Types of Retirement Plans

Getting to know the types of retirement plans that are available for you is important when planning retirement. In another article we covered the most common types of retirement plans, which are defined benefit plans and defined contribution plans, in which plans like IRAs, 401(k) and Social Security are included. However, there are other types of retirement plans that usually combine the characteristics of the two previously mentioned, so today we will explain you what you need to know about them.

      Hybrid and cash balance plans

Hybrid plans combine the characteristics of the two types of retirement plans previously explained, which are defined benefit and defined contribution plans.

For taxes, accounting and regulatory purposes they are considered as defined benefit plans. The major risk of the investment is assumed by the plan sponsor, as in defined benefit plans, but the benefits are expressed as a notional account balance and they are paid as cash balances when the employment is going to end, just like defined contribution plans.

A common example of a hybrid designed plan is the Cash Balance Plan, where the employee’s notional account balance grows by some defined rate of interest and annual employer contribution, and it maintains hypothetical individual employee accounts.

     Qualified Retirement Plans

     Qualified plans receive favorable tax treatment and are regulated by the Employee Retirement Income Security Act (ERISA). However, there are plans that are not considered as qualified, like 401(k), but they are treated and taxed the same.

If a plan wants to receive favorable tax treatment, it must meet some strict requirements, such as offering life annuities in the form of a Single Life Annuity (SLA) and a Qualified Joint & Survivor Annuity (QJSA) and maintaining sufficient funding levels.

401(k) Plan

     In 401(k) plans, the retirement saving contributions is provided by an employer and deducted from the employee’s paycheck before taxation. In some cases, the employer may match these contributions.

There are some rules related to 401(k) plan. The most important is that there is a limit on the amount an employee may elect to defer from his or her salary before taxation each year.

Employees who have 401(k) are in charge of their retirement income by contributing part of their salary and directing their own investments.

Good Medicare Supplement plan is a good investment. Learn more here bestmedicaresupplementplans2019.com/medicare-supplement-plans-2019-tips-compare-options/.

SIMPLE Individual Retirement Accounts (IRAs)

     SIMPLE IRAs are types of retirement plans provided by an employer which are similar to 401(k). The differences are that they offer simpler and cheaper administration rules and contribution limits are lower than other types of employer-provided retirement plans. SIMPLE IRAs are funded by before taxation salary reductions.

     Simplified Employee Pension Individual Retirement Accounts (SEP IRAs)

     SEP IRAs are usually used by business owners to provide retirement benefits for the business owner and their employees. These plans allow employees to make contributions on tax-favored basis to their Individual Retirement Accounts (IRAs) and funds can be invested. There aren’t significant reporting and disclosure requirements and all employees have to receive the same benefits in a SEP plan.

Nonqualified plans

As indicated by its name, nonqualified plans are plans that do not meet the requirements to receive favorable tax treatment and they are excluded from the restrictions applied to qualified plans.

Some nonqualified plans are 457(f) plans and Supplement Executive Retirement Plans (SERP). They are used to give additional benefits to important or highly paid employees, like executives.

Keogh plans

Keogh plans, also known as HR10, are retirement plans designed for self-employed people and small businesses. There are defined contribution Keogh plans and defined benefits Keogh plans. Their main benefit when compared to other retirement plans is that they offer higher limits of contribution.

Medicare Supplement Plans – What You Should Know

The moment you reach the age of 65 there is a need to make good decision when choosing programs that will cover your health care needs. Your options are either to choose the traditional Medicare or Medicare advantage plan. If you choose the first option you may need to enroll in Medicare supplement plans.

 

Medicare supplement plans come in 10 standard plans that are developed by Medicare. That is to say you’re getting the same benefit from any provider you choose as long as it is the same type of plan. But still there is difference of price because premiums may differ from one company to another. You should take time and compare the prices from different companies in your state before you enroll in any program.

 

Why Choose Medicare Supplement Plans?

 

Any plan you choose has certain benefits it offers, plans start from Plan A to Plan N. Plan G and C provide almost the same benefits, while the remaining plans have their own unique advantage. Medicare supplement plans will help you to cover your hospital expenses, Medicare Part B costs and nursing home costs. You can find the list of benefits each plan offer from the official Medicare website.

