An Important Medicare Opportunity Is Underway

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February 1, 2022

Maybe you were seduced by the old-time actor, or the retired quarterback — the nostalgic names that you see on TV every fall touting Medicare Advantage plans. These all-in-one, privately run plans often cost less and cover more than Original Medicare (run by the federal government) plus a Part D drug plan. So what’s not to like? For one, they’re not zero cost, as the commercials might suggest. You might have gotten an unexpected bill from a recent hospital stay, for example, and want to reevaluate your coverage options. If you’re unhappy with your Medicare Advantage plan, you have until March 31 to make a switch. Learn more in today’s edition about the special Medicare Advantage Open Enrollment Period underway now. And if you’re not yet 65, I hope you’re still paying attention! It’s always a good time to learn that Medicare isn’t free.

Best wishes,
 
 
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Reader of the Week

Please welcome our Reader of the Week! Scott Hollis, 68, lives with his wife Debra on their 350-acre farm in the East Tennessee mountains. They retired to the area, which is in rural Bledsoe County, 12 years ago from Annapolis, Maryland. He was an executive in the hospitality industry and she was an attorney with the federal government.

What are you up to these days?

I’m interested in anything with a steering wheel, tiller or trigger. I fish, hunt and restore vintage cars. A lot of people have moved here from Michigan and Ohio to retire. There’s a car show in every town every month. I have eight vintage cars. Once I build them, it’s a labor of love, and I have a problem parting with them. But I have the space for them. We bucked the trend — we upsized. We sold a home in Maryland and built a 6,000 square foot home.

I did all the traveling I needed when I worked for Marriott. We traveled all around the world many times. I think it’s a personal victory if I never have to get on a plane again.

I spend lots of time with my five grandkids, as they love to visit our farm. We have three houses on the property, so they can come and stay for weeks and it doesn’t get crowded. I teach them life skills that my dad taught me.

Sweet! What’s your investing and spending philosophy?

My investment strategy is 90% behavioral, 10% tactical. Rule 1: Pay yourself first! Save 30% of your salary every month. We lived very well, but only after we paid ourselves. Rule 2:  Adhere to the rule of 100 for investing and rebalance annually. Rule 3: NEVER borrow money to buy anything that depreciates. I followed these rules for 35 years of work and retired at 56!

Also, we recognized in our retirement plans that one of the biggest unknowns was long-term care. We built our own fund and we anchored it with I-Bonds, because the biggest threat to health care is inflation. Twenty-five years ago we just built it and forgot about it.

Smart! Any other advice?

Retire to an interesting place where your kids enjoy coming to visit you. Following your kids can be a financial disaster. If parents move from a low cost state to a high cost market like California, New England, Chicago etc., it is a stretch to even pull it off financially. I’ve seen it happen where they bought a home in a new location and just got settled, and then the child gets a new job. The child relocates, and the parents are now stuck in that location with no family there. [On the flip side] if the parents are there, it very well may influence kids not to make correct career decisions. When kids move they generally move up in compensation.

Also, be absolutely selfish about choosing your mate. Deb is my support, conscience and strength. We’ve been married for 46 years.

Retirement News From Around The Web

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Retirees Often Make One Big Mistake With Bonds
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13 Money-Saving Travel Tips for Retirees
Itching to get back in the air? Here’s how to make sure it doesn’t break the bank. KIPLINGER

Elizabeth O'Brien is deputy editor at Money. She has covered retirement and health care for nearly a decade. A Brooklyn resident and mom of two boys, she navigates the alphabet soup of Medicare and the New York City subway system with equal ease. You can email her at elizabeth.obrien@money.com and follow her on Twitter at @elizobrien.

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