50+ Lifestyles

Financial Planning Month

By Richard J. Schillig, CLU, ChFC, LUTCF
Independent Insurance and Financial Advisor

November is an important month. Last month (October) was designated as “Financial Planning Month.” I am bringing this up now, a month later. As we look back a couple weeks ago our thoughts are now turning toward the holiday season, and Financial Planning Month reminds us to keep our spending in check and prepare our budgets – appropriate for this time of year. While it is always better to give than receive, it is smarter to stick to a budget all year long. That is why Financial Planning Month in October is a good time to get that grip on the approaching new year. Reminding you of this now with only minimal weeks left in 2020 – it is a good time to begin. AND remember November continues the Annual Enrollment Period for Medicare, and November begins the Enrollment Period for major medical insurance for the pre age 65 group.

Let me offer these tips to help you get started if you have not yet begun Financial Planning (do these things):

1. Make a budget. Depending on where we are in life, our approach to budgeting changes. However, if we start out saving and planning for our financial future when we are younger, the target is easier to make. Review October’s (and September) expenses and cut expenses where you can. Think about reducing meals out and luxury items. Memberships and drive-thru coffees add up. Apply this savings to your retirement plan, 401K, IRA or other.
2. Always pay bills on time. Late fees and penalties result in extra costs and harm your credit.
3. Start saving if you are not in the habit of saving now. A little every month becomes a habit quickly. If your employer offers a 401k with a matching benefit, contribute to a minimum to the employer match. For every dollar you don’t contribute to the matching limit, you’re throwing away money. Too often we see younger persons NOT
   participating in that matched 401K. Younger in this case are persons age 21 or persons age 59 – it’s never too late to start.
4. Sell what you do not use anymore. If you have things collecting dust, taking up space or otherwise not being used, get rid of it. It may be worth something. Whether it’s value is in recycled metal or the eye of the beholder, it doesn’t matter just get rid of what you are not using.
5. Can’t sell it? Donate. Qualified donations are tax-deductible. Do not forget to ask for a receipt and claim it on your tax return.
6. Check major medical insurance options. Medical insurance is expensive. Under 65 you and/or family may qualify for premium subsidy through the insurance exchange. Age 65 or over – we are in the middle of the annual enrollment period for Medicare folks and just began the annual enrollment period for persons under age 65. Check your options. Under 65 determine if you qualify for a subsidy. Over 65 Medicare Advantage plans are available for a minimal or zero premium.
7. See a financial planner. They will help you with your goals and set you on the path to success.

We continue to offer our monthly community meetings virtually. Due to corona, we are now holding our monthly meetings thru home computers and mobile phones. Next virtual meetings are at various days and times during November. Call to arrange for participation.

Richard J. Schillig, CLU, ChFC, LUTCF is an Independent Insurance and Financial Advisor with RJS and Associates, Inc. He can be reached at (563) 332-2200.