Latest / Money In Motion with Klaas Financial / Decoding Medicare & Supplements: Timing and Considerations

Transcript

Decoding Medicare & Supplements: Timing and Considerations · Money In Motion with Klaas Financial

0:01
And our phone lines are open for you this morning six oh eight three two
0:05
one thirteen ten. That's six oh eight three two one thirteen ten. If
0:09
you have questions for our retirement planning professionals from Class Financial love to have you
0:14
join us. Joined this week by Malia Quavis and Eric Schwartz. Of course
0:17
they do come from to us from Class Financial. Their website class financial dot
0:22
com. That's Class k l aasfinancial dot com. Tell phone number six oh
0:27
eight four four two five six three seven. No charge for that initial get
0:31
to know you appointment at Loss Financial. It will be complementary to you.
0:34
Again. Their number for the office here in Madison six oh eight four four
0:38
two five six three seven and the number to get on the air this morning
0:41
six oh eight three two one thirteen ten. That's six oh eight three two
0:45
one thirteen ten. As mentioned, Malia and Eric joining us this morning.
0:48
Malia, how are you doing this week? Really good? Dodging the storms
0:53
here and there? Right, it's been a it has been a wet day
0:56
and a wet wet month or so. We I don't know that we really
0:59
need this range, but what are we gonna do? And well, get
1:02
a bad hair day for you. Yes, yes, it is, yes,
1:06
so true, Moli Eric, how have you been great to have you
1:08
back. I'm doing I'm doing great, and you know, I think last
1:11
year at this time we were in a drought. So we'll we'll take what
1:15
we can get for now, right. Yeah, and it's and I for
1:18
folks that don't know, I mentioned the website class financial dot com if you
1:21
want to see what Malia and Eric look like. They both have beautiful,
1:25
beautiful hair and kind of yes, yes, very jealous that website class financial
1:32
dot com. They're telephone number six so eight four four two five six three
1:34
seven no charge that it shall get to know the appointment at Claus Financial.
1:38
This week, we're gonna be talking about things as far as important information regarding
1:44
Medicare and things that you need to know as you're getting closer to that age
1:48
sixty five. We're gonna get the details from Eric and Malia in just a
1:51
moment. Cool things that we do on this show obviously a lot of great
1:53
information. We podcast the show as well, so you can listen back and
1:57
share it. Also another cool thing, it's the claws Us Quiz Question week,
2:00
your chance to win a fantastic prize. This week, our friends from
2:04
Class Financial have provided a twenty five dollars gift card to Sephora. Tell you
2:08
a little bit later on the program how you can win that gift card.
2:12
Little tip though most of the time, the question and answer to the class
2:15
Quiz question week comes up during the program, so it pays not just to
2:19
listen to get that great information, but it also pays because it gives you
2:22
a little leg up on everybody else. And before we start talking about Medicare,
2:25
let's actually take a look back at last week's program and review the question
2:30
and answer of the class quiz question the week. Milia, Yeah, so
2:32
last week we had a great conversation on you know, considerations when you're getting
2:38
ready to retire, or when you're changing jobs, or maybe you just have
2:42
an old retirement account from the past. What should you do with that?
2:46
So great conversation about your choices there, and make sure you listen to that
2:51
if that's your situation. Our question followed suit last week. It was a
2:55
true or false Rolling your previous pre retirement plan to your new employer's retirement plan
3:01
is not a taxable event? Was it true or false? Bruce of Monona
3:07
was the first one to call with a correct answer. The answer was true.
3:10
That is not a taxable event if you choose that option. So listen
3:15
carefully today for today's question. You two could be like Bruce by paying attention
3:20
and being a quick dialar Again, we'll tell you how you can win that
3:22
a little bit later on the program. Speaking of last week show the podcast
3:24
always go right up at classfinancial dot com. That's class financial dot com and
3:29
listen back right there and subscribe to the podcast. Also an opportunity to sign
3:32
up for the weekly Market Pulse newsletter. It's a great little snapshot of what's
3:37
been going on in the market of the previous week, as well as a
3:38
link to the most recent podcast that available to you at klossfinancial dot com.
