Karli Vazquez- Mendez Vice President Financial Advisor at Morgan Stanley

Transcription

1 SPRING 2015 KARLI VAZQUEZ-MENDEZ, VP FINANCIAL ADVISOR AT MORGAN STANLEY Karli Vazquez- Mendez Vice President Financial Advisor at Morgan Stanley 595 S Federal Hwy Suite 400 Boca Raton, FL (561) (800) Karli.Vazquez-Mendez@ms.com SPRING 2015 What s new Now that the Holidays have come to an end, I would like to wish you a healthy and prosperous New Year. Take a moment to reflect and hone in on what you d like to accomplish this Remember that finding balance between mind, body and soul is vital. Some of you may not know but 2014 was one of the most challenging and rewarding years. Amidst all of my accomplishments, my mom, was diagnosed with a chronic disease. I found myself tied between my clients, caring for my mom, giving back to the community, taking care of my own health and managing to still have some fun. I urge you to make your health a priority this year. Step back and look at what a chronic condition might mean for your nest egg. Don t just financially prepare, make it a point to eat healthy, exercise regularly, and clear your mind. The following pages are dedicated to helping you navigate the healthcare options you may be taking in the near future and also provide you with some alternative practices. Remember I am here to help. Here s to an amazing new year! Contents Health & Wealth...2 PinnacleCare...2 Health Care Costs...3 Medicare...4 What Spike Health Care...5 Long Term Care...5 Long Term Care (cont.)...6 Karli (E-signature)

2 SPRING 2015 KARLI VAZQUEZ-MENDEZ, VP FINANCIAL ADVISOR AT MORGAN STANLEY P2 ISSUE # 1 Lets Talk About Health: Our healthcare system is constantly changing and healthcare costs are skyrocketing. It s time to address the impact that a major illness will have on your personal wealth. Here are some key points to consider: How would changes in health care legislation impact you and your family? What are your options for accessing the best care? Do you have enough health insurance coverage? Are you dealing with a time-absorbing or financially consuming medical condition for yourself or family member? Do you or a family member have a complex medical issue or chronic condition? Will you be or are you responsible for aging parents and concerned about the care they are receiving? Do you have children with special needs? If you answered yes to any of these questions my team and I can help you navigate various options. A Unique Healthcare Alternative: PinnacleCare Private Health Advisory Services Many times we think that our healthcare options are limited, whether it be due to our biased opinions, limited information or geography. As a Morgan Stanley client you have the opportunity to receive top notch guidance from a professional team of health advisors at PinnacleCare. We can help you navigate the complex health care environment that exists today. Key benefits of being a PinnacleCare member: Facilitated and fully coordinated access to top medical institutions and resources Vetted physician referrals, including board certified internists, specialists and integrative practitioners Electronic medical records Emergency travel support anywhere in the world Consultations on private health insurance and Medicare enrollment

3 WINTER SPRING 2015 KARLI VAZQUEZ-MENDEZ, VP FINANCIAL ADVISOR AT MORGAN STANLEY P3 How will you be Covering your Health Care Costs? Thanks to healthier and more holistic lifestyles and better medical care, the average American is living longer. This increased life span does come at a cost. Many individuals find themselves sandwiched in between their own medical expenses and subsidizing their aging parents health care costs. Are you financially and mentally prepared to deal with this? Medicare According to the Health Cost Institute, the cost of future health care needs for a typical married couple age 65, expected to live an additional 20 years, is $292,800 ($146,400 for an individual).there are a range of options and combinations for you to consider when organizing yourself for the medical expenses to come. Private Insurance Long-Term Care Insurance Employer Provided Insurance Remains a bargain when compared to Private Insurance. Large group plans often have no limitations on a preexisting condition if you sign up within a given period after becoming an employee. COBRA (Consolidated Omnibus Budget Reconciliation 1986 ) Provides safeguard for workers and their immediate families for months in the event of any of the following: Death of the covered employee. Termination or reduction of hours due to resignation, discharge, layoff, strike or other cause. Divorce or legal separation (which ordinarily terminates an ex-spouse s coverage). A dependent child reaches an age or status for which coverage is excluded. Private Insurance Options May find yourself needing this if you work for a small business that does not provide insurance, if you start your own business, or need to supplement for services such as dental and vision which is not covered by Medicare. Pricing for individual plans will be based on age, health and other factors and will vary depending on the state where you reside. Plan premiums generally rise as you age. Medicare Individuals are eligible for Medicare if: You or your spouse have worked a minimum of 10 years in Medicare taxed employment. Are 65 or older Are citizens or permanent residents of the US. Exception if: Under 65 with certain disabilities, & at any age for those with permanent kidney failure.

