Considerations During Medicare’s Open Enrollment
How long has it been since you’ve reviewed your Medicare policy? With open enrollment fast approaching, there are a few questions you may want to ask yourself before you renew, add, drop, or switch coverage.
Have you switched doctors, or is your doctor no longer accepting your current plan? Or maybe your prescription drug needs have changed, and your Medicare plan doesn’t cover everything you need. Maybe you’re paying too much for your coverage and need to make adjustments. If you’ve reviewed your Medicare plan and realized you don’t quite have the coverage that you want, you can make changes during the fall open enrollment period. From October 15 – December 7, 2024, you can add, drop, or switch Medicare plans. Any changes will be effective on January 1, 2025, as long as the changes are submitted by the deadline.
Reviewing your Medicare coverage is an important part of your financial and insurance strategy. If you have any questions or need help navigating this process, reach out to the Shepherd Financial team.
Rethinking the Employee Benefits Experience
Attracting and retaining high quality employees is not a new challenge, but the benefits landscape has changed dramatically in recent years, particularly since millennials entered the workforce. And now that this generation is today’s largest workforce demographic (hint: it’s your employees who are anywhere from 23 to 38 right now), employers must rethink the construction of the overall benefits package. As you consider how to add value for employees and help your company grow, do you understand what millennials actually want?
The answer is twofold: different options than previous generations required, and the ability to create a customized benefits experience.
Don’t bristle at these desires – especially because of technology, today’s workplace is fundamentally different than it was 20 years ago. It makes sense your employees have new expectations, too. (Speaking of technology, it should be standard to have always-accessible employee benefit information, often through a secure online portal.)
Aside from health insurance and retirement plans, benefit options might include the ability to work remotely, flexibility in work schedules, student loan repayment plans, opportunities for professional development, lifestyle solutions like onsite child care, and corporate investment in wellness initiatives. While some of these options require creative thinking and scheduling, the positive results speak for themselves in overall employee wellbeing and productivity.
Regarding the customized benefits experience, it is becoming increasingly popular – and practical – to offer an à la carte solution. In short, employees receive a fixed amount of money as part of the benefits offering and may decide how to allocate their employer’s contribution. Closer to retirement, a baby boomer might select a higher contribution rate to the company retirement plan and a full suite of health insurance, life insurance, and long-term care insurance; a millennial employee may earmark less money for their retirement plan but include student loan repayment and extra parental leave.
Every company is unique, and so are your employees. Employers certainly have many decisions to make about the options to include, as well as how to structure the benefits program to meet compliance regulations. To discuss ways to better attract and retain employees through the benefits program, call the Shepherd Financial team.
Financial Shutdown
Did the recent 35-day partial government shutdown affect you or someone you know? It’s quite possible, considering it forced 800,000 federal workers to miss paychecks and hurt many small businesses. And since the three-week spending bill expires soon, there could be even more financial repercussions.
These recent circumstances certainly give reason to pause and wonder: are you prepared for a financial shutdown in your life? If that question feels too broad, what about this one: if you were in a serious accident and had to miss work, how long would your current financial situation carry you? 35 days? 6 months?
This is about more than just creating an emergency fund – though you should, since it’s widely touted 40% of Americans can’t cover a $400 emergency. And it’s not just about having proper insurance coverage, though that’s certainly important, too. The bigger issue is thoughtfully creating a financial plan and knowing where to turn if the bottom falls out.
As a plan sponsor, you might feel the pieces in your plan are well-aligned. That’s positive news! But can the same be said for your employees? If they can’t currently address a $400 bill, how would they handle a total shutdown if it occurred? You can help prepare your team by proactively providing education and wellness opportunities, offering useful resources that speak to real situations, and taking the fear out of financial conversations.
Employees don’t get off the hook that easily, though – everyone is ultimately responsible for themselves. Consider the last time you gave yourself a financial checkup. Start with a budget you’ll actually follow, build up your emergency fund, and pay off debt. Then push deeper – ask for help to balance college funding, utilize a health savings account, max out your retirement account options, and optimize tax strategies.
The Shepherd Financial team is always only a phone call away. Whether you’re currently in a financial crisis or want to create a plan to see you through one, we want to help.
But that’s not typical of the majority of America.
No, most Americans have regret about past financial decisions, are embarrassed about their current financial situation, and worry about their financial future. You certainly wouldn’t know it to look at them. Social media perpetuates the myth that all is well, but consider these scenarios:
What you see: A couple strolling through a perfectly-filtered Italian vista.
Reality: A non-budgeted Italian vacation adding to a mountain of credit card debt.
What you see: A sweet fall montage of the family, including a blooper picture where the dog pokes his head out of a pile of leaves.
Reality: A stressed-out couple that doesn’t know how to pay for their kids’ college educations, fund their own retirements, or care for their parents in the coming years.
What you see: A series of self-affirmations suggesting the world is an oyster and positivity is the greatest force of nature.
Reality: A 24-year-old who has no ability to pay off their student loans or get off their parents’ insurance in the foreseeable future.
Reality rarely matches the highlight reel we see online. As we head toward Halloween, I’d urge you to consider taking off the mask and removing your own financial filters. Have you admitted the struggle is real? Is the cost of transparency greater than the actual cost of your financial burden? It’s difficult to get support if people aren’t aware of your real circumstances.