Medicare Open Enrollment Information

I know, we "Baby Boomers" will never get old...but we will enroll in Medicare! 

Following up from the last post, here is some information that may be helpful during Medicare's annual "Open Enrollment" (the AEP) for Medicare Advantage (Part C) and prescription (Part D) plans.

During the AEP, Medicare beneficiaries can change how they receive health insurance coverage and add, change, or drop prescription drug coverage.  They can make as many changes as they want during this period--with changes taking effect on January 1, 2013.

It is important to note that if you have a traditional Medicare Supplement Insurance policy, it is guaranteed renewable.  That means that no action needs to be taken to continue your coverage other than paying premiums on time.

From October 15 -- December 7, 2012, Medicare beneficiaries can make any of the following changes:

• Change from a Medicare Advantage plan back to Original Medicare.
• Change from a Medicare Advantage plan back to Original Medicare and a Medicare Supplement policy (health history questions may be asked, and some plans may not be available). 
• Change from Original Medicare to a Medicare Advantage Plan.
• Switch from a Medicare Advantage plan to a different Medicare Advantage plan.
• Switch from a Medicare Advantage plan that does not offer prescription drug coverage to a plan that does offer prescription coverage.
• Switch from a Medicare Advantage plan that does offer drug coverage to one that does not.
• Join a stand-alone prescription drug plan.
• Switch from one prescription plan to another.
• Drop prescription coverage altogether.

Another important period to keep in mind is the Medicare Advantage Disenrollment Period from January 1 -- February 14, 2013.  During this time, Medicare benenficiaries can switch from a Medicare Advantage plan to Original Medicare.  Regardless of whether the Advantage plan had drug coverage, beneficiaries also have the option to join a stand-alone prescription drug plan.  Changes made during this period are effective the first day of the following month.

Learning About Medicare

Medicare's Annual Open Enrollment begins October 15 and ends December 7.

The annual open enrollment is an opportunity for Medicare beneficiaries to make changes in their insurance coverage.  It is also a good time for beneficiaries (and perhaps their family members) to learn or be reminded about the way Medicare works.

The Medicare system is divided into four different parts. Each of these parts has a host of options available within them. These four parts are called Medicare Part A, Part B, Part C, and Part D. Here is an overview of the differences between them:

Medicare Part A
Part A is also known as Hospital Insurance because its coverage reduces participant expenses for their hospital stays. Part A covers many costs when a participant is admitted for inpatient care. It also covers a portion of skilled nursing facility, hospice, and even home health care.  However, it is NOT designed for long-term care.  Additionally, participants will be required to pay for coinsurance, deductibles, and some uncovered expenses related to their stays (also known as coverage gaps). These uncovered expenses, or "gaps," may be covered by Medicare Supplement plans (sometimes called Medigap plans). 

Medicare Part B

Part B is also known as the Medical Insurance portion of the Medicare plan because it covers many outpatient services provided by a healthcare provider. Part B also provides coverage for some  services that help participants to stay healthy and decrease the progression of any illnesses.

Part B is also very affordable; the annual premium for Part B was only $99.90 in 2012. However, Part B only pays 80 percent of fees for approved charges, requiring participants to pay for the rest of the cost.  Parts A and B are togeher often called Original Medicare.

Medicare Part C

Part C provides "Advantage Plans." These are typically PPO or HMO plans. Part C plans are administered by private insurance companies that are approved by Medicare. Participants receive their healthcare coverage directly from those private companies instead of from Original Medicare. Generally, Medicare Part C includes Part A and Part B coverage as well as a prescription drug coverage plan.  Some Part C plans do not contain drug coverage.  Part C plans often include benefits not covered by Medicare, such as some vision, dental, or hearing services.  Other benefits might include "Silver Sneakers" or similar programs that provide membership in a fitness center.  These kinds of benefits vary widely between plans.

Medicare Part D

Part D is the program that helps to cover the cost of prescription drugs. Benefits can be included in an Advantage Plan, or they can be purchased as a stand-alone plan for those who have Original Medicare or Medicare and a Supplement plan.

Many Medicare participants find it helpful to speak with an experienced health insurance advisor for more information about their options, and this can also help to ensure that participants get the best healthcare plans for their needs at prices that are right for their budgets.

