AUTHOR: Harold Tynes on 1/10/2025 FIRST: Olin on 1/10/2025 | RECENT: Michael1 on 1/13/2025
Comments
My wife turned 65 in November. The economics of the change are interesting. After her retirement, but before Medicare, she had a high-deductible, Blue Cross plan. The deductible was over $8000. In conjunction with the plan, we had an HSA. We funded the maximum each year. We also spent the full HSA each year in deductibles. In rough math, her costs were $12000 in premiums and $4000 in out-of-pocket costs. I will ignore the tax savings on the HSA contribution. Total=$16000/year. On Medicare, costs are Medicare premium + IRMAA+ Part D Medigap (G) + Part D prescription coverage (+small co-pays) + Medicare Part B deductible. Total= $10700 The Blue Cross plan gave her a broad network to choose from for doctors, hospitals and pharmacies. However, with such a high deductible, the benefit was basically getting Blue Cross pricing + government mandated mammograms and vaccines for free. Plan G Medicare has an "unlimited" network. While she has not seen the maximum "benefit" of the program, it is a better plan than the private option she left behind. In summary, Medicare is around a third cheaper than the private plan in her example.
John,
Thanks for sharing a well thought out plan. I used Fidelity's 529 (New Hampshire) plan for my 2 son's education. When the grandkids came along, I reviewed the 529 plans and the Fidelity plan (New Hampshire) still seemed the best fit. One son had a business conflict so the fund so we used was the second-best choice for his two kids, the my529 Plan (Utah) I was living in PA then and contributions were state tax deductible. I am now in Michigan and contributions are only deductible if you use the State of Michigan designated plans. Down the road we may give more to the grandkids, but the Trump plan is not completely defined by the US Treasury or IRS. Too many unknowns at this point. See article from Ed Slott's IRA newsletter. Grandparents Should Be Very Careful Before Opening Trump Accounts - Ed Slott and Company, LLC Will look forward to your experience with the program.
We moved into our condo after years of home ownership. The HOA experience has been eye opening. I reviewed the financial statements of the HOA prior to our purchase. I thought I knew what I was doing There were reserves. Were they sufficient? Contingent liabilities and deferred maintenance were not apparent. The owner of our unit had passed away before we purchased, and the heirs offered no meaningful disclosures. The condos were built about 30 years ago. We had an inspection done and minor issues were resolved. Less than a year after purchase, we attended the annual HOA meeting held at the end of our driveway. The major topic was a roof replacement that would require an assessment of $12000. The roofs had never been replaced. I wrote the check. I wasn't happy as if I had known about the projected assessment, I would have negotiated with the condo owner for a price reduction. Our monthly fees have increased, but costs do go up.
Good article to think through the financial advisor/client relationship. I am happy with my investments, look to the appropriate mix for my risk tolerance, desire to optimize taxes but continue to simplify my investments. What role does my advisor play? He is a sounding board and a source of ideas. He will step in when I am unavailable or incapable of executing, so he (and my wife) needs to know the direction we are headed. We don't do active management or market timing. We talk 2 or 3 times a year to keep in synch.
I would recommend you establish a relationship with an hourly fee advisor. Someone like Allan Roth of daretobedull.com. You pay for what you get, but is saving money everything? Peace of mind that your spouse has a good source of advice is very valuable.
Thanks for volunteering! I just finished my fourth year with AARP. Our normal client is over 70, widowed or divorced and female. We also have a few younger W-2 workers. My time is often spent navigating various cognitive or behavioral issues with the taxpayer. If it was just cranking out tax returns, I probably would not enjoy it. I'm seeing my repeat customers come back and tell me this year's story. Sometimes things have improved but some have fallen back with health issues or financial pressures. I'm ready to sign up for Year 5, but the winters are hard here in Michigan. I may need a snowbird season one day.