3:44
So for folks that are about to turn sixty five, Eric, I know
3:46
you have some very important information today regarding mediccare and there's some really important things
3:53
that we need to know, aren't there. Yeah, a lot we're going
3:55
to talk about related to medicare today. But before we get started here quick
4:00
disclaimer. Although we are insurance licensed here at cost Financial, we do not
4:06
sell health insurance. We don't work directly in this space, but we do
4:11
interact with our clients other professionals every day who are dealing with this. So
4:16
take this information today as kind of an introduction, but as always, we
4:20
really encourage people to seek out professional advice on this. But let's start with
4:26
the most basic question about all of this. When do we actually qualify to
4:31
sign up for Medicare? So age sixty five is the first date at which
4:35
Americans are eligible to move onto the national health insurance plan, which is known
4:43
as Medicare. Now, this is similar, but certainly not the same as
4:46
your Social Security full retirement age, So we've talked about that a lot on
4:51
the show before, but that's somewhere between sixty six and sixty seven, depending
4:56
on when you were born. So sixty five is or is for Medicare.
5:01
And one important thing to know is if you are collecting Social Security at sixty
5:08
five, you're actually automatically going to be enrolled in Medicare Parts A and B.
5:13
And we're going to talk a little bit more about what eight parts A
5:15
and B are here in a moment. But you don't have to complete an
5:18
additional application. You'll actually automatically be enrolled. But because Part B has a
5:26
premium that you have to pay each month. You actually have the option of
5:29
turning that down. So not Part A, but Part B you can turn
5:32
down. Now we're going to be talking all about Medicare today, but it
5:38
does sound similar to Medicaid, So I want to just before we dive into
5:42
this, just clarify the difference between the two of those. So, Medicare
5:46
is health insurance program for people who are sixty five and older. It also
5:50
covers some people younger than sixty five if you're disabled or if you're on dialysis.
5:58
And on the other hand, Medicare aid, so it has the word
6:00
aid in there. Medicaid is an assistance program for low income patients to cover
6:05
their medical expenses. Good distinction there to know about talking this morning with Eric
6:09
Schwartz and Mali Aquivis. They are our retirement planning professionals from Class Financial.
6:14
If you've got a question, love to have you join us this morning.
6:15
I got to just pick up phone gifts call six oh eight three two one
6:18
thirteen ten. That's six soh eight three two one thirteen ten. The website
6:23
for Class Financial, it's class financial dot com. That's k l aas Financial
6:27
dot com. The telephone number six oh eight, four, four, two,
6:30
five, six three seven. So, Eric, obviously the different there's
6:33
differences between Medicare and Medicaid. What about the different parts of Medicare itself and
6:39
what which parts should you be familiar with? Yeah, so part we'll start
6:44
with Part A obviously, Medicare Part A, that's your hospital insurance. So
6:47
that's going to cover you know, stays in the hospital, if you need
6:50
to go into a skilled nursing facility, it'll cover hospice care, and it'll
6:57
also cover some limited home healthcare. Now, Part A is for most people's
7:01
free because as long as you or your spouse has paid Medicare payroll taxes for
7:08
at least ten years, you actually get Part A for free. Now,
7:13
if you are not eligible for free Part A, so you don't have those
7:16
those ten years of payroll taxes, then you do have to pay a monthly
7:21
premium and that can be up to five hundred and five dollars a month in
7:26
twenty twenty four. And the other really important part is if you do not
7:30
buy or sign up for Part A when you're first eligible for Medicare, which
7:33
as we just said is sixty five, you actually might pay a penalty.
7:39
So Medicare doesn't want people waiting until they're sick to actually sign up for the
7:44
program, right, because if you just have sick people on the program,
7:47
then the premiums and the dollars going out to pay for care, it just
7:54
doesn't add up. So on the other hand, Medicare Part B this is
7:59
your more comprehensive medical insurance, so this covers doctor services, outpatient care,
8:05
medical supplies, and more preventive type care. The as we mentioned just a
8:11
moment ago, Part B does have a premium. So the standard Part B
8:16
premium this year is one hundred and seventy four dollars and seventy cents per month.