As an independent agent, I can offer you a choice of several popular plans, depending on your individual needs, preferences or situation.  I also offer periodic educational classes to help Medicare beneficiaries (and those who are about to be) understand how the Medicare program works.  This can also be helpful for those who are assisting parents with the sometimes complicated insurance decisions that arise.

If you are in Sheboygan, Fond du Lac, Winnebago, Manitowoc, Calumet or other nearby counties, you are welcome to attend one of our "Medicare and You" educational classes.  The next scheduled classes are November 1st and 28th at 6 PM and Noberber 13th at 11:30 AM and 6:00 PM.  Classes are at 506 E. Mill St, Plymouth, Wisconsin.  Additional classes may be scheduled elsewhere during the annual open enrollment, so contact me if you would like a complete list.

Give me a call at 920-893-5262 if you would like make an appointment to discuss Medicare-related insurance or if you would like to attend one of our educational classes.

Dorcas George
Insurance Advisor/Coach


Neither Dorcas George nor Veritas Financial are affiliated with the Federal Medicare Program. This is a solicitation of insurance. 


Our "Medicare and You" class is an education event and is only for educational purposes. No plan specific benefits or details will be shared.

The Event in Pictures

Thank you everyone who came out.

Your Team of Veritas Experts with Mark Matson taking on the Bullies of Wall Street

 Mark met one-on-one with people before the event started







We had a packed house of investors eager to learn

 

 Margaret introduced our guest speaker Mark Matson



The end of the evening was topped off with prize giveaways.









Matson Dinner

WOW!! What a great night!



Thursday, August 2nd, Mark Matson author of the new book and PBS special MAIN STREET MONEY joined us in Elkhart Lake, at the Osthoff Resort.  His message was thought provoking, informative, and optimistic.

Here is what people are saying:

“Great information and a fantastic dinner!”
                         – HR Head at Manufacturing Firm

“Just want to say a quick thank you for the lovely evening last night.  You all did a great job! The meal was excellent and you did such a nice job keeping things moving.”
                         – Small Business Owner

“Wanted to personally thank you for an enjoyable and thought provoking evening.  Yes, your list of challenging questions highlighted some holes in our personal planning.”
                         – CEO Manufacturing Firm

Did you miss our dinner?  How can you hear the optimistic and thought provoking message Mark Matson brought to us?  Come to one of our classes!  Call 920-254-3218 for more information.

BIZ Connection

 Where are you at 11am on Saturday Mornings?

You could be listening to The BIZ Connection on The Breeze 1420 AM from Plymouth, WI.

If you don't live in Plymouth, go online to http://www.1420thebreeze.com/

And "Mark" your calenards, on JULY 28th The BIZ Connection will have a special guest, Mark Matson!! 

The Court Has Ruled on Health Care Reform

Today, on the last day of its current term, the U.S. Supreme Court announced its decision on the constitutionality of the health care reform law. The Court upheld the entire law, holding that Congress acted within its constitutional authority when enacting the individual mandate. This means that the health care reform law will continue to be implemented as planned and provisions that are already effective will continue.

BACKGROUND

The health care reform law, commonly referred to as the Affordable Care Act, was enacted in 2010. Opponents of the law quickly started filing legal challenges to its validity. Most of the legal challenges focused on the constitutionality of the law’s individual mandate—the requirement that individuals purchase health insurance coverage or pay a penalty beginning in 2014.

The U.S. Courts of Appeals split in their decisions regarding the law’s constitutionality. To resolve this uncertainty, the U.S. Supreme Court reviewed the health care reform law in March 2012. The Court heard six hours of oral argument on the case, which is an extraordinary amount of time for oral argument. Most modern court cases only receive one hour of oral argument so this was indicative of the importance of the health care reform law challenges.

CHALLENGES TO THE INDIVIDUAL MANDATE

The main substantive challenge to the health care reform law was whether Congress had the authority under the U.S. Constitution’s Commerce Clause to require individuals to purchase health insurance coverage. The Commerce Clause gives Congress the power to regulate multi-state, economic activity. Most of the arguments centered on whether enacting the mandate fell within the Congressional power to regulate interstate commerce.

