1 In 4 Will Face This Reality, And It Is More Like 1 in 3; Disability, Dalbar, and 28% Premium Hikes

1 In 4 Will Face This Reality, And It Is More Like 1 in 3

1 in 4 people currently in their 20’s will become disabled before they retire. One in three ages 35-65 will be disabled for more than 90 days. The average long term disability claim is 31 months. If you require $5,000.00 per month for living expenses, that is $155,000 you would need.  Familiarize yourself with the facts:

  • Accidents are not the culprit. 90% of disabilities are caused by back injuries, cancer, heart disease and other illnesses.
  • Medical problems contributed to 62% of all personal bankruptcies filed in 2007, a 50% increase from 2001.
  • 75% of Americans don’t have enough money to cover their bills for six months.

Call us to find out more about disability insurance and receive a quote for basic coverage so that you are handled if anything should happen to you. It is more affordable than you think. May is disability insurance awareness month. Find out more here: http://disabilitycanhappen.org/reducing_chances/
Dalbar Study Shows Active Investing Is More Profitable Than Passive Investing for the Average Investor

  • An active investor, or tactical investor, has ongoing buying and selling.
  • A passive, or strategic, investor is a buy and hold investor.

The Dalbar Study is a quantitative analysis that shows how investing approaches succeed or fail with the market each year. As it proves, active investing outperforms passive investing.

  • In 2016, the average equity mutual fund investor underperformed the S&P 500 by a margin of 4.70%. While the broader market made gains of 11.96%, the average equity investor earned only 7.26%. 
  • In 2016, the average fixed income mutual fund investor outperformed the Bloomberg Barclays Aggregate Bond Index by a margin of 0.19%. The broader bond market realized a slight return of 1.04% while the average fixed income fund investor earned 1.23%.
  • In 2015, the average equity mutual fund investor underperformed the S&P 500 by a margin of 3.66%. While the broader market made incremental gains of 1.38%, the average equity investor suffered a more-than-incremental loss of -2.28%.
  • In 2015, the average fixed income mutual fund investor underperformed the Barclays Aggregate Bond Index by a margin of 3.66%. The broader bond market realized a slight return of 0.55% while the average fixed income fund investor lost -3.11%.
  • In 2015, the 20-year annualized S&P return was 8.19% while the 20-year annualized return for the average equity mutual fund investor was only 4.67%, a gap of 3.52%.

These statistics prove that even though the broad index does well, such as the S&P, investors tend to not get those returns since they buy high and sell low. This, of course, is the opposite of what needs to happen. Depending on the investor, many sales are made after watching the news and then getting nervous about a major market downturn. Sometimes it is necessary to sell when the market is down since the economy tends to slow down with the falling market and you might need access to cash. Hence you are forced to sell even though you know it's not a smart move.
The investments we carry at TWP Financial are tactically managed so that the money managers are actively buying and selling based on their market indicators or technical data and not on emotion or the daily news. Please call or set an appointment if you would like to see their results in good times and bad times compared to the broad market such as the S&P.
What Happens If Obamacare Is Overturned? News Update From Covered California
We received a special communication from Covered California describing the potentially significant impacts to the Covered California program if federal policies change. Main takeaways include:
• California premiums could rise by 28 to 49 percent in 2018, and up to 340,000 consumers could lose individual market coverage if changes are made to existing federal policies.
• The potential rate increase would mean billions of dollars in additional federal spending. The 1.2 million consumers who do not receive subsidies would bear the entire brunt of these increases.
• The potential decrease of 340,000 insured consumers would not only represent many individuals losing access to potentially life-saving care, but it would result in a sicker risk mix in the individual market and higher premiums for everyone.    

