Turning 65 in 2022

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This is the Truth Network. Welcome to Finishing Well, brought to you by cardinalguide.com, with certified financial planner, Hans Scheil, best-selling author and financial planner, helping families finish well for over 40 years. On Finishing Well, we'll examine both biblical and practical knowledge to assist families in Finishing Well, including discussions on managing social security, Medicare, IRAs, long-term care, life insurance, investments, and taxes. Now let's get started with Finishing Well. The Finishing Well is a general discussion and education of the issues facing retirees. cardinalguide.com, cardinaladvisors, and Hans Scheil CFP sell insurance.

This show does not offer investment products or investment advice. Welcome to Finishing Well with certified financial planner, Hans Scheil. Today's show, how about this, turning 65 in 2022.

So happy birthday to the those that are happening. You know, if those of you who've been listening to Hans for a while, I think I found Hans's life verse. When I think of Hans, I can't help but think of these words in Ecclesiastes 1211. So here you go.

And you know, this is going to play in, you know, pretty close to December 1211. There you go. The words of the wise are as goads and as nails fastened by the master of assemblies, which are given from one shepherd.

I mean, there's a mouthful right there. And if you don't know what goads are, which I didn't until years ago, and you know, their famous road to Damascus experience for, you know, the apostle Paul back then saw was Jesus said, why do you kick against the goats? Well, the goats are there to get the animals, you know, going in the right direction. They, you know, when they get mad, the oxes would kick back on the carts to try to blow them up, you know, kind of break them up. And so there was a sharp object that would hit their foot.

So they wouldn't do that. Well, if you know Hans very well. I call him a goad, you know, because he gets us to do stuff that's kind of uncomfortable, like fill out forms that we don't necessarily want to fill out and get beneficiaries, right. And all these kind of things. But essentially, one of the cool things is here, when we're turning 65, you need a goad. I'm just telling you, I really think really thankful that God brought the goad in my life so that, you know, he could kind of kick me to go, Oh, well, you know, there's penalties involved.

There's things, Robbie, you need to pay attention. And so, you know, one of the things we want to celebrate, right, is it's Thanksgiving weekend. Hans is God has been really, really good at celebrating your goadiness. Think about this for a minute. I started at 18 years old in Minneapolis, Minnesota, going to college, selling Medicare supplements to people turning 65. And so, we worked a turning 65 list. And since this was July of 1976, we were working the October 1911 birthdays, because we'd work them 90 days in advance. I mean, you think about that.

The people born in 1911, most of them are deceased now. They were turning 65 when this 18-year-old kid born in 1958 was calling them. And that's a good while. And as the years progressed, I've stayed in the Medicare supplement business, but my business has become much larger and into financial planning, and just all the things we do and we talk about in the show. But rooted in the whole thing, and in my business to this day, is Medicare supplements. And we're calling on the same list in a much different way. So, we don't even have to call them anymore. So, about four or five years ago, I discovered that I could get Facebook, if I paid them money, to pick out the people born, like right now, we're working the 1957s.

So, people born in 1957 are turning 65 in 2022. Right. And so, Facebook knows how old you are. Okay.

I mean, a lot of people, because you told them. Right. Because that's one of the things you need to do when you make a profile. And then Facebook charges the same amount if you run a 30-second ad or if you run a 20-minute ad. I didn't start at 20 minutes, but I discovered going against the consultants, because they all told me to make your video two minutes. And I just, I can't say what I got to say in two minutes, but I just condensed it down.

I got it to about 10 minutes. And this thing has been wildly successful on Facebook from the very beginning, but it costs money. And it's only going to go to who I tell it to go to, right in that birthday. And then I learn playing videos for people. And where I can really just sit down and explain myself like I do on the radio show. And so, what happened a year ago or two years ago, but a year, year and a half, two years ago, is we started using YouTube purely as the host site for our videos that we used as ads, explanations, whatever you want to call them. But we never thought about sending them out on YouTube because I didn't think YouTube knew how old you were. So I thought there's going to be little point in paying YouTube money to send my video out to people of all ages when it's about turning 65. So I just had it hosted there. And the only explanation I can come up with this is God.