Opponents of the health care reform law argued that the Commerce Clause does not give Congress the power to regulate economic inactivity (that is, the decision not to purchase health insurance). They noted that Congress’ Commerce Clause power has never before been extended to this degree, and argued that this would open the door for the federal government to have unrestricted power to regulate.

The Obama Administration, however, stated that the law was an attempt by Congress to address the problems of access and affordability in the national health care market. The Administration pointed to the health care costs associated with the uninsured to demonstrate the economic effect of not purchasing health coverage, and argued that the law expands access to health care by making affordable health insurance more widely available.

Opponents of the law also argued that without the individual mandate, the law could not function as intended and would have to be struck down in its entirety. The Obama Administration argued that, in the event the individual mandate was ruled unconstitutional, only certain provisions of the law—those related to guaranteed issue and underwriting restrictions—would also be invalid. Thus, these parts of the law could be severed and all other provisions could stand.

THE COURT’S DECISION

The Supreme Court ultimately ruled that Congress acted within its constitutional authority when enacting the individual mandate. In its ruling, the Court first concluded that the Commerce Clause did not give Congress the power to pass the individual mandate. The Court concluded that Congress has the authority to regulate interstate commerce, but does not have the authority to compel it. The Court stated that “construing the Commerce Clause to permit Congress to regulate individuals precisely because they are doing nothing would open a new and potentially vast domain to congressional authority.”

However, the Court held that Congress had the power to enact the mandate under its authority to impose taxes. The majority of the Court agreed that the individual mandate’s penalty is essentially a tax that Congress can impose using its taxing authority. The Court held that “our precedent demonstrates that Congress had the power to impose the exaction in [the individual mandate] under the taxing power, and that [the individual mandate] need not be read to do more than impose a tax. That is sufficient to sustain it.”

Because the Court upheld the individual mandate, it did not need to decide whether other provisions of the health care reform law were constitutional. One exception to this is a provision that required states to comply with the health care reform law’s new Medicaid eligibility requirements or risk losing their federal funding. The constitutionality of this provision was also before the Court. On that issue, the Court ruled that the provision is constitutional, but that Congress cannot penalize states that decide not to participate in the law’s Medicaid expansion by taking away their existing Medicaid funding.

FUTURE IMPLICATIONS

Because the individual mandate was upheld, all aspects of the health care reform law that have been implemented will remain in effect. Additionally, the remaining provisions of the health care reform law that are not currently in effect will continue to be implemented as planned. Most notably, beginning in 2014, all individuals will generally be required to purchase health insurance or pay a penalty.

Many of the health care reform law’s provisions require agency guidance to be implemented. The Departments of Labor (DOL), Health and Human Services (HHS) and Treasury have been regularly issuing guidance to implement the health care reforms. These agencies will continue to promulgate regulations relating to the health care reform law, and employers and health plans will be required to comply with these to the same extent that they are required to comply with the various provisions of the health care reform law.

Although the Supreme Court held that the individual mandate is constitutional, opponents of the health care reform law may challenge other provisions using various legal arguments. If any further challenges arise, courts will address these accordingly.

Additionally, members of Congress have already introduced new legislation to amend or repeal various parts of the health care reform law, and likely will continue with this strategy. Each of these possibilities may have an impact on the health care reform law and its requirements in the future.

ADDITIONAL RESOURCES

A copy of the Supreme Court’s decision is available at: www.supremecourt.gov/.

 

Déjà Vu: 1979 and the “Death of Equities” by Jeremy Burri

In 1979, Business Week ran a famous cover story titled, THE DEATH OF EQUITIES.  The article spelled out the case for why stock investing was dead.  The evidence seemed compelling.  From 1966 to 1978, the Dow Jones average had been up & down — but actually was higher in 1966 than in 1979.  Inflation, oil prices, and other issues were a constant worry, and the US economy seemed to be in for years of slow growth.  But, contrary to popular wisdom, stock investing was not dead.  From January 1 1979 to January 1 2012, the average annual return for the Dow was 8.59%,  8.15% for the S&P 500 and 9.88% for the Nasdaq.  What lessons can we learn from this?  First, long-term investing requires discipline.  History is filled with times where the market did not perform up to our sometimes lofty expectations. Second, every time the market slumps, experts will say, “This time is different.”  They were wrong in 1979 and will likely be wrong about this market as well.  To paraphrase Peter Lynch, “I can’t tell you what direction the next 1,000 point move in the market will be, but I can tell you what the next 10,000 move will be.”