To Your Health and Financial Wellness, 

TWP Financial

How U.S. Healthcare Became Big Business; Optimizing Social Security and Retirement Planning

A recent article from NPR by Elisabeth Rosenthal titled 'How U.S. Health Care Became Big Business' came to our attention this week because it highlights how tricky the health care industry has become in order to get the consumer to pay higher costs than expected. We recommend reading the full article to get the reality picture but here are some highlights:
- "Hospital consolidation.' This started as a good idea where hospitals came together to share efficiencies but it has now become a monopoly in some cities where there is now only one hospital. What can you do if you live in a consolidated hospital zone? Not much unless you are willing to move or drive to a less expensive hospital. 

- It is now a well-accepted fact that the healthcare industry profits more from lifetime treatment than from curing you. 

- Before you see a doctor ask them if they're affiliated with a hospital. If so, you will be paying a hospital fee. Ask them if they will send your lab work to an in-network provider before you get the lab work done.
- Sticky pricing: A term used by the medical industry that means getting away with surging the price of a procedure or medicine as soon as a drug maker, hospital or doctor was able to charge a higher than normal rate and set a new standard. 

- Decipher medical codes on your bill by googling them. Oftentimes you are being charged for a procedure you did not have. Knowledge is power. 

- Drive-by doctors. This is a doctor brought in by the hospital or your doctor who might not be contracted with your insurance policy and visits your hospital room. You have to be pro-active and ask them, "Who are you? Who called you? Am I going to be billed for this?" It is tragic that in recovery you have to do this, but being proactive will save you from getting an unexpected doctor fee.

The best line of defense in dealing with the healthcare industry is a strong offense. This means educating yourself about the whole picture and drilling down to the details of your specific plan and healthcare needs. It's about having the protocol down before you should need it so that you are not caught off-guard in the moment, but rather have done your research ahead of time and know what you are getting involved with. If the sudden need arises for care--as it so often does--it comes down to asking the right questions and advocating for yourself or family as needed. As your broker, we are always here to help. 

TWP Financial Now Offering Free Analysis on Social Security and Retirement Planning

Optimizing Social Security
As you approach 62 or 66, when is the best time to take social security? Most people crunch the numbers and consider longevity and taxes as the only variables. You might be surprised how much a free analysis can help you maximize your check. For example, do you qualify for some special strategies like "file and suspend" or a "restricted filing" on half of your spouse's benefit? Baby boomers are increasing the social security benefit by $10,000-$30,000 by utilizing these strategies. Contact us today for your free evaluation. 

Creating A Financial Plan
TWP Financial also offers financial planning. In an overview meeting, we use cutting edge software to analyze your financial picture and help create a comprehensive plan for you and your family. We help address questions such as: 

  • Can I continue my present standard of living into my retirement years? 
  • When can I retire without running out of money? 
  • How could my situation change during challenging economic times? 
  • How would it affect my family if I die prematurely? 
  • How would it affect my family if I enter a nursing facility? 
  • What are the possible solutions if my situation changes? 

We highly recommend you come in and take advantage of this financial consultation so that you have a clear picture of your financial goals. We are on your team and will work with you every step of the way. 

Get Set Up On Medicare
Are you turning 65 soon? 
If so, you have probably received a mountain of mail from the insurance companies and brokers wanting your business. 

Call us for a comprehensive consideration so we can go over Part A, B, C, D, or Medi-Gap Plans F or high deductible plan F. Schedule an appointment with us at www.twpfinancial.com/schedule.

TWP Financial is here to be your financial sherpa. We work with Horter Investments in Ohio to guide you through this oftentimes confusing part of life. It is our pleasure to help you with your planning and protecting. 

To Your Health and Wellness, 

TWP Financial


The Next Big US Crisis Will Start Here

Investors hold on to your hats, the US may be headed for another crisis with eerie echoes of the last one. Just like in the run up to the Financial Crisis, there has been a big explosion of spending in real estate. In particular, developers have built over one million apartments in the US. Now, the big banks that funded all that development with loans are getting worried the market has become overstretched. The Fed is now doing more rigorous stress tests to see how banks would respond to a 35% drop in commercial real estate prices. The big worry is over “trendy” metropolitan apartment buildings, which have seen sharp price rises. Regulations put in place after the Crisis have incentivized builders to go into commercial real estate rather than residential, as have demographic trends like Millennials’ preference to live downtown rather than in the suburbs. JP Morgan has been far and away the biggest lender for apartment building construction.

