TRANSCRIPT FOR THE MAY 28, 2016 “ON THE MONEY” SHOW

Hosts: Denise Kovach, CFP®, AIF®, NSSA® and Joe Bert, CFP®, AIF®

It is an Ask the Experts Saturday morning on news 96.5 WDBO and we’re glad you’re with us for On the Money brought to you by Central Florida’s oldest and largest — Independent — firm of certified financial planning professionals.  That being the Certified Financial Group in Altamonte Springs.  With us this morning we have 2 of the 12 certified financial planning pros with the Certified Financial Group.  Welcome  back with us Denise Kovach.

Good morning.

Hi Denise.

And the Oracle of Orlando is back in the studio, Joe Bert.

Good to be back.

Yes it is indeed.

How are you sir?

Doing great.

Nice to see you both in here.

Joe, in case anybody may be new to this program what do you all take calls about.

Denise and I are here to entertain any questions that your listeners might have regarding your personal finances.  We go through life trying some of this, trying some of that and wake up one day realizing that somehow the paychecks are going to stop, and if we only have Social Security coming in what else will we live on.  So as we go through life we make decisions about stocks and bonds and our IRAs and 401(k)s and annuities, life insurance, or reverse mortgages, all that stuff.  Sometimes they’re good decisions and sometimes there is not so good.  Because we get a lot of well intentioned advice from a lot of good people, our neighbors, our brother-in-law, our stock broker, insurance guy, or whoever, Money Magazine.  And really if it’s disjointed you end up with a very disjointed plan.  So Denise and I are here to answer any questions that you might have to see how it might fit into your personal financial life.  The good news is for you is there is probably no question that is — we haven’t heard.  If we don’t know the answer we will find out where the answer is right Denise?

Absolutely.

So the good news for you once again is there is absolutely nobody in line, and you could be the first caller by simply picking up the phone and dialing —

844-220-0965, 844-220-0965.  We also have our texting board open for you if you want to send a short text to it you could do that.  The number to text is 21232, 21232.  You could also become part of the program, or your voice can.  You can ask a question or make a comment by using the open mic feature you will find on the news 965 app.  Some of the other things we’re going to delve into this weekend, Medicare does not pay for long-term care, and also financial moves to make as you near retirement.  Some important financial moves to make as you near retirement.  Denise Covotch as I say is with us.  Denise what have you been up to late there?  I haven’t seen you in awhile.

I’ve been working, I’ve been trying to get out on my motorcycle, and staying busy, enjoying this beautiful weather, and taking care of my clients.

And your puppies?

And my puppies.  Always my puppies.

How about your husband?

He’s pretty good —

Is he after the motorcycle and the puppies?

He’s pretty good at taking care of himself.  He’s a big boy.

Joe it has been a couple of weeks since I’ve seen you, what have you been up to?

I was on vacation.  Saw my first and only bull fight — what an experience.

Where was this?

In Madrid.

You were in Madrid.

I was in Madrid yes.

Oh how did that go?

It was a wonderful trip?

Could you answer a question.  Do they actually kill the bulls in Spain like they do in Mexico.

Six of them.

They killed the bulls.

Yep.

Oh, well that seems to be <Background Noise>.

Like I said it was my first and last bull fight.

It was one of lifes interesting experiences.  It’s like an NFL game in Spain.  Families come, wives, dates, children.

Does anybody root for the bull?

No.  Well I think in your heart, in your heart but of course the poor bull doesn’t stand a chance.

That’s sad.

It’s an interesting spectacle.

They’ve outlawed it in Barcelona about 15 years ago.  In Madrid it is still <Inaudible>.

They’re civilized in Barcelona.

I guess.

Actually they call it Barcelona.

Alright lets talk to Bill in <Inaudible>.  Good morning Bill.

Hello, good morning.

Good morning.

Good morning, good morning.

Thank you for calling how can we help you?

I’ve got a question Mr. Bert I’ve sold some property recently that I’ll be faced with capital gains taxes on it for a couple of years.  I’m wondering if there is a place I could put that money, earn a little interest before I have to reinvest it or pay taxes.

