Announcer:
It is time now on KROS for Financial Focus, brought to you by NelsonCorp Wealth Management. The 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 representatives securities offered through Cambridge Investment Research Inc., a broker dealer, member FINRA, SIPC. Investment advisor representative Cambridge Investment Research Advisors. Inc. 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. This is Nate Kreinbrink, have Mike Van Zooten here with me. Last Wednesday in February, if you would’ve told me that last week during the Arctic blast and negative twenties and couldn’t get through February fast enough. But the last few days, pretty nice.
Mike VanZuiden:
Sun’s out, 50 degrees plus probably today for a high. I woke up in the middle of night last night and heard it raining on the skylight in our bedroom restroom. It was crazy.
Nate Kreinbrink:
I know. It’s perfect. I think everybody’s ready for it. And again, we always say, “We didn’t really have that bad of a winter,” but when you’re coming off there, that nice little snow that we had last… What? Wednesday or two Wednesdays ago, whenever it was, and then the extreme cold following it, I think everyone was like, “Done.”
Mike VanZuiden:
It’s been a pretty nice winter for the most part other than this last few weeks. I tell you, I’m always, I guess I’m a little superstitious. And finally towards the end of December, I slid the lawnmower back and buried it in my garage and pulled the snow blower out. But then I always want to start it before I need it to make sure it’ll run.
Nate Kreinbrink:
It’ll run.
Mike VanZuiden:
I feel like if I start it’s going to certainly cause snow.
Nate Kreinbrink:
Then you’re going to have to need it.
Mike VanZuiden:
But it started on the first pull and we have not had a snow that I’ve used it on. I’ve shoveled it.
Nate Kreinbrink:
Got it done.
Mike VanZuiden:
Couple inches here and there. It’s like, “I don’t need the snow blower for that.” I guess I don’t need to worry quite so much. I fired up the snow blower. It didn’t cause any snow.
Nate Kreinbrink:
Then maybe you need to reverse the psychology on that. Bring the lawnmower back up front, start that up and then we’ll get you going there.
Mike VanZuiden:
It’s worth a shot.
Nate Kreinbrink:
But exciting time of the year. I know high school-wise, we talk activities going on. A big congrats to all the boys and girls, state wrestlers that made it out to Des Moines in Iowa and then over across the river in Illinois as well. State bowling’s going on, some area teams that are out there competing with that going on. Again, a lot of exciting things going on. State basketball’s going on. Some of the girls teams punched their ticket last night here in Iowa, Illinois is following suit with that. Boys teams, again, another round or before they can say that they’re getting close. And we’re excited about that and hopefully again, best of luck to all the area teams as they continue on that trail. Then it’s… What? Track season and then baseball season. Spring trainings on TV. March Madness is going to be coming on pretty soon.
Mike VanZuiden:
All kinds of sports right now, if you’re a sports junkie, this is a great time of year, although I know some folks that are big football fans and these Saturdays and Sundays without football, they’re struggling a little bit, but it’s time to shake that off. There are lots of good, exciting things going on.
Nate Kreinbrink:
Exciting time. Again, best of luck to all the area athletes as they continue on and then into the next seasons or whatever it is that they’re into. I know today we wanted to get into a little bit talking Medicare. I know it’s a topic we had Andy Fergurson on last week talking taxes. Obviously tax seasons ramping up and is in full swing is.
Mike VanZuiden:
It sure is.
Nate Kreinbrink:
But again, Medicare is one of those topics that when you’re meeting with individuals that will be turning 65, that will be retiring, that are on Medicare, that topic continuously comes up because again, unfortunately, like so many other government programs-
Mike VanZuiden:
It’s not always real clear what you can do at first.
Nate Kreinbrink:
And Medicare is one of those follows right in suit with that. And again, open enrollment period that goes along with Medicare, which happens there from mid-October to early December, there at the end of every year where you can change. But that’s not the only time that you can change certain things because we are technically in an enrollment period now for that.
Mike VanZuiden:
We are, and we’re a little more limited. The period between October and December, you can basically change your advantage plans, you can change drug plans, all those sorts of things. Now, basically, the changes that you can make as far as Medicare go up until March 31st in this enrollment period are simply changes to your Medicare Advantage. You could go from a Medicare Advantage plan to a different Medicare Advantage plan, a Medicare Advantage plan with drug coverage to another Medicare Advantage plan with drug coverage. Or you can drop your Medicare Advantage plan and enroll back in original Medicare, which then you’re going to be looking for supplements and that sort of thing. Those are really the things that are happening right now, the changes that can be made.
I had a friend of a friend ask just a couple of days ago, “Hey, I’m looking to change my drug plan. Is that something you can help me with?” I said, “I can, but not right now. In this period, you’re not able to make that change.” That is something that’ll come up in the fall for people that are sitting there looking at those things. October, mid-October is when that window opens. Right now you can change Medicare Advantage plans or you can basically exit your Medicare Advantage plan and return to original Medicare. Those are the main options for right now. It’s lots of things going on. Tax-wise, Medicare-wise, there’s just all kinds of fun stuff.