Comments
My wife turned 65 in November. The economics of the change are interesting. After her retirement, but before Medicare, she had a high-deductible, Blue Cross plan. The deductible was over $8000. In conjunction with the plan, we had an HSA. We funded the maximum each year. We also spent the full HSA each year in deductibles. In rough math, her costs were $12000 in premiums and $4000 in out-of-pocket costs. I will ignore the tax savings on the HSA contribution. Total=$16000/year. On Medicare, costs are Medicare premium + IRMAA+ Part D Medigap (G) + Part D prescription coverage (+small co-pays) + Medicare Part B deductible. Total= $10700 The Blue Cross plan gave her a broad network to choose from for doctors, hospitals and pharmacies. However, with such a high deductible, the benefit was basically getting Blue Cross pricing + government mandated mammograms and vaccines for free. Plan G Medicare has an "unlimited" network. While she has not seen the maximum "benefit" of the program, it is a better plan than the private option she left behind. In summary, Medicare is around a third cheaper than the private plan in her example.
Post: The reality of Social Security and Medicare- My real life experience.
Link to comment from May 6, 2026
The government. See press release from Treasury Dept. Treasury Department Designates BNY as Financial Agent to Support New Trump Accounts Program | U.S. Department of the Treasury
Post: Saving for Grandchildren
Link to comment from May 5, 2026
John, Thanks for sharing a well thought out plan. I used Fidelity's 529 (New Hampshire) plan for my 2 son's education. When the grandkids came along, I reviewed the 529 plans and the Fidelity plan (New Hampshire) still seemed the best fit. One son had a business conflict so the fund so we used was the second-best choice for his two kids, the my529 Plan (Utah) I was living in PA then and contributions were state tax deductible. I am now in Michigan and contributions are only deductible if you use the State of Michigan designated plans. Down the road we may give more to the grandkids, but the Trump plan is not completely defined by the US Treasury or IRS. Too many unknowns at this point. See article from Ed Slott's IRA newsletter. Grandparents Should Be Very Careful Before Opening Trump Accounts - Ed Slott and Company, LLC Will look forward to your experience with the program.
Post: Saving for Grandchildren
Link to comment from May 5, 2026
I’ve had many great meals at Jack Stack. Famous for burnt ends. No free meals, though.
Post: The Vision, the Babe , Einstein and the Q
Link to comment from April 29, 2026
I paid tuition, room and meal plan. Also, provided a car and insurance. Sons were in charge of incidentals from their summer job savings.
Post: How much to provide a college student monthly?
Link to comment from April 27, 2026
We moved into our condo after years of home ownership. The HOA experience has been eye opening. I reviewed the financial statements of the HOA prior to our purchase. I thought I knew what I was doing There were reserves. Were they sufficient? Contingent liabilities and deferred maintenance were not apparent. The owner of our unit had passed away before we purchased, and the heirs offered no meaningful disclosures. The condos were built about 30 years ago. We had an inspection done and minor issues were resolved. Less than a year after purchase, we attended the annual HOA meeting held at the end of our driveway. The major topic was a roof replacement that would require an assessment of $12000. The roofs had never been replaced. I wrote the check. I wasn't happy as if I had known about the projected assessment, I would have negotiated with the condo owner for a price reduction. Our monthly fees have increased, but costs do go up.
Post: The condo, HOA, senior citizen conundrum
Link to comment from April 20, 2026
Good article to think through the financial advisor/client relationship. I am happy with my investments, look to the appropriate mix for my risk tolerance, desire to optimize taxes but continue to simplify my investments. What role does my advisor play? He is a sounding board and a source of ideas. He will step in when I am unavailable or incapable of executing, so he (and my wife) needs to know the direction we are headed. We don't do active management or market timing. We talk 2 or 3 times a year to keep in synch.
Post: One Good Call?
Link to comment from April 14, 2026
I would recommend you establish a relationship with an hourly fee advisor. Someone like Allan Roth of daretobedull.com. You pay for what you get, but is saving money everything? Peace of mind that your spouse has a good source of advice is very valuable.
Post: Financial Planning
Link to comment from April 12, 2026
Thanks for volunteering! I just finished my fourth year with AARP. Our normal client is over 70, widowed or divorced and female. We also have a few younger W-2 workers. My time is often spent navigating various cognitive or behavioral issues with the taxpayer. If it was just cranking out tax returns, I probably would not enjoy it. I'm seeing my repeat customers come back and tell me this year's story. Sometimes things have improved but some have fallen back with health issues or financial pressures. I'm ready to sign up for Year 5, but the winters are hard here in Michigan. I may need a snowbird season one day.
Post: Taxes Season 3
Link to comment from April 12, 2026
Buy treasury bonds for the desired durations. Not funds.
Post: Tax Efficiency
Link to comment from April 5, 2026