What period of time are you looking at Bill?

I’ve got until the end of the ’17, 2017.

So you’re looking at maybe 18 months at the most.

Yes, probably, right.

What you’re saying is you want to know at the end of 2017 if what you’ve put in you’ll have at least that much and maybe a little bit more, can’t afford to —

Right.  Right.

Can’t afford to take any kind of losses.

Right?

Right.  <Inaudible> for sure.

How much money are we talking about Bill?

Maybe about 500,000.

Alright $0.5M.  The bad news is there really isn’t very many attractive places, if any attractive places to put money today that will — on a short period of time that will give you any kind of rate of return.  You’re looking at — and if you — even if you put it in government obligations, your 90 days treasury bill, you’re looking at a 0.25% of what you can get in a CD some place.

Yeah.

You want to know that it’s there and of course that’s going to be taxable.  The dilemma is Bill in short-term money where — and where you want it guaranteed, you have the same problem that virtually everybody does today and it’s trying to look for yield that wants guaranteed, there is virtually nothing out there.  So we could help you with some short-term stuff or we can guarantee you the money will be there, but you’re not going to make much money on it at all.

I’d rather the half percent in the money market right now <?>.

Well there you go.

That’s not bad.

That’s very good.

You’re ahead of the game Bill.

Well I’ve got a friend that she’s with another firm and someone at that firm has told her to put some money in this investment.

Okay.

Guaranteed not to lose and could make up to 10%.  I don’t know what duration that’s over but they guarantee not to lose that’s a pretty good.

Sure.  Well there are investments out there that are guaranteed not to lose.  It depends on what kind of time frame you are looking at.  But they’re probably referring to some form of an annuity.  Annuities have a surrender period, you can’t get anything with a year, 18 month time horizon I’m aware of right Denise?

No <Background Noise>

Opportunity of up to 10% you’re talking about a long-term commitment, so that wouldn’t work in your situation.

I really get to reinvest it in property <Inaudible> so I can’t put it in an investment and leave it for 30 months.

I understand, well the good news is by doing that you are probably deferring the taxes right?

Right.  Right.

That’s a wonderful thing.  So even though you’re giving up some short-term gains on it, the ability to save all that taxes is a good move.

Okay.  Okay well I’ll probably make an appointment to come in and see you.  Are you going to be back in the office now for awhile?

I’ll be back in the office next week Bill.

Okay.  Alright.  I’ll just wait and come see you then.

Thanks for calling.

Alright.  Bye.

Joe Bert and Denise Covotch are certified financial planning professionals with the Certified Financial Group and we’re live in the studio this Memorial Day weekend.  You can join us the number to call is 844-220-0965, 844-220-0965.  It is 9:15.  Dave Wall coming up in about five minutes from now in the news center.  He’ll give us the all important holiday weekend weather forecast and whether or not it’s going to rain on your picnic.  <Inaudible> basket.  The number again 844-220-0965.  Here is a text for you guys.  I have three home rentals should I LLC to protect my personal assets?  What’s best?

Yeah by what they’re talking about is limited liability company, what you do is you put each one of those properties in a separate LLC, which means that if you have some lawsuit against that property as you as a property owner against the LLC, that your other assets are protected.  So that is probably the most secure or the safest way to protect your assets.  It’s a little more cumbersome because you have to file with annual tax returns, right Denise.

Well I was going to say —

A little more complicated.

It is good protection, but you might think about as well is maxing out the PNC, consider it.

Yes.  Yes.  Exactly.

Maxing it out.  Look at both scenarios because again those individual tax returns every year are going to be a pain the back side.

So you have to look at the — unfortunately though insurance companies today are not as aggressive as they use to be in terms of allowing you to have a lot of liability coverage.  Because I have a client who has got the same kind of circumstance, eight different rental properties and the insurance company is just turning it down and being able to get enough coverage.

Wow.  Well in that regard then — absolutely

The LLC — and you’re right it is a pain in the butt but it’s what you have to do to protect your assets.

Sure is.

So to speak.

Good answer.

Lets talk to Aziz.  Good morning Aziz.

