Choosing a Medigap Plan

So you've just turned 65 or you're about to. You have to sign up for Medicare and maybe even a Medicare Advantage plan. But now that you've reached your golden years, is that all the insurance you need? Well, there's one more piece of the insurance puzzle you might want to consider. A Medigap policy. It could save you thousands in medical bills. Our host, Kingdom Advisors President, Rob West, has what you need to know about Medigap plans today. Now, today's broadcast is pre-recorded. Don't try to call in.

No one's there, but I hope you'll stick around. Lots of great information coming up today on MoneyWise Live. So Rob, Medicare covers some things, obviously. Medicare Advantage plans are like beefed up Medicare plans. So what is a Medigap policy?

Yeah, it's a good question. And think of it like an extra form of health insurance, Steve. You can buy if you already have Medicare. Like a Medicare Advantage plan, which is also called Part C, a Medigap policy will help you pay some of the costs that aren't covered by Medicare Parts A and B. Now, with A and B, you still have to pay deductibles, copays, and coinsurance for approved medical care and services, which can add up quickly, of course. So enter the Medigap plan. It's a private insurance policy that can help you pay for some of the out-of-pocket costs that just aren't covered by Medicare. The premium would, of course, be in addition to your Medicare Part B premium and Part D prescription drug premium. Now, one important thing to remember is that you can't have a Medicare Advantage plan and Medigap insurance. You have to choose one or the other to supplement the basic Medicare.

Okay, that's good to know. All right, so then I guess the question is which one is better, Medicare Advantage or Medigap? Yeah, and of course, it depends, right? It depends on your finances and your health circumstances. Now, comparing the two, Medigap coverage will usually have a higher monthly premium but lower out-of-pocket expenses. But the Medicare Advantage plans generally cost less and cover more services, so you might look at it this way. If you're in good overall health, you might choose a Medicare Advantage plan, but if you have a covered condition that requires frequent medical services with co-pays, well, then Medigap might be the way to go. Something else to consider, traditional Medicare and Medigap policies cover you for any doctor or facility that accepts Medicare, but Medicare Advantage plans usually limit you to the doctors and facilities in their network.

Okay, well, that's important. Medigap costs more, but you get to choose your doctor. That's an attractive feature, obviously, for a lot of people for various reasons. So, who's eligible for a Medigap policy?

Yeah, it's fairly simple. If you're 65 or older and eligible for Medicare and you already have Medicare Parts A and B, well, then you can get a Medigap policy. But again, not if you already have a Medicare Advantage plan.

As a reminder, you can't have both. Alright, and what does a Medigap plan cover? Well, as you mentioned at the top, Medigap plans in general cover deductibles, co-pays, and co-insurance costs, but then things can get really confusing. There are actually many different types of Medigap plans and each is identified by a letter. Are you ready for this, Officer?

I was afraid of that, but yeah. There's A, B, D, G, K, L, M, and N, just in case you were wondering. Each plan provides a different level of supplemental coverage to Medicare. You have to pick the one that best meets your needs. Fortunately, you can find a comparison of the different Medigap plans at Medicare.gov.

And this should help simplify your decision. All Medigap policies have standardized coverage. Every company offering, let's say, Medigap L has to cover the same things.

The only difference will be the price. So after you choose the lettered plan that works best for you, just shop for the lowest price in your state. Okay, and what might you expect to pay for a Medigap coverage?

Yeah, exactly. It varies depending on your state and the plan you choose, but the average is about $1,500 a year or $125 a month. However, that's only for an individual. Under the rules, your spouse would have to have a separate plan. One other thing to keep in mind, Steve, with a Medigap plan, you may also want to get separate Medicare Part D coverage.

We mentioned this earlier. It doesn't cover prescription drugs and that's where Part D comes in. Okay, so if I decide to go with the Medigap plan, assuming I can work through the alphabet soup, when do I enroll in one? Well, you can sign up for any Medigap plan offered in your state during the six months after you enroll in Medicare Part B. During that initial enrollment window, you're eligible for any plan, even if you have health problems.

The company has to take you on and they can't charge you for a medical condition. Now, after six months, you no longer have that guarantee, so be aware of that. All right, and you can find lots more great information about these topics when you visit our website, MoneyWiseLive.org. Right now, we're going to break for just a moment.

We'll be right back. If you have money in a retirement account or just a general investing account, you know the stock market can sometimes be like a roller coaster. But it is possible to enjoy both profit and peace of mind in investing, no matter what's happening in the market. You can see a short video webinar on that topic at SoundMindInvesting.org. Since 1990, Sound Mind Investing has sought to offer financial wisdom for living well. SoundMindInvesting.org.

