FA Insights is a daily newsletter from Business Insider that delivers the top news and commentary for financial advisors.
Avoid this mistake when enrolling for Medicare (The Motley Fool)
Anyone who is receiving Social Security before the age of 65 is likely automatically enrolled in Medicare, but those who aren’t should make sure to enroll for the program on their own. The Motley Fool notes, “The initial enrollment period for Medicare begins three months before you turn 65 and ends three months after your 65th birthday.” Missing this enrollment period will lead to a 10% increase in your Part B premiums for every 12 months that go by without enrolling, and you will be stuck with the increased costs for the rest of your life. Special enrollment periods might help you avoid those penalties. One such qualifier would be if you are working when you turn 65.
A look at the Greek debt drama (Bloomberg)
Greece owes the International Monetary Fund 1.6 billion euros over the next month, and the government has said it will have trouble making the payments. According to Bloomberg, “A person with direct knowledge of the country’s liquidity position said Greece has enough cash at least for the payment due June 5. A prompt payment then would buy Greek officials and representatives of creditor institutions another week of time to negotiate an agreement which will unlock bailout funds and solve the problem, before the next payment is due.” If a payment is missed the country could be downgraded to ‘default’ by the major credit rating agencies, which would almost surely make the country ineligible for emergency cash. An exit from the euro is possible, but not a forgone conclusion.
Financial websites that prepare you for the trading day (The Trading Coach)
The Trading Coach asked its newest trainees to share some of the websites they use to prepare for the trading day. Business Insider’s “10 things you need to know before the opening bell” made the cut. For the entire list, click the link above.
5 things to do if you are nearing retirement (Fox Business)
Michael H. Milarski, a partner and senior financial advisor for Signature Financial Planning told Fox Business, “Retirement is such an important transition for an individual and, oftentimes, people are so busy with their day-to-day lives that they don’t sit down to begin planning for this transition until they are a few months from their desired retirement date. As a result, they find themselves scrambling to try and get all of their ducks in a row at the last minute.” So what does he suggest you should do in the five years leading up to retirement? Make sure you have an idea of your monthly expenses, and develop a plan for when to begin receiving your retirement income. Also, make sure there is no lapse in your health insurance coverage as a missed deadline might prevent you from receiving coverage until the next enrollment period. Finally, make sure your estate plan is up to date, and your life insurance coverage is reduced to cover only what is needed.
3 things people get wrong about Social Security (Financial Planning)
Financial Planning notes most people have trouble resisting the urge to wait on social security, and instead choose to receive payments as soon as they are eligible. The three most common reasons for this approach other than not being able to afford to wait include: wanting their money back, not wanting to use money from their savings and the belief the system will go broke. The article also notes Social Security benefits grow at approximately 8%, meaning anyone who dips into the money early will have trouble matching these types of returns. Those who become eligible for social security have trouble avoiding the instant cash.
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