March 2017 Newsletter to Clients

Enjoy this month’s edition that features an introduction to Moneywatch staff’s newest addition, updates on the annual TD Ameritrade conference, TD Ameritrade mailing address, and a recent Medicare question we thought was worthy of sharing and an update on two of your funds…

Longtime Client/New Employee: With 25 years’ experience as a Moneywatch client, Steve Byars joined the team at the beginning of 2017. Prior to joining us, Steve was the Assistant Vice President for Government Relations at the University of Kentucky for almost 13 years and has developed a passion for helping people achieve their own financial independence after experiencing first-hand how the Moneywatch team guided him and his wife, Lisa Blackadar, and their two children to greater financial success. After completing the coursework required to earn the Certified Financial Planner designation in 2015, Steve sat for and passed the CFP exam in 2016. We are thrilled to have Steve as part of the team.

TD Ameritrade Annual Conference: Ramsey Bova, Robert Hammond and Steve Byars attended the annual TD Ameritrade conference in San Diego in February. Attendees are primarily Registered Investment Advisers from around the country who use TDA as the custodian of their clients’ accounts. There were many sessions focused on helping us serve our clients better, in addition to what seemed to be an ongoing conversation of the difference between fee-only financial advisors (like Moneywatch) and stock brokers/dealers who sell products and often receive commissions from the products they sell, in addition to the fees they charge. The conversation was in the context of a proposed rule by the federal Department of Labor where those who advise people on their retirement accounts must act as their client’s fiduciary; in other words, always act in their client’s best interests. Moneywatch has operated as a fiduciary for its entire 37-year history – always advising you to do what is best for you, not us – and we have to wonder…why would anyone ever place their trust with someone who won’t pledge to act in their best interest?

TD Ameritrade Address Change: We want to remind you that on Friday, February 24, TD Ameritrade Institutional will have new mailing addresses for overnight and standard U.S. mail. We ask that you take note of the new addresses and begin using them on February 24 for all future correspondence.

Medicare Question: Client: My main question concerns the drug plan and if it is better to pay a higher premium with a lower deductible or vice versa.

Our Response: Excellent question. My wife and I have two different plans. She has a Humana plan which allows her to go to any doctor anywhere. She visits lots of doctors on a regular basis. She pays about $120/month. She had a complicated knee operation to repair a 10-year old knee replacement and had to pay about $200. Pretty good coverage! I imagine the whole expense was near $100,000. I, on the other hand, almost never get sick. I use a program offered by United Healthcare which is free. I previously had the same Humana plan which price rose from $50 to $80 after a couple of years so I searched the Medicare site for a plan like Humana with a lower cost. As I said my new plan is free.

Now to your question. If your mom has sufficient assets to afford the higher deductible she should go for the lower premium. If she's more like my wife and uses doctors more frequently, she might be better off paying a higher premium. Less expensive plans often restrict one to a local region. My wife and I live in two different places and travel extensively. Her plan is best for her.

BlackRock Bank Loan Funds are performing well…

Data presented reflects past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance shown.  Investment return and fund share value will fluctuate, and redemption value may be more or less than original cost. Data assumes reinvestment of dividends and capital gains.

Thank you for your continuing confidence.

Past performance is no guarantee of future results. The opinions expressed are those of Moneywatch Advisors, Inc. and are no guarantee of the future performance of any particular fund. This information is for educational purposes only and is not intended as investment advice. Please consult your financial advisor for more detailed information or for advice regarding your individual situation.