Slaying Dragons Part I

Discipline and Your Portfolio: Why it Matters.

“Discipline” is not a word that tends to make us feel warm and fuzzy.  In fact, It is sometimes seen as negative. 

It might make you think of being “grounded,” as a kid, of getting on the treadmill for a workout, of saying, “no” to that second helping of chocolate cake. 

Is discipline a dirty word?

Discipline is the key to success in almost every aspect of life.

To get good grades in school takes the discipline of good study habits.  To maintain a successful career means having good work habits.  Athletes know that to be on the top of their game takes the discipline of hours of practice.  The same is true for musicians or artists.  The list could go on and on.

And so it also is with financial success, and your investing life.

Choosing a disciplined, prudent investment philosophy is the single most important decision the investor makes.  This is one of the main messages I learned at an Advanced Coaching Conference set in Chicago this year.

What does a disciplined investing philosophy look like?

¨ Focused on asset allocation using engineered portfolios which are periodically rebalanced.

¨ Based on the science of investing. 

¨ Choosing partners who focus on delivering efficient market returns.

This is the opposite of what you will find at most investing firms, the opposite of gambling and speculating, of attempting to find so-called “experts” who think they can pick winning stocks and can time the market.  A disciplined client – advisor relationship is based on communication and education. That is one of the main reasons we offer classes every month.  Join us this summer and discover what the dreaded “D” word can mean to YOUR financial future!

By Margaret Wittkopp

Investment Advisor Representative

Investment Risk: There's No Escaping It!

Looking for an investment without any risk? You won't find one. 

All investments have risks - just different kinds and degrees. So it's important to know what the specific risks are and how they can affect your portfolio.

Market Risk. Stock market ups and downs are unpredictable. So market risk - the possibility that investments will lose value because of a decline in the securities markets - may be the risk you think about first. Choosing an appropriate investment strategy and sticking with it may help your portfolio survive a volatile market.

Interest Rate Risk. You may think you can avoid the uncertainty of the stock market by investing in bonds. But bond investments have their own risks. Changes in interest rates affect bond prices. When rates rise, prices of existing bonds fall because older bonds are paying less interest than newly issued bonds. Holding a variety of bonds having different maturity dates may reduce interest rate risk.

Default Risk. Bonds are subject to another type of risk - the risk that the bond issuer won't have money to make principal and interest payments to bondholders. Generally, investors who buy lower rated "junk" bonds are more at risk from default than investors who hold investment grade bonds. Check an issuer's credit rating with a bond-rating agency, such as Moody's or Standard & Poor's, to minimize default risk.

Inflation Risk. Over the years, the rising costs of goods and services can reduce the purchasing power of your savings. If you invest the bulk of your money in fixed income investments, you may be at risk of not earning enough to reach your long-term goals. Consider investing a portion of your money in investments, such as stocks, with the potential for earning higher returns to help reduce inflation risk.

Currency Risk. Adding international investments to your portfolio may provide diversification.* But be aware that currency exchange rates, foreign taxation issues, and differences in auditing and financial standards, among other things, can affect the value of foreign investments.

Play a Role. You can't prevent investment risk, but you can take steps to moderate it. By diversifying your portfolio, you improve your chances that gains in one asset class may offset losses in another. And, when you invest for the long term, you'll have more time to recoup any losses.

Back on "The Biz Connection" Radio Show!

On Saturday, April 14, 2012, Margaret Wittkopp, Jeremy Burri and Paulette Ruminski will all be featured on THE BIZ CONNECTION! 

The Biz Connection is a new radio program airing every Saturday at 11 AM Central Standard Time at WJUB 1420 AM Radio, The Breeze.  The program is aimed at the business community along the Lakeshore in Sheboygan County and Manitowoc County, Wisconsin.   Each week, hosts Jim Rosetti and Ron Nielsen learn about their guest's business and its ups and downs and discover ways business owners can learn from the experiences of their guests. 