Nate Kreinbrink:
When you’re stuck with that Medicare specifically and I think again, people start realizing, “October to December is your open enrollment period,” and think everything falls in there, which would make sense, but it’s not that way. And when you have the different ways that you get Medicare just because you say you’re on Medicare, what type? And then people look at you with that blank stare and then you start asking questions to be able to determine what it is that they have, understanding the different ways that you can get it, what it covers, what it doesn’t cover, how you get coverage, how you get coverage this way. And again, now we throw into it, “If you want to make changes, if you have this way, you can change it during this time period. If you have this kind, you have to change it during this time period.”
And people throw their hands up in the air and say, “How the heck are we supposed to figure this thing out with it?” And again, when you have these type of things, it’s important to, again, on a regular basis, review it with somebody and have them go over what it is that you have. Because again, like so many other things, life changes, your health changes, maybe some prescriptions that you cover change, you go to a different doctor’s or whatever. Again, people sometimes take it when they’re first eligible for it and they don’t want to make any changes because they don’t want to go through the hassle anymore to switch to a different thing, but it may make sense for them to do it and understanding what coverage they have.
Mike VanZuiden:
Because of all the confusion that’s out there for a lot of folks, once you get on Medicare and you get your supplement or your Advantage plan or whatever, you don’t want to ever think about it again because it’s just all these facts that we’re throwing at you now, they can confuse you. And Nate said, “You know what? It frustrates you to the point you throw your hands up in the air.” Think that’s absolutely true. I would encourage you, when you’re out of that frustration and you lower your hands from the air, grab the phone and give us a call. At NelsonCorp, we’ve got several people that are knowledgeable on the topic, and we would be glad to tell you what you can do, what you can’t do, what’s going on now, what can I do and what can you help me with? And if you can’t make the change you’re looking to right now, we can tell you when and we can help you make that change.
Nate Kreinbrink:
And I think that that discussion is specifically tailored to that individual.
Mike VanZuiden:
Absolutely.
Nate Kreinbrink:
And I think you hear a lot of times, “My buddy at work I was talking to, and they have this plan.” Again, now you start looking at that plan. It doesn’t necessarily make sense for you because again, they have different conditions. They use it differently. They have different doctors. They live in Illinois, I live in Iowa, and even in Iowa, it differs by counties based off of the coverage and certain things, depending on where you’re at with it, the pricing that you have. Again, it’s a lot of stuff that goes into it. But again, don’t make that decision just because your buddy did or your uncle did, or even your spouse. Your spouse may have one plan, but you may make sense to have a different plan because of differences to it.
Mike VanZuiden:
And to make that phone call or to come in and talk to somebody regarding your questions, it costs you nothing but your time at that point. And we can review things, take a look at everything that you’ve got, talk about what your situation is. Is what you’re doing now still make sense or is there something out there that makes more sense?
Nate Kreinbrink:
And I think when you start looking at that, the open enrollment period again, is when you can basically make changes to current plans that you have. Now, again, the time period we’re in, we’re making changes to plans that we already have. And I think there’s still a misconception out there as far as when people need to first initially start their Medicare, and normally the 65 is when you become first eligible for it, but that doesn’t mean that you have to take it at 65 if you have other coverage through an employer, through a spouse’s employer.
Again, understanding those type of instances where, again, a lot of times it may make sense for you to stay on the company plan once you hit 65 rather than switching over to Medicare because of, again, the coverage that you have versus what you’re paying now versus again, the coverage that you’re going to get and what you would pay for that when you hit 65. Those are realistic questions to have, but just again, people need to know that just because you turn 65 doesn’t mean that you have to switch over. Now, I say that by saying if you don’t have any other coverage when you turn 65, you better turn it on.
Mike VanZuiden:
You should turn it on for sure.
Nate Kreinbrink:
Because again, if you don’t at that point, again, whether it’s a drug plan or whatever, they’re going to assess a penalty to you whenever you do apply for it, and that penalty is going to be added and accrued for every month that you did not have it. And that penalty will stay with you for the rest of your life.
Mike VanZuiden:
Never goes away.
Nate Kreinbrink:
Again, just understand it, have a plan in place. I love sitting down with individuals when they’re a year or two out from this time period, and this is one of the topics that we put on the roadmap and saying, “Timeframe wise, this is when you’re going to lose coverage. We can apply for your Medicare, whatever route we go to, three months prior to that to get that in place.” You start putting some of these mile markers, I guess, on that roadmap to their planning. And again, it takes some of those uncertainties away. And as you said, people start bringing their hands down out of frustration and be like, “Ah.”
Mike VanZuiden:
Maybe catch your breath and you’ve got a plan.
Nate Kreinbrink:
Because it’s a whole different world when you’re starting to take it. There’s so many changes worth income versus just psychologically and all that that goes into it. If we can reduce some of those uncertainties, some of those questions, make them easier for you. Take the very complicated, make it simple, again, it helps out tremendously. As Mike said, give us a call. Did want to mention before we out of time that every Friday, NelsonCorp Wealth Management and Taxes are wearing jeans for charity. Money raised in the month of February will be donated to the Therapy Dog Program at the Clinton Public Library. Mike, I appreciate you taking time out of your-
Mike VanZuiden:
Busy tax schedule. It’s my pleasure. Thanks for having me.
Nate Kreinbrink:
And joining me today again, Nate and Mike with NelsonCorp Wealth Management and Taxes, 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 representatives securities offered through Cambridge Investment Research Inc., a broker dealer, member FINRA SIPC, investment advisor representative, Cambridge Investment Research Advisors Inc., 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.