 

 Do Medicare supplement plans cover everything?

Medigap Plans don’t pay drug prescriptions, in order to take care of your drug coverage you need Plan D which is designed specifically for the purpose. Long term care costs are not included, but if you’re in a nursing home there is coverage for 100 days. Medicare supplement won’t pay dental care and vision costs.

 

 Is Everyone Qualified For Medicare Supplement?

 

If you apply immediately after enrolling into Medicare, normally within the first 6 months called the open enrollment period then you almost have a guaranteed approval. But after those six months there is not guarantee, your application might turn down or you have to pay more than you would pay within the open enrollment period.

 

 How Much Does It Cost?

 

Companies set their premium prices using different categories. Community rated plans are one of the cheapest and they even decrease as you become older. Issue age rated plans depend on your age by the time you join and the price remains the same even when you get older. While attained age plans will increase in price as you get older?

 

 Things Are Changing In The Near Future

 

The government has declared that it will stop plan F from Jan 1, 2020, but anyone who has already enrolled will remain with their plan. It’s just that new applicants will no longer be accepted. Even those enrolling in plan F, by 2020 they should expect premium to rise.

 

Health tips for older adults over age 65

As you age, so does your life and body changes, therefore, you need to stay healthy. By taking care of yourself means you can extend the number of years you live and also having a productive life. Here are some of the tips to stay healthy as you age:

Exercise regularly

Older people are required to exercise regularly in order to have a healthy weight. As you age, you need to burn fewer calories especially if you are not physically active. Exercising regularly will enable you to be fit enough. It will also help to reduce the risk of many illnesses including diabetes, heart disease, high blood pressure and arthritis. You can manage this by doing something you enjoy such as taking morning runs, dancing, walking and bike riding.

Maintain a healthy diet

When you get older your body begins to need as many nutrients and fewer calories. Ensure that you maximize the intake of fruits, vegetables, and whole grains, and cut back the amount of salt. Reduce the intake of processed foods because they are not good for your health. As you age, you are required to avoid high sugar foods that contain a high rate of calories which may affect the health. Checking food labels to see the amount of sugar in processed foods is also important when you go shopping.

Being good to yourself

Many older people may feel lonely, stressed and sad because of loss of loved ones, difficulties paying bills and trouble paying bills. This may affect your health since you may not feel like doing anything, overeat or not eat enough. Being good to yourself will help you improve your health and eating habits. Stay in touch with your friends and family members to keep you in good spirits. Ensure that you surround yourself with people you love being around them.

Get enough sleep

Older people tend to sleep less as they age, this may increase the risk of depression and memory problems. Stick to regular bedtime routine if you are having trouble sleeping. Avoid drinking caffeine late in the day or during evening hours. Don’t spend time on a computer or watch television while you are in bed. By doing this, you will be able to get enough sleep which is good for your health.  Remember good health insurance too.  Learn more about Medicare Supplement Plans 2018 today.

Don’t keep yourself isolated.

Ensure that you create time for your family and friends on a regular basis. You can sign up or join a club that you can find fun. This will boost your health status as an aged person.

 

The health and importance of your care

If your health fails, you can outshine everything else that is happening in your life. From relatively minor health problems, such as aches and pains, lethargy and indigestion to the main health problems that can threaten their existence, health can really affect happiness and stress levels. When you decide to lead a healthier life brings a multitude of benefits to your body that will thank you and one will be the spirits and energy.

Instead of eating well just for the promise of looking better in your jeans, you must also commit to eating foods that increase your energy level and keep your system running smoothly. This can affect your health so much, you will see the payment sooner or later for not taking care of it, as in your day to day; you will feel fatigued, stressed, without mood or in a bad mood. Therefore, be careful what you eat is vital for harmony in your body.

With regard to health care, it is essential that they keep the sedentary life away and move daily, either with moderate efforts of low intensity or moderate walks; these will greatly favor the function of the respiratory organs and the blood flow through the heart to prevent heart disease. Many types of health care interventions are carried out outside the health centers, for example, we also have surveillance and awareness programs for better nutrition, intervention of interest to public health, distribution and education about health and health; as programs where needle exchange is carried out to prevent communicable diseases.

