Retire Today

By Jeremy KeilBusiness Investing

Favorites
31
Followers
Typical duration
19 min
per episode

Based on Podcast App listening data

Retire Today episodes

October 16, 2024 The Ultimate Guide to Medicare Enrollment in 2024
Melinda Caughill shares the secrets of Medicare enrollment in 2024, what to avoid and how to pick the right coverage.
As Medicare Open Enrollment begins, the importance of understanding Medicare and making the right decisions during the enrollment period cannot be overstated. For this week’s episode of “Retirement Revealed” I sat down with Melinda Caughill, co-founder of 65 Incorporated, to discuss her playbook for Medicare in 2024. This open enrollment period is particularly crucial due to significant changes that will affect all Medicare enrollees. Here’s what you need to know to navigate these waters wisely.
The Complexity of Medicare Choices
Medicare decisions are not as straightforward as picking a plan. Many people mistakenly believe it’s a simple choice between Medicare Advantage and a Medigap supplement. However, the decision path involves understanding whether to stick with Original Medicare or shift to private, corporate-run Medicare options. Each choice comes with its own set of advantages and challenges.
Original Medicare vs. Medicare Advantage
Original Medicare: Under this path, the government serves as your healthcare provider, offering substantial coverage with reliable benefits. You add a Medigap policy to cover costs that Medicare doesn’t, and a Part D plan for prescription drugs. This provides predictable out-of-pocket costs but comes with monthly premiums.
Medicare Advantage: This option, managed by private insurers, often advertises zero-dollar premiums and numerous perks such as dental and vision coverage. However, these plans require adherence to strict networks and prior authorization for services, creating potential hurdles in accessing care when you need it most.
Timing Is Everything
Understanding the right time to enroll or delay enrollment in Medicare is critical. For many, this means determining the best time based on current employment status or other personal circumstances. Each individual's situation requires a unique approach to avoid penalties and ensure adequate coverage.
The Looming Impact of the Inflation Reduction Act
The Inflation Reduction Act introduces a $2,000 out-of-pocket maximum for Part D drug costs, which initially sounds like a positive change. However, as part of the cost-shifting measures, private insurers may increase premiums significantly or change what drugs are covered to offset their increased financial burden. This change, effective in 2025, starts impacting decision-making now. It underscores the necessity of reviewing your current drug plans during the upcoming open enrollment.
Choosing the Right Path
When faced with a decision of which Medicare path to choose, it’s critical to think long-term. While Medicare Advantage plans are enticing with their low upfront costs, the rigidity and potential high costs of care down the line need to be carefully considered. Original Medicare generally offers broader access to providers and clearer costs.
Avoiding Medicare Pitfalls
One of the biggest traps that enrollees fall into is relying on Medicare insurance salespeople without understanding potential conflicts of interest. Sales agents earn commissions based on sales from limited portfolios, which doesn’t always align with what’s best for you. Seek independent guidance to navigate your options without bias.
Tips for 2024 and Beyond
Review Annually: Each year, from October 15th to December 7th, use the Medicare open enrollment period to reassess your Part D drug plan options and any Advantage plan changes.
Plan Ahead: Stay informed about changes in Medicare that could impact costs, coverage, and your healthcare decisions.
Seek Expert Advice: Use services like 65 Incorporated to ensure you’re making informed choices, especially if you’re approaching Medicare eligibility.
Stay Informed on Policy Changes: The ramifications of the Inflation Reduction Act highlight a shifting landscape. Keeping abreast of these changes ensures your decisions are proactive rather than reactive.
Medicare has long-reaching implications, and navigating it successfully means more than just enrollment—it's about understanding the full picture and getting the coverage that fits your specific needs. Whether you're planning for the first time, reassessing your current coverage, or helping a loved one make these decisions, make the Medicare decision that fits your unique health and financial needs.
Don’t forget to leave a rating for the “Retirement Revealed” podcast if you’ve been enjoying these episodes!
Subscribe to Retirement Revealed to get new episodes every Wednesday.
Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337
Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify
Additional Links:
www.i65.com - Melinda Caughill & Diane Omdahl, 65 Incorporated
LinkedIn - Melinda Caughill
www.medicare.gov - Medicare Open Enrollment
Connect With Jeremy Keil:
Keil Financial Partners
LinkedIn: Jeremy Keil
Facebook: Jeremy Keil
LinkedIn: Keil Financial Partners
YouTube: Retirement Revealed
Book an Intro Call with Jeremy’s Team
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
54 min
October 09, 2024 5 Ways to Supercharge Your Social Security Benefit