Margaret was featured on the show in January. This time, Financial Coach and Tax Advisor, Jeremy Burri, along with Insurance Advisor Coach Paulette Ruminski, will join Margaret in the studio at "The Breeze' to talk about Veritas' unique suite of services and how our integrated approach can help indivuals and businesses with financial decisions.  

If you aren't near a radio, you can listen online by clicking here on THE BREEZE and then clicking on the little play arrow that says "LIsten Live in HI-FI."  

You can also find the show by going to the website for The Biz Connection.  The Biz Connection guys are on Facebook too.

 Call in during the show with questions for Margaret, Jeremy or Paulette at 920-246-9582.

Lies and Truths #12 Less Can Be More

Here is the next installment in our series, a short but powerful TRUTH:  

"He who trades less wins."

A broker's "job" is to get you to buy and sell as much as possible.  That is the primary way he or she gets paid.  This is a huge conflict of interest because what is good for you is bad for the broker.

Would you like to explore ways to get OUT of this trap?  Call Margaret or Jeremy at 920-893-5262. 

To see the other "Lies and Truths" posts, click on the link at the bottom of this post.  And if you would like to receive a free copy of this book, just call to let us know you read this post. We will be happy to send you a copy (unless all our remaining books are gone).

What Did We Learn in 2011?

A Year of Stormy Seas

Every year has its ups and downs, but 2011 had more than most, creating unusual volatility in the financial markets. We could describe it as a bit like being tossed on the ocean in a stormy sea, swooping up one moment, and plunging down the next. This volatility left many investors gasping for breath, at least figuratively, and maybe even feeling a little seasick!

The S&P 500 is only one of several indexes, but we’ll use it to illustrate these market ups and downs. For example, in a two-week period from July 25 through August 8, the S&P 500 lost almost 17% of its value. On November 30, it gained 4.3% in a single day.1 Yet by the end of the year, the S&P 500 was just 0.04 points lower than where it started—the smallest annual change in history!2
 
Global Events

The pro-democracy movement in the Middle East began in late 2010 with events in Tunisia and spread to Egypt and Libya in early 2011. Economically, the Libyan conflict was particularly significant because of the country’s key role as an oil producer. On February 22, after fighting broke out in Tripoli, the S&P 500 dropped 2.1%. This was its largest single-day decline since the previous summer. Crude oil prices rose 8.6% to reach $93.57 per barrel, the highest level in more than two years.3  Oil prices continued to rise through the end of April, when they began a six-month decline. The earthquake and tsunami that hit Japan in March devastated the Japanese economy and caused humanitarian and economic concern around the globe. The S&P 500 dropped for three consecutive days the following week, but it quickly recovered and went on to reach its high for the year on April 29.4 The real impact of the Japanese disaster for the United States played out over a longer period of time because of the decline in the flow of Japanese products.

Debt Concerns

The steep decline of the S&P 500 in late July and early August, mentioned at the beginning of this article, coincided with acrimonious debate over the federal deficit and raising the debt ceiling. The decline continued for a week after a last-minute agreement was reached, fueled by dissatisfaction over both the outcome and the unprecedented downgrading of the U.S. credit rating by Standard & Poor’s Ratings Services.5

The United States was not alone in struggling with debt in 2011. The European debt crisis cast a shadow over the global economy and contributed to many more ups and downs for the markets. After Greece announced it would be unable to meet its financial obligations, the S&P 500 hit its low for the year on October 3rd.6 Less than a month later, on October 27, news that European leaders had forged an agreement to address the Greek issue helped spark a 3.4% increase that contributed to the largest one-month rally of the S&P 500 since 1991.7

Obviously, world events can have a dramatic effect on financial markets. However, these effects typically dissipate fairly quickly. Long-term trends are rarely, if ever, driven by a single event.

Rather than focusing on market volatility, it may be more helpful to look at the long-term growth of the U.S. economy. In the third quarter of 2011, real gross domestic product grew at an annual rate of 1.8%. Although less than the 2010 growth rate, this was a substantial improvement, suggesting that the economy has continued to recover, albeit slowly, from the Great Recession of 2008–09.8

Persistent unemployment affects millions of Americans and has been one of the most significant drags on the economy and financial markets, so perhaps the best economic news of 2011 was that the unemployment rate dropped to 8.5% in December, the lowest rate since February 2009. If this trend continues, it may bode well for 2012.8

It will take some time to fully understand the economic impact of the stormy financial seas caused by domestic and global events of 2011.

