Rick, thanks as always for a thoughtful post. The phrase 'it's easier to bet the farm when you don't have a farm to bet' comes to mind.
I also think of risk capacity when building a career (taking more risks?), caring for family (being present at expense of higher pay?), deciding when to retire.
And today, from the vantage point of my 60s, I watch young adults navigating their early careers in an environment where the prospect of AI and other economic forces could drive more uncertainty and fear around creating financial safety. Despite the low unemployment rate, many professionals across many fields have been out of work for over six months(per a recent Wall Street Journal article and firsthand experience with a relative). Others are doing extremely, extremely well (health care PAs, finance, consulting and data science professionals I know in their mid20s). Still more under 30s want to pursue traditional careers in education, where good teachers are still desperately needed. How to encourage them to understand 'risk' more deeply and to make thoughtful decisions whatever their income?
Rick, thanks. I also stumbled upon an insurance policy from my father-in-law who had died 10 years earlier. Took a while to find the bank that held it after multiple acquisitions but I was determined. $5000 went to my sister-in-law (my husband had passed away and she needed it more than my family). Can't imagine how many policies are still out there.
Rick, I'm curious, were you finally able to find 'everything' for your wife's aunt after your 2-year journey? I ask because I have two relatives and have been suggesting (gently) about simplification for similar tasks. 'Lost accounts' can be everywhere. I have a friend whose late mom still has modest funds in a PA state 'lost claims' site - I noticed online when checking for my late mom; I sent the info to my friend who still hasn't gotten around to claiming.
Hi Rick, this is a great post. I had to google more - I see there are about 580 geosynchronous satellites in orbit - some must be those you worked on? ! And I have learned too about the term 'graveyard orbit', for satellites to avoid collisions with active satellites. Graveyard orbit could be an apt term for some financial decisions that still linger but are mitigated to avoid future damage. I can think of some decisions I've made that fall into that category. I appreciate your analysis and recognition of complex factors. I own two houses and am keeping an eye on housing affordability/options for my young adult children. A family mortgage may be in the offing for one of the properties (using the same firm Jonathan mentioned previously). My financial orbit will definitely evolve and revolve based on values, goals and resources. Thanks.
Cathleen, many thanks for this post. Like others, the theme of caregiving runs through most of the women for generations in my family. My maternal grandmother left high school in the 1920s to care for her younger siblings when her mother died. She then welcomed 3 nephews and nieces along with her 2 girls when their mother died young (their father, her brother, failed to support them so family- Mae-stepped in). Then she also cared for three elderly aunts without resources who came to live with her during the 1930s and 1940s. At least it was a big duplex house.
Fast forward generations: my great Aunt inherited the property, which then proved a respite to my own family when my father, a robust Marine vet, suffered a stroke at 36 - with seven children, six boys and one girl (me) under age 10. For 30 years my mom, a trained nurse, worked full-time and took care of my disabled father and then my great aunt as she aged.
I felt the history of that house as my mom grew older within the past 6 years. I lived 1000 miles away but remained active in her care with frequent visits and monthly financial support for a cousin to help every day. I was blessed - my older brother became the hands-on caregiver without complaint; my mom also benefitted from the PACE program with at-home support. My other brothers added help (with more nudges).
Now I look at my own generation. My older brother who provided such devoted care is single without the resources to join a CCRC. I have started discussions with him about the future - he deserves such support. Several other brothers are single as well without children. As the only sister, the challenge is to figure out options and create some type of plan to support siblings too.
A daughter, a sister, a planner. Fingers crossed.
Thank you Rick. I plan to volunteer once I'm retired; I learned the most folks want to work on the returns during the workday. It will complement my current volunteering as a SHIP volunteer for Medicare, which can often be done at night or weekends. Fall is the busiest time for Medicare questions. P.S. I am working my way through MaxiFi too. :)
Hi Linda. I was heading to Scranton with a changeover in Philly. I too, only belatedly realized the hop to Scranton was via a bus. I kept thinking of other definitions of landline. :) It was a very rainy Friday evening where lots of flights were canceled so perhaps the bus was the better choice. I will be eagle-eyed, though, to catch the name for future flights.
It will definitely be a season of changing Part D plans from what had been pretty steady monthly premiums. To add to the complexity, specialty Tier 5 drugs may not be covered at all by a range of plans, or only covered for generic versions. The $2000 cap is in effect for 'covered' drugs.
In my area two zero premium plans will be offered by Well Care, but the devil is in the details for particular drug costs for each individual. I understand that WellCare has dropped broker commissions so many brokers may not be promoting that Part D plan either.
Checking the Plan Finder on medicare.gov is especially critical to fully understand total costs of drugs for 2025.