I mean, just God's favor. So our turning 65 video posted on YouTube, but not promoted. It's just sitting there promoted on Facebook as I was just showing it to Rob here, 208,000 views in 11 months. That's a lot of views when you've done nothing, if you're me. So I got people calling me all over the United States. I got people in Guam calling me. I got people on missions in the Far East and they're coming back home to retire from mission work of their whole life. And they're, I guess the only source of information they're going to have about Medicare is the internet.

And then they're finding me and they're ending up becoming clients. So anyhow, believe me. Well, again, it just shows that from my perspective is that when people are turning 65, right, they go, what do I do now that I'm 65? Because there are penalty. There's all sorts of things that got to be done as far as Medicare or then how do I know the difference between part A, part B, part C and all those things become hyper critical, but it's interesting.

You spent your whole life learning that. I mean, obviously since 1976 and now God through cardinal advisors, because on his YouTube channel is cardinal advisors, God has blessed that with opportunities for people all over 200,000 of them, yeah. People are seeing it, they're watching it and they're calling in. Just a small percentage call in and thank you because if a whole bunch of percentage, I wouldn't know what to do. My phone lines would be jammed and we're getting a lot of calls. But just to tell you what a blessing is, I've spent most of my career and especially the early part of my, just trying to get people to talk to me, okay. Just calling people and getting rejected and then finding somebody that says, hey, yeah, I'll talk to you about that and then driving out to their house and sitting there and then I'd spend the next hour trying to convince them to buy from me. And that's kind of the way my whole career worked.

That's not the way it works anymore. Now I have people calling me trying to get a hold of me and they're very humble. And I say, I'll talk to somebody else if I have to. I'd like to talk to him.

Can I talk to him? And then we set up a time and then when I'm talking to them, they're telling me what their questions are and they're already telling me they're ready to do business with me. And what a blessing. I mean, I'm just sitting here at 63 years old, 45 years into the business and I just, that's one point I want to get across this morning is this YouTube and just having my messages up there. And YouTube is actually paying me now. I get a check.

I just got one day before yesterday for 550 bucks for the month of October. So they're paying me to play my message. Right. But the thing I've always thought about your messages, you know, yeah, to some extent it's, you know, how to do this, that and the other, but they're really just completely informational. It doesn't say buy now, buy now. And there's, I remember in any video you saying, you know, this is what you need to buy or this way, you know, that isn't about that. It's about here's what the process is when you turn 65 and here's the things that you need to consider and here's what this means and here's what that means. And so, and then at the end of it, you say, hi, I'm on trial.

Thanks for listening. And so, you know, it's your message, but your message is education and I, and has been through the radio show in my experience. Well, that's been my goal. Even when I started the Facebook thing five years ago, cause I'm just thinking, look, I want to deliver a quality product in anything that I'm doing just for me. I mean, and just in other words, that's one of the things that I've never liked about sales pitches because the sales pitches aren't necessarily a quality product.

They're just highlighting the things that you want to highlight. And with the objective of talking the person into buying something. Okay. And where, what I've liked to do is establish a relationship with my client is that I'm going to point out where's, where are the minds buried here?

Where, where are the trouble spots? Where, where, where do your questions commonly come up or what questions are you going to have once you get into this for a while, I'm going to bring those things up or what are your regrets going to be two or three years down the road when you all of a sudden discover something and you're saying, boy, I wish I'd have known that when I was turning 65. I want to make my whole interaction with people about all of those things so they can make a good decision. And I'm perfectly willing and do give that to people who I'm never going to hear from and maybe don't even like me, but they, they, they're watching the thing, they're going to get something out of it. Well, yeah, well that's the information and you know, they're there in is a neat opportunity. I think anybody that's ever been in sales understands that it is about really, I wanted to help you. I want to give you information and a lot of folks don't buy from you, but it's okay. If you still provide a service then you help people, which is ultimately the real reward is going to be, you know, God's going to help. I mean, he's going to reward those people who actually tried to help somebody else. I mean, that's, that's the whole deal.