Source: goo.gl/RuXwBf

Important Payment Notice For Blue Shield Clients: Action Required April 3-9th 2017

Dear Clients, 

Blue Shield is rolling out a new payment system that requires action.

If you are receiving this notice, it means you have to make a payment change on your Blue Shield Medicare Supplement Plan or your Grandfathered Individual Plan. 

1. If you pay by check in the mail, you do not have to do anything. Continue as normal. You can disregard the rest of this letter.

2. If you currently pay by Easy$Pay FROM YOUR BANK ACCOUNT (not a debit or credit card) you have to re-enroll. We have to submit your new Easy$Pay forms between April 3-9th. Click here to download the new Easy$Pay form, fill it out and email it back to us at shasta@twpfinancial.com between now and April 9th. The sooner the better. If you send us this form after April 9th, you cannot enroll in Easy$Pay until June and will have to make a month's payment direct to Blue Shield. 

3. If you currently pay by Easy$Pay FROM YOUR CREDIT CARD then you have to call Blue Shield between April 3-9th to re-enroll on Easy$Pay through your credit card. The number to call is 888-256-3650. We cannot do this step for you. 

4.If you pay by Credit Card over the phone please note that their system will be down from March 31- April 3rd and cannot process payment. 

Financial Open Enrollment Is Here

Dear Clients,
Thank you for your business and support during the 2016-17 Open Enrollment! During that time, we talked to many of you and we thank you, not only for your business, but for your referrals and patience. 
In the Open Enrollment period, Phyllis and Tim had 636 appointments, made 431 changes to client policies and added 158 new clients. Needless to say, we have been busy! We are here for you throughout the year and will keep you updated via our newsletter.
Please follow our Facebook Page to get frequent updates on the state of the ACA as it develops as well as articles we recommend.
Our financial planning and investment business is growing. We specialize in creating a comprehensive financial plan for our clients that involves a combination of safe insurance investments (life insurance and annuities) and a retirement system designed to provide clients with a Low Risk/Low Volatility portfolio. Our motto is “Plan and Protect”.  As an independent broker, we work with companies that offer retirement plans designed to fit our client’s needs.
TWP Financial is now offering a “Financial Open Enrollment” which is our free analysis service.  In an overview meeting we use cutting edge software to analyze your financial picture and help create a comprehensive plan for you and your family. We help address questions such as:

  • Can I continue my present standard of living into my retirement years?
  • When can I retire without running out of money?
  • How can enhancing my social security benefit help my specific situation?
  • How could my situation change during challenging economic times? 
  • How would it affect my family if I die prematurely?
  • How would it affect my family if I enter a nursing facility?
  • What are the possible solutions if my situation changes?

We highly recommend you come in and take advantage of this face-to-face financial consultation so that you have a clear picture of your financial goals. We are on your team and will work with you every step of the way.
Unlike other banks and investment advisors, our minimum investment is very low. Our fee-based asset management platform consists of a low to moderate risk selection of investment choices to help retirees secure a better retirement, as well as A-rated insurance carriers that have been vetted. We always act in your best interest as your Fiduciary. 
To set a time to talk to Tim or Phyllis and receive a free financial overview analysis, please make an appointment by doing one of the following:
1. Email us back and let us know a couple of times that will be good for you.
2. Call us at 424-288-4254 to schedule an appointment.
3. Go to our website here: twpfinancial.com/schedule and schedule an appointment for yourself.
Here’s to Your Health and Financial Well-Being in 2017 and beyond,
TWP Financial

