Financial Life Designs LLCAudrey W. Jones, CFP®Financial Wealth Architect1525 International ParkwaySuite 2021Lake Mary, FL 34746407-590-9372407-590-9372awjones@financiallifedesigns.nethttp://www.financiallifedesigns.net

Winter 2017

What It Means to Be a Financial Caregiver for YourParents

How to Get a Bigger Social Security RetirementBenefit

What should I evaluate when considering a new joboffer?

I get so many credit card reward offers. How do Iknow which one to choose?

Financial Life Designs LLCAudrey Jones, CFP®Medicare and Medicaid: What's the Difference?

See disclaimer on final page

How are you entering 2017? Happy,sad, fearful, excited? Changes seemto overwhelm us. We have so muchinformation from so many directions.Time to slow down and look right infront of us.

Yesterday's the past, tomorrow's thefuture, but today is a gift. That's whyit's called the present.--Bil Keane

May you enjoy the blessings oftoday. ---Audrey

It's easy to confuseMedicare and Medicaid,particularly since they'reboth government programsthat pay for health care. Butthere are importantdifferences between eachprogram. Medicare is

generally for older people, while Medicaid is forpeople with limited income and resources.

What is Medicare?Medicare is a federal health insurance programthat was enacted into law to provide reasonablypriced health insurance for retired individuals,regardless of their medical condition, and forcertain disabled individuals, regardless of age.It is managed by the Centers for Medicare &Medicaid Services, a division of the U.S.Department of Health and Human Services.

What is Medicaid?Medicaid is a health insurance program that isjointly administered by state and federalgovernments. Medicaid serves financiallyneedy individuals who are also elderly,disabled, blind, or parents of minor children.

Who is eligible for Medicare?Most people become eligible for Medicare uponreaching age 65. In addition, Medicarecoverage may be available for disabledindividuals and people with end-stage renaldisease.

Who is eligible for Medicaid?States set their own Medicaid eligibilitystandards within broad federal guidelines.However, federal law requires states to covercertain groups of individuals. Low-incomefamilies, qualified pregnant women andchildren, and individuals receivingSupplemental Security Income (SSI) areexamples of mandatory eligibility groups. Inaddition, a financial eligibility requirement mustbe met. The individual must be financiallyneedy, which is determined by income andasset limitation tests.

What does Medicare cover?Currently, Medicare consists of four parts:

Medicare Part A, generally called "hospitalinsurance," helps cover services associatedwith inpatient care in a hospital, skilled nursingfacility, or psychiatric hospital. Medicare Part B,generally called "medical insurance," helpscover other medical care such as physicianservices, ambulance service, lab tests, andphysical therapy. Medicare Advantage (Part C)enables Medicare beneficiaries to receivehealth care through managed care plans suchas health maintenance organizations (HMOs),preferred provider organizations (PPOs), andothers. Medicare Part D helps cover the costsof prescription drugs.

What does Medicaid cover?Each state administers its own Medicaidprogram within broad federal guidelines. Thus,the states determine the amount, duration, andtypes of benefits that Medicaid will provide.Typical Medicaid programs cover inpatient andoutpatient hospital services, physician andsurgical services, lab tests and X rays, familyplanning services, and services for pregnantwomen. There are also numerous optionalbenefits that states may choose to provide forMedicaid recipients.

What about long-term care?Most long-term care isn't medical care, butrather help with basic personal tasks ofeveryday life, called custodial care. Medicaredoes not pay for custodial care. However,Medicare may pay for skilled care (e.g.,nursing, physical therapy) provided in aMedicare-certified nursing facility for up to 100days. In addition to skilled nursing facilityservices, Medicare also may pay for part-timeskilled nursing care, physical therapy, medicalsocial services, and some medical suppliessuch as wheelchairs and hospital beds.

The states have considerable leeway indetermining benefits offered and servicesprovided by their respective Medicaidprograms. Generally, if you meet your state'seligibility requirements, Medicaid will covernursing home services, home andcommunity-based services, and personal careservices.

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What It Means to Be a Financial Caregiver for Your ParentsIf you are the adult child of aging parents, youmay find yourself in the position of somedayhaving to assist them with handling theirfinances. Whether that time is in the near futureor sometime further down the road, there aresome steps you can take now to make theprocess a bit easier.

Mom and Dad, can we talk?Your first step should be to get a handle onyour parents' finances so you fully understandtheir current financial situation. The best time todo so is when your parents are relativelyhealthy and active. Otherwise, you may findyourself making critical decisions on their behalfin the midst of a crisis.

You can start by asking them some basicquestions:

• What financial institutions hold their assets(e.g., bank, brokerage, and retirementaccounts)?