8:20
That's up about nine dollars and eighty cents compared to last year. But
8:24
that is, as I just said, the standard premium. So it's really
8:28
important to be aware that if your income exceeds certain thresholds, which is called
8:33
the income related monthly adjustment amount or ERMA, then you actually will pay a
8:39
higher premium for the same coverage. Okay, so it's really important. You're
8:43
not getting different coverage, you are just paying more for the same coverage.
8:48
So this is where it's really important to work with a financial advisor, a
8:50
tax advisor to determine, Hey, if I take this distribution from my IRA,
8:56
how is that actually going to impact the amount I pay for my Medicare
8:58
premium. Now, we covered Parts A and B, so let's talk about
9:03
Part D and we are going to come back to Part C. Okay,
9:07
So first of all, Part D, this is your prescription drug coverage.
9:11
So they make that easy. Part D, this like Part B, does
9:16
have a monthly charge, and the premiums on Part D they vary a lot
9:20
more just because there's different levels of coverage. People have different needs. But
9:26
in addition to those premium costs, you're also going to be subject to co
9:28
payments, deductibles, and other out of pocket costs. And also, just
9:33
like Part B, if you have higher income, we're coming back to that
9:37
income related monthly adjustment amount or ERMA, you actually might pay more for your
9:41
prescription drug coverage. So, just to give people an idea, the first
9:48
level of IERMA, or the first time at which you actually have to pay
9:52
a higher premium, starts if you're single. When you're modified adjusted gross income
9:58
exceeds one hundred and three thousand dollars. Now, if you're married and you
10:01
file jointly, that's two hundred and six thousand dollars. But this is just
10:05
an extra amount, just like Part B that you are paying because your income
10:09
is higher. Now, lastly, Part C we skipped over that, but
10:16
it we skip it because it kind of incorporates the first three. So Medicare
10:20
Parts C is also known as a Medicare advantage plan. So folks who are
10:24
near or at sixty five have probably seen a lot of this type of plan
10:30
advertised to them through mailings or commercials or whatever it might be. But a
10:35
Medicare advantage plan typically covers parts A, B, and D, but it
10:39
does it with one bundled insurance policy. So these policies also can offer extra
10:46
benefits like dental vision. They might have hearing coverage, and like traditional Medicare,
10:52
you are subject to copays, deductibles, other out of pocket costs,
10:56
but advantage policies generally charge lower premiums. Now, there is no free lunch
11:01
here, so they generally have higher cost sharing. They may limit which doctors
11:07
you can see, so it's it's really important to talk to to a professional
11:09
about this to determine it is an advantage plan right for me, or is
11:13
traditional Medicare rate. For me, it feels like Eric you mentioned may have
11:16
heard of it. Mailings or commercials. It probably should be mail links,
11:20
commercials, more mailings, and more mailings, because it seems like folks as
11:24
they're getting towards that Medicare age, they get a lot of mail for Medicare
11:28
parts, seeing a lot of advertisements in their in their mailbox about that.
11:33
Talking this morning with Eric Schwartz and Malia Quavis. They are our retirement planning
11:37
professionals from Costs Financial, the website costs Financial dot com that's Klaasfinancial dot com
11:43
and the telephe number six eight four four two five six three seven, no
11:46
charge for that initial gets to know your appointment at Costs Financial. It will
11:48
be complementary to you again their number six oh eight four four two five six
11:54
three seven. So what about Malia, all the costs that Medicare doesn't cover.
12:00
Yeah, I think I think what Eric said is there is no free
12:03
lunch. And so we want to be clear. I know people are excited,
12:07
of course to finally get Medicare started, but it's kind of an aha
12:11
moment when they're like, oh, it doesn't cover that, it doesn't cover
12:13
that, and so that's where the medical supplement plans come in. So a
12:18
lot of words for these specific plans. What essentially they're trying to do is
12:24
cover some of these gaps, so you might hear the word meta gap policies,
12:28
medsups, med supplemental plans. Essentially, these plans are offered by private
12:33
insurance companies to help cover deductibles, those co payments, and other gaps that
12:39
Medicare does not cover for. So some things to know right out of the
12:45
gate with regards to Medicare. The initial enrollment period is a seven month period
12:50
and that happens three months before your sixty fifth birthday, the month of your
12:56
birthday, and three months after your birthday, so that's the seven months.
