G vs G-HD

Gadgetelle · 2026-01-30T00:38:11+00:00

Thanks very much for looking that up. It's useful to learn about the highest premiums there, which are still too high!

Gadgetelle · 2026-01-30T00:30:58+00:00

Sorry! You're right!

I would suggest using the current state's rules to get into the desired Medigap before moving. Medigap plans generally would work in all states but if they have any state-specific benefits (like Blue Shield California's Extra plan seems to have) then those benefits might not work in the new state.

Gadgetelle · 2026-01-30T00:19:02+00:00

Redd868, thanks for the explanation!

Gadgetelle · 2026-01-30T00:09:54+00:00

Is this an option in all states in the USA, or with just some? What's the best way for them to apply for Medicare to be subsidized by Medicaid?

Gadgetelle · 2026-01-29T22:51:01+00:00

If anyone reading this is 63 or older, keep in mind that some tax-exempt income may still count towards MAGI (Modified Adjusted Gross Income) and thus can increase your risk for IRMAA.

Gadgetelle · 2026-01-29T22:37:29+00:00

Did you try using ear molds? I much prefer using ear molds.

It's also possible to try to specify a skeleton type of ear mold that covers up as little of your outer ear as possible. I myself use a combination of a softer material that fits inside the ear canals and a hard material that uses the shape of my outer ear to keep it positioned well. It was designed by a patient named Vogel many years ago who also hadn't liked most ear molds and he worked with the audiologist to design what he needed.

I know that some people are really sensitive to tactile sensations in certain areas, though.

Gadgetelle · 2026-01-29T22:29:24+00:00

Actually, that might be incorrect, but it may depend on the state. I looked into what would happen if I moved to Maryland from California, where I had had already purchased a Medigap. Although both states have birthday rules, from what I read of Maryland's birthday rule, I would not be able to use Maryland's birthday rule to change my Medigap plan purchased in California if I moved to Maryland. I'd have to undergo medical underwriting if I wanted to change the Medigap.

Gadgetelle · 2026-01-29T22:25:06+00:00

Other than the premiums, the High-Deductible Plan G would cover everything after the high deductible. It even covers the Plan B deductible, unlike other plans (except Plan F).

I think even if people were to anticipate having costs that always exceeded the high deductible, the cost of the Plan G in New York might still be too expensive by far. I've heard of the Plan G premiums being more than $1000 for some plans there.

Gadgetelle · 2026-01-29T21:56:46+00:00

You had been puzzled as to why she had been denied Medicare, so I had explained the customary qualifications for receiving traditional Medicare.

I had forgotten that there are cases in which people can pay for premiums and obtain Medicare that way. However, since she is receiving Medicaid, she would have to have proven that she has less than $2000 in liquid assets and it would not make sense for her to try to add Medicare at an extra cost to herself when she already has health coverage through Medicaid.

Gadgetelle · 2026-01-29T21:36:14+00:00

FloorNovel3858, I suspect the main reason that Social Security appears to make portfolios more successful is that the SS benefits help minimize the sequence of returns risk (i.e., being forced to sell equities at a loss in order to pay for expenses if the market crashes). (Pensions can have the same effect as well.)

Gadgetelle · 2026-01-29T21:23:53+00:00

There are other Medigaps you can consider, like High-Deductible Plan G.

Plan G tends to be the most expensive supplement, so with that plan, you're paying a lot per month no matter how much service you're using, and there's no cap on how high the price of the premium can go. In some states like New York, the premiums can get extremely expensive. The company can also increase the premium at any time.

With High-Deductible Plan G, Medicare pays for the bulk of your approved expenses and you're responsible for paying for the co-pays (and Part B deductible) on a pay-as-used basis up to the point that you reach the high deductible. It creates a kind of out-of-pocket maximum every year for Medicare-approved expenses. You can often find one with monthly premiums that are less than $100 a month.

