Common mistakes clients must avoid during Medicare open enrollment

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Mistakes to avoid during Medicare open enrollment
Seniors should take advantage of Medicare’s open enrollment period to get the coverage that meets their health care needs, according to this CNBC article. When reviewing their current plan and shopping for the right coverage during the six-week window — Oct. 15 through Dec. 7 — clients are advised to look into all the details of the possible plans, seek out alternative options and assume that their health could one day change. Clients can expect their current coverage to renew automatically if they don’t make any moves. “The danger is that at the time of service, you’ll be surprised when you have a different copay or out-of-pocket expense that you weren’t anticipating,” says an expert.

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5 conversations newly married clients need to have
Newly married couples need to work together as they find ways to handle their expenses and plan for their future goals, according to this Motley Fool article. They should discuss how they will pay their bills, cover emergency expenses and decide on the right insurance policy. They should also work on their long-term goals, plan and save for retirement together and decide on how they will achieve these goals.

Expenses clients often forget when they plan for retirement
Replacement costs and financial support for cash-strapped relatives are among the most hidden expenses many seniors fail to include when preparing for retirement, writes a columnist in The Wall Street Journal. RMDs from tax-deferred accounts can also result in unforeseen costs for retirees who reach the age of 70, the expert adds. “Required minimum distributions can, first, push you into a higher tax bracket and, second, translate into increased Medicare Part B premiums — which are tied to annual income.”

“The combination of low rates, curbs on state and local tax deductions, and consistent economic expansion have been a nice tailwind,” an analyst says.
October 9

Annuity options may be coming to clients’ 401(k)s
Workers who participate in their employer-sponsored 401(k) plans would have access to annuities under the provisions of the Secure Act now pending in Congress, according to this CNBC article. However, 401(k) participants are advised to know the advantages and disadvantages of adding guaranteed-income options to their 401(k) portfolio. “As with any investment, it’s important to understand how it works, what it costs and how it fits into your overall financial plan,” says an expert with the Insured Retirement Institute.

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