February Newsletter: ACA Updates, 1095-A and 1095-B Tax Information, TWP Financial is a Fiduciary

Dear Clients,
If you read the news, you will already know that the direction the ACA is headed changes daily. In the past week alone we have learned that:

  • Over 1/3 of people in the nation did not know that Obamacare was the same as the ACA. Read
  • Healthcare signups are down 4% amid the uncertainty. Read
  • GOP stalls on replacement ideas for the ACA, trying to figure out which parts of the plan will stay the same and which parts will change. Read here and here.
  • Your ACA coverage will not be affected for 2017. Read.

It’s clear that it is quite busy in Washington, D.C.. Congressional Republicans attended a two-day retreat in Philadelphia to work on their agenda for the coming year, which included details for the repeal and replacement of the Affordable Care Act.  They will use a three-step process:

  1. A fast-track process to repeal the law by the end of March
  2. Pass a replacement plan
  3. Use the Administration's regulatory authority to stabilize the market.

However, given the way everything is trending, this could very much be up for debate. Nevertheless, this will not affect your coverage for 2017.

California has its own statutory framework - distinct and apart from the federal law.  California law will stand, even if the federal laws are changed, replaced, or repealed, unless the federal statute also dictates a dismantling of California law. We will continue to keep you informed as events unfold.
What is the difference between Forms 1095-A, 1095-B?

Tax time is almost here. Covered California clients will receive a 1095-A. Off-exchange Blue Shield clients will be sent a 1095-B in the following week and off-exchange Anthem clients will receive their 1095-B by end of month.

Covered California explains the different forms as such:  The 1095 forms are filed by Covered California (1095-A), other insurers such as Medi-Cal, Anthem, Blue Shield (1095-B), or by an employer (1095-C). Keep in mind the 1095 forms are filed by health coverage providers, so individuals won’t have to fill these out themselves. Please see the IRS website for more information.

Medicare 1095-B information. According to the Medicare website, if you had Part A coverage you will receive a 1095-B. Form 1095-B provides information that you may need to complete your Federal income tax return. Please refer to the Medicare.gov website here and please also be sure to speak to your CPA or tax advisor. Read here
TWP Financial is a Fiduciary
Also in the news as of late is the question of what will happen to the Fiduciary Rule now that Trump wants to scrap the rule altogether. What is the rule?

The Fiduciary Rule was created under Obama to protect consumers with retirement accounts by preventing advisors from acting in any way but as a fiduciary. Meaning, it would become illegal and unethical for advisors to give bad advice or sell products that would knowingly not be in the clients best interest. Hard to believe this isn't already the case. The US Labor Department is now going to delay the rule governing the advice that brokers can give about retirement investments. Read about it more here

What is the difference between a broker and a fiduciary? Here is a very handy Youtube video to illustrate the difference. Watch here.  

TWP Financial always has and always will act in our client’s best interest because we are Fiduciaries. What does this mean? It means that by law we are required to offer financial advice that is in the client’s best interest, not ours. Read up on the fiduciary rule here

If you need to speak with us or make an appointment please call 424-288-4254 or make an appointment online here.
To your Health and Financial Well-Being in 2017,

TWP Financial

January 31st Is the Deadline For Open Enrollment 2017

Dear Clients,

The final deadline for Open Enrollment (individual plans under age 65) 2017 is January 31st for a March 1st start date. No matter what the media says the Affordable Care Act is still alive and well through 2017.

Please contact us if you would like to get health insurance for 2017. Here is our scheduling link: www.twpfinancial.com/schedule 

Wishing You All the Best in 2017, 

TWP Financial

Update from Covered California: Your Coverage And The Covered California Program Will Not Change For 2017

Based on the recent federal election results, many of you may have questions and concerns about how the change of administration in Washington, D.C. may impact Covered California and your coverage. It is important for you to know, in the short-term, your coverage and the Covered California program will not change for 2017.