We have all heard the advice of “eating well and exercising,” but it can be difficult to fit into workouts on a tight schedule, especially when you feel exhausted by stress. The best way to adopt all this is to make it habit, such as exercise and good nutrition, adapting it to how you feel more comfortable.

Role of Medigap in Healthcare:

Aetna Medicare supplement play important roles in Healthcare as they provide such cost effective policies that makes several health services easy to get.  For those who don’t know, Medicare plans are actually health insurances that an individual purchase from any privately owned business to pay the medical or health care costs that are not paid by the Original Medicare, for example, deductibles, co-installments and medical care while a person is outside the U.S. There are a lot of different plans some covers the long haul care, vision care, dental care, eyeglasses, hearing aids or private nursing duties while some don’t cover all these things. Same goes with the prescriptions drugs. An individual has to pay a premium each month for the policy / plan. These plans are one of the best ways for the senior health care.

 

 

Things to Consider When Choosing Medicare Supplement Policies

Statistics show that close to 10,000 people get a Medicare Cover on a daily basis. This brings with it the decision of whether or not to add a Medigap Policy to the cover as well. However, unlike in the case of Original Medicare Policies where everything is straightforward and the options are few, there are quite a number of Medicare Supplement Plans to choose from. This usually proves quite challenging and in most cases very confusing. The probability of making the wrong decision is usually quite high. Here are some of the factors you should apply to the 10 policies to enable you to narrow down the decision and arrive at the most beneficial Supplement insurance for you.

Click here http://www.medigapplansguide.com/medicare-supplement-plans-2019/ for online quotes.

Important Considerations for Assessing Medigap Policies

Before purchasing any policy, you need to properly assess and critique each of these two angles. Make sure that the agent selling you the policy clearly elaborates on these two aspects and satisfactorily answers your questions.

  1. The pricing mechanism

Premiums vary from state to state and company to company. This is because the premium determination methods applied are different. Do not just go for what is cheap at the moment, as this may turn out to be more of a financial burden in the future. Let the agent explain how each of the premiums is priced and how time and age will affect them. This will allow you to know which one is cheap at the moment, constantly expensive, constantly priced and which ones will become pricy later. The pricing method used is thus the most important aspect when it comes to selecting a Medigap Policy, not the prices of the premiums at the point of buying the policies.

  1. The reputation and rating of the insurance provider

Once you have gotten a clear picture of the pricing method, then you need to assess the company according to its rating. If you are stuck between two companies that are offering competitive price and the same pricing mechanism, then the reputation should be the deciding factor. At such a point, choosing the company with the better reputation and rating is your best alternative.

Other factors to consider are:

  1. Your personal preference

With the plans being standardized and the benefits being the same in spite of who covers you, then the decision for the plan should fall to a personal preference. If you are alright with paying for coinsurance and copays with each doctors visit, then you can opt for Medigap Plan N if that is not an acceptable option for you, then you can go for Plan F.

  1. Medical history

I come from a good gene pool and have no prior medical conditions nor are you at the risk of developing any, then a lower benefit policy will help save you a lot of money. On the other hand, if you are facing the exact opposite scenario, then a high benefit policy like Medigap Plan F will save you a lot of expenses.

Top Five places for retirees

Living a carefree and a relaxed life is what we all want to do after retirement. We want to be away from the hustling and tiring life and enjoy our free time somewhere quiet and peaceful. The top places around the world where people can live a better life after retirement are countless, these are places where a person can invest soundly, retire comfortably and follow their dreams after retirement.

Abruzzo, Italy

Abruzzo is a picture-perfect place to retire with moderate weather in southern Italy. This beautiful and lush green place has a lot to offer at very low cost. It’s a quiet and a peaceful place to live. Abruzzo has extremely fresh and locally produced ingredients for cooking all available within a few miles. Above all, food in Abruzzo is super affordable whether you eat at home or dine out both ways are incredibly cheap.

Portugal’s Algarve region

Algarve region is one of the best places to retire in the world. It’s located at Europe’s westernmost tip. Algarve region has the best beaches and golf courses of Europe, people are very friendly and this place has a low cost of living which is 30% lower than in any other European country. Fishing and other activities are highly popular here and it has the best weather for all sorts of activities.