Learn how to supercharge your Social Security benefit and potentially grow your lifetime income by over $100,000.
13 min
October 02, 2024 Don’t Fall for These 3 Common Medicare Myths
Debunking 3 Medicare myths and examining the ways you can avoid falling for common Medicare mistakes.
13 min
September 25, 2024 Is Your Retirement Facing a Midlife Crisis? With David Blanchett
David Blanchett discusses the survey results that reveal a building crisis among near retirees who are unprepared for retirement.
28 min
September 18, 2024 How to Maximize FERS in 2024 (Federal Employee Retirement System)
Understanding the options available to civil servants entering retirement under FERS.
If you’re one of the 2 million people in the federal workforce, this post is designed to help you make the most of your retirement plan by understanding the Federal Employee Retirement System (FERS). As we head toward the end of the fiscal year, it's a great time to revisit how FERS works and how you can maximize your benefits.
Breaking Down FERS: The Three Key Components
Before we dive into the details, let’s recap the basic structure of FERS. There are three main components that federal employees need to pay attention to:
Pension: A defined benefit that provides income based on your years of service and salary.
Thrift Savings Plan (TSP): A defined contribution plan, similar to a 401(k), where you can contribute pre-tax or post-tax (Roth) dollars.
Social Security: Just like most employees, you’ll also receive Social Security benefits, so don’t forget to factor this into your retirement planning.
When thinking about retirement, it’s essential to plan not only for when to start your FERS pension but also when to tap into your TSP and file for Social Security. The coordination of these three components can make a big difference in your retirement income.
Maximizing Your FERS Benefits
Recently, I was asked by Money Geek how federal employees can maximize their retirement benefits. Two key strategies stand out:
Maximize Your TSP Contributions: For 2024, you can contribute up to $23,000 to your TSP, with an additional $7,500 if you’re over 50 (catch-up contribution). The TSP is one of the most cost-effective retirement savings plans out there due to its low fees, so take full advantage of it!
Know Your Full Retirement Age: Surprisingly, many people I talk to aren’t sure of their full retirement age (FRA) under FERS. Knowing this is crucial because it affects when you can receive your maximum pension benefit. For instance, retiring before age 62 or with fewer than 20 years of service could significantly reduce your pension payout.
There are some important distinctions to be aware of, particularly if you retire before age 62 or with fewer than 20 years of service. For example, retiring at 61 with 19 years of service gives you only 19% of your high-3 salary as a pension. However, waiting one more year to reach age 62 and 20 years of service increases that to 22%—a 15% boost in your pension for life! That extra year could be well worth it.
Understanding Your High-3 Average Salary
Your pension is based on your high-3 average salary, which is the average of your three highest consecutive years of earnings. While this is often your final three years, it’s not always the case. It’s important to accurately estimate your high-3 salary when planning your retirement.
Additionally, if you’ve had military service, you can potentially add military service credits to your federal service time. This could increase your pension benefit, so be sure to check your service record to ensure all your years are accounted for.
Special Considerations for Specific Roles
Certain federal roles, such as law enforcement officers, firefighters, and nuclear materials couriers, are eligible for enhanced pension benefits. For example, they receive 1.7% of their high-3 salary for the first 20 years of service, compared to 1% for most employees. Members of Congress are also eligible for the 1.7% rate, making it important to know which category you fall into.
Steps to Take in the Years Leading Up to Retirement
As you approach retirement, there are four steps you should focus on to ensure you’re on track:
Maximize Your TSP Contributions: The more you contribute, the more you’ll have for retirement. For those over 50, make sure you’re taking advantage of the catch-up contribution.
Confirm Your Full Retirement Age: Double-check your FERS records to know exactly when you’re eligible for full retirement. Don’t rely on hearsay—verify the information yourself.
Estimate Your High-3 Salary and Years of Service: This will help you calculate your expected pension. Make sure your service record is accurate with the Office of Personnel Management (OPM) to avoid any surprises.
Consult a Financial Advisor: It’s always a good idea to work with someone who understands federal employee benefits. A Chartered Federal Employee Benefits Consultant can help you navigate the specific rules that apply to you.
Common Mistakes Federal Employees Make in Retirement Planning
Over the years, I’ve seen federal employees make several common mistakes in retirement planning. One of the biggest is failing to adjust their TSP investments as they approach retirement. Many people keep their TSP allocation at the same risk level they had in their 20s, even when they’re nearing retirement age. Be sure to reassess your risk tolerance as your retirement date approaches.