This is Max MacLean. Why should we pay close attention to God's Word? Listen to the Bible from Proverbs 4. My son, pay attention to what I say. Listen closely to my words. Do not let them out of your sight. Keep them within your heart, for they are life to those who find them and health to a man's whole body. Above all else, guard your heart, for it is the wellspring of life. Put away perversity from your mouth.

Keep corrupt talk far from your lips. Let your eyes look straight ahead. Fix your gaze directly before you. Make level paths for your feet and take only ways that are firm.

Do not swerve to the right or the left. Keep your foot from evil. From Proverbs 4, listen to the Bible.

It's great for the soul. Do you feel like your hands are tied with debt preventing you from serving God? If you have credit card debt, Christian Credit Counselors can help. Through our debt management program, we can get you out of credit card debt about 80% faster while honoring your debt in full. For more information on how Christian Credit Counselors can help, visit ChristianCreditCounselors.org.

That's ChristianCreditCounselors.org or call 800-557-1985, 800-557-1985. Hey, a real pleasure to have you with us today. This is MoneyWise Live. I'm Steve Moore, that other guy over there, the guy with the answers.

He's Rob West and we're happy to have you with us on the program today. However, we are prerecorded. We won't be taking your calls, but we've lined up some calls in advance that I think you'll find interesting, helpful, and very, very practical.

At least we've tried to make them that way, so stick around. Rob, any last thing as far as Medigap coverage is concerned? Anything else that we as Christians need to think about or consider? Well, you know, Steve, we often talk about health sharing plans where Christians share each other's medical bills and we have been big fans of the work that Christian Healthcare Ministries has done for a long time.

In fact, some of our team members are even on that plan. There are other great ones out there. You might even hear some on this station that you're listening to, but this is the one that we just have the most experience with here at MoneyWise.

And we often hear from folks saying, does that apply during this season of life? And what I would say is, you know, if you already have a Medicare Advantage plan, but you'd like some additional coverage, that's where a medical cost sharing ministry could be effective as a supplement. And you've got to, of course, qualify for it, but it really can be a great option. So check that out. Again, we'd love for you to look at Christian Healthcare Ministries, among others.

You can find them online at chministries.org. But with, for instance, Christian Healthcare, you can have both Medicare Advantage and their coverage, which costs about the same as a Medigap plan. And so that would be another option to consider.

Yeah, all right. Good option. And another option for reaching Rob today, if you have a question or a comment, would be by email. Here's the address, questions at moneywise.org. It's brief, questions at moneywise.org. If you want Rob to read your question or answer your question on the air, I'll do the reading part.

Make it brief, just a couple of lines like this one from Kim. Dear Rob, my husband is 66 and retired. I'm 61 and self-employed. We're out of debt and have more than six months of savings.

How much should I be putting into retirement? Yeah, well, again, you've got a situation here where your husband is retired, you're still working. I love the fact that you're out of debt and you've got that six months of savings.

That's a good thing. You know, we say that we really want you to move toward being debt-free over your lifetime, and that includes your home as you're able. Remember, we've got to pay our taxes.

We've got to give. We want to be systematic and generous givers. We want to be systematically moving toward paying off all consumer debt, and we want to be putting money away, which would include things like short-term savings goals when we're trying to buy that house or save for college or long-term saving for retirement. But then ultimately, we want to pursue a goal of becoming completely debt-free. As you think about what your needs are, you really need to establish, Kim, a financial finish line for you. And I think you could apply some rules of thumb, but what I would prefer to see you do is to do some real and meaningful planning with a competent professional. I'd recommend you find a certified Kingdom advisor in your area.

You can do so at MoneyWiseLive.org. Just click on Find a CKA. I'd interview a CKA in the financial planning discipline, at least three.

Pick one that's the right one for you. And what you'd be looking for in this process is what are your needs? What is your lifestyle going to look like? What is your budget going to look like when you are both retired? How much will it take to fund your lifestyle and the fact that your debt-free is going to keep that down lower, certainly, than it would be otherwise? And what is the amount of assets you would need to generate the income beyond any guaranteed sources like Social Security or pensions that you would need to save for?

And how does that compare with what you already have? And what you might find is you've already reached that place or you're on track to reach it. And in fact, if you do nothing more than just what you're already doing, you'll be there. And that would give you some peace of mind to know you can increase your giving or perhaps consider other options with surplus. Now, if you find you're behind, that would be an opportunity for you to say, okay, during the rest of my working life, I'm going to really strive to put away some extra money so we can reach that goal. That would come out of the planning, Kim.