Valletta, Malta

The second-best place to retire can be Valletta, Malta. If you want to experience the perfect Mediterranean life-style than it is a great choice for you. It is considered a perfect place for investment and retirement. It is a small place but good opportunities for investment, cost is living is quite inexpensive as compared to other European countries. Wine production is very popular here, there are beautiful vines hanging with grapes everywhere. Malta has a favorable weather and food to offer with cheap places to live which makes it an ideal place to retire and live peacefully.

Mazatlán, Mexico

Mazatlán is located about halfway along Mexico’s Pacific coast. It has been ignored and underestimated for many years but now it is making a comeback as more people are choosing to travel and live here. It is a popular choice for many expats. The city’s historic centre is the main attraction along with the beautiful and uncrowded beaches.

 

Saint-Chinian, France

This beautiful little town of about 2,000 residents is located on the shores of Mediterranean. It should be your top choice if you are looking for perfect weather, sapphire skies, outdoor experiences, fresh foods along with history, culture and amazing country side.

Saint- Chinian is a small, little town with good quality food and a lot to see in terms of art, history, and culture. It has some busy market areas famous among people visiting from all around the region to get locally grown produce. This place has everything you ask for such as local produce sellers, restaurants, bars, hospitals. There is very little traffic and great health-care services here but if you are moving from U.S than you should have a medical insurance that covers you in foreign countries as well. Look up Medicare Advantage Plans for 2019 and choose the policy which covers you abroad as well.

After retirement, wherever you want to live depends on your personal choices and preferences. Most people want to live in a peaceful and beautiful small town that has everything to offer at low prices. These suggestions will help those people to choose a place to retire and relax after leaving working life.

Find out about insurance here medisupps.com/cigna-medicare-supplemental-insurance-2018/.

How to Find The Right Price For Your Medicare Supplement Plan

Do you know what the cost of Medicare Supplement Plan? Many people are at lost on how to calculate the cost of this healthcare insurance. The reason for this is because for you to get the cost of the plan, you need a little research and education.  The place you live is also an important factor when it comes to finding the right price for your health plan.

The Basic Cost

The first thing that you should learn is what the plan is talking about.  Every Medicare plan is standardized which is something you should come to term with.  What this simply means is that the benefit of each plan is the same for other insurance companies.

You should understand that the Medicare Plans come with alphabets.  Currently, we have 10 insurance plans that run from A to D, F, G, K and N.  What you should know is that each plan has their benefits. You will have to identify the right alphabet that can take care of your needs and then, look at the prices set.

The Way The Medicare Plans Are Priced

Though, it is an open secret that the Medicare Supplement plans in 2018 have been standardized, you should be aware that the costs of these plans are not. Insurance firms are free to set the healthcare plans they way that will fit them. They can also decide if the cost will increase as the person gets older.  We have three methods that healthcare insurance firms can set their costs to increase over time.

The No-Age-Rated or Community Rated:  In this case, everyone in a particular area is expected to pay the same premium every month irrespective of the age.

The Issue-Age-Rated: This is the monthly premium that is set based on the age at which you are buying.  The cost increases according to the age of the purchaser.

The Attained-Age-Rated: This is initially based on the age at which you got the plan. The premium is expected to increase as you get older.

You will realized that most of these health plans are based on the Attained –Age-Rated. For the community rated,  here is a discount to the young ones, and the older will pay more for their plans.

Factors Affecting the Price of Plans

 

The Medical Underwriting:  What do you know about medical underwriting? This is the practice that make use of a person’s medical history to decide what the cost of healthcare plan will be. Sometimes, it can be used to deny you a coverage. What this simply means is that the cost will be higher when the health problem is more.  However, you should be aware that you are given an open enrollment period.  This period does not allow a company to use medical underwriting.  This period can be for a period of 6 months after the day you turned 65.

The High-Deductible plans:  There can be  high options for Plan F and J deductible. When this is offered, the monthly premium will be reduced and you pay more for your medical services until the Medicare Plan begins.

The Medicare Select: This plan has a lower costs, and expect the user to go for a pre-defined network of hospitals and also, doctors too.

