Tag: tips
Tips For Navigating Medicare Open Enrollment

Tips For Navigating Medicare Open Enrollment

By Janet Kidd Stewart, Chicago Tribune (TNS)

Frustrated with your Medicare coverage? You have until Dec. 7 to look for new options.

That’s the last day of open enrollment for current beneficiaries. Changes made to your plan go into effect Jan. 1.

With speculation still swirling about possible changes to the program’s “hold harmless” provision — a rule that will stick people who are delaying Social Security and higher income beneficiaries with big premium hikes for 2016 — managing costs and benefits is more important than ever, experts said.

“It really takes an individualized assessment to find the right plan,” said Casey Schwarz, senior counsel for education and federal policy at the Medicare Rights Center. “The one that’s right for your neighbor or even your spouse might not be the one for you.”

That’s certainly true for couples with different health profiles, where one very healthy spouse might choose a plan that’s low on premiums and higher on out-of-pocket costs, while the sicker spouse chooses a higher premium and lower out-of-pocket costs.

But it could also be true for couples in more comparable health situations, she said.

“I was speaking with someone the other day who uses a brand-name medication, and his wife takes a different one. There wasn’t a single plan in the lowest cost tier that had them both, so they chose separate plans,” she said.

Managing two plans in one household could be a hassle but potentially worth it if it means savings of hundreds or thousands of dollars a year.

Here are some other tips to keep in mind as you choose.

Look to the stars. Check out Medicare.gov for access to the health plans available to you. Plans carry a star rating of 1 to 5, with 5 being the best. The plans earn stars based on measures such as customer service, how many of their participants have well-managed blood sugar levels, how many got their flu shot, and the like. Schwarz said these measures are best used to help distinguish between two or more finalists you’ve already narrowed down according to coverage and cost.

Study up. Make sure you understand fully the final plans you are considering. One reader of this column shared some frustrating experiences as he transitioned from COBRA to Medicare this year. While the move ultimately meant his total costs were cut in about half, he spent many hours on the phone with his insurance provider, haggling over getting access to the right dosage of a prescribed medication.

“We always look for plans with the fewest quantity limits,” said Maura Carley, president of Healthcare Navigation LLC, a consulting service. In theory, doctors can write prescriptions for whatever amount of medication they feel is suitable for a patient, but insurers increasingly are scrutinizing those orders, requiring an additional administrative step to verify the prescription amount is medically necessary.

Watch your step. Some drug plans offer cost incentives for step therapy, the practice of starting a patient on the lowest-cost drug and moving to higher-cost alternatives if the first one doesn’t work. In practice, Carley said, patients view these rules as very heavy handed.

Wanderlust? If you spend part of the year in another state, make sure your plan can travel with you, experts said. Some plans, for example, only cover you in your home base.

The bottom line, experts said: Don’t leap for a low-premium plan just to save a few dollars of monthly cost. Look for a plan’s total out of pocket costs and deductibles, and find out about restrictions on drug dosing.

©2015 Chicago Tribune. Distributed by Tribune Content Agency, LLC.

Photo: Don Ariosto via Flickr

Five Tips For Financing Investment Property

Five Tips For Financing Investment Property

By Jennifer Acosta Scott, Bankrate.com (TNS)

Home prices have been on a steady climb from the depths of the housing crash, leaving many wondering if it is still a good time to invest in the residential real estate market.
According to the National Association of Realtors, 85 percent of major metro areas saw gains in existing, single-family home prices in the first quarter of 2015, while 14 percent saw a price decline.

However, low interest rates are still attracting buyers, according to the association, and limited inventory is behind escalating prices in some desirable areas. The group predicts continued steady growth in most of the country.

But while interest rates remain low, the days of quick-and-easy financing are over, and the tightened credit market can make it tough to secure loans for investment properties. However, there is some good news: A little creativity and preparation can bring loans within reach of many real estate investors.

If you’re ready to seek out financing for your residential investment property, these five tips can improve your chances of success.

