This was my second visit to the semi-annual Financial Planning Day at the Science, Industry and Business Library. This is a terrific event where I always learn much about finances and money. Last year, the session on wills and estate planning, amongst others, was quite illuminating. This year, I loved the Medicare session and the one on business plans. I also refreshed my knowledge of basic accounting. There is always something new at this event. Many vendors are available to speak to customers at information tables, and the library offers free financial counseling sessions during the day. Free career and business counseling is also available throughout the year in the library.

Medicare

The first session I attended was taught by an employee of Health Insurance Information Counseling and Assistance Program (HIICAP). People are free to call the agency or visit in person in order to learn more about this type of health insurance. They could also call 311 in order to get connected to the Department for the Aging (DFTA).

People must have a work history of at least ten years in order to qualify for Medicare health insurance coverage, which can begin at age 65. People must enroll in the window period (three months prior to 65th birthday, the month of their birthday, or three months following the birthday) in order to avoid late enrollment fees. People who are working may enroll; in fact, some employers want Medicare-eligible employees to be enrolled. Enrolling in Part A is free. Part B Medicare comes with fees attached. Part D is for prescription drug coverage. There is also Medigap (A-N), which consists of ten different plans that people can choose from, if they like. Patients who have two medical insurances will use Medicare first, then the secondary insurance. Sometimes, having multiple insurances can be redundant, and it may be advisable to save money and reduce insurance coverage in those cases. 

It is important to determine if your health care providers are participating or non-participating providers. Participating health care providers accept Medicare. Nonparticipating providers fall into two groups. Some non-participating providers accept the insurance by assignment (case-by-case) basis, while others opt-out of accepting Medicare entirely. When selecting a provider, it is important to ask non-participating providers if they will accept assignment for your case. Also, nonparticipating providers are able to charge patients 5 or 15% more for deductibles than participating providers do for medical services.

Many services are covered by Medicare insurance, but not everything. Dental care, eyeglasses and eye care, long-term care and routine physical exams are excluded from coverage. However, the Medigap plans (supplemental Medicare insurance) cover these services. It is a good idea to familiarize oneself with the services that are covered and those that are not. If you believe that you are being charged for services that were not rendered to you, or the dates of service do not look right, you can report Medicare fraud to mymedicare.gov or call 877-678-4697. 

Bloomberg Database

One of the librarians demonstrated the Bloomberg database, which is full of financial information about companies, including their past and present performance and analysts' commentary about the future projection of companies. The database has two computer screens with a black background and colored text. The database is only available at SIBL, and there are three computer stations dedicated to this tool. Bloomberg donated the three subscriptions to the library, and banking and financial professionals enjoy using it. However, some features are blocked because they cost more money.  Google, now known as Alphabet, is featured in the database; I discovered that it actually has a web site for its investors: abc.xyz.

Financial Information for Your Business Plan

This was an interesting foray into the world of corporate accounting; the instructor recommends that all business owners take a basic accounting course. The presenter discussed balance sheets, income statements and cash flow statements. These are tools that investors can look at over a twelve-month period in order to determine the health of your business. In general, having more customers is better than fewer customers because it diversifies the risk factor. Keeping track of your expenses and continually striving to find ways to lower them is vital to the business' success. You also want to maximize profit. It is helpful to create a business forecast that is no more than five years into the future for the business plan. If the business has been in operation, you can include up to five years of its past performance. 

Global Economy and Markets

The national inflation rate is determined by the federal government, which is determined by the consumption basket of the "average American." A person's consumption basket is all of the goods and services that s/he buys. Currently, the rate of inflation in the US is 2%. Not everyone agrees with this figure, and we had a person in the class who strongly opined that that was not the case, since the cost of rent in NYC is rising so fast. However, the instructor explained that the inflation rate spreads over all locales and products, not just a single overwhelming rise of cost on a single service in a particular location. 

Deflation is considered to be a negative phenomenon, since it can lead to recessions. This leads to business owners not being able to pay back debts, which leads to bank failures. There is a continual policy debate about what to do to create an optimal rate of inflation in this nation. The government can tax behaviors and properties that it wants to decrease (e.g., smoking and alcohol use) and cut taxes on behaviors that it wants to increase (e.g. healthy eating, etc). It is important to consider regarding wage inflation that we are not competing against other New Yorkers; we are competing against the world. 

The topic of politics and the current federal administration came up in many of the sessions, since governmental financial action or lack thereof affects the many aspects of our lives. I learned much through this day of planning. I am always trying to improve my personal financial management processes, as well as understand the larger economic forces behind the financial decisions that are made by corporations, the government and individuals. The next Financial Planning Day at SIBL will occur in the fall. Come and join us in learning about finances!