And I think that's really the benefit that would give you, again, a lot of peace of mind knowing that you have a plan and you're working towards something. All right. And, Kim, we're glad that you got through to us today. And again, if you'd like to send Rob a brief email question, the address is questions at moneywise.org. Rob, let's go south to Clearwater, Florida. Lisa, thanks for calling today. And what's on your mind?

Hi. Yes, going back to your initial conversation. So you have to take the Medicare when you're 65. You have to sign up for that, right?

Yeah. I mean, that's where you're going to get the best cost for Medicare. You don't have to, but it will cost you more later if you miss that six-month window. It really has no effect on when you take Social Security benefits. A lot of folks will delay Social Security, but you will have that option later. The key is it just may cost you more, and that's why you may want to consider going ahead with the Medicare. That was part B of my question because if I want to wait until I'm 70 to pull my Social, I wasn't quite sure how that worked.

Yeah. And I think that's the key is recognizing there really is a difference between when you want to start collecting on your Social Security benefits and when is the optimal time to begin signing up for Medicare and then considering other options. Now, that's where I think you need to begin to look at what is ultimately going to solve for your needs given your health status, given your budget. Start comparing on the website we mentioned earlier the various options so that you know exactly what you're looking for. And then you can price shop those in your state and determine what is the best thing for you right now.

But just recognize you will experience that increase in cost down the road if you don't take that now. And we appreciate you calling in, Lisa. God bless you. Lisa, thanks very much.

Quickly to Indiana. Arthur, what's on your mind today, sir? How are you doing? Great.

Thank you. I just wanted to find a CTA in my neighborhood and see if they do charge for the services. Yeah, Arthur, appreciate you asking that. A Certified Kingdom Advisor, this is a financial professional in one of five disciplines who's earned the designation that simply says they've met character requirements, experience requirements, and they've really been trained to be a specialist in biblically wise financial advice. They're not employed by MoneyWise. These are professionals with a whole host of different financial services firms. They've just simply earned this designation that really speaks to their competence, character, and specialized training. Now, as to the cost, that would really be up to each professional. I mentioned they're in five disciplines. They work as financial planners, investment advisors, tax and accountants, also estate planning attorneys, and then insurance professionals. And each would have their own schedule of fees and how they get compensated. One of the most critical questions you would always want to ask a financial advisor you're interviewing for any one of those is how are you paid and what does that look like so that there's really complete transparency in that area. I will say, though, Arthur, if you're looking for somebody to do financial planning or investment management, typically with those folks and certainly with other disciplines as well, you would expect to get a free initial meeting where you all could meet each other and determine whether it's a good fit before you engage any services and begin to pay somebody for their time and certainly before you were to take on any product of any kind like an insurance product if that's what you're looking for.

So you shouldn't have an initial cost, but ultimately you'll want to know what is the cost involved in the professional that you're interviewing, and that's why I'd recommend you sit with at least three before you make your decision. Is that helpful, Art? Yeah, so the fact that I live in Noblesville, I can just go to the app or the website or...

Yes, sir. I'd go to MoneyWiseLive.org, click on Find a CKA and put in your zip code. There's about 1,500 of them across the country. You may not find one right in your backyard, but there's a good chance you will.

If you don't find one, you could certainly connect with the one that's the closest to you. Arthur, we're glad you called and we hope that information helps you. We wish you the best.

Thanks very much. This is MoneyWise Live with Rob West. Today's broadcast is pre-recorded, so we won't be taking any calls, but we have some calls lined up and some great information coming your way that I think you'll find usable at the very, very least. This is MoneyWise Live. I'm Steve Moore. We'll be right back.

Your money counts is available when you click the store button at MoneyWiseLive.org. Here's Beth Moore with a quick word. Boy, if there was going to be a celebration, they were going to bring out that thing referring to any of our memories of the Olympics when that flag is raised. That is celebration. I cannot wait to show you something. If you want to turn with me, you can. I want to go to a song of songs or a song of Solomon, depending upon how your translation refers to it.

I want you to see 2-4. Early on in much of the contemporary praise, we learned a song that I just loved, and it's these very words out of a song of songs to verse 4. He has taken me to the banquet hall, and his banner over me is love.

It's talking all three of the purposes that we've just gone through. It's talking about identification. In other words, he puts that banner right over us and says, he belongs to me. And that banner flies over your head with his name. Identification.