Good morning.

In Orlando.

Good morning sir.

Good morning sir how are you?

We’re fine thanks for calling the program, how can we help you?

I have a question about my wife’s 401(k).  She works in a bank for about eight to nine years and she’s got a 401(k), it’s about 15,000 to 16,000 and it’s still sitting in a <Inaudible> 401(k).  Right now she’s not working and she’s staying home.  What is the best thing to do about that 401(k)?

Well her options is depending on the investment options within that plan she can just keep the 401(k) where it is.  But make sure that it is diversified accordingly.  Or she can roll it over into a self-directed IRA and she could reinvest within a portfolio of mutual funds that way as well.  So she can do one or the other.

Okay.

How old is she Aziz?

She is 54.

54 okay.

And if she does the IRA <Inaudible> on it right now, right?  It won’t <Inaudible>.

I didn’t understand you, say that again Aziz.

Like if she transferred her money from SunTrust, their 401(k) toward the IRA she doesn’t have to pay any penalty or anything like that right?

That’s a direct rollover, as long as it goes from trustee to trustee she is going to be good to go, absolutely.

Thank you very much I really appreciate that.

Your welcome Aziz, thanks for the call.  Have a great weekend.

What happens if the bank writes a check to Aziz or his wife in their personal name.

They automatically take out 20% in taxes.

Uh oh.

Yeah so if you want to roll that, then roll what we call back into an IRA you’re going to have to make up that difference with your own cash.

Oh I see.

And put it back.

That’s what they call a rollover.

Kind of.

Rolling it over.

Okay.  I have learned something over the years with you folks from the Certified Financial Group.

About time.

I know.  It’s crazy.

You’ve been paying attention.

Yeah a little bit.

Hey here’s the texting number again folks I forgot to give that to you again, it’s 21232, 21232.  Send us a text 21232.  The telephone number if you’d like to call and speak to Joe Bert or Denise Covotch, 844-220-0965, 844-220-0965.  Denise if somebody wanted to get a hold of you, lets say during the week and set up maybe one of those complimentary private consultations how would they arrange that.

Well definitely go to our website financialgroup.com and you can schedule a consult or at least request one at that point.  Or you can e-mail us at denise@financialgroup.com or joe@financialgroup.com.  Of course give us a call at 407-869-9800.  But your best bet is to go to our website financialgroup.com.  We’re going to go to Dave Wall in the news center now.  But when we come back from Dave we’ll tell you about this workshop that Denise is having coming up, all about Social Security and getting Social Security altogether for you right.

Yep.

Alright 9:45 on news 965 WDBO.  This is On the Money brought to you by the Certified Financial Group in the studio.  Denise Covotch and Joe Bert and they’re taking your phone calls about anything financially related to help you to retirement.  The number to call is 844-220-0965, your 401(k), we just were talking about rollovers to an IRA, stocks, bonds, mutual funds, long-term health care.  A lady just called and was inquiring about being a first time home buyer.  Anything.  844-220-0965.

Well lets jump off on that because with interest rates being what they are and if housing being <Inaudible> a lot of people are first time home buyers.  So what do you look at Denise if you were a first time home buyer.  What is out there lurking that might come back and bite you?

Wow you know that depends on a lot of things. First You’ve got to make sure you get that home checked out and inspected.  Right because there is things creeping in between the walls perhaps.

Yeah and in fact I read an interesting article just the other day about the home inspector that you hire, be sure that they are licensed and insured <Inaudible>, and you want to be there when they do the inspection.  Because unfortunately some home inspectors have a reputation of going and saying they did the inspection <Inaudible> and they get the check and for all you know they didn’t do much at all.

Well that’s a shame.

So be there.

That’s good advice.

So be there when the home inspector is there and be sure that they are checking all the things that you think are important, and see how good they’ve done the job.  What else am I looking at.

I’ll tell you what I’d look at putting at least 20% down on that house to avoid PMI Insurance, which is costly.

Tell me what PMI insurance is.

<Background Noise>.

Private mortgage.  Yeah private mortgage protection.

