Announcer:
It’s time now on KROS for Financial Focus, brought to you by NelsonCorp Wealth Management. I’m now on K… Opinions voiced in this show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative securities offered through Cambridge Investment Research Incorporated, a broker-dealer, member FINRA SIPC, investment advisor representative Cambridge Investment Research Advisors Incorporated, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. Now here’s today’s Financial Focus program.
Nate Kreinbrink:
Good morning and welcome to this week’s Financial Focus brought to you each and every Wednesday morning right here on KROS. Well this is Nate. Got Mike joining me today. Last show of March.
Mike Steigerwald:
Unbelievable.
Nate Kreinbrink:
Can not believe that we are already last show of March. It flew by.
Mike Steigerwald:
Beautiful day today too.
Nate Kreinbrink:
It is. It’s supposed to be nice. And then what, tomorrow, Friday, possibly pushing 70s.
Mike Steigerwald:
Unbelievable.
Nate Kreinbrink:
Then,-
Mike Steigerwald:
We’re back, baby.
Nate Kreinbrink:
For a couple days. No, fun time. Spring sports are kind of well and underway. Across the river in Illinois, see that the baseball softball schedules are into it. No, this time of year trying to do those outside sports, it’s hit or miss. It’s going to be, gosh, this is awesome. Or man,-
Mike Steigerwald:
Bundle up.
Nate Kreinbrink:
This is cold.
Mike Steigerwald:
Bundle up, baby.
Nate Kreinbrink:
So again, getting into that first weekend of March Madness is into books. Crazy, not crazy. It’s just, it’s neat to see it back on TV though.
Mike Steigerwald:
Should be some really good games this coming weekend.
Nate Kreinbrink:
Opening day for Major League Baseball is right around the corner for the majority of teams.
Mike Steigerwald:
Yeah. Yep.
Nate Kreinbrink:
Cubs fans have to rebound.
Mike Steigerwald:
Yep, yep. Long way to go.
Nate Kreinbrink:
Everybody’s a contender at this time of the year. It’s exciting. So again, usually the third Wednesday of every month or fourth Wednesday of every month, we usually talk Medicare. I know different topics. We’ve talked claiming strategies and everything with that. Kind of thought we’d kind of back it out a little bit. And I know we’ve talked to a few people that are upcoming with transitioning to Medicare. And again, I think sometimes it’s just that, how do I even get started? I think that is simply, I mean, you get all the stuff in the mail, the closer you get to 65, oh, go with this part, go with this plan, go with this route, does this cover, does this not, drug plan, all this. You kind of get bombarded with all that. You kind of lose sight on, well, how do I even sign up for these things?
And again, it’s a big part. And again, how do you do it? When do you do it? The timeframes you need to start looking at how early can you enroll? When do you have to, when do penalties apply? All these things kind of start coming into it. And again, it throws into that whole big pile of people just simply getting overwhelmed. And I think that’s where, again, having somebody to kind of help walk you through this, give you a timeline as far as, okay, hey, this is when we want to start looking at this. This is when we have to have this in place. And again, direct you through that again, no matter which route you decide to go, whether it’s med supplement with a drug plan, Medicare Advantage, whichever route again, these time come into it. And again, I think turning 65 is the starting point. And again, looking at it to see if people, either they are or they’re not already taking Social Security because that changes things.
Mike Steigerwald:
Yep. So if you’re already taking your Social Security benefit and receiving your monthly checks and you have been so for some time, you’re automatically going to be enrolled in parts A and B, meaning your card will show up, your Medicare, nice, red, white, and blue card with your Medicare number and effective dates for Medicare Part A and B, starting the month that you turn 65. So nothing you’ll have to do in that case. If you are on another type of coverage or another plan and you do need to actually proactively apply, definitely start doing that with enough time. You can sign up three months prior to turning 65.
Nate Kreinbrink:
Right. And I think when you get to those age, it’s important for people to realize that, that if you’re already taking it, you should get a card for A and B in the mail. If you have not started taking Social Security benefits prior to you turning 65, you’ll physically need to go online or call, they’re trying to push everybody online now, as far as to enroll in your Part A and your Part B coverage, if you do not have any other coverage anywhere else. And it’s important that this step happens first because you need to have your Medicare number and then effective dates for your Part A and your Part B prior to enrolling in any other additional coverage. So again, enrolling in that Part A and Part B, if that’s the route you’re going, needs to happen before you look at doing that.
And the question comes up is like, well, I’m still working or I’m on my spouse’s plan. Do I need to do that at 65? And the answer is depends. And again, not skirting that question, but again, you get to age 65, you still have coverage. Most of the time does not hurt anything to just go ahead and apply for your Part A coverage. Your part A coverage you’ve paid for through your working career. Most people qualify and it’s no cost to you.
Mike Steigerwald:
Right.
Nate Kreinbrink:
So again, applying for that, getting your Medicare number, you have your effective date. When you do that, you would just simply decline your Part B coverage at this time. And the reason why you are doing that is because you have to have coverage, creditable coverage in some other form.
So again, the Part B you would normally pay for. I think what, 25? It’s 185 I think a month as far as what everybody pays for that Part B coverage. It doesn’t matter where it is. It’s through Social Security Administration is who signed you up for it, but that Medicare Part B is a flat rate. Again, if you have other coverage, you may not decide to go with that Part B until you lose that coverage from some other place. So again, a lot of stuff to kind of look at it from that standpoint as well.