Not only identification, possession, laying claim. I love that. His banner over me is love and the whole idea of celebration. You've been listening to A Quick Word with Beth Moore. The study of Galatians is now available as an online experience. Sign up today at BethMoore.org or join Beth in January 2021 for the release of the printed workbook edition. Again, that's BethMoore.org.

Glad you could join us for A Quick Word with Beth Moore. You probably have a strategy for your finances, your career, even your retirement. But do you have a strategy for your giving at the National Christian Foundation? We can help you create a giving strategy to inspire your family, maximize your resources and leave a lasting legacy of faith.

To learn how, visit MoneyWise.org slash NCF. This is MoneyWise Live. Your host is Rob West. I'm Steve Moore. If you hear a phone number mentioned today, please ignore that phone number. Today's broadcast is a reprise edition of the program.

But I think the upcoming information will help you and bless you and make you a wise steward of what God's given you. Rathdrum, Idaho. Hello, Andrew. What's your question for Rob? Yeah, I was just wondering. So I quit a company that I had a 401k with and I don't see myself going back to a company with a 401k because I'm pretty happy where I'm at right now. But I was just wondering if I should keep that in there.

Is it going to do me any benefit keeping that in there or should I pull it out? Yeah. Andrew, how much do you have built up in that 401k? Do you know?

Probably right around five or six thousand dollars. OK. I'd probably encourage you to roll that out to an IRA. Do you have a traditional IRA already?

I do not. OK. That's going to give you the most flexibility oftentimes with a 401k once you separate from the company, especially if you've got an account balance that's relatively small, still a significant amount of money. But in terms of a 401k account, it's below a lot of the minimums. You may find that the the administrative costs and fees will put a drag on the investments, not to mention the fact that you've got a limited number of investment choices inside that 401k. And so what I would encourage you to do is open a traditional IRA. You would be able to continue to contribute to that, especially now that you're not working somewhere that has access to a 401k.

So that would allow you to put additional money away as long as you have earned income as you continue to save and you could add to what is rolled over from the 401k. Now, in terms of where you'd open that, you'd probably want to choose one of the discount brokerage houses. If you don't have a relationship with someone, you could use TD Ameritrade. You could use a Charles Schwab. You could use a Vanguard, which is a mutual fund family that's very high quality, very low cost.

Any of those would work well if you'd rather one of the newer technologies that's really smartphone and web based that uses what are called robo advisors, which is an investing strategy that's very low cost based on an algorithm and questions that you answer using index funds. That would be something like Wealthfront or Betterment and you could research all of those online, but any of those would allow you to open an IRA, then you'd contact your 401k plan administrator, tell them that you want to initiate a direct rollover to an IRA. They'd send you the paperwork you'd fill out or you might be able to do it electronically. And then that money would just be sent to that institution that's housing your new traditional IRA and deposited as cash and then you'd be able to invest it in any stock, bond or mutual fund or exchange traded fund you want at that point. Again, that would also allow you to contribute to that and you're going to have control over the expenses. So depending on whether you want to invest that yourself or use one of these robo advisors or you want to have somebody help you manage that by selecting let's say mutual funds, you would have complete control over what that fee schedule looks like. So that's the direction I would head at this point. Does that all make sense to you, though?

It does. Would that almost be like daily trading or anything like that? Is that what an IRA is?

No, not at all. So think of the IRA as the account type. And it's just a retirement account, but it's for individuals. So an IRA is just like a 401K, except instead of being company sponsored, it's individually sponsored.

You are opening it yourself. All that account does is just shelter the gains inside the account from the taxes. And when you make new contributions, you get a deduction when the money goes in. How you invest that money is completely up to you. The fact that it's in an IRA has nothing to do with the investment strategy. That's just the account type that's going to help it grow on a tax deferred basis. Once you then select the investments, you can be as conservative or aggressive as you want.

And I certainly wouldn't recommend day trading. I would take a steady plotting approach where you're investing for the long haul based on your goals and objectives. Rob, if Andrew likes what his money is doing in his current 401K, he could still open his own IRA and then duplicate that investment if he wanted to, as well as choosing others, correct? Well, with this exception though, Steve, is that oftentimes the investments inside that 401K are not available on the outside.

They're unique to that particular plan, but he could duplicate a similar strategy with his traditional IRA. Okay, that's correct. Andrew, we hope that helps you. Thanks, buddy.

Albuquerque, New Mexico. Virgil, what's on your mind today, sir? Hello.