• Do they work with any financial, legal, or taxadvisors? If so, how often do they meet withthem?

• Do they need help paying monthly bills orassistance reviewing items like credit-cardstatements, medical receipts, or property taxbills?

Make sure your parents have thenecessary legal documentsIn order to help your parents manage theirfinances in the future, you'll need the legalauthority to do so. This requires a durablepower of attorney, which is a legal documentthat allows a named individual (such as anadult child) to manage all aspects of a person'sfinancial life if he or she becomes disabled orincompetent. A durable power of attorney willallow you to handle day-to-day finances foryour parents, such as signing checks, payingbills, and making financial decisions for them.

In addition to a durable power of attorney, you'llwant to make sure that your parents have anadvance health-care directive, also known as ahealth-care power of attorney or health-careproxy. An advance health-care directive willallow you to make medical decisions accordingto their wishes (e.g., life-support measures andwho will communicate with health-careprofessionals on their behalf).

You'll also want to find out if your parents havea will. If so, find out where it's located and whois named as personal representative orexecutor. If the will was drafted a long time ago,your parents may want to review it to makesure their current wishes are represented. Youshould also ask if they made any dispositions or

gifts of specific personal property (e.g., a familyheirloom to be given to a specific individual).

Prepare a personal data recordOnce you've opened the lines ofcommunication, your next step is to prepare apersonal data record that lists information youmight need in the event that your parentsbecome incapacitated or die. Here's someinformation that should be included:

• Financial information: Bank, brokerage, andretirement accounts (including accountnumbers and online user names andpasswords, if applicable); real estate holdings

• Legal information: Wills, durable powers ofattorney, advance health-care directives

• Medical information: Health-care providers,medication, medical history

• Insurance information: Policy numbers,company names

• Advisor information: Names and phonenumbers of any professional serviceproviders

• Location of other important records: SocialSecurity cards, home and vehicle records,outstanding loan documents, past tax returns

• Funeral and burial plans: Prepaymentinformation, final wishes

If your parents keep some or all of these itemsin a safe-deposit box or home safe, make sureyou can gain access. It's also a good idea tomake copies of all the documents you'vegathered and keep them in a safe place. This isespecially important if you live far away,because you'll want the information readilyavailable in the event of an emergency.

Don't be afraid to get support and askfor adviceIf you're feeling overwhelmed with the task ofhandling your parents' finances, don't be afraidto seek out support and advice. A variety oflocal and national organizations are designed toassist caregivers. If your parents' needs aresignificant enough, you may want to considerhiring a geriatric care manager who can helpyou oversee your parents' care and direct youto the right community resources. Finally,consider discussing the specifics of yoursituation with a professional, such as an estateplanning attorney, accountant, and/or financialadvisor.

A large majority ofcaregivers provide care fora relative (85%), with 49%caring for a parent orparent-in-law.

Source: Caregiving in theU.S. 2015, National Alliancefor Caregiving

Page 2 of 4, see disclaimer on final page

How to Get a Bigger Social Security Retirement BenefitMany people decide to begin receiving earlySocial Security retirement benefits. In fact,according to the Social Security Administration,about 72% of retired workers receive benefitsprior to their full retirement age.1 But waitinglonger could significantly increase your monthlyretirement income, so weigh your optionscarefully before making a decision.

Timing countsYour monthly Social Security retirement benefitis based on your lifetime earnings. Your basebenefit--the amount you'll receive at fullretirement age--is calculated using a formulathat takes into account your 35 highestearnings years.

If you file for retirement benefits beforereaching full retirement age (66 to 67,depending on your birth year), your benefit willbe permanently reduced. For example, at age62, each benefit check will be 25% to 30% lessthan it would have been had you waited andclaimed your benefit at full retirement age (seetable).

Alternatively, if you postpone filing for benefitspast your full retirement age, you'll earndelayed retirement credits for each month youwait, up until age 70. Delayed retirement creditswill increase the amount you receive by about8% per year if you were born in 1943 or later.

The chart below shows how a monthly benefitof $1,800 at full retirement age (66) would beaffected if claimed as early as age 62 or as lateas age 70. This is a hypothetical example usedfor illustrative purposes only; your benefits andresults will vary.

Birth year Full retirementage

Percentagereduction atage 62

1943-1954 66 25%

1955 66 and 2months

25.83%

1956 66 and 4months

26.67%

1957 66 and 6months

27.50%

1958 66 and 8months

28.33%

1959 66 and 10months

29.17%

1960 or later 67 30%

Early or late?Should you begin receiving Social Securitybenefits early, or wait until full retirement age oreven longer? If you absolutely need the moneyright away, your decision is clear-cut;otherwise, there's no ''right" answer. But taketime to make an informed, well-reasoneddecision. Consider factors such as how muchretirement income you'll need, your lifeexpectancy, how your spouse or survivorsmight be affected, whether you plan to workafter you start receiving benefits, and how yourincome taxes might be affected.

