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The LynnLeigh JournalLife. Investing. And Everything in BetweenAs retirement approaches, many individuals face a commonconcern: how to manage healthcare costs. These expenses can seemoverwhelming, and unfortunately, there are plenty of mythssurrounding Medicare and retirement healthcare that can lead toconfusion. But by breaking down these myths and arming yourselfwith the right strategies, you can take control of your retirementhealthcare planning.MEDICARE MYTHS & MONEY MOVES: AGUIDE TO HEALTHCARE COSTS INRETIREMENTBy Kelly L. Olczak, CFP® NewsletterHighlightsO C T O B E R 2 0 2 4V O L U M E 1 0Best Fall Markets andFestivals to Check Out inRochester and the FingerLakesFed’s Big Move: What ItMeans for You and theMarketBudget for the Big StuffWatch Out for EnrollmentPenaltiesLeverage Your RetirementAccountsLong-Term Care: Is ItWorth It?Fed Rate Cuts Mark a ShiftEconomic ExpansionContinuesBalancing ActInvestor CautionFocus on Healthcare: In this month’s newsletter, we’ll debunk some common Medicaremyths and focus on smart money moves that can help you betterprepare for healthcare costs in retirement. We’ll explore four keyareas: budgeting for planned healthcare expenses, understandingMedicare enrollment penalties, leveraging your retirementaccounts to cover future costs, and evaluating whether long-termcare insurance is the right move for you.

O C T O B E R 2 0 2 4 V O L U M E 1 02One of the biggest myths about retirement healthcareis that all expenses will come as a surprise. In reality,many healthcare costs are predictable and can beplanned for in advance.Pro Tip:Set a dedicated healthcare budget: Include Medicare premiums as a monthly,planned expense in your retirement budget. Consider using tax-advantagedaccounts like Roth IRAs or HSAs to build up savings specifically for healthcare.Missing important Medicare enrollment deadlines can lead to permanent penalties, which increaseyour healthcare costs for life. Your Initial Enrollment Period (IEP) starts three months before andends three months after your 65th birthday. Missing this window can result in higher premiums forMedicare Part B and Part D.Budget for the Big StuffAccording to Fidelity’s 2024 Retiree Health Care CostEstimate, a 65-year-old individual will need around$165,000 in after-tax savings to cover healthcare coststhroughout retirement. Nearly 43% of these costs comefrom Medicare premiums for Part B (doctor visits) and Part D (prescriptions). These expenses are regular, predictable, and should be part of your retirementbudget.Further Reading:Fidelity Retiree Healthcare Cost EstimateWatch Out for Enrollment Penalities

3O C T O B E R 2 0 2 4 V O L U M E 1 0For Part B, your premiums increase by 10% for everyyear you delay enrolling after age 65. Part D(prescription drugs) carries a penalty of 1% of thenational average premium for each month youdelay.Don’t miss your window: Set reminderswell in advance of your 65th birthday toenroll in Medicare. If you’re still covered byan employer’s health plan, familiarizeyourself with Special Enrollment Periods(SEPs) to avoid penalties.Pro Tip:Your retirement accounts aren’t just for living expenses—they can be a powerful tool forcovering healthcare costs as well. Maximize contributions to Health Savings Accounts (HSAs),IRAs, and 401(k)s to ensure you’re financially prepared for both planned and unexpected medicalexpenses in retirement.Further Reading:Medicare.gov - Part B and Part D PenaltiesLeverage Your Retirement AccountsIf you’re enrolled in a high-deductible health plan, HSAs are an excellent way to save forhealthcare expenses tax-free. In 2024, individuals can contribute up to $4,150, and families up to$8,300. If you’re 55 or older, you can contribute an additional $1,000 as a “catch-up.”HSAs:

4O C T O B E R 2 0 2 4V O L U M E 1 0Max out your contributions: Make full useof HSA and catch-up contributions to builda financial cushion for healthcare costs.Remember, HSA funds roll over year toyear, so start saving early!Pro Tip:IRAs and 401(k)s: Take advantage of catch-up contributions ifyou’re 50 or older. In 2024, you can contributean additional $1,000 to your IRA, and for401(k)s, an extra $7,500, allowing you tocontribute up to $30,500.Further Reading:IRS - 2024 HSA Contribution LimitsIRS - Catch-Up Contributions for 2024One of the biggest myths about Medicare is that it covers long-term care, like nursing homes andassisted living. Unfortunately, Medicare only covers short-term skilled nursing facility care undercertain conditions, but not long-term custodial care.Long-Term Care: Is It Worth It?