Hello. Thank you for taking my call, and I'm puzzled as to... I had bought some stocks from GT E-Lanker back in the 70s, and I'm wondering because Verizon, I'm assuming that bought GT E-Lanker, what would happen to those stocks? I have no idea.

Yeah. Well, it's a good question, and it could be that you were awarded new shares in the company that acquired it. I would do a bit of research, and if you know that the company you own that you had shares of stock in was purchased by another company that's publicly traded, I'd call the investor relations department. Every publicly traded company that is traded on the major indexes will have an investor relations department.

I would call them, let them know that you have these shares of stock from a previous company that they acquired, and let them tell you where you need to go from here to understand what your options are. So that would be the next course of action. Of course, the web will also be your friend here. You could just do some digging around there. You'll be surprised at what you find. So even though the stocks were purchased 50 years ago, there will still be a record of where they came from, who was involved, and what the situation or the status is today, right?

Absolutely. All right, great information. As always, you're listening to MoneyWise Live. However, today's broadcast is prerecorded.

Keep that in mind. We're going to pause briefly, and then we'll be back. This is MoneyWise Live. How should we as Christians think about investing? What if we could invest our money in a way that aligns with what we believe? At Eventide, we believe it is possible to love God and love our neighbor in the very practice of investing. We design investments for performance and a better world so you can invest for the future with a sense of wholeness and purpose. We call this investing that makes the world rejoice.

More information is available at investeventide.com. Christian Healthcare Ministries enables believers to show love for one another by sharing each other's health costs. Through CHM's voluntary health cost sharing programs, members uplift each other spiritually and financially. CHM is an eligible option under the Affordable Care Act and a Better Business Bureau accredited charity. Interested? Learn more by calling 800-791-6225 or online at chministries.org.

Hi, my name is Jessica. I'm a Communications major at the Moody Bible Institute. For this week of Thanksgiving, the Moody Radio Verse of the Week is found in 2 Chronicles 5-13. The trumpeters and musicians joined in unison to give praise and thanks to the Lord. Accompanied by trumpets, cymbals, and other instruments, the singers raised their voices in praise to the Lord and sang, He is good.

His love endures forever. That's 2 Chronicles 5-13, the Moody Radio Verse of the Week. If you're feeling that it's time to make a change in where you work, maybe you should investigate the possibility of a position with Moody Bible Institute. Moody Bible Institute is looking to fill a number of full and part-time positions in education at Moody Publishers and Moody Radio. You'll find positions in management, clerical, professional, and non-skilled labor. It may be worth your time to take a look at the more than 40 position openings available now. You'll find each job description online at moodyjobs.org. That's moodyjobs.org. Siri, I need some advice.

What's up? I have questions about planning for retirement, long-term care insurance. I don't know where to start. It sounds like you need the MoneyWise app. It's a free app that will help you find those answers and more.

Really? Sure thing. You can ask your questions within the app and access helpful articles and MoneyWise podcasts. Sounds great. Siri, download the MoneyWise app. Okay. Searching for MoneyWise on the App Store.

Learn more at app.moneywise.org. With SRN News, I'm John Scott. Electoral attention will focus this afternoon on the state of Michigan, where its Board of State Canvassers have begun meeting to decide upon certification of the state's presidential election results. Despite warnings from public health authorities to stay home for Thanksgiving, Americans are crowding the nation's airports ahead of the holiday.

Many of them willing to miss out, not willing to miss out on seeing family and convinced they can do it safely. More than 3 million people screened at U.S. airports on Friday and Saturday. AstraZeneca, the third major drug company to report late-stage results for a potential COVID-19 vaccine. The drugmaker shows its trials show the coronavirus vaccine up to 90% effective. On Wall Street, the Dow gained 327 points today.

The Nasdaq was up 25. This is SRN News. If you haven't visited our website, we'd encourage you to do that. It's moneywiselive.org, moneywiselive.org. You'll find a number of free and helpful resources there. Also, archives to our past radio programs, ways to reach a certified kingdom advisor in your area, and much, much more.

Check it out today, moneywiselive.org. Lakeview, Iowa. Hello, Norah. What's your question today? Hi there.

Thank you for taking my call. So, I will try to phrase this in a not-so-confusing manner, but my husband and I just had a baby, and we're looking to curb our spending a little bit. We've paid off our cars early. We put money into retirement. We donate to the church.

We've always had plenty. And we want to start donating or putting money into a 529 and just having extra to spend on will without taking from those things that we're already doing and happy with. My question is, we put everything on a credit card, pay it off every month, but for tracking purposes. You know, it downloads right into Quicken. I get cash back.