Another frequent mistake is not planning for the transition from a paycheck to a pension. It can take several months for your FERS pension to start, so having a financial cushion to cover this gap is crucial.
Plan Ahead and Get Expert Help
As you prepare for retirement, whether you’re a federal employee, military personnel, or transitioning to corporate work, the same principles apply: know the rules, do the math, and follow the plan.
By maxing out your TSP contributions, understanding your full retirement age, and working with a knowledgeable financial advisor, you can ensure a smooth transition into retirement. Remember, the choices you make in the years leading up to retirement will impact your income for the rest of your life. Make sure you’re making informed decisions based on your specific situation.
Don’t forget to leave a rating for the “Retirement Revealed” podcast if you’ve been enjoying these episodes!
Subscribe to Retirement Revealed to get new episodes every Wednesday.
Apple Podcasts: https://podcasts.apple.com/us/podcast/retirement-revealed/id1488769337
Spotify Podcasts: https://bit.ly/RetirementRevealedSpotify
Additional Links:
“Understanding Retirement Plans and Options for Federal Employees” - moneygeek.com article
Thrift Savings Plan contribution limits - www.tsp.gov
FERS Information - U.S. Office of Personnel Management
“How to Plan for a Military Retirement, with General Michael Meese” - Retirement-Revealed.com
“Avoiding 10 Common Retirement Planning Mistakes Made by Federal Employees” - Retirement-Revealed.com
Connect With Jeremy Keil:
Keil Financial Partners
LinkedIn: Jeremy Keil
Facebook: Jeremy Keil
LinkedIn: Keil Financial Partners
YouTube: Retirement Revealed
Book an Intro Call with Jeremy’s Team
===
Disclosures
Videos/Podcasts/Blogs (media) published prior to June 30, 2025, were recorded and approved while the advisor was affiliated with Thrivent Advisor Network. These media reflect the advisor’s views and interpretations at that time. The information and disclosures contained in those media were believed to be accurate and complete as of the date of recording, but may not reflect current market conditions or Alongside, LLC, policies.
All content is provided for educational purposes only and does not constitute personalized investment advice. Read below for current disclosures and potential conflicts of interest.
This media is provided for informational and educational purposes only and does not consider the investment objectives, financial situation, or particular needs of any consumer. Nothing in this program should be construed as investment, legal, or tax advice, nor as a recommendation to buy, sell, or hold any security or to adopt any investment strategy.
The views and opinions expressed are those of the host and any guest, current as of the date of recording, and may change without notice as market, political or economic conditions evolve. All investments involve risk, including the possible loss of principal. Past Performance is no guarantee of future results.
Legal & Tax Disclosure
Consumers should consult their own qualified attorney, CPA, or other professional advisor regarding their specific legal and tax situations.
Advisor Disclosures
Alongside, LLC, doing business as Keil Financial Partners, is an SEC-registered investment adviser. Registration does not imply a certain level of skill or expertise. Advisory services are delivered through the Alongside, LLC platform. Keil Financial Partners is independent, not owned or operated by Alongside, LLC.
Additional information about Alongside, LLC – including its services, fees and any material conflicts of interest – can be found at https://adviserinfo.sec.gov/firm/summary/333587 or by requesting Form ADV Part 2A.
The content of this media should not be reproduced or redistributed without the firm’s written consent. Any trademarks or service marks mentioned belong to their respective owners and are used for identification purposes only.
For important disclosures visit: https://keilfp.com/disclosures/
===
16 min
September 11, 2024 Improving Your Retirement Readiness: New Study Gives Top Tips with Chet Bennetts
Chet Bennetts explains how the results of a financial literacy survey focused on retirement finances impacts the way they are taught today.
35 min
September 04, 2024 Should You Use a Life Insurance Retirement Plan (LIRP)?
Examining life insurance retirement plans and breaking down Nelson Nash’s book “Becoming Your Own Banker” to see how they compare to traditional retirement plans.
18 min
August 28, 2024 5 Reasons to Retire ASAP with Ashley Micciche
Examining the 5 reasons you might want to retire ASAP with Ashley Micciche.
27 min
August 21, 2024 How to Prepare for a Market Crash Early in Your Retirement
5 ways to prepare your retirement plan for a stock market crash early in retirement
26 min
August 14, 2024 Busting the 4% Rule Myth with Derek Tharp
Derek Tharp explains how risk-based guardrails can provide a better retirement spending plan than the 4 percent rule would allow.
39 min

About Retire Today

From the publisher's feed

In the Retire Today podcast, Jeremy Keil, CFP®, CFA® shows you how to turn your retirement savings into retirement income. Listen in as Jeremy and his guests guide you towards making smarter…