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SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Medicare, Social Security,and Retirement
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
are the foundation of a successful retirement.
&Good health Financial
stability
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Medicare and Social Security will play a big role your retirement future.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
10,000 new Medicare subscribers per day
for 20 years
What the future holds:
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
78 Million Boomers retiring will overload Medicare
and Social Security
What the future holds:
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Medicare deposit/withdrawal ratio will plunge from
3:5 to 2:3
What the future holds:
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Reduced benefits and increased premiums
are expected
What the future holds:
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Healthcare will be 33% of your total expenditures
post-retirement
What the future holds:
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Boomers will bear financial responsibility for
aging parents (and unemployed children)
What the future holds:
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Medicare is
not free.
And the Affordable Care Act will not cover you after age 65.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
If you don’t enroll, you are likely to experience:• Late-enrollment penalties• Health care expenses that may not be covered• Private insurance options that may be limited
Enrolling in Medicare at 65 is extremely important.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Enrolling in the wrong program
means you could be paying too much and
not getting the coverage you need.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
You've contributed to it.
Prepare to claim it.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
It's an integral part of your income in planning
for retirement.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
It's the first big decision you will
face as you transition into
retirement.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Key factors:• Age• Desire to keep working,
even part-time• Marital status
(married, divorced, widowed, etc.)
Knowing how you
best qualify makes a big difference.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Calculating your benefit and when to claim to get
the maximum payout isn't obvious.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Knowing when and how to claim spousal benefits
will maximize payout as well.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Medicare and Social Security are complex programs. The wrong decision can have
serious financial consequences:fines, loss of benefits, and loss of income.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
You don't have to go it alone.
We're here to help.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
We provide depth of experience and full understanding of the complex Medicare and Social Security rules
to put your mind at ease.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
With a thorough review of your history we develop a solid plan that will maximize your benefits and minimize your costs.
Important Information
Scope of this Report
This report provides broad, general guidelines and strategies which may help you define your retirement income
needs. This report is provided for educational purposes only and you should not rely on it as the primary basis for
your insurance, investment, financial, retirement or tax planning decisions.
Assumptions of this Report
No serious health changes
The Healthcare cost inflation rates vary depending on the specific expense
Expense amounts shown for under age 65 assume 100% client responsibility for private health insurance
costs. Amounts for age 65 and older assume coverage by Medicare Parts A, B, D, and supplemental
insurance (MediGap).
The disease states are assumed to be separate and distinct for purposes of estimating healthcare costs.
The information presented in the Annual Investment and Healthcare Expense Summary is hypothetical and is
not intended to serve as a projection or prediction of the investment results of any specific investment.
Limitation of this Report
The algorithms used in developing this HealthView Report evaluate an individual's health and create health and
financial assumptions for future health and healthcare needs. The HealthView Report considers national health
standards, healthcare costs, medical coverage, healthcare inflation rates, progress in certain areas of medical
research, and actuarial data including medical, dental and pharmacy cost models. The estimated average annual
out-of-pocket medical expenses were developed in part using typical Commercial Preferred Provider Plans
("PPO") and Medicare plan designs (including pharmacy) for males and females. Neither HealthView Services, its
affiliates, agents, or representatives have verified or confirmed the accuracy of these guidelines, assumptions or
estimated costs. Annual costs are future values as of the year of attained age. Average Annual Costs are the
average annual future costs for the stated 5-year period. These are estimated costs, they are hypothetical in
nature, and are not guaranteed. Your actual medical costs will likely vary (sometimes significantly) from the
estimates in this report. Your current and future decisions and actions should not depend on, or be based solely
on, the results generated by this HealthView Report. It is important that you periodically monitor their retirement
income and expense strategy throughout retirement.
The HealthView Report is dependent upon the quality and accuracy of the data furnished by you or unaffiliated
third parties, including information about your health status as well as certain assumptions as to future inflation
rates and future healthcare costs.
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 9 of 9
Terms & Definitions
Health Conditions
Cancer — Also called malignancy, is characte
rized by an abnormal growth of cell
s. There are more than 100
types of cancer, including breast cancer, skin cancer, lung cancer, colon cancer, prostate cancer, and lymphoma.
Cancer symptoms vary widely based on the type of cancer.
Cardiovascular disease — A disease affecting the heart or bloo
d vessels. Some conditions that fall under the
umbrella of cardiovascular disease are aneurysm, angina, arrhythmia, cardiomyopathy, congenital cardiovascular
defects, congenital heart disease, congestive heart failure, heart attack, diseases of pulmonary circulation,
endocarditis, rheumatic fever, stroke, heart valve disease, diseases of the circulatory system.
High blood pressure — (Hypertension) Blood pressure rea
dings are measured in millimeters of mercury (mmHg)
and usually given as two numbers -- for example, 120 over 80 (written as 120/80 mmHg). One or both of these
numbers can be too high. The top number is your systolic pressure. It is considered high if it is over 140 most of
the time. It is considered normal if it is below 120 most of the time. The bottom number is your diastolic pressure.
It is considered high if it is over 90 most of the time. It is considered normal if it is below 80 most of the time.