 

How to Choosing Your Medicare Supplemental Plan

Medicare Supplement plans help pay Medicare Part A and Part B costs. Original Medicare, the health coverage you can get when you turn 65 or have a qualifying disability, consists of Medicare Part A and Part B. Part A provides hospital insurance, and Part B (medical insurance) covers doctor visits; preventive services like certain screenings and vaccinations; durable medical equipment; and other services and items. But Part A can come with substantial annual deductible and copayments or coinsurance for certain inpatient services. Medicare Part B also has copayments, coinsurance, a monthly premium, and an annual deductible. Medicare Supplement  (also known as Medigap and MedSupp) insurance can help downsize your Original Medicare cost burden.

Merits of Medicare supplemental plans include:- large medical bill protection, coverage outside the US, guaranteed acceptance even if you have a health condition without extra charges, guaranteed renewable policies and support even in portability amongst others.

A Medicare Supplement plan is generally offered through private insurance companies. These Medigap plans help pay some of the hospital and medical costs that Original Medicare doesn’t cover, such as copayments, coinsurance, and yearly deductibles. A person need to be already enrolled in Original medicare to be eligible for medigap coverage and hence they are not meant to provide stand-alone benefits.

 

Every Medigap policy must follow federal and state laws designed to protect you, and it must be clearly identified as “Medicare Supplement Insurance.” Insurance companies can sell you only a “standardized” policy identified in most states by letters. Each insurance company decides which Medigap policies it wants to sell, although state laws might affect which ones they offer. Also, Any standardized Medigap policy is guaranteed renewable even if you have health problems. This means the insurance company can’t cancel your Medigap policy as long as you pay the premium.

Find out more about Medigap www.medicaresupplementplansfor2018.org.

Medigap policies generally don’t cover long-term care, vision or dental care, hearing aids, eyeglasses, or private-duty nursing. A Medigap policy only covers one person. If you and your spouse both want Medigap coverage, you’ll each have to buy separate policies.

A lot of Americans have come to embrace this

We are aware that the government has standardized the policy which is why everyone can make use of it without worries. Everyone who wants to get a plan should first think along the plan premiums before making a choice. With the help of a doctor, you can still make your choice within a short time if you do not have enough information on the coverage to use.

Medicare and Medicare Advantage

Medicare is the federal health insurance program for individuals who are 65 or older, certain more youthful individuals with inabilities, and individuals with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant, sometimes called ESRD). In the event that you or your spouse have worked all day for at least 10 years over a lifetime, you are probably qualified to get Medicare Part A for nothing.

 

Section A covers inpatient hospital stays, care in a skilled nursing office, hospice care, and some home health care. What Medicare covers depends on, Federal and state laws, National coverage choices made by Medicare in the case of something is secured, neighborhood coverage choices made by organizations in each express that procedure claims for Medicare. These organizations choose whether something is medically essential and ought to be shrouded in their general vicinity.

 

Medicare Part B is accessible at a monthly rate set annually by Congress ($121.80 in 2016 for earnings $85000.00 or less for an individual). Part B covers certain doctors’ services, outpatient care, medical supplies, and preventive services. Some seniors are qualified to get the medical insurance parcel (Part B) free too, contingent upon their pay and asset levels. For more data, ask about the Qualified Medicare Beneficiary (QMB), Special Low Income Medicare Beneficiary (SLMB), and Qualifying Individual programs through your district social services office. Keep in mind, much of the time, if that you don’t agree to accept Part B when you are first qualified, you should pay a late enlistment penalty for whatever length of time that you have Part B. Your monthly premium for Part B may go up 10% for each full year time span that you could have had Part B, however didn’t agree to accept it. Likewise, you may need to hold up until the General Enrollment Period (from January 1 to March 31) to select in Part B, and coverage will begin July 1 of that year. For the most part, you don’t pay a late enlistment penalty if you meet certain conditions that enable you to agree to accept Part B amid a Special Enrollment Period.