If you have renewed your plan for 2017, please be assured:

  • Your coverage will remain intact for the full year
  • Your financial assistance is protected under the law
  • Your rate for 2017 will not change

If you have not yet renewed your plan for 2017, in addition to the assurances above, remember:

  • You can and should shop to be sure your current plan provides you with the best value
  • If you want to change your plan for January 2017, you need to do so by December 15

Your health plan is not just for when you or your family members are sick. It’s also important to use the preventive care that is available to you when you are well that can help you stay healthy. And, having a health plan in place to help cover the cost of ‘life’s unexpected moments’ is a big reason people choose to have health insurance. This financial protection for you and your family will give you peace of mind knowing you'll have it when you need it! It is also important to know that with our benefit designs, most care, such as visits to your doctor outside of the hospital, are covered from your first visit and not subject to any deductible.

Thank you for being a Covered California member and we will keep you informed about any changes in the future.

The Covered California Team

Update on the Affordable Care Act Under Trump Presidency

Dear Clients,

Trump is being inaugurated Jan 20, 2017, so until then we won't know the actual outcome of the proposed changes to the Affordable Care Act. It is often difficult to determine what the bottom line will be when it comes to political speak versus actual day-to-day reality.

Open Enrollment for 2017 ends on January 31st, so please make sure that if you want to change your plan that you make an appointment with us prior to January 31. Again, we will have to wait and see how the ACA is effected for 2017 until after the inauguration.

Here is what we do know so far based on the news and information going around and from Trump's website. Overall it seems that the basic pillars of the ACA are not being threatened. That covers things like:
1. There will not be discrimination for pre-existing medical conditions.
2. Children will still be able to stay on their parent’s plan until age 26.

Here is proposed what would change: 
1. Not be required to have health insurance
2. Be able to buy health insurance across state lines to increase market competition
3. Be allowed to deduct your health insurance premium
4. Be allowed to use Health Savings Accounts, which are tax-free and can accumulate and can be part of the estate without a penalty. 
5. Require price transparency from healthcare providers, especially doctors, clinics, and hospitals so consumers can shop for the best prices. 
6. Block-grant Medicaid to states. 
7. Remove barrier to entry for free market drugs to make more access to better prices and options. 
This information is from Trump's website here.

From Yahoo Finance: "The precise plans for its execution are unclear, however. Fully repealing Obamacare may be untenable given a narrow-enough majority that can’t override a Democratic filibuster, but President-elect Trump would have other means to dispatch his predecessor’s major project, by failing to fund it, tweaking it significantly, or weakening the law in other creative ways with the Republican Congress. As Georgetown professor of health policy Jack Hoadley told NPR, “They are probably, practically speaking, talking about leaving the ACA, as is, in place.
Details of the actual plan are scant. But under “Trumpcare,” you would purchase your healthcare on the open market, which would be opened up further, allowing insurance companies to sell plans across state lines. Trump has said this will increase competition, and the premiums would be completely tax deductible.

The main part of Trump’s vision is the use of health savings accounts, or HSAs. Essentially, you pay for your medical expenses with your savings—if you have them. According to the Trump platform, this is advantageous for young people who may not have many health expenses and can choose high-deductible healthcare. His plan would let consumers spend HSA money on family members and pass the funds onto children.

According to the CRFB analysis, dismantling Obamacare’s major features—whether this is an actual “repeal” or not—and implementing Trump’s plan would cost $550 billion, increasing the deficit in the long run. It would also only recover 5% of the 21 million that would lose their Obamacare insurance."

We will keep you updated as we find out more about how the election affects your coverage under the ACA.

Trump outlines how he would change healthcare on his own website here on these three pages:


Meanwhile, Open Enrollment is going strong. If you need to schedule an appointment, please get on our calendar by signing up here: http://www.twpfinancial.com/schedule.

Here’s to Your Health,

TWP Financial