Well, and it's the same thing with the podcast or this radio show is we get calls from all over the country of people that aren't anywhere near one of the radio stations we're on, but they pick it up on the podcast, they watch it, they start listening to it and then they call us up. So it isn't necessarily just about me. It's about, there's valuable information here that apparently God wants people to see. 208,000 views is a lot.

I mean, when I go to these YouTube people, they're like, you've got all this and you've done nothing for this. Wait till I get my hands on it. Well, I'm not going to let you get your hands on it. I mean, we're going to have to talk. I mean, let's just about what you're going to do to this thing. Okay.

All right. Well, we got to go to a break. When we come back, we're actually going to find out what do you do? What's in this latest video? We're going to have more content in the second part.

We'll be right back. Hans and I would love to take our show on the road to your church, Sunday school, Christian or civic room. Here's a chance for you to advance the kingdom through financial resources by leveraging Hans' expertise in qualified charitable contributions, veterans aid and attendance, IRAs, social security, Medicare, and long-term care. Just go to cardinalguide.com and contact Hans to schedule a live recording of Finishing Well at your church, Sunday school, Christian or civic group. Contact Hans at cardinalguide.com.

That's cardinalguide.com. Welcome back to Finishing Well with certified financial planner, Hans Scheil. Today's show is turning 65 in 2022. And what that may mean from a standpoint of Medicare as, right? We're the weekend of Thanksgiving and you got two weeks left, right?

Before the, what do you call it? The enrollment? The annual enrollment period, AEP. And that ends on December 7th. So that isn't about people turning 65. That's about people that are on Medicare. And this is the period of time, it started on October 15th, that you can make some decisions for. So for you radio listeners that are listening to this and podcast listeners that are listening to the show, right as it airs or soon thereafter, you got a couple of weeks left where we can help you through this Medicare part A, part B, part C, part D, enrolling, disenrolling, all of that kind of stuff.

You got a couple of weeks left. So we're talking Medicare. And what we're talking about today though, is we're just releasing the 2022 video, which has about nine views on YouTube because it's not open yet, but it'll be open by the time this airs.

And we're hoping and praying that the new and improved video will be just as successful, maybe more successful than the 208,000 view video. And so I really want to just pass along the information and just talk about what's on that video, okay? So you got three sets of decisions that you need to make when you're coming up to Medicare for the first time, which for most people is turning 65, okay? And the three sets of decisions, the first set is, do I sign up for Medicare or not, okay? Now, for those of you that don't have any health insurance or you have health insurance, but you're paying an arm and a leg for it, or you're retired, that's not really something you need to stress over.

For a large percentage of the people, it's just obvious. You're turning 65, you're coming up, and the answer is yes, you need to sign up for Medicare. But then for a large portion of you or a portion of you that's significant, you're continuing to work or your spouse is continuing to work and you have group insurance and you're happy with it. And you're wondering, why do I need Medicare? Why do I have to pay for Medicare? Why do I want Medicare when I've got perfectly fine group insurance that is continuing on for we don't know how long?

So do I need to sign up? That's the number one question we get out of all this media stuff when people write into us and they're saying, you know, I'm still working and it just, you look through the comments on that video, there's 430 comments, I'm going to bet you that 150 of them address this very thing. I'm still working, do I need to sign up for Medicare? Okay, so what I've done on this most recent video is I've addressed that more at length. And so the answer for you people that have this approaching, if your spouse is still working, you're still working, or maybe you're not 65 yet, but you're coming up on it and you plan to work past 65, which is similar to your situation, Robbie, or it was, you know, a year and a half ago, year and a half ago, the answer is not so simple.