Have A Sizable Down Payment

Mortgage insurance won’t cover investment properties, so you need at least 20 percent down to secure traditional financing for them. If you can put down 25 percent, you may qualify for an even better interest rate, says Todd Huettner, a mortgage broker and president of Huettner Capital in Denver.

If you don’t have the down payment, you can try to obtain a second mortgage on the property, but it’s likely to be an uphill battle.

Be A ‘Strong Borrower’

Although many factors — among them the loan-to-value ratio and the policies of the lender you’re dealing with — can influence the terms of a loan on an investment property, investors should check their credit score before attempting a deal. It will have the greatest impact on a loan’s terms.

“Below [a score of] 740, it can start to cost you additional money for the same interest rate. Below 740, you will have to pay a fee to have the interest rate stay the same. That can range from one-quarter of a point to 2 points to keep the same rate,” Huettner says.
The alternative to paying points if your score is below 740, obviously, is to pay a higher interest rate.

In addition, reserves in the bank to pay for all your expenses, personal and investment-related, for at least six months also have become part of the lending equation.
“If you have multiple rental properties, [lenders] now want reserves for each property,” Huettner says. “That way, if you have vacancies, you’re not dead.”

Shy Away From Big Banks

If your down payment isn’t quite as big as it should be or if you have other extenuating circumstances, consider going to a neighborhood bank for financing rather than large, nationwide financial institutions.

“They’re going to have a little more flexibility,” Huettner says. They also may know the local market better and have more interest in investing locally. Mortgage brokers are another good option because they have access to a wide range of loan products, but do some research before settling on one.

Recommendations from friends also are a good way to vet lenders, and investors shouldn’t be afraid to inquire about their credentials, and then verify them. “What is their background?” Huettner asks. “Do they have a college degree? Do they belong to any professional organizations? You have to do a little bit of due diligence.”

Ask For Owner Financing

A request for owner financing used to make sellers suspicious of potential buyers, because almost anyone could qualify for a bank loan, Huettner says. But these days, it’s become more acceptable due to the tightening of credit.

However, you should have a game plan if you decide to go this route. “You have to say, ‘I would like to do owner financing with this amount of money and these terms,'” Huettner says. “You have to sell the seller on owner financing, and on you. You need to present a picture to someone so they’re not filling in the gaps with their worst fears.”

Think Outside The Box

If you’re looking at a good property with a high chance of profit, consider securing a down payment or renovation money through home equity lines of credit, from credit cards or even from some life insurance policies, says Ben Spofford, an Ohio home remodeler and former real estate investor. As always, research your investment thoroughly before turning to these riskier sources of cash.

Financing for the actual purchase of the property might be possible through private loans from peer-to-peer lending sites like Prosper.com and LendingClub.com, which connects investors with individual lenders.

Just be aware that you may be met with some skepticism, especially if you don’t have a long history of successful real estate investments. Some peer-to-peer groups also require your credit history to meet certain criteria.

“When you’re borrowing from a person as opposed to an entity, that person is generally going to be more conservative and more protective of giving their money to a stranger,” Spofford says.

Photo: A home for sale sign hangs in front of a house in Oakton, on the day the National Association of Realtors issues its Pending Home Sales for February report, in Virginia March 27, 2014. REUTERS/Larry Downing  

10 Essential Money Habits

10 Essential Money Habits

By Elyssa Kirkham, GOBankingRates.com (TNS)

Your financial health, just like your physical health, is built on dozens of small, daily decisions that eventually form habits. And while eating better and exercising more are well-known habits that will get you fit, sometimes the money habits that lead to financial health are much less obvious — though both topics can inspire plenty of debate.

While every person’s financial situation is different, there are still habits that will nearly always have a positive impact on your money. These are the 10 essential money habits you can follow each day, week or month to get control over your money and build wealth instead letting your finances control you.

––Spend less than you earn: This habit is Personal Finance 101. It’s always going to be true that you’ll never get ahead financially if you always have more money going out than coming in. The great news is there are two ways you can work on this habit: Focus both on increasing your income and controlling your spending to live within your means.