13:01
And as Eric mentioned, you don't have to qualify for the policies during this
13:05
period. So annual enrollment for Medicare is October fifteenth through December seventh. That
13:13
stay static. This is when you can make changes for the next year.
13:18
And I just want to clarify that's different than the insurance market open enrollment timeframe
13:22
of November first to January fifteenth, So forget that for a moment. Just
13:26
Medicare October fifteenth to December seventh. It doesn't mean that you're going to make
13:31
a change every year if you're already on Medicare, but you have to understand
13:35
that is the time frame if you're going to make a change, that you
13:39
make sure you hit those time period. So Medicare SUPs they're also, as
13:43
I said, known as medigap policies. There's essentially ten plans their letters A
13:48
through N, and they skip a few letters in between, and you'll see
13:52
these mailings, as Sean mentioned, mailings commercials from every single company out there.
14:00
Etna Humanis signa blue cross ARP, you name it. Everybody seems to
14:03
have one, and they will start approaching you in your sixty fourth year of
14:09
life because essentially they want you to sign up. And we want to just
14:13
clarify some facts with regards to these plans. Each policy that goes by the
14:18
same letter, So say Plan A, that particular plan doesn't matter which company's
14:26
offering. It must offer the same benefits, the basic benefits and usually the
14:31
only difference between those policies between companies is cost, service and claims. So
14:37
that's how you're going to evaluate. Sometimes the cheapest Medicare supplement is not the
14:43
best answer, It depends on service and claims considerations. And then when we
14:48
talk about the cost for these supplements, the average monthly premium for those plans
14:54
depends quite honestly on the state that you happen to live in. So you
14:58
know, many of our listeners hail from Wisconsin, so great news. Recent
15:03
figures suggest that it was the lowest in Wisconsin and Hawaii and Iowa at around
15:09
one hundred and two dollars monthly, so just to understand averages, that's some
15:13
good information. On the other hand, New York had the highest for medigap
15:18
plans, which was about three hundred and four dollars per month. So stay
15:22
local, I guess is what we're saying. Nationwide average cost is about one
15:26
hundred and fifty five dollars per month. So again, those premium costs depend
15:30
on the company you choose to use in your age and when you're looking at
15:33
your household, again, you know this is per person, so you have
15:37
to keep that in mind as you're doing your budgeting. Understand that you can
15:41
switch medigap plans at any time, but you could be charged more or denied
15:46
coverage based on your health if you choose or change plans more than six months
15:52
after signing up for Part B. So that's why we're really heavy on directing
15:56
people to your local Medicare supplemental provider to find out what will work best in
16:02
your situation. We would prefer an independent so that they can look at an
16:07
array of different companies and see what works best for you. Talking this morning
16:11
with Malia Quavis and Eric Schwartz. They are retirement planning professionals from Class Financial
16:17
online Classfinancial dot com that's k l Aasfinancial dot com and their telephone number six
16:22
soh eight four four two five six three seven meile. I'm guessing a lot
16:27
of folks wonder about existing conditions. Can they still get Medicare? What the
16:33
folks need to know there? Yeah, so even with a pre existing condition,
16:37
you can enroll an original Medicare or Medicare and Medicare advantage plan. However,
16:41
you're going to be responsible for all out of pocket expenses like deductibles,
16:45
co payments, and co insurance. So it's important thing to understand a couple
16:49
special notes. Since night, I'm sorry, since nineteen, since twenty twenty
16:53
one, people that have in stage renal disease, can they can choose either
17:00
original Medicare or Medicare Advantage plan for their Medicare coverage. And again, as
17:06
Eric said, if if you don't sign up for a Medicare supplement plan when
17:11
you first become eligible, the insurer may impose a waiting period before your coverage
17:15
takes effect for any pre existing issues. So that is why you want to
17:21
take advantage of that period of time where the pre existing doesn't even exist,
17:26
so to speak, as long as you're enrolling in the appropriate timeframe. So
17:30
very important to know what you're doing and not ignore all that mail and all
17:34
those commercials like gas. Make sure you're sitting down with a professional day value
17:40
vital stuff to be thinking about this morning as we talk with our retirement planning
17:42
professionals, Malia Quavis and Eric Schwartz. You can learn more about Class Financial
17:45
their website class financial dot com. That's Klaasfinancial dot Com. Teleph number for
17:52
the office right here in Madison six eight four four two five six three seven.