That's why people are writing in and asking it. So Medicare has four parts to it. It's got part A, part B, part C, and part D. And for the first part of this, we're just going to talk about part A and part B. Part A is hospital, part B is doctor and outpatient or the rest of Medicare. If you're still working, do you sign up for part A? And then do you sign up for part B?

And the answer might be different for those two parts. So part A doesn't cost you anything by the month. You right now don't pay anything for part A. So part A is pretty much you want to sign up for that whether you have group insurance or not, with one exception. If you're part of a health savings account, you don't want to sign up for it for part A because having any part of Medicare and still contributing to a health savings account is a problem. So let's just say you sign up for Medicare part A no matter what, except for there's one what, okay? It's, if you're part of an HSA, health savings account, then don't even sign up for part A. Otherwise, sign up for it. The real question here is part B.

B like boy. Part B of Medicare, which is your doctor and outpatient, which pays pretty much 80% of your expenses. And it has a premium in 2022 of $170 a month. So you're going to have to pay $170 a month for part B of Medicare, of which you don't want to pay 170 bucks a month for something you don't need because you have group insurance.

Right. If the group insurance is free. But in my case, I was, you know, paying near $400 a month for that group insurance. And it had a big deductible on it. Right. Huge deductible.

And you didn't have the 20 employees on it to make it credible. So you, yours was a no brainer. You're going to leave the group insurance.

Right. And get on part A, get on part B. And then we're going to get into the second set of decisions, which I, we're going to stay in the first set for just a second. So I really wanted to address with people, what are the situations where you don't sign up for B and you delay signing up for B.

And then what about those penalties? Because most people, by the time they get to me and they've watched a video and they've done a little research, they know that there's part B penalties for late signup. So if you mess this up and you don't sign up for B and then you later want it, which you're going to want it at some point, and you didn't get all this stuff right, you're going to face penalties under part B, which you don't want. And then the second thing is you're going to face delays in getting signed up.

I got a guy emailing me right now that messed this up. He signed up for A in 2019, delayed B. His coverage wasn't creditable. So he didn't work for an employer big enough that it counts as a penalty free delay.

Now he's retired and he wants to get Medicare part B. Okay, well that actually just cleared up of a question I had. So what did you mean? When you said you don't have 20 employees, you're not creditable.

I was like, well, I'm pretty creditable. That's not what you're talking about. So if your group that you're in doesn't have 20 employees, then Medicare does not consider that a creditable way to delay your wow. Yeah. So this guy is just living it. So he's been without creditable coverage for two years, going on the third year, and now he wants part B because he doesn't have that not creditable group.

Right. He just discovered it's not creditable. He has to wait till January to apply for Medicare and then part B, and then the part B is not going to start till July 1st. So he's going to go six months without Medicare part B, and you can't buy a supplement or get a Medicare Advantage plan unless you have part A and B. So he's got like half an insurance policy for the first six months, and it's kind of like knock on wood.

I mean, there's not much I can do for him. Now, so the moral of the story here and in my video, you can go and watch it is is pretty much most people are going to sign up for A and B at 65. The people who are going to delay, most of them have creditable group insurance from... Like they work in a hospital.

They work in a hospital or they work at a big company or their spouse does, and that's a reason to delay, but I wouldn't even do the delay without getting a consultation of somebody that really knows what they're doing. And this guy said the proverbial thing. He said, boy, I wish I'd have met you two years ago. Okay, well, I wish you did too, but you didn't. And so now we're going to figure it out.

And I got a few, you know, I can call them tricks up my sleeve or whatever. So I'm going to make him go apply for Medicare and just play dumb because now he's so researched in this, he's just so convinced he doesn't qualify that he's just not going to apply. I said, no, we don't want to do that.