I appreciate #2, keeping fixed living costs as low as possible. Ah - insurance. The past few years have jolted some of those fixed costs - with car insurance jumping 17% in places; homeowners insurance spiking across the board. The Wall Street Journal this week reported that such insurance premiums are likely to stay at these higher levels despite lessening inflation. A reset of fixed living costs for many. For those on Original Medicare, prices for Part D insurance premiums this year will be all over the board. My Part D plan was $3.30; in 2025 will be $38.30. A friend's plan announced a zero premium in 2025, but marked increases in drug tiers. Lots of musical chairs to find the best plan for each individual. Medicare Advantage plans are likely to add more costs too. It's critical this year to make an informed choice, otherwise more fixed cost shocks in January. Unfortunately, many folks don't check each year.
Hi Mark and Rick, I, too, volunteer for the national SHIP program in my state (KS, known as Shick). I have enjoyed volunteering. Not sure of the VITA tax prep training, but our training was extensive: first online, then passing a test and criminal background check, then all day training (virtual or in person) plus yearly all-day update trainings. There is so much to absorb about Medicare that at first it is daunting. But there are excellent training sessions and in my case, terrific fellow volunteers who share their insights. So many nuances in individual situations. I think having a financial perspective helps, too - not that we offer financial advice, but we can explain consequences.
For example, one friend was retiring and her advisor told her to withdraw a chunk of funds for a new car. But the advisor didn't mention that 'a chunk of funds' would increase her income/AGI and in two years she and her husband could both be subject to an income adjustment on Medicare Part B premiums. She was not a happy camper.
THere are calls to handle throughout the year. Those turning 65 or new to Medicare take more time whether in person, Zoom calls or group presentations. I am still seeking the holy grail of how to visually depict the choices in Medicare to mitigate the confusion. The busy season is the annual open enrollment. We are gearing up for a very busy time with expected changes in prescription drug pricing (Part D) and some Medicare Advantage changes. Some insurers are exiting the market; nearly all MA will be making changes due to financial pressures.
Comments
Rick, thanks as always for a thoughtful post. The phrase 'it's easier to bet the farm when you don't have a farm to bet' comes to mind. I also think of risk capacity when building a career (taking more risks?), caring for family (being present at expense of higher pay?), deciding when to retire. And today, from the vantage point of my 60s, I watch young adults navigating their early careers in an environment where the prospect of AI and other economic forces could drive more uncertainty and fear around creating financial safety. Despite the low unemployment rate, many professionals across many fields have been out of work for over six months(per a recent Wall Street Journal article and firsthand experience with a relative). Others are doing extremely, extremely well (health care PAs, finance, consulting and data science professionals I know in their mid20s). Still more under 30s want to pursue traditional careers in education, where good teachers are still desperately needed. How to encourage them to understand 'risk' more deeply and to make thoughtful decisions whatever their income?
Post: What’s your Risk Capacity?
Link to comment from January 24, 2025
Rick, thanks. I also stumbled upon an insurance policy from my father-in-law who had died 10 years earlier. Took a while to find the bank that held it after multiple acquisitions but I was determined. $5000 went to my sister-in-law (my husband had passed away and she needed it more than my family). Can't imagine how many policies are still out there.
Post: The weird science behind the Quinn finances
Link to comment from January 4, 2025
Rick, I'm curious, were you finally able to find 'everything' for your wife's aunt after your 2-year journey? I ask because I have two relatives and have been suggesting (gently) about simplification for similar tasks. 'Lost accounts' can be everywhere. I have a friend whose late mom still has modest funds in a PA state 'lost claims' site - I noticed online when checking for my late mom; I sent the info to my friend who still hasn't gotten around to claiming.
Post: The weird science behind the Quinn finances
Link to comment from January 4, 2025
Hi Rick, this is a great post. I had to google more - I see there are about 580 geosynchronous satellites in orbit - some must be those you worked on? ! And I have learned too about the term 'graveyard orbit', for satellites to avoid collisions with active satellites. Graveyard orbit could be an apt term for some financial decisions that still linger but are mitigated to avoid future damage. I can think of some decisions I've made that fall into that category. I appreciate your analysis and recognition of complex factors. I own two houses and am keeping an eye on housing affordability/options for my young adult children. A family mortgage may be in the offing for one of the properties (using the same firm Jonathan mentioned previously). My financial orbit will definitely evolve and revolve based on values, goals and resources. Thanks.
