I RAPped!

Blizzard, A. Goicolea, Phoenix Art Museum

Per the NWS, we’re getting a blizzard here this afternoon – three to eight inches of fluffy snow!

Don’t miss the retirement action calendar after ‘Rapping’.

Rapping

As part of my RAP (Retirement Activity Plan and Free stuff!), one of my goals is to remain socially connected. Connection is not usually a problem when you’re employed because you have coworkers. I’m still employed 80% of the time and my coworkers are great (now, please tell me where my laptop is…).

Fortunately, for the 20% of the time when I am retired, the gentlemen from the old neighborhood have invited me to their weekly breakfast meeting. They are interesting and engaged people and the restaurant has excellent coffee and is extremely generous with the meat on the country breakfast. They are now one key part of my social connection in retirement. Excellent people and good food – what more could one ask for?

If you’ve seen the RAP template, it has areas for creativity, social, personal, and activity.

Looking back at last year, I give myself about a C for activity. I tracked exercise and averaged almost 12 times per month. My goal is about 17 times per month (4 times per week) or better.

I was pleased with my personal work. I made it through Pimsleur French I and most of II. I watched a French subtitled movie. I read a couple of investing books. (The one I recommend is The Four Pillars of Investing by William J. Bernstein. Get the old version; it’s cheaper and has 99.9% of the content.)

I was also happy with my creativity. I continued the blog. I completed some house projects and fixed a few laptops.

Retirement Action Calendar

I borrowed a genius idea from Vanguard, Merrill, Kiplinger, and Forbes and synthesized (RAP – creativity!) a spreadsheet with key dates for pre- and post-65 retirees. Excel and Google Sheets versions are located here.

The one time events show some dates for my friends Rick and Jean (pseudonyms), but will likely be useful you, too. The one time tab includes Medicare sign-up, initial RMD, any initial pension payments, and starting Social Security. You’ll need to research and customize your own dates. As an example, Rick will sign up for Medicare on, or soon after, 6/1/2020 because his Medicate will start 9/1. If Rick is too late (after 12/1), he’ll have a Medicare penalty.

The annual events tab includes Medicare open enrollments, estimated tax payments, a budget and RIP checkup, and a medical (Obamacare) open enrollment.

Actions you can take include:

Download and personalize your Retirement Action Calendar.

Do a check of your RAP for 2018. How did you do? What will you change for 2019?

And if you have not seen the “Why you should read this blog…WIIFY” post, it’s here https://nosurprisesretirement.com/2017/07/09/first-blog-post/

Questions, comments, or suggestions for retirement surprise areas you want to know more about?
-Leave a comment
-Use ‘Contact’, above, to send an email.

A short, valuable Medicare primer

First, a picture of the world’s best raspberry-iced Bismarck from Grandma’s Bakery, White Bear Lake, MN:

The roll - c

I’ve been a little busy with work and the holiday this week, so you’re getting an abbreviated but meaty post, 99.8% created by one of the website ‘Seeking Alpha’ contributors who goes by Tipswatch (from Treasury Inflation Protected Securities). The article is titled, “Nearing 65? Don’t Get Caught By Medicare’s ‘Money Traps’”.

I think it’s a definite read, so here’s the link: Don’t get caught by Medicare’s money traps.

Now, ‘In the Lenin Mountains’, (1958), B. Talberg & Y. Korolev; The Raymond & Susan Johnson Collection of Russian Art; The Museum of Russian Art, Minneapolis, MN:

Lenin Mountains

Note – outstanding smaller museum in south Minneapolis. Make it a stop if you’re visiting.

Actions you can take include:

-Think about your medical needs and budget and make a Medicare plan.

And if you have not seen the “Why you should read this blog…WIIFY” post, it’s here.

Questions, comments, or suggestions for retirement surprise areas you want to know more about?
-Leave a comment
-Use ‘Contact’, above, to send an email.

Closeup on the Potential Social Security Surprise!

WIIFY – Quickly learn about getting from gross to net on Social Security so you don’t have an ‘income below expectations’ surprise.

We got a question from a reader on Medicare premiums being subtracted from Social Security. Medicare Part A has no premiums, but Medicare Part B does. (Trust me, you most likely need Part B, so you’ll be paying premiums.)

Social Security gross to net (or, ‘What’s my take home?’)
From the Medicare website:
“If you get Social Security or Railroad Retirement Board (RRB) benefits, your Medicare Part B (Medical Insurance) premium will get deducted from your benefit payment.”

So the arithmetic looks like:
Social Security gross monthly payment
-Less Medicare Part B premium (see below!)
-(Maybe) Less Medicare Part D premium (can pay directly to provider or have it deducted from Social Security
-Less any Federal tax withholding (see below, again!)
Social Security net monthly payment to you

Medicare premiums
Medicare Part B monthly premium ranges from $134 (most of us) to $428.60 (very few of us), depending on MAGI income (taxable income plus tax-exempt interest income). The premium is per person. To learn more specifics, see the Medicare Part B costs website.

Federal income tax on Social Security
Social Security can be taxable, depending on your ‘combined income’. 0-85% of your Social Security may be subject to tax. Sample scenario – you have $10,000 of Social Security gross income, and because of other income (pension, IRA withdrawals, interest) you have 85% of the Social Security gross included in income. That 85% is $8,500 and is taxed at your marginal rate (10%-39.6% depending on taxable income).

Up next – Look for the next update on Friday, July 21 at 12:30 PM.

Actions you can take:
-Read up on Medicare and Social Security on the links above or the books in Resources below.

Resources from your library or Amazon.com
Phil Moeller’s Get What’s Yours for Medicare: Maximize Your Coverage, Minimize Your Costs (The Get What’s Yours Series)

Questions, comments, or suggestions for retirement surprise areas you want to know more about?
-Leave a comment
-Use ‘Contact’, above, to send an email.