Mike Steigerwald:
Yep. And I would also just kind of piggyback off that is the amount of time that it may take for you to actually receive anything back. Some people know this, and from experience dealing with Social Security Administration or anything like that, anytime you’re dealing with some of these government agencies, you won’t apply and get a response same day or next day. It’ll be several weeks. So getting ahead of it and staying on top of these dates and not being right up against a time crunch where, oh, I don’t even have my number yet and I need to make sure I have some more coverage because I have these prescriptions or X, Y or Z. Well, that can’t start until you’ve received your card and you have your Medicare number. So the sooner you get applied to that, knowing that it might take some time to be received, the better off you’ll be.
Nate Kreinbrink:
Right. And I think when people turn 65, knowing that timeframe, and if you think of it as basically a seven-month window surrounding the month when you turn 65. You have the three months prior, the month that you turn 65 and then the three months following. So that seven-month window is your sweet spot when you need to get that stuff taken care of, if you decide to go that route. If you wait past that, there’s probably going to be a penalty that’s going to be applied to it whenever you do apply. And that penalty will stick with you for the rest of your life and never goes away. So again, pretty harsh with not hitting those dates that you want to get into.
Mike Steigerwald:
Yeah. Yeah, definitely want to be sure you’re on top of it. And like I said, if anything, ask for help. I mean, we’re here to help. If there’s anything that comes around date wise, process wise we can kind of help walk you through it. There’s many different ways you can access information. And again, like Nate said, as you approach that magic number of 65, there’s going to be an awful lot of info coming your way.
Nate Kreinbrink:
So again, again, it goes back to what we talk about, whether it’s investing, whether it’s Social Security, whether it’s retirement planning, whether it’s Medicare we’re talking about now, it’s again, having these discussions earlier, not waiting until like, Hey, retiring tomorrow, what do I got to do now? Again, we want to look at these things and kind of have a roadmap and have kind of a timeline of events in place a year or two prior to you probably saying, hey, I’m going to be done. Just to kind of again, not feel like we’re rushed as we get into certain things like this. And again, there’s going to be questions that are going to come up. If you are working and your spouse is on your plan, are they able to stay on your plan once they turn 65? Some plans do some plans say, well, once you hit 65, you have to go that other route.
Plans change all the time. So again, just because it was my coworker from five years ago when his wife did it was this way doesn’t necessarily mean it’s going to be that same way today when you look to utilize that for yours. So again, understanding what is currently in place, understanding what your options are. Again, if it makes sense and you’re able to, and the coverage is better and it’s cheaper to stay on the plan through an employer, then do it. Just because you turned 65 doesn’t mean that you have to go to Medicare as long as you have other coverage there. And I think that’s a misconception that some people kind of look at and be like, well, I’ve got to go this route because I’m 65. You don’t have to. If you have other coverage and it’s better, then stick with it.
Mike Steigerwald:
Yeah, that’s definitely the common theme when it comes to all of this Nate, is going to be what is my situation and what do I have currently and what are my options? Again, to your point, not what my cousin or brother-in-law or sister or coworker or anybody like that, what your specific situation is going to be individual to you and your family and finding the best route to go for your coverage will be totally predicated on that.
Nate Kreinbrink:
Right. So again, and once you, again, if you stay on the work coverage and you decline your Part B, stay on that for a while. You turn 67 and you’re like, yep, I don’t have it anymore. Again, then you need to start applying for that Part B. Then again, you’ll get a new Medicare card sent out to you to replace the one that you had gotten if you applied for just your Part A at 65. It’ll include your Part A, that original effective date, and then your Part B with the effective date for that. Those two numbers and those dates, you have to have those before applying for any other additional coverage, whether online or directly through an insurance company, whatever it is. But you have to have those numbers prior to doing anything. So again, important things to kind of keep in mind when you’re looking at it.
And again, as everything else as we say, again if you have questions, reach out to somebody. There’s resources. We’d be happy to sit down with you, kind of walk you through understanding the timeline that applies to you, the different options that are out there, which one makes the most sense for you. And again, just if you stay on an employer plan and all of a sudden that plan changes and you’re 65 and a half, well then go ahead and switch over to Medicare at that time.
Mike Steigerwald:
Now it’s go time. Yeah.
Nate Kreinbrink:
Right. So again, just because you make that decision doesn’t mean that that decision you’re stuck with until you retire or your spouse loses coverage or whatever the case may be. Again, you have options, and again, plans change very frequently, plans change, and so you want to make sure that it’s still the best one for you. So again, we’d be happy to help in any way that we can. Did want to mention real quick before we run out of time, that every Friday, NelsonCorp Wealth Management is wearing jeans for charity. Money raised in the month of March will be donated to the Children’s Discovery Center here in Clinton. Mike, appreciate you joining me today.
Mike Steigerwald:
Thanks, Nate.
Nate Kreinbrink:
It’ll be April the next time.
Mike Steigerwald:
Yeah.
Nate Kreinbrink:
Again, Nate and Mike bringing you this week’s Financial Focus. Thanks for tuning in and have a great rest of your week.
Announcer:
Financial Focus is a production of NelsonCorp Wealth Management in Clinton and Davenport. The opinions voiced in the show are for general information only and are not intended to provide specific advice or recommendations for any individual. Any indices mentioned are unmanaged and cannot be invested into directly. Registered representative securities offered through Cambridge Investment Research Incorporated, a broker dealer member FINRA SIPC, investment advisor representative Cambridge Investment Research Advisors Incorporated, a registered investment advisor. Cambridge and NelsonCorp Wealth Management are not affiliated. Cambridge does not offer tax advice. For more information, visit our website at www.nelsoncorp.com.