We want to go in and just make you kind of dumb. I don't want you putting anything incorrect on the application. I just, I'm going to have him do an application and just go through this and play a little bit dumb. Okay.

And see if he can just kind of get signed up under Part B. Steve, you told me this before, which made me laugh, but I think it's great. There's no Medicare police. There are. Of course, there's...

So don't beat yourself then. Bureaucrats and all that stuff, we get that. But there isn't the Medicare police that are going to come, you know, after you, you know, so to speak. So that's a big point on there is then once we get you signed up for A and B, now we go to the second set of decisions.

And the second set of decisions are that binary choice, you know, you got, you're at a fork in the road and you've got, you can go to the left or you can go to the right, but you can't go down both roads and you can't go down a mixture of it. And do you want to stay on original Medicare, A and B, and do you want to purchase a supplement? And, you know, as you're going down one way, one road, which is a supplement, and then you're going to need to get a separate Part D drug plan. And the reason you would want to do that is you can go to any doctor of your choice and you're going to face very little out of pocket between the supplement and Medicare, just to try to summarize that. Right. So that's one option, but that's going to cost you more because by the month, because you got to pay for the Medicare supplement, you got to pay for the Part D plan.

I feel like Robbie and you're very accident prone, put hooks through your hand and cut off your fingers. It's good to have the one, no out of pocket. You go right to the emergency room, not even think about it. So that's one route. The other route, the other fork in the road is you're going to take your Medicare Part A and Part B, and you're going to turn it into a Part C, or you're going to get your Medicare from a company like Humana or AARP, UnitedHealthcare, or Aetna, and you're going to get a Medicare Advantage plan. And so why you would want to do that is many of these come at zero premium.

Okay. And besides the zero premium, you get added benefits and you get dental insurance and you get gym membership and you get a drug plan thrown on there at no extra cost. And you don't have to pay the 170 bucks a month or 130 a month or whatever you're paying for your Medicare supplement. That would be one reason. The reason you wouldn't want to go the Medicare Advantage route is you got to deal with networks. It's just pure and simple. You now need to go to their doctors. And so it doesn't make them bad.

It doesn't make you push away from these. We write a lot of them, but we need to be real clear on this and we need to pick the one where your doctors are on there. So that's the kind of consulting we provide. And all of this goes on before we start talking about what insurance policy are you going to buy.

And where I think that the process typically is flawed, even my process in the past, is we started with the insurance policy and the insurance company and we worked through this explanation backwards. So very cool. The video is called Turn 65 in 2022. And that's under Cardinal Advisors. Of course, you know, Hans' book, The Complete Cardinal Guide to Planning for and Living in Retirement is there at cardinalguide.com, which is what the sponsor is of the show, cardinalguide.com. And there you can email Hans, call Hans, whatever you're going to do.

If you're turning 65, obviously, you know, it's something that just pretty simple. Let's call and get this thing going. Yeah. From my perspective, you know, I can assure you it sure worked out good for me. And we're certainly thankful for your listening today.

And, you know, from a Thanksgiving standpoint, we're very thankful for each and every listener and God bless. Thank you. Finishing well as a general discussion and education of the issues facing retirees, cardinalguide.com, Cardinal Advisors and Hans Scheil CFP sell insurance. This show does not offer investment products or investment advice. We hope you enjoyed Finishing Well brought to you by cardinalguide.com. Visit cardinalguide.com for free downloads of this show or previous shows on topics such as social security, Medicare, IRAs, long-term care, life insurance, investments, and taxes, as well as Hans' best-selling book, The Complete Cardinal Guide to Planning for and Living in Retirement, and the workbook. Once again, for dozens of free resources, past shows, or to get Hans' book, go to cardinalguide.com. If you have a question, comment, or suggestion for future shows, click on the Finishing Well radio show on the website and send us a word. Once again, that's cardinalguide.com. Cardinalguide.com. This is the Truth Network.