17:56
No charge for that initial get to know your appointment dech Class Financial.
17:59
It will be complementary to you again their number six oh eight four four two
18:03
five six three seven. What if you're still working at sixty five? Do
18:07
you have to take Medicare? We'll get the details on that next as Money
18:10
in Motion with Coss Financial continues right here on thirteen ten wib A talking with
18:18
our retirement planning professionals Maleia Quavis and Eric Schwartz. Of course, they come
18:22
to us from Class Financial. Their website Class financial dot com. That's Class
18:26
k l aa S Financial dot com. Great website to learn more about Class
18:30
Financial separate divisions, how they can help you or if you're an employer again,
18:33
you can learn more at Cossfinancial dot com. Their telephone number six oh
18:37
eight four four two five six three seven, no charge for the initial gets
18:41
to know your appointment at Coss Financial. It has it's indeed complementary to you
18:45
then number six oh eight four four two five six three seven. Let's just
18:49
say you're in a situation where you know, still working at sixty five,
18:53
are you forced to go on medicare or what's the what's the status there?
18:57
Eric? Yeah, that's a great question, Sean, and we're starting to
19:00
see this more and more as people continue to work longer. And the answer
19:07
to that question, do I have to go on to Medicare? It really
19:11
depends on how large your employer is, and I should actually be more specific
19:15
there, maybe not even necessarily your employer, but if you get your health
19:18
insurance from a spouse, it would be the size of your spouse's employer.
19:22
So again, whichever job you get your coverage through, if they have more
19:29
than twenty employees, okay, So that's the distinction here, more or less
19:32
than twenty employees, if an employer has more than twenty employees. As long
19:37
as you have health insurance from your employer or your spouse actively works after you
19:41
turn sixty five, you have the right to delay in enrolling in Medicare.
19:45
Okay, So you can delay until your employment or the coverage stops, whichever
19:48
one happens first, and then at that point you're entitled to a special enrollment
19:52
period of up to eight months to sign up for Medicare without incurring any late
19:56
penalties. So Malio was talking earlier about out the enrollment, the initial enrollment
20:02
period of getting signed up. This would this option would actually entitle you to
20:07
a special enrollment period. So the key word we're talking about here is either
20:12
your active employment or your spouse's active employment. So you can't delay Medicare enrollment
20:18
without avoiding a penalty if you have coverage from like retiree benefits or you're on
20:25
COBRA, because that doesn't count as active employment, so you have to actually
20:29
be working there now. It is entirely your choice, and your employer can't
20:33
decide. It's your choice whether you do one of three things, So either
20:38
accept the employer health plan and delay Medicare enrollment altogether. Secondly, you can
20:44
decline the employer coverage and rely wholly on Medicare, or your third third option
20:49
is you can have both employer coverage and Medicare coverage at the same time.
20:53
But if you choose that last option, it's really important to know that if
20:57
you enroll in both both the employer plan and Medicare Part B, that your
21:03
employer plan is always going to be the primary coverage. So that means that
21:07
it is going to be the first payer of medical bills, and Medicare is
21:11
only going to step in and pay for services if Medicare covers the cost,
21:17
but the employer plan doesn't, So really, unless your employer coverage is really
21:22
poor or you just don't have adequate coverage there, you would likely be paying
21:27
monthly premiums for Medicare with a very little benefit to it, so really important
21:32
to think about think about that before you sign up for both. Now,
21:37
another point here is when you sign up for Part B while you still have
21:41
your employer coverage, you could actually be forfeiting your right to buy Medicare supplement
21:45
insurance. So Leo was just talking about meta gap or Medicare supplements, So
21:49
you may actually be forfeiting the right to buy those policies with your full federal
21:55
protections when employment ends. So remember those protect actions prohibit insurance companies from basically
22:03
denying you coverage or refusing to sell you a policy charging you a higher premium
22:08
due to pre existing conditions. Okay, So providing that you buy a policy
22:12
within six months of enrolling in Part B, you don't need to qualify.