Sign up for a my SocialSecurity account at ssa.govto view your online SocialSecurity Statement. Itcontains a detailed record ofyour earnings, as well asbenefit estimates and otherinformation about SocialSecurity.

1 Social SecurityAdministration, AnnualStatistical Supplement, 2015

Page 3 of 4, see disclaimer on final page

Financial Life Designs LLCAudrey W. Jones, CFP®Financial Wealth Architect1525 International ParkwaySuite 2021Lake Mary, FL 34746407-590-9372407-590-9372awjones@financiallifedesigns.nethttp://www.financiallifedesigns.net

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2016

This newsletter is for educationpurposes only and is not intendedto provide specific financial, legalor tax advice, either express orimplied. Audrey W. Jones dbaFinancial Life Designs LLC is aregistered investment advisorrepresentative of Bauerle Financial,Inc. You may find Bauerle FinancialInc. ADV Part 2 A atwww.FinancialLifeDesigns.net .

I get so many credit card reward offers. How do I knowwhich one to choose?Credit card reward programsare more popular than ever. Inorder to keep up with suchhigh demand in a competitive

market, credit card companies are coming upwith new and more enticing offers every day.How do you know which one to choose?

Are you the type of credit card user who likes totravel and/or frequent a particular hotel orairline? If so, then a travel rewards credit cardmight be the right option for you. Typically, atravel rewards card allows you to earn points(sometimes referred to as miles, depending onthe card) for every purchase you make on thecard. Typically, cards offer a reward that isequal to 1% of your purchase, which meansthat for every $100 you spend, you will earn 1point or mile. Some credit card companies offereven greater incentives, such as double pointsfor specific types of purchases or bonus pointswhen you open up an account. Before signingup, however, be sure to read the fine print.Many travel rewards cards have specific rulesthat apply to point redemption and may chargea hefty annual fee.

Don't want the hassle that sometimes goesalong with redeeming points on a travelrewards card? Consider a cash back rewardscard. While not as thrilling as racking up pointsto take a trip to some far-off, exotic destination,cash back rewards cards may be better forindividuals who aren't frequent travelers andwho tend to use credit cards for everydaypurchases. Most cash back rewards cards offera flat cash reward on general purchases.Others offer higher rewards for differentspending categories (e.g., dining orentertainment purchases). Consider your creditcard spending habits to determine which cashback rewards card would be appropriate foryou.

Finally, it's important to remember that rewardscards work best when you pay off your accountbalance each month. Be sure to charge onlywhat you can afford to pay off and avoidspending over your budget just to earn morerewards. Otherwise, the unpaid balance youcarry forward will create finance charges thatmay cancel out the value of any rewards youaccumulate.

What should I evaluate when considering a new joboffer?Today, few people stay withone employer until retirement.Instead, it's likely that at somepoint during your career, you'll

be searching for a new job. You may be lookingfor more money, greater career opportunities,or more flexibility. Or you may be forced to lookfor new employment if your companyrestructures. Whatever the reason, at somepoint in your working life you might be facedwith a new job offer. Should you take it? Hereare some things to evaluate.

Salary: How does the salary offer stack upagainst your previous job? If the offer is lessthan you expected, find out when you canexpect performance reviews and/or payincreases (a typical company will review yoursalary at least annually). You can compare yoursalary offer to the salary range for othersworking in the same industry by looking atsalary-related websites. In addition, considerthe availability of bonuses, commissions, and/orprofit-sharing plans that can increase your totalincome, and find out whether they're dependenton your own job performance, the company'sperformance, or a combination of both.

Employee benefits: What benefits does thecompany offer, and how much of the cost willyou bear as an employee? A good employeebenefits package can add the equivalent ofthousands of dollars to your base pay. Benefitsmay include a retirement plan (hopefully withemployer matching contributions); health,dental, and vision insurance; disability, life, andlong-term care insurance; vacation time andsick leave; flexible spending accounts for healthand dependent care expenses; tuitionreimbursement; student loan assistance;child-care programs; transit programs;counseling services; pet insurance; and othermiscellaneous benefits.

Personal and professional consequences:Will you be better off financially if you take thejob? Is there schedule flexibility? Will you needto work a lot of overtime? Travel extensively?Consider any related costs of taking the job,such as transportation and day care. Also takea close look at the company's workenvironment and culture. You may be getting agood salary and great benefits, but if the workenvironment doesn't suit you, you may want tothink twice.

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