Right, that’s to protect the government — that protects them right?

Well yeah if you default on your mortgage.  But that’s what it’s about.  So you’re right put the 20% down.

<Background Noise>

<Inaudible> be careful of because you know what your principal interest payment is going to be.  But the thing you have to remember when you buy a house, it doesn’t stop there.

You have taxes, insurance, maintenance.

Maintenance is the one that often times come back and surprises you.  Because owning a house it is perpetual maintenance.

All the time.

Take it from somebody who has owned one for many many years, it ain’t easy, it ain’t cheap.  And of course you have to maintain that asset.  So you want to plan on that.

I was just on your website, this weeks must read.  A few weeks I went to your archive a couple of weeks ago and I was reading where some argue that home ownership is better than renting because it is possible to make monthly mortgage payments that are equal to and in some cases below the cost of renting.  And others point to the fact that home values go up over time as a way to suggest that home ownership.  But this is four reasons why renting a home is a wise decision over buying.  In some circumstances it makes more sense to rent than it does to buy.  So that is on our website, go to financialgroup.com, click on this weeks must read, it’s in the archives section.

What’s this weeks must read.

This weeks must read is the Money Mistakes even the Super Rich make.

You’ll enjoy that as you watch the Grand Prix of Monte Carlo tomorrow morning.  Just know that they are making mistakes as well.

Yep they do.

Here is the number to text us again 21232, here is a text.  Kids are six and eight, what is the best long-term investment strategy about — with about 3,000 so they have spending money at 21.

You know at that age Kirk I would look — seek out a good world stock fund.  Where the fund manager is investing all around the globe in stocks.  Hopefully over that time period that 3,000 will have grown to a bigger amount right?

Put it in an UTMA account right?

That will do it.

In a custodial account.

This way the — you know you are going to give money to the kids, it’s going to be their money, they’re going to have hands on to it and avoid some taxes for yourself.

Right.

We also have a text about investing in an annuity and we’ll get to that after we hit Dave Wall in the news center.  But let me give out the phone number if you’d like to talk with Denise Covotch or Joe Bert.  The number to call is 844-220-0965, 844-220-0965.  Or text us at 21232.

It is an Ask the Experts Saturday morning on news 965 WDBO and we’re so happy you’re with us, On the Money with the Certified Financial Group Joe Bert is in the studio along with Denise Covotch and we are taking your calls.  Well Denise what are we taking peoples calls about.

Well about financial matters.  Your retirement, long-term care, your annuity, 401(k)s, life insurance, mutual funds, stocks, bonds, and the list continues.  But if there is a financial matter on your mind simply pick up the phone and dial us at —

844-220-0965, 844-220-0965 and text us at 21232.  We have a couple of texts to get to.  But lets talk first to Diana.

Good morning Diana.

Diana.

Good morning.

Thank you for calling the program how can we help you?

Good.  I have a question I am November of ’53, that’s when I was born, my husband is March of ’54.  If I take Social Security spousal support and let my Social Security go until I’m 70, do I have to wait until he’s 66 before I can do that?

Okay Diana so if you were born in ’53 that makes you 63, so you were age 63 before the end of the year, correct?

Yeah I just made that threshold.

Okay so you’re question about you want to file a restricted application, you can do so at your full retirement age at 66 and one month or whatever that might be.

Okay so I can file that and then I can let my retirement go and I can do spousal support from him <Inaudible> one for my husband.

You can take half of his benefit, okay whatever that would be at his full retirement age, but he’s got to be already taking the benefit.  So if he’s not taking his benefit you can’t file a restricted application.  But yes you can do that.

So I have to wait until he’s 66 to do that.

<Background Noise>

Unless he wants to take it earlier which probably is not the best — not in your best interest.

Right exactly.  Okay.  I thought we had to wait until full retirement until we could do restricted.

You do.  You do.  If you want to do a restricted you have to be full retirement age, your husband just needs to be taking his own benefit.

Oh, okay, well that changes it a little bit then.

Alright.  Thank you.

Alright.  Thanks for calling.

Bye.  Bye.