22:17
You can just get to sign up. So if you are, if you're
22:21
signing it for Part B while you still have your employer coverage, you could
22:23
be forfeiting that right. Eric, you mentioned too, as we're just talking
22:27
there about your employer having more than twenty employers, what about the other side
22:30
of that. Let's say it's a small company has fewer than twenty. Yeah,
22:34
so if your employer or your spouse's employer where you get your insurance has
22:38
less than twenty employees, essentially, in this situation, the employer gets to
22:44
decide okay. So if the employer requires that you enroll in Medicare, then
22:49
Medicare automatically becomes your primary insurance and the employer plan would then provide secondary coverage.
22:56
So essentially, Medicare is going to be paying your bills for first instead
23:00
of the employer coverage. And the employer plan only covers services that its plan
23:06
covers, but Medicare doesn't. So if you fail to sign up for Medicare
23:10
when required, you'll essentially be left with no coverage because the employer does not
23:15
allow you. To participate in talking this morning with our retirement planning professionals Malia
23:18
Quavis and Eric Schwartz, don't forget. They come to us from Class Financial.
23:22
We've got a fantastic website Cossfinancial dot com. That's k Laasfinancial dot com.
23:27
Learn more Abile Colass Financial on the website. Also listen back to the
23:30
podcast. Telephon number for the office right here in Madison six oh eight four
23:33
four two five six three seven No charge for that initial gets to Know You
23:37
appoyment TCH COSS Financial. It will be complementary to you again their number six
23:41
oh eight four four two five six three seven. We'll check some emails for
23:45
the Money and Motion Listener Question corner. We'll do the class quiz question the
23:49
week as well. Next as Money in Motion continues right here on thirteen ten,
23:52
WIBA talking with our retirement planning professionals Malia Quavis and Eric Schwartz. Of
24:00
course come to us from Class Financial the website coss financial dot com. That's
24:03
k l aas Financial dot Com. Telphon number six O eight four four two
24:08
five six three seven. No charge for that initial get to know your appointment
24:11
tech loss Financial. It will be complimentary to you. Mentioned ways of contacting
24:15
Class Financial. If you ever have a question, obviously you can call during
24:18
the show. You can call the office also you want to do that to
24:22
have that consultation. Another way you can reach out is via Coassfinancial dot com
24:26
and the Money in Motion Listener Question corner. And this week Sam writes out
24:30
he says, I have an old four oh one K from an employer I
24:33
worked with over ten years ago. I believe there's around thirty five thousand in
24:37
it and I don't plan on retiring for several years. What should I do
24:41
with this account? Malia? What do you tell Sam money and run?
24:45
No, that's not their correct answer. Hey those are Those are always good
24:51
problems too, and I won't say it a problem, but good good things
24:53
to discover. So a lot of people believe it or not put away money
24:56
and jobs. I mean, we talked about this last. I think the
25:00
average person has twelve different employers now, so sometimes you put away money,
25:06
you left a job and you just kind of forgot it's there. So I
25:10
appreciate the insight here that you aren't going to retire for several years. It
25:15
helps us kind of mold our answers. But essentially, you have four choices.
