For a copy of the transcript, click here.

To download a copy of the transcript, click here.

This content is provided for educational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products, or investment advisory services. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Nothing contained herein constitutes financial, legal, tax, or other advice.

For a copy of the transcript, click here.

To download a copy of the transcript, click here.

This content is provided for educational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products, or investment advisory services. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Nothing contained herein constitutes financial, legal, tax, or other advice.

For a copy of the transcript, click here.

To download a copy of the transcript, click here.

This content is provided for educational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products, or investment advisory services. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Nothing contained herein constitutes financial, legal, tax, or other advice.

To download a copy of the transcript, click here.

This content is provided for educational purposes only, and does not constitute an offer, solicitation, or recommendation to sell or an offer to buy securities, investment products, or investment advisory services. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed. Nothing contained herein constitutes financial, legal, tax, or other advice.

To download a copy of the transcript, click here.

To download a copy of the transcript, click here.

Medicare coverage can be one of the more confusing pieces of the retirement puzzle. Today, we’ll review each of the different Medicare options, as well as some key enrollment dates to remember.

Medicare is the federal health insurance program for people 65 and older, as well as younger people with disabilities and individuals with end stage renal disease. Once eligible, there are two main types of Medicare you can choose from, Original Medicare and Medicare Advantage.

Original Medicare: Parts A, B, and D

Original Medicare consists of Medicare Part A, which is hospital insurance, and Medicare Part B, which is medical insurance. Under Original Medicare, you’ll pay a premium for Part B, which is adjusted at certain income levels. As you receive services, you will need to satisfy an annual deductible after which you’ll usually have a 20 percent copay for Medicare-approved services.

Prescription drug coverage is not included with Original Medicare. To receive drug coverage, you must purchase a separate plan, known as Medicare Part D.

You can pay out of pocket for the costs not covered by Original Medicare, or you can purchase a Medicare supplement known as a Medigap policy to help cover these costs. Some supplemental policies also cover services Original Medicare does not, such as medical care when you travel outside of the U.S.

Medicare Advantage (Part C)

Medicare Advantage, also known as Medicare Part C, is more of an all-in-one health plan. These plans must include all services offered in Part A and Part B and will typically also include drug coverage, as well as some of the services not covered by Original Medicare, such as vision, hearing, and dental care.

Under Medicare Advantage, you’re still subject to the Part B premium, and you will typically be limited to healthcare providers within the plan’s network. Whereas with Original Medicare, you may go to any provider that accepts Medicare.

Key Differences Between Medicare Options

Original Medicare and Medigap

Medicare Advantage

When to Enroll in Medicare

Understanding when to enroll in Medicare is critical. If you are already receiving Social Security benefits, the Social Security Administration will automatically enroll you in Part A and Part B when you reach age 65. If not, you have a seven-month initial enrollment period.

Initial Enrollment Period Timing

If you enroll before the month you turn 65, your coverage begins on the first day of your birth month. If you enroll during or after your birth month, coverage begins on the first day of the following month.

If you are still working and covered by an employer health plan—or covered under a spouse’s employer plan—you may qualify for a special enrollment period and may not need to enroll right away.

The special enrollment period allows eight months to enroll, starting the month after your employment ends or the month after employer-sponsored health coverage ends, whichever comes first.

Considerations for Delaying Enrollment

You are not required to enroll in all parts of Medicare when you are first eligible, but delaying coverage can have consequences. For example, if you enroll in a Medicare supplement when you are first eligible, you generally do not need to medically qualify for coverage. Enrolling later may require medical underwriting.

Additionally, delaying enrollment in Part B or Part D can result in permanent penalties, which often outweigh any short-term savings from postponing coverage.

Getting Help Choosing a Plan

Medicare plans beyond Part A and Part B, vary based on where you live. The various plans can be difficult to compare, so we encourage you to check out resources such as senior resource centers, insurance brokers that represent multiple carriers, and, of course, your CAPTRUST advisor to help you choose the Medicare plan that’s best for you.

CapFinancial Partners, LLC (doing business as “CAPTRUST” or “CAPTRUST Financial Advisors”) is an Investment Adviser registered under the Investment Advisers Act of 1940. However, CAPTRUST video presentations are designed to be educational and do not include individual investment advice. Opinions expressed in this video are subject to change without notice. Statistics and data have come from sources believed to be reliable but are not guaranteed to be accurate or complete. This is not a solicitation to invest in any legal, medical, tax or accounting advice. If you require such advice, you should contact the appropriate legal, accounting, or tax advisor. All publication rights reserved. None of the material in this publication may be reproduced in any form without the express written permission of CAPTRUST: 919.870.6822 © 2023 CAPTRUST Financial Advisors.

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When most people think about giving to a charity, the first thing that comes to mind is writing a check or giving cash. But if charitable giving is a priority for you and your family, consider donating appreciated securities as a more tax-efficient way to fulfill your charitable goals.

Appreciated securities are assets like stocks, bonds, mutual funds, and exchange-traded funds that have been held by an individual and have increased in value. Donating these securities directly to a charitable organization can be one of the most efficient ways of giving; that’s because you can avoid paying the capital gains taxes that otherwise would be collected on the increased value of the stock when it is sold. And if you itemize your tax deduction, you can also deduct the fair market value of your gift.

To better understand the value, let’s compare the tax benefits of donating a long-term appreciated security to a cash gift. Say you are planning on a gift of $50,000 but don’t have the cash on hand; you could sell shares of stock or other securities to raise the funds, but you would need to sell significantly more stock in order to net the intended gift amount when accounting for the capital gains you’ll have to pay. However, if you instead donate the number of shares equal to the market value of the gift directly to the organization, you can avoid paying the capital gains tax and still fulfill the charitable pledge. The charity can then sell the shares to generate cash, and they won’t have to pay taxes on the assets because of their nonprofit status.

Nonprofits are eligible to receive appreciated securities as long as they have investment accounts. Electronic transfers can easily be set up through brokerage firms, and other securities can be transferred through agents. If you have significant holdings in a single stock, donating appreciated securities can be a very powerful technique to enhance your charitable gifting. In some cases of highly appreciated assets, the tax savings alone may be more than the amount initially paid for the investment; making these gifts a smart choice.

If the charity you wish to impact cannot accept donated securities or you would like more flexibility in how you give, then you may want to open a donor-advised fund. The advantage of a donor-advised fund is that you can:

It’s important to know that the benefits are not unlimited. The IRS imposes annual limitations on these donation amounts. However, you can carry over any excess deductions for up to five additional years.

Donating appreciated securities is a win-win for both you and the charities you support. More giving, less taxes, and a bigger impact on the causes that matter most to you. Your CAPTRUST advisor is ready to help you begin the process so give them a call today.