You can call us as well that’s 844-220-0965 and I’d be <Inaudible> if I didn’t point out you and your colleague Nancy Heck have a Social Security  boot camp coming up here.

We do and it’s coming up on Thursday evening in July on the 28th in the ballroom if you will at our offices, 6:00.  So come on down, expect to spend an hour and a half with us.  Nancy and I have some information about claiming strategies.  Even though we’re a little bit limited right now  because a couple of the most popular ones just expired.

Wow.

But there’s still some things you need to know.

Absolutely.

That’s a big decision.

Next Saturday Gary Abley will be running his basics for investing.  Great, great program at our office in Altamonte Springs.  So come on by, that’s going to be June 4th from 10:00 to 12:00, next Saturday.  He’s going to offer some light refreshments and give you some great information.  People often ask why do you do this kind of stuff?    We do it for basically two reasons.  One to give you information so you don’t make some financial mistake somewhere down the road, because we see those walking into our office on a regular basis.  So we want to prevent those car wrecks if you will.  Secondly to introduce to our firm what we do for — as fee based financial planners, how we work with our clients and this way what you need planning, even now or sometime in the future.  Perhaps you give us an opportunity to earn your business.  So go to our website that’s financialgroup.com.  Click on workshops, you can make a reservation right there, right online.

Here’s a text for us folks.  It’s please discuss in some detail the types of annuities, as to the risks, costs et cetera.  A local bank is suggesting we invest in an annuity, have about $540,000.

There are all kinds of annuities and I’m going to begin by saying what they are.  There is a fixed annuity which earns a fixed rate of interest, similar to a CD but it’s not FDIC insured.  There is an indexed annuity which is an annuity that allows you to participate to some extent in the market but never go down, you can’t lose money.  There is a lot of variables with those moving parts.  There are — speaking of variables there is variable annuities.  You will be invested into the market in some kind of allocation.  Annuities are tax deferred.  So they could be good for non-qualified money because like I said they are tax deferred.  They can be expensive.  There is a lot of different insurance companies that have annuities and it is very important to look at the internal expenses, mortality and expense percentage.  Are you going to have an income rider, that’s another percent or so.  There is a lot of things out there.  Annuities they can provide piece of mind for some people.  They are not appropriate for everybody but for the right person they might be.  Banks are notorious for selling annuity products.  They are very high commissioned product, so at what 540,000, at 7% commission Joe.

About $35,000, wow.

<Inaudible> kind of annuity.  It could very well be a fixed annuity as Denise said which guarantees your principal, guarantees a fixed rate of interest for a period of time.  Those often times nevertheless are commissions.  The draw back is is of course there are surrender charges just like there are with CDs.  But the ones that concern me the most are the ones that offer this teaser rate, get in with an 8% bonus, a 10% bonus.  But you’ve got to read the fine print because it is not all its cracked up to be.  You often times don’t get that bonus unless you are in the product for 10 or 14 or 15 years.  Then this was often times with those indexed annuities and the ones that are offered through the workshops that are at the fancy restaurants around town.  If you want more information about those we’ve got a couple of great white papers that we’ve uncovered it’s on our website.  Go to financialgroup.com, click on Info to Know, Info to Know and that will tell you — you’ll be able to get some real, I think honest unbiased information, about those kinds of annuities.  Another kind of annuity is what is called an immediate annuity.  We’ve been talking about what’s called the deferred annuity.

Well that immediate annuity is the way annuities started.  Okay.  Annuities were devised to provide supplemental income for people.  The downside to an immediate annuity is that you hand over a check to the insurance company for a form of payment for the rest of your life.  So it’s like a pension, but if you hand that check over to them and you passed away the next day that money is gone.  So still a lot of people that’s not what they want to do.  So that’s the downside.  But the upside is you are guaranteed a lifetime stream of income.  To some people that’s very important.

Right, and you can also structure it to be a joint survivor annuity.  When your gone then your survivor will get a lesser amount or something for his or her lifetime.  Or for a certain period of years.  Annuities are neither good nor bad.  Unfortunately though we see them because they are often sold by folks that that’s the only license that they have in their pocket, that’s the only thing they can offer you.  So your a hammer and everything you are looking at is a nail.  It’s — you’ve got use a hammer to whack the nail but it isn’t necessarily in your best interest.