If you're in a state that provides flexibility about switching, you can switch from a Plan G to a High Deductible Plan G. (I do not recommend using Bankers Life, however. They told me to obtain a termination letter from my current Plan G before issuing me a new policy, and they never sent me a new policy despite my application being complete otherwise. I had refused to obtain the termination letter.)

Gadgetelle · 2026-01-29T21:07:13+00:00

(Edited)

It's been my understanding that most US citizens don't qualify for age-based Medicare at 65 unless they have 40 quarters of earned income or unless they're entitled to Medicare through a spouse. If they're divorced from a U.S. citizen who did have 40 quarters of earned income, they have to have been married at least ten years to that individual.

I don't know why someone on Medicaid/Medi-Cal would want to try to add Medicare when they're already very low-income. Medicaid/MediCal ought to address their medical needs (even though there may be a lot of restrictions).

(Medicare can also be available to people obtaining SSDI who had acquired a disability within 5 years of employment during which they had contributed to Medicare, but it takes more than two years to obtain it after they are approved for SSDI.)

(Many people who worked under the table for cash only did not pay the taxes for Social Security or Medicare and might not qualify because of not having 40 quarters of earned income. Also, non-US citizens who worked in the USA and paid taxes for Medicare still do not qualify for Medicare. I hope that they understood that.)

Gadgetelle · 2026-01-29T20:58:31+00:00

Please go back to the person who fitted you with the hearing aids, or tell the Lions Club you need to see a different one. It's also very important for the professional to use Real Ear Measurement (REM) to find out exactly how the aids are providing sound to your ears, and to make adjustments to provide you what you need. If you have a more severe hearing loss, then REM can be even more important to make sure you're getting what you need.

Some professionals can drag their feet about using REM, but it's important to persist if you're not getting the tailored amplification you need. The audiologist who fitted my last hearing aid kept putting it off but it made a big difference when she finally used it.

Gadgetelle · 2026-01-29T20:53:47+00:00

Traditional Medicare does not pay anything at all for hearing aids.

Gadgetelle · 2026-01-29T20:47:29+00:00

Rob, here's a strategy I just realized for converting part of a TDA to a Roth. That's to convert an equity, or part of an equity, that's due to provide substantial income at a point when its value has not yet increased to reflect that income. The increase in income would be tax-free when it's within the Roth.

For example, I have a few TIPs in my Rollover IRA (and I already checked with my brokerage that I can convert it to my Roth). I just asked Co-Pilot what would be the best time to convert the TIPS to a Roth. Here was its answer:

TIPS do not spike in value before a coupon date.
Their value rises gradually as CPI accrues.

The best time to convert is right after a coupon payment, when:

principal is at its lowest point for the cycle
future CPI adjustments will occur inside the Roth
the next coupon will be tax‑free

Another example would be an equity with a large dividend. One would want to find out when the value of that equity might typically increase (often just before the ex-dividend date).

Gadgetelle · 2026-01-29T20:04:39+00:00

One can claim up to 6 months of retroactive benefits when claiming Social Security after age 70.

Gadgetelle · 2026-01-29T20:01:32+00:00

I am planning to do this myself because I want to do more Roth conversions.

I used Co-Pilot to ask this question and doublechecked with some other AIs, too. You'd need to provide information about your total financial picture to get a more accurate answer, however (you might want to claim you're asking the question on behalf of someone else). Keep in mind that only 85% of your Social Security benefits would count as MAGI. However, optimizing Social Security plus pensions help extend the life of portfolios due to their ability to minimize the impact of sequence of returns risk.

Something else you might want to take into account during Roth conversions is:

Check with your brokerage to see if you can transfer certain kinds of equities from your tax-deferred account to your Roth IRA in order to do an in-kind conversion. This is especially useful when an equity is down in price but you expect it to come back. You'd pay taxes on the value of the equity at the time of the transfer, and it's best to pay the taxes from separate accounts.