25:19
You can roll that plan to an IRA if you'd like to, perhaps
25:25
to have some more diversification options, that's always something nice. You could choose
25:32
to cash it out again, usually our last choice there. We'll talk about
25:36
that in a second. Well, keep the plan as it is, just
25:38
let us sit there, or you could actually consolidate it with a new four
25:42
oh one K at your current employer. They're always happy to receive a transfer
25:49
over to do that and we'll keep it text. The first choice is the
25:52
bad choice though, when you talk about cashing it out, and the reason
25:56
is that usually a bad choice is if if you can it out, let's
26:00
say thirty five thousand dollars, you essentially have just added thirty five thousand dollars
26:07
to your taxable income for the year that you decided to distribute it. I'm
26:11
not saying that's the wrong answer for everybody. That's why you sit down with
26:14
a financial professional to look at your situation. Maybe you have a lot of
26:18
high interest debt. There could be a lot of considerations, but usually people
26:23
want to slow down before selecting this choice because if you're under fifty nine and
26:27
a half, not only are you going to pay additional income tax for the
26:33
income for that income that particular year, but you're also going to be hit
26:37
with a ten percent penalty. So you know, essentially, if you're in
26:40
the you know, twenty percent you know tax tax bracket, and you're adding
26:45
another ten percent penalty, that could really kind of hurt. Mentioned. You
26:49
can leave it right in its place now. If you have old four one
26:53
ks and they're under say a five thousand dollars threshold, many times those plans
26:59
will try to eject you out of them because there's no current contributions coming into
27:03
them. If you have thirty five thousand, not as likely to be ejected
27:08
from those. But understand that those those four one ks left behind are four
27:14
O three b's. You are still paying fees on every single retirement account you
27:19
have out there, although they're kind of melded in there so you don't see
27:23
them as clearly, and they might not be high fees, but there's definitely
27:26
somebody getting paid, So keep that in mind. Rolled of old four to
27:32
one k into your new retirement plan certainly an option. Understand that that is
27:37
not a taxable event. We discussed this last week. So you could take
27:41
a pre tax four oh one k, move it into a pre tax four
27:45
oh one k that you're currently at, or a wroth same idea, except
27:48
that's going to go into a WROTH portion of your current four oh one k.
27:52
But be aware that also when you move moneies out of four one ks
27:57
that you are also you're also taking away potential ARISA protections. And those ARISA
28:06
protections sometimes people are interested in because perhaps they've had a bankruptcy or something in
28:11
the past. And if you leave it in those designated accounts, meaning a
28:17
four oh one K versus an IRA, you do have some protection from creditors
28:22
who might be coming after you. So we just want people to understand that
28:26
there's a lot of considerations. Finally, the last idea is roll it into
28:30
your own IRA. So certainly a lot of people do do that because they
28:33
have more investment options. So take this, you know serious. I appreciate
28:38
the question, but sit down with someone and see what's the best option for
28:41
you. Great job, Sam, And of course you can be like Sam
28:45
if you've got a question you're sending over to classfinancial dot com. That's coss
28:48
k l a a s Financial dot com. Learn more about Class Financially.
28:52
You can submit a question also online as well as listen back to this in
28:55
previous shows podcasts all at classfinancial dot com speaking of making contact with the good
29:00
folks at COSS Financial. Their telephone number six oh eight four four two five
29:03
six three seven. No charge for that initial get to know your appointment at
29:07
Loss Financial. It will be complementary to you. Their telephone number six oh
29:11
eight four four two five six three seven. You can want to hold on
29:14
to that telephone number as well. It's time now for the class quiz question
29:17
of the week. It works like this. In just a moment, I'll
29:18
ask you the class quiz question, leik. You will then have thirty minutes
29:22
from today's program to call the Class Financial Office right here in Madison at six
29:25
oh eight four four two five, six three seven. If you are the
29:27
first call correct answer, you win this week's prize, which is a twenty
29:32
five dollars gift card two Sephora. This week's closs quiz question the week is
29:36
this at what age can Americans normally qualify for Medicare coverage? Is it sixty
29:42
five or sixty seven? Telephone number six oh eight four four two five,
29:47
six three seven. First car correct answer win that twenty five dollars gift card
29:49
to Sephora. Don't forget as well. That's Class Financial Office right here in
29:53
Madison six oh eight four four two five six three seven. Malia, Eric,
29:59
it's always great chatting with you guys. Enjoyed this beautiful day, Thanks
30:02
Son, Thanks Sean. News comes your way next year at thirteen ten WU
30:03
IV eight HM