What I would recommend is this person who is inquiring about annuities bring in what was proposed to him or her right.

Yeah.

And let us take a

<Background Noise>

Get a second opinion.

Absolutely.

There you go, there you go.

Take advantage of it.  It’s an initial consultation is at no fee, take advantage.

There is a new thing called a longevity annuity.

What’s that?

Well where you put your money into an annuity today and lets say 65 and you don’t start drawing on it until you’re 85.  The idea being that is you are guaranteed at the last leg of your life expectancy that you’ll have guaranteed income and perhaps when all of your other money and investments have run out you know that that’s there.  That is something that some people use to sell success.  Of course it’s all a function of interest rates.  But insurance companies are very creative with some of the products they come out with.  Once again annuities in our opinion are neither good nor bad, it’s like an aspirin.  It’s neither good nor bad, but if you take an aspirin at the wrong time you get ulcers.  You shouldn’t be <Inaudible> they can kill you.

It depends on everybody individual needs.

Exactly.

I’ve heard horror stories where people have sold to people in their near 90 with 10-year surrender periods and stuff.

Well you had a client as I recalled a couple of years back that came to you as a result of hearing you on the radio with — loaded up on some annuities and they took some legal action to get their money back.

They did, they did because <Background Noise>

You really have to be careful right?  Okay so how did they get a hold of you for one of those second opinions Denise?

All they need to do is go to our website at financialgroup.com.

Okay it’s 9:46 Dave Wall is in the news center he’s coming up in four minutes with the very latest news.  One of the stories is — I’m kind of disappointed in Donald Trump for not turning down that debate with Bernie Sanders.

I would’ve been glued to my <Inaudible> I tell you that.

I would’ve been glued to my t. v..  That and your weather forecast for the Memorial Day weekend is coming up here shortly.  So stick around for Dave Wall.  Question from the text board are home warranties a good investment?  By that I mean buying a home warranty to protect you if you have an air conditioner blow up or something like that.

Generally they’re not, even the warranties that you buy on appliances and you buy on a computer and so on and so forth, they generally don’t make economic sense.  Then there is always that exception.  When the roof blows off and boy I wish I — or you had a roof leak, I wish I would have had the — but generally it has been shown statistically, financially it does not make sense to have a home warranty unless somebody is giving it to you as a result of a purchase that you bought somewhere.

If you go to news965.com or go to wdbo.com click on Clark Howard and there is a whole thing there, there’s a link, there’s a whole thing there on home warranties and stuff.  Alright I have inherited savings bonds how can I redeem them without being put in a higher tax bracket or should I just hold onto them?

Well it depends on how old they are and when they were issued.  Some bonds stop paying interest after 30 years, and what you want to do is minimize the taxes, look at — what you need to do is do some tax calculations and redeem them to keep you from moving into the next tax bracket.  So —

A little bit every year.

Exactly.  Or you can convert them to HH bonds which pay a modest amount of interest.  But <Inaudible> you’ve got to look — everybody’s situation is unique.  Got to be analyzed.  But what Denise said is probably the easiest and quickest way just redeem a certain portion every year so you are not pushed into a higher tax bracket.

I’m in debt, not enough to file bankruptcy but too much for me to handle.  What would be the best way to handle this.  Should I consolidate or plan to <Inaudible> should I consolidate or what, but too much for me to handle.

Well we don’t know a whole lot of information with this question.  Trying to elaborate.

Maybe credit card debt.

If they have credit card debt if they can consolidate try to put it on a lower interest rate

<Background Noise>

Credit counseling.

We’ve got a number if they want to give us a call we can refer them to somebody who might be able to help them.

Just make sure it’s the non-profit credit accounts.  There is one that goes out there by the same name but they charge you.

Here’s another from the text here.  You popular  guys.  I am 63, should I take Social Security now or live off my own monies until I’m 66.