 

Medicare Part C (Medicare Advantage Plans) is a sort of Medicare health design offered by a private insurance organization that has an agreement with Medicare to furnish you with all your Part An and Part B benefits. Medicare Advantage Plans incorporate Health Maintenance Organizations (HMO’s), Preferred Provider Organizations (PPO’s), Private Fee-for-Service Plans (PFFS’s), Special Needs Plans (SNP’s), and Medicare Medical Savings Account Plans (MSA’s). In case you’re selected in a Medicare Advantage Plan, most Medicare services are secured through the arrangement and are not paid for under Original Medicare. Most Medicare Advantage Plans have prescription drug coverage included.

 

Medicare Part D (prescription drug coverage) adds prescription drug coverage to Original Medicare, some Medicare Cost Plans, some Medicare Private-Fee-for-Service Plans, and Medicare Medical Savings Account Plans. These plans are offered by insurance organizations and other private organizations approved by Medicare.

More information here medicareadvantage2019.org.

Medicare Advantage Plans may likewise offer prescription drug coverage that takes after a unique rules from Medicare Prescription Drug Plans. Remember, you may owe a late enrollment penalty if you abandon a Medicare Prescription Drug Plan (Part D), or without a Medicare Advantage Plan (Part C) (like a HMO or PPO) or other Medicare health arrange for that offers Medicare prescription drug coverage, or without respectable prescription drug coverage for any constant time of 63 days or more after your Initial Enrollment Period is finished.

Comprehensive Information on Medicare Supplemental Plans

A Medicare Supplemental Plan (Medigap) helps to cover some of the health care costs like copayments, coinsurance and deductibles that are not covered by Original Medicare. You must have Medicare Part A and Part B before applying for a Medicare supplement plan. Medicare supplemental plans only cover an individual and can be purchased from any licensed insurance company in your state. However, Medicare supplement plans don’t cover long-term care, vision or dental care, eyeglasses, hearing aids, or private-duty nursing. Other types of insurance plans like Medicare Advantage Plans, Medicare prescription drug plans, Medicaid, Tricare, Long term care insurance policies aren’t Medigap plans.

 

There are 10 Medicare supplement plan types available in most states, and each plan is labeled with a unique letter that tally with a certain coverage level. In most states excluding Minnesota, Wisconsin and Massachussets, Medigap plans have the same standardized benefits for each letter category. The plans are Plan A, Plan B, Plan C, Plan D, Plan F, Plan G, Plan K, Plan L, Plan M and Plan N respectively.

Plan A is the basic plan which covers the fewest benefits. Plans B, C and D are somewhat alike with few differences. Plans F and G offers the highest level of coverage of the 10 plans. If you need help with certain Original Medicare costs and you want a lower-cost supplement plan with very basic coverage, then Medigap Plan K is ideal for you. Plan L offers somewhat less coverage than other plans, but it does have a cap on your out-of-pocket spending, which most Medicare supplement plans don’t offer. Plans M and N offer good coverage but not all of their coverage are fully 100%. The table below shows more details of the plans.  For more comparisons on the plans go to Comparemedicaresupplementplans2019.com.

Key: “Yes” means the plan covers 100% of the benefit.

Benefits

 

Medicare Supplemental Plans

 

A B C D G K L M N
Medicare Part A coinsurance and hospital costs up to additional 365 days Yes Yes Yes Yes Yes Yes Yes Yes Yes Yes
Medicare Part B coinsurance or copayment Yes Yes Yes Yes Yes Yes 50% 75% Yes Yes**
First three pints of blood Yes Yes Yes Yes Yes Yes 50% 75% Yes Yes
Medicare Part A hospice coinsurance or copayment Yes Yes Yes Yes Yes Yes 50% 75% Yes Yes
Skilled Nursing Facility (SNF) coinsurance No No Yes Yes Yes Yes 50% 75% Yes Yes
Medicare Part A Deductible No Yes Yes Yes Yes Yes 50% 75% 50% Yes
Medicare Part B Deductible No No Yes No Yes No No No No No
Medicare Part B Excess Charges No No No No Yes Yes No No No No
Foreign Travel Emergency (Up to Plan Limits) No No 80% 80% 80% 80% No No 80% 80%
Out-of-Pocket Limit*** None None None None None None $5,240 $2,620 None None

Ensure you understand how the insurance company rates its premiums, so as to have an accurate idea of how much will be for your plan now and in the future.