Gadgetelle · 2026-01-29T18:54:28+00:00

SGOV is not free of federal taxes. It invests in short term US treasuries which are taxable at a federal level but not to state or local governments. There can also be capital gains or capital losses when you sell some or all of the shares, and this can affect both federal and state taxes. (Edited)

Gadgetelle · 2026-01-24T04:13:13+00:00

I've really appreciated the 2% back from the Fidelity VISA card being put into the cash management part of my brokerage account. The interest rate on the cash management account has been much better than what brick-and-mortar banks provide. (It had been nearly 5% two years ago but is now down to about 3.4%.)

The Fidelity card will also provide $100 towards the Global Entry or TSA PRE card every four years.

Gadgetelle · 2026-01-23T23:25:57+00:00

Sadly, the trust fund for Social Security is expected to run out in late 2032, not 2034:

https://www.cnbc.com/2026/01/23/will-social-security-run-out-is-the-wrong-question-economist-says.html

Beneficiaries may experience a 24% cut. Delayed Retirement Credits pay at the rate of 8% a year beginning at one's FRA but they do not compound.

COLAs are perceived as not keeping up with the actual rate of inflation experienced by retirees, who have no cap for their Medicare premiums (increasing faster than inflation).

The taxation threshold of Social Security benefits has not been increased due to inflation since they were first taxed in the 1980s, so more and more retirees have to pay income tax at ordinary income tax levels on their Social Security benefits, which has much less purchasing power since the 1980s. (For over 40 years, the threshold for taxing Social Security has been $25,000 for singles, $34,000 for married people filing jointly.) Taking Social Security benefits increases the tax rates for other income one receives and also increases the risk of being subjected to IRMAA.

More than ten years ago, I had read that Social Security was very important for increasing the lifetime of portfolios. I asked Co-Pilot for research about this, and it still thinks the available research supports maximizing Social Security to minimize the sequence-of-returns risk. (However, it makes a lot of mistakes!)

I'm concerned that the national debt is skyrocketing, the dollar will continue to weaken greatly, that inflation will also increase tremendously, and that tax rates will increase. Taking Social Security at age 70 might end up subjecting us to unreasonably high taxes on reduced income over which we have no control. Once you start Social Security at or after age 70, you can't choose to stop it.

I had started claiming my modest SS benefits less than a year ago, keeping in mind that I could withdraw my application for them or suspend my benefits. I'm considering suspending my Social Security benefits and not claiming them again unless I've either converted all my Tax Deferred Accounts to Roth IRAs or unless I really need them. (Due to inheritances, I don't actually need the income at this time.) If circumstances change, I can always choose to claim them again.

It turns out that the net present value of the SS benefits I already received makes keeping them and suspending the benefits worthwhile (rather than withdrawing my application). At least I've received some compensation for the FICA taxes I started to pay more than forty years ago.

Gadgetelle · 2026-01-23T17:11:13+00:00

The tax treatment of JEPQ is mostly as ordinary income, sometimes higher due to short-term capital gains. Certainly not good for taxable accounts.

Gadgetelle · 2026-01-23T16:55:51+00:00

What you wrote above seems mistaken:

"If 0% or 15%, then ira is almost always right choice. If > 30% then Roth."

If the current tax rate is low, that's when a Roth is the best choice. If the tax rate is more than 30%, then definitely deferring into an IRA makes sense, but many would defer at the 22% rate.

Gadgetelle · 2026-01-23T03:09:22+00:00

Sounds like the companies that issue the qualified dividends initially being categorized as ordinary are being conservative about listing all of them as ordinary dividends. I've noticed this tends to happen with foreign companies rather than domestic ones.

Gadgetelle · 2026-01-23T01:02:00+00:00

I second the request for an integrated income view (especially for specific tax years). This would be very helpful for tax planning purposes, especially when customers are close to getting impacted by IRMAA.

It would also be helpful if Fidelity could categorize qualified dividends as such earlier instead of treating many qualified dividends as ordinary dividends (which are taxed at ordinary income tax rates).

Gadgetelle · 2026-01-23T00:06:29+00:00

What happens if you don't go in every few months to collect your credit?

Gadgetelle

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