Well that depends.  Do you need the money now?  If not then what is your life expectancy.  If you think that you’re going to live to be 150,000 years old like I am, I want to maximize my Social Security benefits and I might — I might even consider not even taking it at 66, so it will continue to grow at 8% per year until age 70, at which time I’ll turn on that income.  So it really depends.  If you’ve got the monies to support you until you do take Social Security I would definitely let it grow and just wait.

Yeah because that’s guaranteed income.  The other thing is if you have a spouse and you were the primary bread winner, your spouse when you pass away will take over your benefit.  So often times you want to get that benefit as large as you can because it is guaranteed income.

Right.  I have a lot of husbands, the husbands and the couples.  They are very protective of their wives and that’s exactly what they do is they want to wait as long as they can to take their benefit because they know we — generally Joe, as women, we outlive you guys.

We know, we know, we know.

Okay.  I’m not boasting over here.

We know, we know, we know.

Not me.

But in a protective way they want to protect their wives because we do indeed step into that <Inaudible> benefit.

Some of us guys just live on for spite.

This is On the Money brought to you by the Certified Financial Group Central Florida’s oldest and largest —

Independent

Independent firm of certified financial planning professionals.  The Oracle of Orlando is back in the studio with us.  Do they say olay.

Olay.

Those poor bulls.

Really.

I thought they didn’t kill the bull in Spain, I thought they were civilized.

Oh no.

Alright my husband was in the Army for four years, he’s 58, hasn’t worked that much.  Will he draw Social Security from the four years in the military?

Possibly.

The best way to figure that out is go to ssa.gov/estimator, pull up his record and see what he or she was in and if any of it was credited.

And that’s got to be coupled with some more —

Yeah he’s got to have

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He’s got to have 40 credit hours of working somewhere.

Which is over a 10-year period.

Alright we didn’t get to a lot that we were going to get to today but we — I have to ask you this.  I don’t know why this is a question Medicare does not pay for long-term care.

Well you know I was reading statistics about this and it is interesting.  I work with my clients in providing them with long-term care insurance and there was recently a survey that was conducted about long-term care in America and actually 38% of the people who were surveyed said they plan on using Medicare to cover their long-term care needs as they get older, including any extended nursing home stays.  These findings believe it or not mesh with previous research which was conducted in 2015 when 34% of the people surveyed assumed that Medicare would cover beyond the going costs with nursing homes.

Big misconception.

Oh it is.  But Medicare, this is it.  It only covers up to 100 days of skilled nursing facility care.  And only after a hospital stay of at least three days —

And that’s why the hospital will push you out on the curb after two days.

They do.

I dealt with that with my father.

They do <Inaudible>.

They push you out of the curb in a wheelchair because they don’t want you in there for three days because they don’t want Medicare to get you.

Absolutely.

That’s how the system works.

The health care costs as well know, they are a big concern for people going into retirement.  But the cost of long-term care can be shocking.

Yep.

Okay.

The average cost for nursing home care in the U.S., and this is in 2010 was — and this is six years ago, was $3,300 per month for a semi-private room and nearly $7,000 for a private room.  Statistically 70% of people will need some form of long-term care at some point.  Now this misperception about Medicare seriously needs to be cleared up.  Everyone needs to understand the limits of Medicare coverage as it pertains —

Do you cover any of that in your workshop you are going to do with Nancy?  If they ask a question about it you can answer it?

I do, I do.

<Inaudible> about the upcoming workshop that Denise and Nancy Heck will be holding go to our website financialgroup.com, click on workshops, you can make a reservation right there online.  What do you think?

Come see us.

Alright.  That’s just shocking, just shocking.  If you want to find out more information about long-term health care just —

That’s why you buy insurance for death.

Man oh man oh man.  I’m going to —

Could you stay after and sign me up?

Alright if somebody wants to find out more information about the Certified Financial Group, how you can make an appointment for one of those complimentary consultations could we arrange that on the website as well?

You can do it.  Go to our website financialgroup.com, look about how we work with our clients and how we are different from folks out there that call themselves investment advisors.  We do this for a fee, which I think separates us from a lot of folks that want to sell you something.

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