This eight-month period starts themonth after your employment ends or themonth after your employer group healthcoverage ends (whichever occurs first). Visitmedicare.gov for more information.
What if you have an HSA?If you have a high-deductible health planthrough work, keep in mind that you cannotcontribute to a health savings account (HSA)after you enroll in Medicare (A or B). The goodnews is that the HSA is yours, even if you canno longer contribute to it, and you can use thetax-advantaged funds to pay Medicarepremiums and other qualified medicalexpenses. So it might be helpful to build yourHSA balance before enrolling in Medicare.
Whether you should opt out of premium-freePart A in order to contribute to an HSA dependson what you consider to be more valuable:secondary hospital insurance coverage ortax-advantaged contributions to pay futureexpenses. HSA funds can be withdrawn free offederal income tax and penalties provided themoney is spent on qualified health-careexpenses. HSA contributions and earnings mayor may not be subject to state taxes.
How are Medicare claims handled?Once you enroll in Medicare, tell yourhealth-care providers that you have coverage inaddition to Medicare to help ensure that claimsare submitted properly. You can also contactthe Medicare Benefits Coordination & RecoveryCenter (BCRC) at (855) 798-2627 if you havequestions about how your claims will behandled.
Medicare rules are complex, and these are onlyguidelines. Different rules and considerationsapply if you have retiree health coveragethrough your former employer (or your spouse'semployer) or other types of health coverage.For more detailed information, visitmedicare.gov.
The U.S. Bureau of LaborStatistics projects that thelabor force will grow toabout 164 million workersby 2024. Approximately 13million of these workers(roughly 8%) will be age 65and older.
Source: U.S. Bureau ofLabor Statistics, Olderworkers: Labor force trendsand career options, May2017
Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2017
There are many ways to receive morestraight talk and input from your favoriteAdviser and Retirement Coach:
Listen to my show "Straight Talk onRetirement" every Saturday from 10-11am onKTRS 550-AM.
I am accepting new clients so please do nothesitate to offer your friends and familymembers the chance to visit me for a freecoaching session- let's help them get theirfinancial life on track!
Securities offered through LPL Financial,member FINRA/SIPC. Investment adviceoffered through Private Advisor Group, aRegistered Investment Advisor. PrivateAdvisor Group and JBL Financial ServicesInc., are separate entities from LPL Financial.
The information in this article is not intendedto be tax or legal advice, and may not berelied on for the purpose of avoiding anyfederal tax penalties. You are encouraged toseek tax or legal advice from an independentprofessional adviser. The content is derivedfrom sources believed to be accurate. Neitherthe information presented nor any opinionexpressed constitutes a solicitation for thepurchase or sale of any security. Thismaterial was written and prepared byBroadridge.
The Federal Open MarketCommittee (FOMC) adjustsinterest rates to help keepinflation near a 2% target. TheFOMC's preferred measure ofinflation is the Price Index forPersonal Consumption
Expenditures (PCE), primarily because itcovers a broad range of prices and picks upshifts in consumer behavior. The Fed alsofocuses on core inflation measures, which stripout volatile food and energy categories that areless likely to respond to monetary policy.
The typical American might be more familiarwith the Consumer Price Index (CPI), whichwas the Fed's favorite inflation gauge until2012. The Consumer Price Index for All UrbanConsumers (CPI-U) is used to determinecost-of-living adjustments for federal incometaxes and Social Security.
The CPI only measures the prices thatconsumers actually pay for a fixed basket ofgoods, whereas the PCE tracks the prices ofeverything that is consumed, regardless of whopays. For example, the CPI includes a patient'sout-of-pocket costs for a doctor's visit, while thePCE considers the total charge billed toinsurance companies, the government, and thepatient.
The PCE methodology uses current and pastexpenditures to adjust category weights,capturing consumers' tendency to substituteless expensive goods for more expensiveitems. The weighting of CPI categories is onlyadjusted every two years, so the index does notrespond quickly to changes in consumerspending habits, but it provides a goodcomparison of prices over time.
According to the CPI, inflation rose 2.1% in2016 — right in line with the 20-year average of2.13%.1 This level of inflation may not be a bigstrain on the family budget, but even moderateinflation can have a negative impact on thepurchasing power of fixed-income investments.For example, a hypothetical investment earning5% annually would have a "real return" of only3% during a period of 2% annual inflation.
Of course, if inflation picks up speed, it couldbecome a more pressing concern forconsumers and investors.1 U.S. Bureau of Labor Statistics, 2017 (data throughDecember 2016)