High cholesterol — The presence of high levels of cho
lesterol in the blood. It is not a disease but a metabolic
derangement that can be secondary to many diseases and can contribute to many forms of disease, most notably
cardiovascular disease. Primarily caused by diet and family history high cholesterol is defined as a measurement
greater than 200 mg/dL. LDL cholesterol levels greater than 130 mg/dL and HDL cholesterol levels less than 60
mg/dL are considered high.
Type 2 diabetes — Formerly called non insulin depend
ent diabetes mellitus (NIDDM). Typ
e 2 Diabetes (or adult-
onset diabetes) is a disorder that is characterized by high blood glucose in the context of insulin resistance and
relative insulin deficiency.
Tobacco user — User of tobacco in any form (cigare
ttes, cigars, pipes, etc.) on a consis
tent basis within the last
5 years.
Medicare Terms
Medicare Part A —Hospital insurance that helps cover i
npatient care in hospitals, skilled nursing facility, hospice,
and some home healthcare. Most people eligible for Medicare do not pay a premium for Part A.
Medicare Part B — Helps cover medically necessary s
ervices like doctors’ services, outpa
tient care, some home
health services, some preventive care, and some medical services and equipment. Part B subscribers pay a
higher premium based on income.
Medicare Supplemental Insurance (MediGap) — Medicare Supplemental Insurance
policies fill in the gaps that
Medicare Parts A & B do not cover. This report assumes premiums for Medigap Plan C and uses the average
cost for this plan in the subscriber’s
state of residence.
Medicare Part D — Prescription drug coverage that is p
urchased through private insurance
companies who have
been approved by Medicare to sell drug coverage. Part D policy costs and coverage vary by insurer, state, and
plan. Part D subscribers pay a higher premium based on income.
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 8 of 9
Cost of Waiting
Action Plan
Sample
Here’s what steps you need to take
to get the most out of your Medica
re benefits.
Sign Up For Medicare
Sample needs to sign up for Medicare Part A (hospitalization coverage) in 2019 when he turns 65. You can enroll
in Medicare as early as 3 months before your 65th birthday. This can be done online at www.medicare.gov
Remember, if you are working for a company with < 20 employees, you must also sign up for Medicare Part B
(doctors and tests), because even though you may still have health coverage through your employer, Medicare will
become the “primary payor” and yo
ur health plan becomes a “secondar
y payor”.
And don’t forget to sign up for Part D
(prescription drugs). If your employe
r’s plan covers prescriptions, you do
n’t
need to do this until you stop workin
g and are no longer covered by you
r employer’s plan. You will purchase Part
D coverage through a private insurance company; you can start your search for the best plan at
https://www.medicare.gov/find-a-plan/questions/home.aspx
Cost of Waiting
$269,259
$373,260
$490,988
Toda
y Year
3 Year
5
0k
200k
400k
600k
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 7 of 9
Annual Investment and Healthcare Expense Summary
Allocated IncomeInvestment Accumulation & Expense Distribution
Year/AgePart B SS
Deduction*
AddtionalSS
Allocation
AdditionalAllocated
Income
AnnualHealthcareExpenses
AnnualShortfall
BeginningValue
HealthcarePayment Contributions
AssumedRate ofReturn
Return onInvestment
EndingValue
2014 (Age 60)$9,600
$269,2596.00% $18,106 $285,415
2015 (Age 61)$9,792
$285,4156.00% $19,062 $302,540
2016 (Age 62)$9,988
$302,5406.00% $20,102 $320,692
2017 (Age 63)$10,188
$320,6926.00% $21,203 $339,934
2018 (Age 64)$10,391
$339,9346.00% $22,370 $360,330
2019 (Age 65) $1,613 $9,793 $22,500 $6,872 $360,3306.00% $23,339 $381,950
2020 (Age 66) $1,702 $9,960 $22,500 $7,403 $381,9505.00% $20,521 $401,047
2021 (Age 67) $1,800 $10,127 $22,500 $7,967 $401,0475.00% $21,465 $421,099
2022 (Age 68) $1,926 $10,285 $22,500 $8,593 $421,0995.00% $22,457 $442,154
2023 (Age 69) $2,032 $10,457 $22,500 $9,233 $442,1545.00% $23,497 $464,262
2024 (Age 70) $2,144 $10,631 $22,500 $9,914 $464,2625.00% $24,588 $487,475
2025 (Age 71) $2,262 $10,806 $22,500 $10,641 $487,4755.00% $25,733 $511,849
2026 (Age 72) $2,386 $10,982 $22,500 $11,412 $511,8495.00% $26,935 $537,442
2027 (Age 73) $2,517 $11,160 $22,500 $12,240 $537,4425.00% $28,195 $564,314
2028 (Age 74) $2,656 $11,339 $22,500 $13,121 $564,3145.00% $29,517 $592,529
2029 (Age 75) $2,802 $11,519 $22,500 $14,057 $592,5295.00% $30,905 $622,156
2030 (Age 76) $2,956 $11,701 $22,500 $15,054 $622,1564.00% $25,889 $647,042
2031 (Age 77) $3,118 $11,883 $22,500 $16,117 $647,0424.00% $26,862 $672,924