Post: Happy Winter Solstice
Link to comment from December 21, 2024
Cathleen, many thanks for this post. Like others, the theme of caregiving runs through most of the women for generations in my family. My maternal grandmother left high school in the 1920s to care for her younger siblings when her mother died. She then welcomed 3 nephews and nieces along with her 2 girls when their mother died young (their father, her brother, failed to support them so family- Mae-stepped in). Then she also cared for three elderly aunts without resources who came to live with her during the 1930s and 1940s. At least it was a big duplex house. Fast forward generations: my great Aunt inherited the property, which then proved a respite to my own family when my father, a robust Marine vet, suffered a stroke at 36 - with seven children, six boys and one girl (me) under age 10. For 30 years my mom, a trained nurse, worked full-time and took care of my disabled father and then my great aunt as she aged. I felt the history of that house as my mom grew older within the past 6 years. I lived 1000 miles away but remained active in her care with frequent visits and monthly financial support for a cousin to help every day. I was blessed - my older brother became the hands-on caregiver without complaint; my mom also benefitted from the PACE program with at-home support. My other brothers added help (with more nudges). Now I look at my own generation. My older brother who provided such devoted care is single without the resources to join a CCRC. I have started discussions with him about the future - he deserves such support. Several other brothers are single as well without children. As the only sister, the challenge is to figure out options and create some type of plan to support siblings too. A daughter, a sister, a planner. Fingers crossed.
Post: The Oldest Daughter Dilemma
Link to comment from December 16, 2024
Thank you Rick. I plan to volunteer once I'm retired; I learned the most folks want to work on the returns during the workday. It will complement my current volunteering as a SHIP volunteer for Medicare, which can often be done at night or weekends. Fall is the busiest time for Medicare questions. P.S. I am working my way through MaxiFi too. :)
Post: Thank you, IRS!
Link to comment from November 17, 2024
Hi Linda. I was heading to Scranton with a changeover in Philly. I too, only belatedly realized the hop to Scranton was via a bus. I kept thinking of other definitions of landline. :) It was a very rainy Friday evening where lots of flights were canceled so perhaps the bus was the better choice. I will be eagle-eyed, though, to catch the name for future flights.
Post: Landline Flight, anyone?
Link to comment from October 11, 2024
It will definitely be a season of changing Part D plans from what had been pretty steady monthly premiums. To add to the complexity, specialty Tier 5 drugs may not be covered at all by a range of plans, or only covered for generic versions. The $2000 cap is in effect for 'covered' drugs. In my area two zero premium plans will be offered by Well Care, but the devil is in the details for particular drug costs for each individual. I understand that WellCare has dropped broker commissions so many brokers may not be promoting that Part D plan either. Checking the Plan Finder on medicare.gov is especially critical to fully understand total costs of drugs for 2025.
Post: Turned Upside Down
Link to comment from October 5, 2024
I appreciate #2, keeping fixed living costs as low as possible. Ah - insurance. The past few years have jolted some of those fixed costs - with car insurance jumping 17% in places; homeowners insurance spiking across the board. The Wall Street Journal this week reported that such insurance premiums are likely to stay at these higher levels despite lessening inflation. A reset of fixed living costs for many. For those on Original Medicare, prices for Part D insurance premiums this year will be all over the board. My Part D plan was $3.30; in 2025 will be $38.30. A friend's plan announced a zero premium in 2025, but marked increases in drug tiers. Lots of musical chairs to find the best plan for each individual. Medicare Advantage plans are likely to add more costs too. It's critical this year to make an informed choice, otherwise more fixed cost shocks in January. Unfortunately, many folks don't check each year.
Post: My Spending Rules
Link to comment from September 28, 2024
Hi Mark and Rick, I, too, volunteer for the national SHIP program in my state (KS, known as Shick). I have enjoyed volunteering. Not sure of the VITA tax prep training, but our training was extensive: first online, then passing a test and criminal background check, then all day training (virtual or in person) plus yearly all-day update trainings. There is so much to absorb about Medicare that at first it is daunting. But there are excellent training sessions and in my case, terrific fellow volunteers who share their insights. So many nuances in individual situations. I think having a financial perspective helps, too - not that we offer financial advice, but we can explain consequences. For example, one friend was retiring and her advisor told her to withdraw a chunk of funds for a new car. But the advisor didn't mention that 'a chunk of funds' would increase her income/AGI and in two years she and her husband could both be subject to an income adjustment on Medicare Part B premiums. She was not a happy camper. THere are calls to handle throughout the year. Those turning 65 or new to Medicare take more time whether in person, Zoom calls or group presentations. I am still seeking the holy grail of how to visually depict the choices in Medicare to mitigate the confusion. The busy season is the annual open enrollment. We are gearing up for a very busy time with expected changes in prescription drug pricing (Part D) and some Medicare Advantage changes. Some insurers are exiting the market; nearly all MA will be making changes due to financial pressures.
Post: Medigap pricing question
Link to comment from September 3, 2024