It's great. But I'm having a hard time tracking all the spending, you know, like the envelope method of controlling the spending. Is there an app that maybe is helpful for that?

Is there something that other people have done that's better than putting, or is an Excel file, you know, the best way to do it? Yeah, yeah. Well, I really resonate with what you're saying here, Nora. First of all, congratulations on doing a lot of things right.

You all are givers. You've been saving for the future. You've obviously limited your lifestyle. And you're really trying to stay on top of it as a wise manager of God's resources by tracking what you're spending and saving, and that's all a good thing. I think one of the challenges with and whether it's Quicken or Excel or however you do it, one of the challenges with just downloading the transactions at the end of the month is it's not giving you the control system you're looking for. It's just reporting on what's already happened, as opposed to giving you away throughout the month with you and your husband to have ready access to the information you need so you can curb spending in any particular category as the month unfolds, which was one of the beauties of what Larry Burkett and many others and Dave Ramsey will talk about it as well.

It's one of the beauties of the envelope system because whether it's a virtual or a physical envelope, when the money's gone, it's gone, and we stop spending. And that really, you know, allows us to stay on on budget during the month as opposed to just seeing how much over or under we were once the month is complete, and there's very little we can do about it at that point. There are some great options for that. I'll mention a few smartphone apps that I think will accomplish this purpose. You could continue to spend throughout the month on your credit card, assuming you pay it off in full every month, and it's really just for the ease of use, because all of those transactions will download into any of these apps. I would look at Mint, I would look at EveryDollar, and I would look at Envelopes, and that's just M and then V-E-L-O-P-E-S. Any one of those three will do what you're talking about. The key is what interface do you find most easy to use, and they have different price points and so forth.

I think the idea there that you could stay on top of this on a sometimes daily basis or weekly at least so that you can make course corrections throughout the month is really going to be the key to you accomplishing what you're looking for here. Does that make sense to you, though? Yes, and do either of any of those go between, like, could my husband and I have the same account?

Do any of those do that? Oh, absolutely, yeah. We both have it. Yeah, so you would all, both of you, assuming you use a smartphone, you'd both have the app, you could both access the apps at any time. All the information would download not only to both of your smartphones, but you'd both have access through the web, and so you can both stay on top of this throughout the month as you work together to manage the flow of money. And then we love the idea of a weekly money date where you'd sit down and look at how things are going and make some decisions as the month progresses, but that would absolutely be possible. Awesome. Well, would you happen to have time for one more question?

Sure, yeah, go right ahead. So, my husband and I are farmers, and our families have been blessed to own a fair amount of ground, and when talking after the baby was born with our parents, some of the suggestions were that instead of putting money into retirement, since we will be getting land as inheritance that tends to keep its value, is there value in using some of that money to go into my son's 529 plan? Or do we just keep putting into retirement if possible? Yeah, so you are putting money into the 529 at the same time you're funding the retirement account as well, or you're just doing the retirement at this point? We're just doing retirement right now.

He's only six months old, so we haven't figured out the 529 yet. Okay, yeah, you've got some time. Put him to work.

That's great. Well, I think the key here, Nora, is really to do some planning. You know, I would hate to tell you just to abandon the retirement plan that you have right now, just based on this short conversation. You know, there are ways to pay for college. There are not ways to fund retirement apart from saving, and so I think the key for you is to really look at what is the value of that land and what might that be down the road? And then how much diversification do we want?

Because Ecclesiastes is very clear that we should diversify our assets, not only in our stock portfolios, but I think that would include in terms of asset classes. So I like the idea of you having some stock and bond investments in addition to land, even though there is real value there, and that can be a part of your overall long-term retirement plan, assuming you would liquidate it when you get to retirement so you could turn that into income. But putting all of that into the context of a comprehensive financial plan where you're looking at your current savings rate and projecting that out with the growth of the value of the land based on historical trends, and then running that out until retirement, looking at what your lifestyle needs are going to be at that point, and then comparing that to the cost of college 17 years from now, will I think begin to give you some clarity as to do you just shift a portion over to the 529? Do you just stay focused on retirement right now?

Or can you suspend for a period of time the retirement savings because you already have this nest egg that's going to cover everything you need, and therefore you could focus on that right now as your priority. All of that will come out of your planning, and there in Iowa I would look for a Certified Kingdom Advisor. You can go to our website, just click on Find a CKA and put in your zip code. We're glad you called today, Nora, and we wish you the very best with that little guy.