2032 (Age 78) $3,290 $12,066 $22,500 $17,210 $672,9244.00% $27,874 $699,841
2033 (Age 79) $3,471 $12,250 $22,500 $18,375 $699,8414.00% $28,926 $727,834
2034 (Age 80) $3,662 $12,434 $22,500 $19,613 $727,8344.00% $30,019 $756,948
2035 (Age 81) $3,863 $12,619 $22,500 $20,759 $756,9484.00% $31,161 $787,225
2036 (Age 82) $4,076 $12,804 $22,500 $21,971 $787,2254.00% $32,348 $818,714
2037 (Age 83) $4,300 $12,988 $22,500 $311,152 ($271,364) $818,714 $271,3644.00% $22,066 $569,244
2038 (Age 84) $4,536 $13,173 $22,500 $324,040 ($283,831) $569,244 $283,8314.00% $11,598 $296,830
2039 (Age 85) $4,786 $13,357 $22,500 $337,472 ($296,830) $296,830 $296,8304.00% $191 $0
* Part B Medicare premium is automatically deducted from Social Security
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 6 of 9
Healthcare and Long-Term Care Funding Options
The income and investment contributions that you have designated to fund your healthcare and Long-term Care
costs are shown in the table below
Client Contribution Value Unfunded HC Costs
Total Healthcare and Long-term Care Expense
$1,213,218
From Future Income
Medicare Part B Deduction from Social Security $61,895 $61,895 $1,151,323
Additional Social Security$212,891 $230,900 $920,423
Pension
$0$0
$920,423
Other Income
$86,407 $116,671 $803,752
From Investments Using Rates Shown Below
Working In Retirement$0
$0$803,752
Other Investments$0
$0$803,752
You have chosen to fund your remaining Healthcare and Long-Term Care expense of $803,752 with a single
investment of $269,259 as shown below.
Selected Option For Unfunded Amount
Single Investment$269,259 $803,752 $0.00
RateAssumptionsPeriod Covered
% Rate of Return
Phase 1Through Age 2019 (Age 65)
6.00%
Phase 2Through Age 2029 (Age 75)
5.00%
Phase 3Through Rest of Life Expectancy
4.00%
Funding Sources
Unfunded
Sample Social Security
PensionInvestments
Part B
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 5 of 9
Long-term Care Options
Type of Care:Skilled Nursing
Region:NY - Rochester
Period:36 months
Assumed Inflation: 4.0%
Long Term Care Cost Summary
Today's cost: $116,800 per year.
Based on your options and planning horizon, costs are
projected below.
Projected long-term care costs
Year/AgeProjected Cost (Future Dollars) Projected Cost (Today's Dollars)
2037 (Age 83)$287,879
$145,866
2038 (Age 84)$299,394
$147,282
2039 (Age 85)$311,370
$148,712
Total$898,643
$441,860
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 4 of 9
Healthcare Expense Breakdown
The following chart illustrates the breakdown of projected healthcare expenses in retirement. Amounts are
expressed in future dollars.
Average Annual Healthcare Expenses per 5 Year Period
This chart shows your average estimated annual healthcare expenses for each 5-year period in retirement.
Amounts are expressed in future dollars.
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 3 of 9
YesNoNoNoNoNoYesYesYesNo
This is your personal retirement healthcare expense report, designed to estimate your health care expenses
throughout retirement. These calculations are the work of a coordinated team of professionals, including leading
physicians and actuaries utilizing proprietary health and lifestyle analytical tools.
Questionnaire
Below are your responses to the HealthView Questionnaire.Sample
Gender
Male
Age in 2014
60
Retirement
2019-2039Ages 65-85 (21 years)
Health & Lifestyle
High blood pressure:
High cholesterol:Type 2 diabetes:Cardiovascular disease:
Cancer:Tobacco user:Recent physical:2 hours exercise:Healthy diet:Family history:
State
NY
Income Level
Individual - $85,000 or less
Healthcare Expense Summary
Here is a summary of your projected healthcare expenses. Amounts are expressed in future dollars.
Sample
Premium Costs
Hospitals, Doctors, Tests
$61,895
Prescription Drugs
$32,191
Supplemental Insurance
$95,680
Dental Insurance
$18,167
Additional Costs
Hospitals, Doctors, Tests
not included
Prescription Drugs
$16,046
Hearing & Vision
$79,207
Dental
$11,389
Total Healthcare Costs
$314,575
Long-term Care
$898,643
Total Healthcare & Long-term Care Costs
$1,213,218
Your Personal Healthcare Expense Report
Prepared for Sample
by Rick Grossmann of ROC Insurance Services
Page 2 of 9
Healthcare Report
Prepared for Sample
By Rick Grossmann
Monday, May 19, 2014
Contact Number: 585-413-0483
Page 1 of 9
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
The SavvyGrey approach makes it easy to understand your options to
make the best choices so you can enjoy your retirement.
SavvyGrey.comby ROC Insurance Services
by ROC Insurance Services
Contact us today for an information overview:
Phone (585) 413-0483
Email [email protected]
Web www.SavvyGrey.com