So what can we take away from all this? Is it time to get out of the water and tie your boat to the dock?

Absolutely not!

I hope you saw from the examples here that domestic and global events are random and unpredictable. Many investors did see some losses in their portfolios last year, but consider this: If you got out of the market because the S&P 500 took a 17% dive, you missed the subsequent upturn. Would you, or anyone, be able to accurately predict the optimum time for getting back in?

Volatile times call for a disciplined, steady plan of action, a time to make sure you are truly diversified, and not (as is the case for far too many American investors) simply holding a lot of “stuff.” The only way to know this is to take a good look inside the funds in your portfolio.

Times of feeling a bit “seasick” are NOT times for an emotional response. The wisest course is to follow a sound, disciplined investment strategy based on your long-term goals, personal situation, and risk tolerance.  To schedule a look "under the hood" of your investments, or to talk further about this, call Jeremy Burri or me at 920-893-5262.

Margaret Wittkopp
Financial Advisor/Coach
Investment Advisor Representative

1)Yahoo! Finance, 2012, for the period 12/31/2010 to 12/31/2011. The S&P 500 Composite Index is generally considered to be representative of U.S. stocks.
2) CNNMoney, January 3, 2012
4) The Washington Post, July 13, 2011
5) Standard & Poor’s, August 5, 2011
6) CNNMoney, October 3, 2011
7) CNNMoney, October 27, 2011; October 31, 2011
8) U.S. Bureau of Economic Analysis, 2011

The information in this article is not intended as tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material partly prepared by Emerald Connect, Inc.


The painting, A Ship in Stormy Seas, is by Mantague Dawson.  To purchase it, click here.

Lies and Truths #11 You Are Already Rich

Here is another TRUTH in our series from the book "The Lies My Broker Taught Me and 101 Truths About Money & Investing."

TRUTH:  You are Already Rich!

"In comparison to all of the humanity that has inhabited this planet in the past and today, you already have vast amounts of wealth available to you.  You have access to food, clothing, education, shelter, technology, and freedom; unimaginable to the masses in the world today and suffering without running water, health care, food, shelter, or sanitary living conditions.  Even the kings of a thousand years ago could scarcely have imagined the wealth of your kind.  Indeed, you are already rich."

So, maybe all of us in this country are really part of the 1%?  Something to think about.  Let's live today in an awareness of how RICH we are! 

We have a few copies of this book to give away.  Just call 920-893-5262 and tell us you read this post and we will send one out to you--unless they are all gone.'  If you would like to see all the posts in this series, just click the "Lies and Truths" link at the bottom of this post.

Subtle Differences

I was doing some researching and ran across the website of a very "intelligent" sounding financial advisory firm. Their website is very well done. They advertise that they are fee-only planners, and (like us) are independent. They present a good image. They even have a name in their title that is very much like the name of a firm with which Veritas has a business relationship. The more I looked at their site, the more I felt like they are our clone from another dimension: similar sized staff, articles about market panic, references to Money Smart Week, and a golf event.  If I were an outsider, I would see almost no difference between this firm and Veritas Financial Services.

But then I dug a little deeper. One of their FAQs (frequently asked questions) is about active management. I am quoting their reply directly:

"Active investment management is the use of analytic research, forecasting, experience and expertise to decide what securities to buy or sell and when. This process aims to achieve a greater rate of return than the market by identifying mispriced assets. In contrast, passive investing subscribes to the Efficient Market Hypothesis and promotes index investing based on the premise that it is not possible to beat the market. These are the two main schools of thought in investment management and attract significant debate and contention within the industry and academia.

Actually, there is NO contention amongst academics about which method is best, only on Wall Street. But anyway, here is their next section on "which is best."

We employ an active investment strategy as we feel greater returns can be achieved with this method. While the majority of investors don’t beat the market, our results have shown that it is not impossible.