––Pay yourself first: When people say “pay yourself first,” they mean you should take your savings out of your paycheck as soon as it hits your checking account to make sure you save something before you spend it all on bills and other expenses. The key to saving successfully is to save first, save a lot — 10 to 20 percent is often recommended — and save often.

––Maintain an emergency fund: Virtually every personal finance expert agrees that an emergency fund is central to financial health. Building and maintaining an emergency fund can help you avoid debt and give you a reserve to draw from, which can also help you keep your financial goals on track even through life’s setbacks.

Start small by saving at least one month’s worth of expenses and then work your way up to saving a larger emergency fund, such as a year’s worth. Having several months’ worth of expense money saved up can protect you against financial concerns when crises like job loss or medical emergencies come up.

––Budget for extra expenses: In addition to basic living expenses and bills, you should also budget for other purchases you’re in the habit of making. Whether it’s buying a coffee twice a week, eating out on the weekends or buying gifts for friends and family, these seemingly little expenses can add up and suck your budget dry if you don’t plan for them.

Write down everything you’ve spent money on in the past month — go back further if you can remember or look up transaction records and receipts — and categorize each expense. Rank each category by how important it is to you. Add the top three priorities as line items in your budget, such as $100 a month for date nights or $20 a month to buy supplies for your hobby. For everything else, work on dropping those spending habits or finding cheaper alternatives like brewing your coffee at home.

––Save for the unexpected: Extra costs can come up frequently, and whether or not they’re true emergencies, they can still set you back. Maybe your tooth filling falls out, your pet decides to eat half a rug and needs emergency medical care, you get a flat tire or your kid wants to start playing a sport. Your finances will get hit twice as hard by these unexpected expenses if you don’t have extra money saved to cover them.

Having a “buffer fund” can create a little bit of wiggle room in your accounts so you can pay for these costs without going into debt or pulling money from your emergency fund. Try socking away $1,000 for each member of your household, for example — including pets.

––Get and stay insured: In addition to a buffer fund, you should also consider insurance. Insurance is an important protection that can stand between you and bankruptcy due to a major emergency. Start with the must-have: health insurance. Medical debt is one of the most common causes of financial hardship, out-of-control debt and bankruptcy, according to the Consumer Financial Protection Bureau. Half of all overdue debt listed on credit reports is medical debt, affecting 43 million Americans, the bureau says.

Other forms of insurance also can help protect you against major expenses. Car insurance is not only a good idea, but also is required by law in nearly every state. If you’re the breadwinner with kids, you should probably get a hefty term life insurance policy and you might also consider getting disability insurance. Stay current on all policies so coverage will never lapse when you and your family need it most.

Other types of insurance that you might also benefit from having could include: homeowners’ insurance or renters’ insurance, pet insurance, guaranteed auto protection insurance and dental insurance.

––Set financial goals: To know what daily money habits to focus on and prioritize your money management the right way, you have to know what you’re trying to accomplish. Review your finances. Look specifically for the biggest drains on your money, such as overdraft fees or high-interest debt, and also spend some time thinking about what you’d like your finances to look like in the future. Then, identify specific steps required to achieve your short- and long-term money goals.

––Review your progress regularly: Set aside time each week to check on your financial goals. Did you make progress? Were there any setbacks? Track how you’re doing and celebrate your wins — not by splurging, though — to keep yourself motivated and on course.

––Track your money: You can’t put your money where it matters if you don’t know where it’s going. Figure out a system to keep track of your financial transactions. Whether you prefer using pen and paper to reconcile your bank accounts the old-fashioned way or using finance-tracking apps like Mint or LearnVest, you need to have a clear picture of what is happening with your money. Tracking your spending can help you quickly identify problem areas that you can improve on and see the progress you’re making.