4 SPRING 2015 KARLI VAZQUEZ-MENDEZ, VP FINANCIAL ADVISOR AT MORGAN STANLEY P4 The Ins and Outs of Medicare Medicare actually consists of several parts, each representing coverage for different services. Here is a quick breakdown to demystify what might seem like a daunting application process: Medicare Part A Pays for inpatient care you receive in a hospital, nursing facility or hospice, and for home health care if you meet certain conditions Medicare Part B Pays for medically necessary doctors services, out-patient care and preventative services. Medicare Part C Also known as, Medicare Advantage. Beneficiaries receive the benefits of Medicare Parts A & B through a Medicare- approved private insurance company. Additional benefits may include: vision, hearing, dental, and often health & wellness programs. Medicare Part D Adds prescription drug coverage to your plan. The plans are offered through private insurance companies that are approved by Medicare. Don t lose your place in line: Medicare Application Process Receiving SS Benefits prior to age 65 NO YES Apply during Initial Enrollment Period Apply during General Enrollment Automatically enrolled in Medicare Part A & B Initial Enrollment Period Three months before you turn 65 and three months after. General Enrollment Period Jan 1- Mar 31 of each year. Coverage for that year will commence on July 1. *Waiting beyond the initial enrollment period may subject you to a penalty. However, if you and/or your spouse are still working at age 65 and have coverage through an employer, you may be able to delay enrolling in Parts B and D without incurring an enrollment penalty.

5 ISSUE # 1 What Causes Healthcare Costs to Spike? Just to list a few... Chronic conditions Nursing homes Ongoing long term care Offset Rising Medical Costs with: Long-Term Care Insurance Long-Term Care Insurance provides coverage to help pay for the costs of services associated with daily living activities and care, both in nursing homes, assisted living facilities and at home. LongTermCare.gov states that someone turning age 65 has about a 70% chance of needing some type of long term care service, and 20% of those individuals will require the services for five years or more 1. The average annual cost of private room nursing home care per person is expected to rise to $129,669 from $87,600 over the next decade 2. By covering some of the costs, long term care insurance can help protect your retirement savings, help reduce your dependence on family members and give you greater control over the services you receive. There are limited federal tax deductions that may help toward paying for Long-Term Care premiums. The table below will show you the maximum amount you can deduct in each age bracket Long-Term Care Insurance Federal Tax Deductible Limits: Age 40 or less $370 More than 40 but not more than 50 $700 More than 50 but not more than 60 $1,400 More than 60 but not more than 70 $3,720 More than 70 $4,660 Maximum Deduction Long-term care insurance is offered in conjunction with Morgan Stanley s licensed insurance agency affiliates. The yearly maximum deductible amount for each individual depends on the insured s attained age at the close of the taxable year. These deductible maximums are indexed and increase each year for inflation. Source: IRS Revenue Procedure: via The American Association for Long-Term Care Insurance ( SPRING 2015 KARLI VAZQUEZ-MENDEZ, VP FINANCIAL ADVISOR AT MORGAN STANLEY P5

6 WINTER SPRING 2015 KARLI VAZQUEZ-MENDEZ, VP FINANCIAL ADVISOR AT MORGAN STANLEY P3 P6 Long-Term Care (Continued...) There are several factors you should take into consideration when applying for long term care. Take note of the following to ensure you can secure the best benefits for you and your family... Covers Services for those with : Chronic disease Disability Sudden Illness Include assistance with activities of daily living : Dressing Eating Moving from bed to chair The Basics When to Purchase Ages of If you apply later on in life, physical ailments may increase policy costs or prevent you from qualifying for coverage. Expenses Covered The Costs In-home health aides Adult day-care programs Assisted living facilities Nursing-home care Home modification due to a medical condition or emergency medical response systems Premium is based on multiple factors including: Age State of health when you apply. 1 The 2014 Sourcebook for Long-Term Care Insurance Information, American Association for Long-Term Care Insurance. 2 Genworth 2014 Cost of Care Survey, conducted by CareScout. Assumes 5-year annual cost increase rate of 4% for a private room nursing home, based on Genworth Cost of Care Survey data from 2009 to Ibid.

7 WINTER Morgan Stanley Smith Barney LLC ( Morgan Stanley ), its affiliates and Morgan Stanley Financial Advisors or Private Wealth Advisors do not provide tax or legal advice. This material was not intended or written to be used, and it can not be used, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Clients should consult their tax advisor for matters involving taxation and tax planning and their attorney for matters involving trust and estate planning and other legal matters. Morgan Stanley Smith Barney LLC. Member SIPC. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and or investments discussed in this material may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investors individual circumstances and objectives Morgan Stanley Smith Barney LLC. Member SIPC.