And something makes them different from "the majority of investors?” This is a common psychological misperception, similar to how over half of drivers think they are “above average.” I continue, from their website:

Our process can be referred to as “tactical asset allocation” [TRANSLATED: “MARKET TIMING”] in which we make changes…based on our current Market Outlook [TRANLATED: “GUESS”]. With these adjustments we aim to add value for our clients by anticipating broad market and economic themes. We also utilize active mutual fund managers…to make the decisions of which specific companies are best poised to profit from these themes. While many tout index funds because of lower expense ratios, our experience [BUT WHAT RESEARCH?] has shown that there are fund managers who are worth the higher cost [ARE THEY INDENTIFIABLE IN ADVANCE?] and we spend a lot of our research time trying to identify those managers and make sure the costs are appropriate for the value provided."

Here is a case of an intelligent-looking firm in all respects that falls victim to the same cancer of active management, and not only that-- MARKET TIMING (ie "tactical asset allocation"). The sad truth is, they interpret mutual fund manager luck in making correct bets as a consistent, repeatable, and predictable skill they can employ for their investors.

Nothing could be farther from the truth.

Granted, index funds are often held in high esteem for being less expensive, but inexpensive isn't everything. It is also the asset mix that matters. At Veritas, we use structured Free-Market funds and emphasize appropriate asset allocation and true diversification. We do NOT advocate actively-managed funds.

It is highly unlikely that the average investor can decipher and discern these subtle differences. That is why our goal is, week in and week out, to educate you, the investor.

Jeremy Burri
Financial Advisor Coach

Registered Investment Advisor

Employer Fiduciary Liability

Did you know that you can be sued by your employees for the performance (or lack of) and fees in your retirement plan? The Dept of Labor sets clear standards for the structure of retirement plans, yet many employers are unaware of this fact and maintain plans that are OUT of compliance.

Employers are often also under the false assumption that the investment provider is liable for these things or acting as a "fiduciary" along with the employer. Sadly, in most cases the investment provider  is not assuming ANY fiduciary liability, and thus would leave you to fend for yourself (just ask your provider if they are acting as a fiduciary).

In a January 25th class, we'll look at the regulations for employers and how to protect yourself from employee litigation. Additionally, in this class Paulette Ruminski will talk about health insurance issues that may pose a legal threat to employers.

Join us here at Veritas at 7:30 AM for a complimentary breakfast or 11:30 AM for a complimentary lunch.  To register, call 920-893-5262 or email Jo Ann at jo.ann@veritasinvesting.com and we will reserve a space for you.

Jeremy Burri
Financial Advisor Coach

Investment Advisor Representative

IF NOT CLASS (Community Living Assistance Services & Supports Act) — then WHAT?

CLASS, the provision of the 2010 Health Care Reform Act that asked all employers to enroll their employees into a government-run long term care insurance program, has been dissolved.

If you are a business owner, you might be surprised to learn that long-term care benefits now rank as important to employees as life and disability…maybe, in time, even above the healthcare benefits you may currently provide.

Some Myths & Truths about long-term care to consider:


Myth: My employees are not concerned about long-term care benefits.

Truth: 77% of Americans age 30 to 65 think they should know more about long-term care than they currently do.

Myth: Employees do not value this benefit as much as other benefits currently offered to them.
Truth: Employees today, especially if they are Baby Boomers, are vowing to do things differently after seeing their parents’ savings swallowed up by nursing home care, and/or experiencing the stress and financial burden of spouses or children serving as caregivers.

Myth: Medicare will pay for any long-term care needs during retirement.

Truth: Encourage your employees to look at Page 4 of their annual Social Security statement which reads, “Medicare does not pay for long-term care, so you may want to consider options for private insurance”.

Myth: The risk of a financial burden to an employee from benefits an employer currently offers (health, disability, life) supercedes long-term care risks.

Truth: 3 in 900 (.33%) = Odds a having a car accident

21 in 900 (2.3%) = Odds of being admitted to a critical care unit

630 in 900 (70%) = Odds of needing long-term care

Myth: Long-term care is primarily for nursing homes.

Truth: Long term care plans have evolved with much emphasis and greater benefits being placed on staying in your home (even paying family members as caretakers) vs. a nursing facility.