––Check financial accounts often: As part of keeping track of your money, you should check on all financial accounts regularly. You should review spending accounts, like credit cards and checking accounts, daily in terms of checking balances and tracking expenses. Review bills such as loans when making monthly payments and updating your budget to make sure you avoid overdraft or late fees.

Savings accounts should get a once-over weekly or monthly to keep them on track. Retirement accounts and investments can be reviewed less frequently, such as monthly, quarterly or twice a year.
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GOBankingRates.com is a leading portal for personal finance news and features, offering visitors the latest information on everything from interest rates to strategies on saving money, managing a budget and getting out of debt.

Photo: Money rules our life. Might as well be smart about it. Philip Taylor via Flickr

Must-Know Hydration Tips For Summer Workouts

Must-Know Hydration Tips For Summer Workouts

By Allie Burdick, FITBIE.com (TNS)

Did you have enough to drink during your workout today? It’s a simple question but, most of us either don’t know the answer, or have the wrong one.

“Part of the problem is that there are so many variables,” said Keri Gans, MS, RD, and author of The Small Change Diet. “If you’re doing regular, steady state exercise for under and hour, all you need is water, but a hard effort outside in the heat or in a heated room for over an hour, and you need a sports drink.”

The most important rule, Gans said, is to “listen to your body and use common sense.” The recommended guidelines for fitness hydration call for, “around 16 to 24 ounces over two hours before you exercise then, another two cups 15 minutes prior to a hot outdoor sweat session, and then every 20 minutes during the actual activity.”

However, that could be difficult depending on the activity you’re doing to work out.

“Think about it,” Gans said. “If you’re doing stand-up paddleboarding, you’re not going to be able to drink during that activity and there are definitely no bathrooms out there.” Her best suggestion? Let the temperature and how you feel be your guide.

Follow these steps to help stay hydrated throughout your summer training and beyond:

Step One: Just drink it
This is the golden rule, according to Gans. Don’t worry so much about the amount or kind of hydration you should be getting _ just drink water. If you think about drinking some extra fluids (non-alcoholic and non-caffeinated as those will dehydrate you) the night before your run or fitness class, that’s the perfect time to start. Then, when you wakeup, drink another 16 to 24 ounces especially in the hours leading up to vigorous activity. If you can’t drink during the actual activity, be prepared with water for immediately afterward.

The goal is regular hydration though out the day and, adding a sports drink or something with additional sodium, if you’re exercising in the heat for over an hour.

Step Two: Choose wisely
Obviously not all beverages are created equal and, if you’re watching your weight, anything besides water can add up to unwanted pounds. If you’re exercising in the heat for over an hour your body needs the sodium that a sports drink like Gatorade will provide. Coconut and other fruit or plant based waters like Cactus or even Artichoke waters have more potassium, but also have added calories from sugar.

“Read the labels and know where the sugar is coming from,” Gans said.

For instance, if the sugar in Cactus water comes from prickly pear, that’s a good source. If it’s just ‘added sugar,’ that may not be your best choice. As a general rule, the lower the sugar content the better and, Gans said “at the end of the day you just want to stay hydrated,” but remember, if you’re drinking anything other then plain water you’re not consuming zero calories.

Step Three: Mix It Up
To keep a steady flow of fluids, have some fun with it.

“You can add almost any fruit or herb to water these days to liven it up,” Gans said, who also suggests drinking seltzer with fresh lime or lemon as well as diluting your favorite drinks.

“I love lemonade,” Gans said, “but it’s obviously not the best choice calorie-wise so, I dilute it with water.” Use this hack for all your favorite not-so-healthy thirst quenchers _ one part favorite juice or drink and two parts water — get some of the flavor with a lot less of the calories.

“Don’t forget about milk in all its forms,” Gans said. “Low-fat, almond, and soy all count toward hydration while providing additional nutrients.”

Many runners opt for a cold glass of chocolate milk for post-run fuel because of its protein and carbohydrate content.

(c)2015 Fitbie.com. Distributed by Tribune Content Agency, LLC.

Photo: John Revo Puno via Flickr