RDS Financial Services Blog

A One-Page Guide To The Health Insurance Marketplace

10/21/2014

Here’s a quick rundown on the most important things to know about the Health Insurance Marketplace, sometimes known as the health insurance “exchange.”

Currently, and before November 15, 2014, you can enroll in a Marketplace health plan only if you qualify for a Special Enrollment Period. Any plan that you enroll in before November 15, 2014 ends December 31, 2014. You can apply for Medicaid and CHIP any time. Find out if you qualify for a Special Enrollment Period or view plans and prices for coverage ending December 31, 2014.

The Health Insurance Marketplace helps uninsured people enroll in health coverage, and offers:

Private health insurance with savings based on your income. Plans cover essential health benefits, pre-existing conditions, and preventive care. Most people who apply through the Marketplace qualify for premium tax credits and savings on out-of-pocket costs based on household size and income.

Plans and estimated prices for 2015 coverage will be available in early November. In the meantime, learn how to compare plans and choose one that’s right for you.

Medicaid and the Children’s Health Insurance Program (CHIP). These programs provide free or low-cost coverage to millions of families with limited income. Many states are expanding Medicaid to cover more people. Find out what Medicaid expansion means for you.

Fees, exemptions, and qualifying coverage

Most people must have health coverage or pay a fee. If you don’t have coverage in 2015, you’ll pay a penalty of either 2% of your income, or $325 per adult ($162.50 per child) — whichever is higher.
You’re considered covered under the health care law if you have an employer-sponored plan, a plan you bought yourself, Medicare, Medicaid, CHIP, and many other kinds of coverage. See a full list of plans and programs that meet the health law’s coverage requirement.
Some people qualify for an exemption from the penalty based on income or other situations.

Three more things to note:

If you’re eligible for job-based insurance, you can consider switching to a Marketplace plan. But you’ll qualify for premium tax credits and other savings based on your income only if the job-based insurance isn't considered affordable or doesn’t meet minimum value requirements.
If you have Medicare, you’re considered covered and don’t have to make any changes. If you have Medicare, you can’t use the Marketplace to buy a supplemental plan or dental plan.
You can buy a plan outside the Marketplace and still meet the health care law’s coverage requirements. But if you buy outside the Marketplace, you won’t be eligible for premium tax credits or other savings based on your income.

Give us a call today! We will walk you through the Marketplace, and help you find the plan that's right for you, and your budget.

Scared About Social Security's Future? Take These Steps Now

9/29/2014

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For millions of Americans, the idea of retirement without Social Security is unthinkable. According to the Social Security Administration, about 41 million retirees and dependents receive retirement benefits from Social Security, with disabled workers and their dependents making up nearly 11 million more recipients and 6.2 million survivors relying on Social Security benefits as well.

Yet with the $863 billion that the SSA anticipates paying out in benefits this year making up almost a quarter of federal spending , concerns about the long-term financial sustainability of Social Security have made many younger Americans nervous that they'll never see benefits at all.

Before you panic about the uncertainty over Social Security's future, though, it's important to take stock of the program's full condition. In addition, there are steps you can take to shore up your own financial situation to ensure that no matter what happens to Social Security, you'll be in the best position possible to take care of your own money needs in retirement.

Will Social Security Be There for You?

A recent survey looked at attitudes among adults aged 18 to 35 about Social Security and other economic and political issues. More than 80 percent said they were concerned that Social Security was unlikely to be there for them by the time they retired. And two-thirds expect to get most of their retirement income not from Social Security but rather than their own savings and investments, either inside or outside of specific retirement-savings vehicles like individual retirement accounts and employer-sponsored 401(k) plans.

Of course, millennials have the benefit of one of the most valuable resources in investing: time. With 30 years or more before they expect to retire, millennials have the most flexibility in tailoring their finances to balance current financial needs and wishes against future money issues.

But even if you don't have that long a time horizon, you can still handle the uncertainty about Social Security.

1. Know the Worst-Case Scenarios

Despite the survey's revelations about our fears, the reality is that it's unlikely that Social Security will disappear entirely. Even once the Social Security Trust Fund runs out of money, which is currently projected to happen in 2034, ongoing payroll taxes are expected to provide the program with enough income to pay more than three-quarters of scheduled Social Security benefits.

So at this point, what many see as the potential worst-case Social Security scenario is that, then the Trust Fund is exhausted, benefits will have to be cut by around 25 percent to keep the program stable. A trim of that size to the average monthly benefit -- currently around $1,300 -- means you'll be losing about $350 of the monthly income you could have expected. You'll either need to replace that money with your own investments, or tighten your belt.

2. Get Smarter About Investing for Retirement

One of the most impressive findings of the Transamerica survey was the extent to which millennials are taking action sooner rather than later. An estimated 70 percent of millennials have already started saving for retirement, and they typically began saving at 22. More than 75 percent have discussed saving, investing and retirement planning with family members, friends and other respected peers. That's encouraging -- and a wise choice whatever your age.

Moreover, taking advantage of opportunities to save for retirement through work has become essential. The typical millennial contributes 10 percent of their annual pay to a 401(k) plan, taking full advantage of company matches and using vehicles like target-date funds or strategic allocation funds to get age-appropriate diversified exposure to a variety of different investments.