Thanks very much. You know, Rob, we started off discussing Medicare and Medigap coverage, and Nora just asked about a 529 for her six-month-old little boy, which is a great time to get started on it. But all of that really has to do with the future and where will we be and what will we need. And as we look at all these numbers and start to wonder what the future holds, where does faith and trust in God fit into all of this?

Because frankly, what if the numbers just don't add up for you at this time? Well, that's right, and that's where a lot of people are, Steve, and I think the key is we recognize we're stewards, God is our provider, and ultimately our trust is in Him, not our stock portfolios, not our bank accounts. Now, does that mean we don't have to be planners and we shouldn't be diligent in saving for the future?

No. I think that's part of the role of a steward. So we plan and we pray and we ask God and we write our plans in the sand and we're ready to change them as God redirects. We should be givers, not just down the road, but right now we should be giving systematically, we should be limiting our lifestyle, we should be living content lives, and we should save. But all that's done prayerfully and we don't take our cues from the world.

We need to set our financial finish lines based on really prayerful consideration with our spouse and with the Lord. So that's really how we put it all together, and it doesn't look the same for everyone. That's right. You're listening to MoneyWise Live.

He's Rob West. I'm Steve Moore, a real honor and pleasure to have you with us today. We're going to pause. We'll be right back.

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I mean, how selfish can we be? A famous Las Vegas entertainer and acclaimed atheist once said, If you believe I'm going to be lost, how much would you have to hate me to not tell me? Think of all the people you know who don't know the Lord and will be lost for eternity if they don't accept the Lord before it's too late. And with their churches closed, how are they going to know God loves them and wants them to spend eternity with him unless someone tells them how much would you have to hate them to not tell them?

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We'll be right back with more Proverbs 28 27. Rob, any additional thoughts before we turn to our phones again? Yeah, let me just clarify one thing. We've had a couple of questions from folks asking about the enrollment period on Medicare. And I think this is an important clarification. Our caller earlier was no longer working, but there is an important distinction if you're working where you don't necessarily have to sign up for Medicare at sixty five. The distinction if you're still working at sixty five and you have coverage under a group health plan through an employer with 20 employees or more.

And that's key. Then you don't have to enroll in Medicare right away. Now, if you work for a smaller company with fewer than 20 employees, you'll need to sign up for Medicare A and B during that initial window, because once you turn age sixty five, Medicare will be considered your primary source of coverage. And it can be a big deal in terms of missing the window because you'll have a gap in coverage and you'll increase your Part B cost for the rest of your life. You'll have a 10 percent increase in your Part B premium for every 12 month period you go without coverage once you become eligible. But a lot of folks are working longer, Steve, and they're working for companies with a health care plan that they're enrolled in and they have more than 20 employees.

And if that's the case, then that enrollment window does not kick in at that point and you will not have any penalties by delaying it so long as you're still employed. Rob, where's the best place for people to get objective help when it comes to this? Because it really does get confusing for lots of people and you know, you really don't want to go ask someone who's trying to sell you something. So where's a good objective source when it comes to further information about these things?

Yeah. Well, the first thing I would do is just visit the government's web page so you can get the information there. And you know, that really is going to give you not only the comparison of the different types of plans, but really explain a lot of the things you need. And it's just simply Medicare.gov. That would be where I would go first.

And then there's a number of other websites you'll find. But that would be my starting point, Steve, just to educate yourself. All right. Good information. Down to Tampa, Florida. Penelope, we appreciate your patience.

How can we help? Sure. I am 69.

I'm very active, very energetic, and I've been blessed. And I have an IRA that I'm no longer dependent on, about $400,000. And I am thinking because my portfolio, the agents recruited me, courted me in the last 20, 30 years, it has not really done as well as the S&P 500. And so I cannot, I'm too old to wait for the stock market to recover should it go down. So I'm thinking of investing into a fixed index without any options, with insurances that are very solid, and indexes that are publicized and can be relied upon.

And so I would like to know, I'm getting conflicting opinion. I know I've done my own study about the variables, which is not good. I don't like the options, the riders that are provided. I just am thinking of just going with a reliable fixed index annuity.

Yeah. Well, I think the key is to recognize what an indexed annuity is. You are correct that the way they're sold, and that's often the way people get into them, is that they're sold to them by somebody whose job is to sell a product, is that it does protect you against the downside of the investment risk of the market, while offering the promise of a portion of the upside of the market during the years where the market is in positive territory. It's an annuity contract with an insurance company and offers that downside market volatility protection, which is very appealing for folks in that season of life who are looking for no risk, wanting to capture some gains over time, but not wanting to take any downside risk.

