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About Here’s to Your Wealth

I cover personal finance issues that face Gen X and the Middle Class. I also focus on the financial impact of life transitions such as divorce, job changes, or death of a partner. Each month I will also be sharing a market commentary titled “Here’s To Your Wealth”. My blog... Read more

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Vote 2016

How a Clinton, Trump, or Johnson Win Will Impact Near and Current Retirees, Part II

This is Part 2 of my 2-Part series on how a Republican, Democratic, or Libertarian presidential win would impact a person who is near retirement or recently retired. In Part I, I focused on each candidate’s positions on Social Security. This part will focus on Medicare, Medicaid, and will touch on other issues that are worth a second glance from near and current retirees. To quickly review, Medicare is a federal program that provides health coverage if you are 65 or older or have a severe disability, no matter your income. Medicaid is a state and federal program that provides health coverage if you have a very low income.

I have written the below with no personal bias, just facts, and I have placed the candidates in random and rotating order throughout the series. Let’s dive right in.

MedicareMedicare

According to the US Census Bureau, in July 2015 there were 47.89 million individuals over 65 living in the US and Puerto Rico. In 2015, there were over 55 million Medicare beneficiaries. How is this possible? Well, though the usual age for eligibility of Medicare benefits is 65, certain people qualify for the program earlier. Also, there are retirees residing in foreign countries, outlying areas, and within the following territories: American Samoa, Guam, the Northern Mariana Islands, and the US Virgin Islands. Basically, EVERY RETIREE is on Medicare in one form or another making a presidential candidate’s stance on Medicare important to ALL near and current retirees (except perhaps for the mega-wealthy).

Moreover, employer- and union-sponsored retiree benefits are on the decline leaving retirees to depend solely on Medicare, without supplemental coverage, leading them to face multiple deductibles and cost-sharing requirements. This fact heightens the impact of candidate’s Medicare stance on near and current retirees. Additionally, there have been recent reportsstating that Social Security and Medicare are facing insolvency within the next 20 years making your judgment on the below Medicare positions a balancing act. You must weigh both the health care aspect and how a potential insolvency’s economic impact will hit your finances and the younger people you care about.

Candidates’ Positions

Beyond Medicare and Social Security, there are other issues that can affect your retirement. And, now that you in the right mind frame, I encourage you to further explore the candidates’ positions on these issues and the potential impact of their positions on your financial life. Areas such as tax reform, minimum wage increases, financial regulations (such as the Department of Labor fiduciary rulings that can impact the quality of the financial advice you receive from professionals), international trade, and also the candidates’ views on the current Federal Reserve Chairwoman Janet Yellen and who they might nominate to the Fed if given the chance.

Because each retirement is unique, it’s hard to say how each of these positions would impact retirees as whole. I said at the beginning of Part I that I write about what my clients ask me. My job as a financial advisor is to listen to my clients’ questions, arm them with the correct information, and then give them my educated advice or opinion. With this series, I chose to give you accurate information so that you can relate it to your specific situation and make your own educated opinion.

Don’t forget to vote!

The views and opinions expressed by the author and those providing comments are theirs alone, and do not reflect the views and opinions of H. Beck, Inc.

Mark Avallone, MBA, CFP®, CRPS®. www.PotomacWealth.com

Securities and Investment Advisory Services offered through H.Beck, Inc., Member FINRA/SIPC. 6600 Rockledge Drive, 6th Floor, Bethesda, MD 20817 301.468.0100. Potomac Wealth Advisors, LLC is not affiliated with H.Beck, Inc.
This material represents an assessment of the market environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. This information should not be relied upon by the reader as research or investment advice regarding any funds or stocks in particular, nor should it be construed as a recommendation to purchase or sell a security. Past performance is no guarantee of future results. Investments will fluctuate and when redeemed may be worth more or less than when originally invested. Diversification and asset allocation do not guarantee against loss. They are methods used to manage risk.
* Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance.
*The economic forecasts set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful.
* Consult your financial professional before making any investment decision.

Mark Avallone, MBA, CFP®, CRPS®

About Mark Avallone, MBA, CFP®, CRPS®

I am the Founder and President of Potomac Wealth Advisors LLC., an independent financial advisory firm headquartered in Rockville, MD. Previously, I was a Senior Vice President in The Private Bank of Bank of America and as a VP in the Corporate Banking Division of Mellon Bank. I am a CERTIFIED FINANCIAL PLANNER ™ practitioner, a Chartered Retirement Plans Specialist and hold an MBA degree from Rutgers University. I am a big proponent of financial education, and have been an adjunct professor of finance at The University of Maryland University College. I am the past President of the Boys and Girls Clubs of Suburban Maryland. For more information please visit my website, www.PotomacWealth.com. You can contact me at 301-279-2221 or at Mark@PotomacWealth.com

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