3. Keep Your Job Skills Competitive

One of the most discouraging aspects of the recent economic downturn was that high unemployment rates lasted for a long time even after the recovery began. More recently, job growth has started to pick up somewhat, and that has put Americans in better position to provide for their financial futures.

Nevertheless, it's more important than ever to remain valuable as a worker. For many who are close to retirement age, the best way to make sure their limited resources last through retirement is to work for a few extra years. But in today's sharply competitive labor market, getting the opportunity to stay in your job isn't a given. So for workers nearing retirement age, consistently demonstrating your value to your employer is essential if you are to remain employed as long as you choose. Somewhat younger workers have even more at stake to stay at the top of their game to reduce the chance of an early layoff, and looking at educational opportunities to bulk up your skills can be a smart way to protect against a drop in eventual Social Security retirement income.

Fixing Social Security's long-term financial woes will require either raising taxes, raising the retirement age, modifying how benefits are paid, or some combination of those -- none of which are politically feasible in the current environment, so repairs aren't likely to happen soon. Your best bet for getting financial security you desire is to take matters into your own hands by boosting your own savings and investing. That way, Social Security can be less of a necessity and more of a welcome supplement by the time you retire.

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Distracted Driving Isn't Just About Texting...

8/18/2014

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Distracted Driving: It's Not Just About Cell Phones and Texting

Talking and texting on cell phones are the most frequently talked about concerns involving accidents and distracted driving, with texting now taking the lead over concerns about drivers who talk on their cell phones while operating a vehicle.

Among the concerns that cell phone use raises is that drivers often become so focused on the conversation they're having that it distracts them from attention to the road. Several research studies have found that even intense listening on a cell phone can impair driver attention on the road. Cell phone use, even with a hands-free device, can create a situation where drivers develop a potentially lethal form of tunnel vision that creates what researchers called inattention blindness.

Researchers found that inattention blindness slows driver reaction time by 20 percent and that some tests subjects missed half the red lights they encountered in simulated driving.

They reported that the research subjects took in a reduced amount of information while on the phone. They missed things like swerving cars and sudden lane changes, which resulted in several simulated rear-end collisions.

Texting Takes Over As Bad Driver Behavior

Texting on cell phones is now considered an even more serious problem than talking on a cell phone, because it requires looking down at the message the sender is creating while moving fingers that should be on the steering wheel. In addition to not looking where they are going, text message senders are usually focused on their message, not on their driving. Experts tell us that taking your eyes off the road for even one to two seconds can make the difference between avoiding a crash and causing one.

Texting is a particularly serious concern because while 20 percent of drivers admit to texting, when you look at drivers in the age 18-24 year old category, 66 percent are sending or receiving text messages while driving. Add the distraction of text messaging to young driver inexperience and you've got a particularly lethal combination.

Currently only a few states outlaw texting while driving, fewer than those that prohibit talking on cell phones when driving, but more states are looking at making it illegal in the wake of a series of spectacular crashes with deadly results.

There's no doubt having a cell phone with you when you travel is a great resource to use in calling for help or reporting trouble on the road. But whether you use a handheld phone or a hands free device, researchers and safety specialists agree that the only really safe way to use your phone, whether to call or to text message, is to safely pull off the road, stop, and then make your call.

Be safe out there. Your safety is number one to us.

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Cyber Security

7/8/2014

Is Your Business Safe?

For their abilities to help a business run smoothly and thrive, today's Internet-related technologies leave business owners wondering if the companies they have worked so hard to build are truly safe in cyberspace. Here, we take a look at weak spots, and how you can protect your business and your clients.

Potential Cyber Security Weak Spots:

Email - Non-secure email is sent through the web without encryption, making it as potentially visible as, say, a postcard sent via the U.S. Postal Service. Verify that your email is secure by making sure the "https//:" phrase is always visible in the URL bar; it should precede the address of your email provider.
Websites - Non-secure websites are also places in cyberspace in which businesses can be vulnerable. Apply the same rule to websites that you do for email: look for the "https//:" in the URL. If it isn't there, don't have anything to do with that site, as any information you share on it may not be secure.
Browsers - Make sure your Internet browser (for example, Firefox, Safari, Chrome, and Internet Explorer) is up to date. Most browsers will let you know when they're due for an update, but you can always check by clicking on your computer's software update option to see what needs to be brought up to speed. An up-to-date browser has all the latest additions that maximize your security and protection online. An out-of-date browser makes you more vulnerable to cutting-edge viruses, hackers, and the like.
Virus Protection - Speaking of viruses, let's not forget adware, malware, spyware, and all the other futuristic-sounding threats to security that are very much a present-day reality. Install a protection program on your computer if you haven't already, and try not to open suspicious-seeming emails that land in your junk folder because your email has deemed them "unsafe."
Passwords - Be wary of sharing passwords. Chances are, not everyone in your employ needs to know every password. Change passwords routinely once a month is not excessive and always after an employee with knowledge of a password has left your company. Create complex passwords with capital and lower case letters as well as numbers.
Third parties - Think carefully and do serious research before allowing any third party a tech company, a consultant access to your customers' information. Even the most seemingly helpful, educated, expert third parties can also be identity thieves, or be interested in selling your customers' info to identity thieves. Check references and proceed with caution before letting other pairs of eyes fall on your company's precious data.
Wi-Fi networks - Make sure your company's Wi-Fi network is private, not open for others who wish to have Internet access free of charge. Lock it and change the password required to access it frequently.

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