I think what's important to understand is that there's a lot of different varieties of these. They tend to be very complex, and so they're often folks who get into them don't understand how the index option is even calculated, whether there's any guarantees there, and if there are, what are they, the fixed rate versus getting a portion of the upside, and really seeing how that plays into their overall financial plan, which is what needs to drive everything. Tell me the concern you have about investing outside of this type of product, assuming you have somebody who can build a portfolio that's consistent with your age and risk tolerance, which would mean that the bulk of the assets are out of the equity market, meaning the stock market, and in more fixed income instruments.

Why is that not appealing to you? Well, what would be a fixed income instrument? A fixed index, or what? What were you... Yeah, you could do any number of things, but often you would be looking at indexes where you would build a diversified portfolio of bonds, where you could have government bonds and corporate bonds that are short, medium-term, and long-duration, coupled with some allocation to high-quality equities through indexes and really build out a very low-cost portfolio that really matches what you're trying to accomplish. I think that's really the key in terms of starting with the plan, and do you need to generate any income from this, and if not, how do you grow it at a modest rate without taking unnecessary risk, and then allowing the investment strategy to come out of that by laddering any number of these fixed income options, like bonds and CDs and even indexed annuities, putting it all together to accomplish ultimately the investment portfolio that matches your goals and objectives?

It's a loser for me. I don't depend on that money, and in terms of the maximum, some of the best, what they have to offer, compared to the interest that it promises is really not attractive. The bonds, based on my understanding and where the interest rates are and the projection to grow, compare where the interest rates are going to go, which they're going to go up, they're not going to go down, so I don't think bonds is really the place to be, to my understanding. Please correct me if I'm wrong. I'm not an expert.

I'm doing some homework. It looks like we lost Penelope there, but no, I understand what you're saying, and I think the key is, again, going back to what are you trying to accomplish? And fortunately, you're in a position right now where it sounds like you don't have a need for this money to generate income. Your lifestyle is taken care of, so that gives you ultimate flexibility to determine what is the best strategy for you to manage God's money, recognizing how much you want to be giving now and in the future, and being a proper manager to put this money to work. And I think looking at this, it's certainly very appropriate to think that a competent investment professional could build a portfolio for you that reflects that, that has some growth potential, but is not taking unnecessary risk.

However, if you would feel more comfortable transferring that risk to an insurance company, I think the right indexed annuity product could be a great solution for you where you protect yourself against the downside, but you have a guaranteed rate of return that's higher than you would experience in the typical CD. So I think either of those options are in play. I would just make sure you get wise counsel from a number of individuals in this space, as opposed to somebody who's just trying to sell you something. And then as you think through it, if you have other questions based on the actual strategy you're looking to deploy, we'd love for you to give us a call back. Penelope, we're glad you called today and got through. Thanks very much.

Bob in Indiana, I am very sorry, but we are almost out of time. So with your permission, sir, or even without your permission, may I paraphrase your question for you? You're thinking of investing in a health savings plan instead of paying for supplemental insurance through Christian Health Care Ministries. You're wondering, is this recommended? Also, does one have to take Social Security at age 65? And you're looking for some clarification on that.

Rob, can you help Bob out here? Yeah, well, the key with the health savings plan is you have to have the high deductible health care plan, the HDHP. So for 2020, the IRS defines that as a plan with a deductible of at least $1,400 for an individual and $2,800 for a family. Now, if you have that in place, then absolutely you can use a health savings plan. I think the key is to recognize that where they're most effective is when you can max out the contributions and you're relatively healthy, which means that money is not going to be used for medical expenses and therefore you can let it grow over time. As to the Social Security question, Bob, no, you don't have to take Social Security at age 65 or your full retirement age, whenever that might be. In fact, every year you delay beyond full retirement age, your benefit will increase 8% up to age 70. And what a lot of folks are looking at there is, based on their health and the life expectancy of somebody who reaches age 65, which pushes that life expectancy up to 83 and 84 for men and women, are you going to eventually with that higher payout collect more over time to where it makes sense?

And in most cases for a healthy adult, you will. So I would look at it seriously. Bob, we hope that helps you. Very sorry we couldn't get you on the air, but I hope you were able to glean all that information and incorporate it into your life. Thank you very much for calling. MoneyWise Live is a partnership between Moody Radio and MoneyWise Media. Thanks so much for being there. Join us again next time.