Myth: Long-term care benefits are too expensive.

Truth: Rates are based on age and health (the younger you are and if in good health) the lower the rates will be and why there are many advantages to consider during one’s working years. Also, there are group discounts available, even if offered on a voluntary basis. And, the Wisconsin Partnership Plan offers tax deductions to individuals and business owners who purchase long-term care insurance. The cost may be 100% tax deductible for business owners. Plus, one can purchase “limited pay” policiesso that insurance protection is paid-in-full prior to retirement age.

In the wake of the dissolving of the CLASS Act, however, an urgent question that may remain unanswered is “If not CLASS, then what?

Consider offering Long-Term Care Benefits to your employees. To find out more and explore some options, call me at 920-893-5262.

Paulette Ruminski
Insurance Advisor Coach

Food Pantry Donation

The Plymouth Food Pantry was presented with a check for $2,525 from Plymouth Professional Business Women.   Funds were raised at the group's annual silent auction.  On the far right is VERITAS' office manager, Cathy Knuth.  We are proud to relate that Cathy is the newly-appointed secretary of PBW.

Separating Myths and Truths of Investing

Teaching investors the truth about investing is a part of our mission.

Are you an investor? Considering the ups and downs of the stock market, the struggles (or outright disappearance) of some of the best-known banks and brokerage houses, and the constant (and often contradictory) media hype—you might wonder if the best thing to do is put your money under a mattress. How do you know what to do?

Don’t despair! It IS possible to find the truth about investing, to discard long-held (and dangerous) Wall Street myths--and to become a successful investor.

Here are just four common myths that can sabotage the returns of uninformed or unwary investors:

• Stock Selection: Picking stocks that are expected to do well in the future. Have you seen the articles that promise to reveal, “Ten Best Stocks for the New Year” or something similar? One financial company’s prospectus even boasts that they use “superior fund managers” to pick stocks! Stock selection is a Wall Street myth.

• Track-Record Investing: The use of performance history to determine the best investment for the future. Have you or a professional looked for superior-performing mutual funds? Track-record investing is a Wall Street myth.

• Market Timing: An attempt to alter or change the mix of assets based on a prediction of what the market will do in the future. Did you, or someone you know, “get out of the market just in time?” Did they know exactly what day to get back in? Market timing and predicting up and down markets is a Wall Street myth.

• Costs of Investing: The belief that investing costs are limited to commissions and other disclosed fees. Many fees are NOT disclosed but can create financial leaks in your portfolio? Thinking that costs are always disclosed is another Wall Street myth.

What is the truth? The truth is that no one can consistently and predictably add value through stock selection. The truth is that an investment manager’s track record of past success has nothing to do with ability to do so in the future. The truth is that free markets work; only new and unpredictable news and events affect market prices. And the truth about costs is that what you can’t see CAN hurt you. The solution is called Modern Portfolio Theory and is based on years of academic research.

You don’t have to use traditional investment methods to be a successful investor! Would you like to know more? Make 2012 the year you discover the truth about investing. Each month we will present the class, “Myths and Truths: the History of Investing.” Call us at 893-5262 if you would like to receive a schedule of educational opportunities or if you would like to talk about it with us.

Margaret Wittkopp

Investment Advisor Representative

 

Margaret is Going to be ON THE RADIO

On January 14, 2012, Margaret Wittkopp will be featured on THE BIZ CONNECTION! 

The Biz Connection is a new radio program airing every Saturday at 11 AM Central Standard Time at WJUB 1420 AM Radio, The Breeze.  The program is aimed at the business community along the Lakeshore in Sheboygan County and Manitowoc County, Wisconsin.   Each week, hosts Jim Rosetti and Ron Nielsen learn about their guest's business and its ups and downs and discover ways business owners can learn from the experiences of their guests. 

Margaret will be talking about the VERITAS alternative to traditional investing as well as our three-pronged approach to financial services.  

If you aren't near a radio, you can listen online by clicking here on THE BREEZE and then clicking on the little play arrow that says "LIsten Live in HI-FI."  

You can also find the show by going to the website for The Biz Connection.  The Biz Connection guys are on Facebook too.

 Call in during the show with questions for Margaret, 920-246-9582.