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5 Times When You Should Hire a Financial Planner in NJ

9/28/2020

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Financial advisors, also known as financial planners, are professionals who help their clients with wealth management and personal money matters. They can put together a retirement savings plan or simply answer questions about whole life insurance in New Jersey.

So how do you know when you should hire a financial advisor to assist with your financial planning? You can hire a financial advisor in NJ at any time, but these five situations are especially important.

1. You’re close to retirement age.

Some of your biggest money questions come when you’re getting close to retirement age. When should you file for social security? Do you need to apply for Medicare? Do you have enough money to retire?
A financial planner can help you set financial retirement goals and develop a plan to reach them. This is especially important if you plan on living off the income generated by your assets. Make sure you choose a professional who specializes in retirement planning, as not all do.

2. You received a large inheritance.

Receiving an inheritance can be a nice way to improve your life in the short-term, but you may also want to use this toward your long-term goals. By working with a financial advisor, you can put together a plan that maximizes this money. Financial planners can help determine where to invest your money, the different savings options you have and how to secure your financial wealth.

3. You’re going through a divorce.

Unless you’ve only been married for a few months, divorce is messy. Because you and your ex share assets, there is a lot to be divided. Who gets what? Should you sell the family home? How much will child support payments be?
Because divorces are emotional, it’s important to have non-biased parties helping you along. Divorce causes your short- and long-term goals to change, and a financial advisor can help you with both.

4. You’ve had a major life change.

Major life changes like marriage, a new income, a baby, buying a business, etc. are good reasons to speak with a financial advisor in NJ. It’s important to know about your options in terms of investments, setting up a college fund or tax planning. And, if you already have a plan in the works, you can have your advisor look it over and amend it based on your new circumstances.

5. You’re young and don’t know where to start.

Some people think that when they’re young and don’t have much money, they don’t need an advisor. But it’s actually the opposite. It’s much easier to start planning for retirement when you’re young and in your 20s. You can invest a small portion of your paycheck each month and watch your investments grow. Because you’ll be doing this for a long time, you can build up a nice nest egg, pay off debt and retire early.

These are some of the times in your life when you can benefit from speaking to a financial advisor. Advisors are flexible and you can hire them on a one-time basis or for long term needs. To learn more about how a financial advisor can assist with your financial planning and wealth management strategy, contact Leonard Financial Solutions today.

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What are the Pros and Cons to Long-Term Care Insurance?

9/15/2020

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Is long-term care (LTC) insurance in NJ a smart investment? That’s the million dollar question! On one hand, long-term care insurance protects your retirement assets and picks up healthcare costs not covered by health insurance. On the other hand, an LTC policy is expensive and has a relatively strict qualification process.

Purchasing long-term care insurance is a personal decision, but you are more likely than not to need it. Below our financial planners in New Jersey share the pros and cons to having an LTC insurance policy.

What is Long-Term Care Insurance?

Long-term care insurance covers long-term support services such as assisted living, adult daycare, respite care, hospice care, memory care, etc. These insurance policies reimburse you for long-term care costs, up to a predetermined limit. This way, you can get the quality services you need when you need them.

Long-term care insurance is a great option for many people. But with high premiums, strict requirements and some limitations, an LTC policy may not make sense for everyone.

Pros of Long-Term Care Insurance

Here are the advantages of taking out an LTC policy:

Peace of mind. LTC insurance lets you seek the care you need without having to rely on family, giving you the ultimate peace of mind.
You’re likely to need it. The American Association for Long Term Care Insurance (AALTCI) says that 68% of people who are 65 and older will need long-term care.
Have options. If you do need assisted living one day, long-term care insurance gives you options. You can choose a high-quality facility and maintain your financial independence.
Tax free benefits. LTC insurance benefits are tax free. The monthly premiums are also tax deductible.

Cons of Long-Term Care Insurance

Some things to keep in mind about LTC are:

Expensive. Long-term care insurance is not cheap, and because it’s relatively new, pricing is a major concern. As your health changes, premiums may increase.
You may not qualify. Between 15% and 20% of applicants are denied coverage. Some health concerns may also make your premiums higher.
You may not need it. It’s possible that you may not ever need long-term care. As an alternative, the insurance industry is introducing hybrid plans that combine LTC insurance and whole life insurance in NJ.

If you are considering long-term care insurance, schedule a consultation with Leonard Financial Solutions. Our financial advisors in NJ can help determine if this insurance is right for you based on your financial health. If we find that LTC is not the best option, we can suggest other solutions for long-term care planning.

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Your Top Questions About Medicare Answered

9/9/2020

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Medicare can be confusing! The good news is that most people report being satisfied with their health care coverage. But like other types of health insurance, Medicare is complicated and features a wide range of plans, coverage choices, premium levels and enrollment rules. If you are interested in applying for Medicare, your best bet is to contact a financial advisor in NJ who can walk you through your options.

In the meantime, here are the top six questions we hear from clients, along with our responses. For additional questions or concerns, feel free to contact Leonard Financial Solutions!

1. When can I get Medicare benefits?

Unless you are disabled, Medicare kicks in at 65 years old. A common misconception is that Americans can get Medicare once they apply for Social Security, which can be as early as 62. But this isn’t true. Even if you retire early, you’ll still have to wait until you are 65 to be eligible for Medicare.

2. How do I apply for Medicare?

If you are already receiving Social Security benefits, you don’t have to apply for Medicare. At age 65, you’ll be enrolled automatically in Parts A and B. However, if you’re not receiving Social Security, you’ll have to apply for Medicare. Your initial enrollment period starts three months before your 65th birthday and extends for three months after.

3. Can you explain what the different “parts” of Medicare are?

There are four parts of Medicare. It’s important to understand each part so that you can be properly covered.

- Part A is your hospital insurance that covers hospital stays and some stays in skilled nursing centers.
- Part B is your medical insurance that covers doctors’ visits, lab tests, outpatient procedures and more.
- Part C is Medicare Advantage - plans offered by private companies to provide Medicare benefits. You’ll still be enrolled in Medicare, but you’ll have extra coverage like vision, hearing and dental.
- Part D is your prescription drug coverage. These plans cover both name-brand and generic prescriptions.

4. How much does Medicare cost?

Medicare A is free for most Americans, though there is a deductible to account for as well as coinsurance for some hospital stays. Medicare B has a monthly premium that varies based on your income as well as a deductible. Part D also has a monthly premium of around $35. You can find updated costs for 2020 here.

5. Are there things Medicare doesn’t cover?

Yes, there are healthcare services that Medicare won’t cover. While this is not a complete list, here are some of the things excluded from Medicare:

- Long-term care
- Dental care
- Eye exams
- Glasses
- Dentures
- Acupuncture
- Hearing aids
- Foot care

6. What is Medigap insurance? Do I need it?

Since Medicare has many copays and deductibles, private insurers sell Medigap or Medicare Supplemental Insurance Plans. Whether you should get a Medigap plan depends on how much risk you’re willing to take on.

Medicare Parts A and B cover a lot but certainly not everything. A serious illness could cost you a significant amount of money if you only have Medicare. With Medigap insurance, you can set a limit on your medical costs and plan for your health care expenses more accurately.

If you have additional questions or concerns about Medicare and Medigap insurance, contact Leonard Financial Solutions today!

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