5O C T O B E R 2 0 2 4 V O L U M E 1 0Long-term care insurance can be a valuable tool to cover these costs, but it comes at a price. Thecost of a policy is based on factors like your age, the maximum daily benefit, and the length of timethe policy will pay. Premiums can increase over time, so be sure to evaluate the financial impactcarefully.The Cost: Long-term care insurancepremiums can be expensive, especially if youpurchase a policy later in life. The cost is basedon your age, the coverage amount, and thelength of time you’ll need coverage.Premium Increases: Many policies allow theinsurance company to raise your premiumsover time, which can add financial strain inthe later years of retirement.Health Qualifications: If you have existinghealth issues, you may not qualify for long-term care insurance at all.The Pros and Cons of Long-Term Care Insurance:Long-term care insurance can be a helpful safety net, but it’s not for everyone. Here are a fewfactors to consider:Shop around for policies early: Long-term care insurance is most affordable when youpurchase it earlier. Compare policies to find the right balance of coverage and cost. Iftraditional long-term care insurance doesn’t fit your needs, consider hybrid policies thatcombine life insurance with long-term care benefits.Pro Tip:

6O C O T B E R 2 0 2 4 V O L U M E 1 0Healthcare costs in retirement may seemoverwhelming, but by focusing on the rightstrategies, you can manage these expenses moreeffectively. Remember to budget for the big costslike Medicare premiums, avoid penalties byenrolling on time, use your retirement accounts toyour advantage, and carefully evaluate youroptions for long-term care insurance.Further Reading:LongTermCare.gov - What is Long-Term Care?So, What’s Next? Plan today for a healthier tomorrow: Proactive planning will give you more peace of mindin retirement. Start by understanding your healthcare needs and how to cover them, so youcan focus on enjoying retirement without worrying about unexpected medical bills.Pro Tip:As always, if you have any questions or need help navigating your healthcare planning for retirement,we’re here to assist you!

7Takeaway:Last month, the Federal Reserve made waves by cutting the fed funds rate by 50 basis points(0.50%), bringing the rate down to 4.75–5.00%. This marks the first rate cut since early 2020and signals a major shift from the aggressive rate hikes we’ve seen over the past few years. So,what does this mean for you and the markets? Let’s break it down.O C T O B E R 2 0 2 4 V O L U M E 1 0Fed’s Big Move: What it Means for You and the MarketWhy not a smaller 25 bp cut, you might ask? Typically, the Fed prefers smaller, gradual moves,but the larger cut suggests they’re being proactive, offering a cushion against potentialeconomic slowdowns before they become a problem.The Fed Rate CutMarks a ShiftThis rate cut ends what has been the mostaggressive cycle of rate hikes in more than 40years. The Federal Reserve had been raisingrates to cool inflation, but with inflationstarting to ease, the Fed felt it was time toreverse course slightly. By cutting 50 basispoints, the Fed is sending a message: theybelieve they’ve done enough to controlinflation, and now they’re shifting focus toensure the economy keeps growing.The Fed is signaling a shift in its approach. The rate cut shows they’re pivoting fromfighting inflation to focusing on sustaining economic growth.1

8Takeaway:S E P T E M B E R 2 0 2 4 V O L U M E 9Powell’s confidence helped calm fears in the market, and investors took him at his word. Fornow, it seems the economy is still growing, and the Fed’s proactive move is meant to keep itthat way.Economic ExpansionContinuesWhile the economy isn’t without challenges—unemployment is up a bit, and job growth hasslowed—most indicators point to continuedexpansion. The Fed’s decision to cut rates by50 basis points doesn’t necessarily indicate afear of recession. In fact, Federal ReserveChair Jerome Powell assured investors thatthe economy is in good shape, and a softlanding (avoiding recession while controllinginflation) is still on the table.Despite a slight slowdown in job growth, economic indicators suggest that expansion isongoing, and the Fed is working to keep it that way.2

9O C T O B E R 2 0 2 4 V O L U M E 1 0The Fed’s BalancingAct4Cutting rates is always a balancing act for theFederal Reserve. If they cut too slowly, theyrisk stalling economic growth and eventriggering a recession. On the other hand, ifthey cut too quickly, they could reigniteinflation and undo some of the progressmade over the past year. Powell’s messageduring his press conference was clear: thislarger cut is an insurance policy. It’s meant toprevent a downturn while inflation is still incheck.The Fed isn’t waiting for layoffs to increase before acting. By making this move now, they’re tryingto support the labor market while it’s still strong, rather than reacting once things start to weaken.Takeaway:The Fed’s proactive approach is a balancing act between keeping inflation low andpreventing an economic slowdown. This cut is more about preventing future problemsthan responding to current ones.

10O C T O B E R 2 0 2 4 V O L U M E 1 0Investor Caution: Don’tGet Caught up InEuphoria5With the markets reacting positively to the rate cut, we’ve seen record highs in the Dow and S&P 500this year. It’s easy to get swept up in the excitement when things are going well, but that cansometimes lead to taking on too much risk. As investors, we need to remain cautious and not over-allocate to stocks just because of recent performance.History shows that unexpected volatility can still occur, and we don’t want short-term gains to lure usinto a riskier position than we’re comfortable with. It’s important to stay balanced in your portfolio andnot overextend in response to market highs.Takeaway:While strong market performance is encouraging, it’s crucial to remain cautious and avoidover-weighting stocks, as unexpected volatility can still cause discomfort in the short term.

11O C T O B E R 2 0 2 4 V O L U M E 1 0Tying It All TogetherThe Fed is shifting focus by cutting rates, marking the end of aggressive hikes and signalingconfidence in economic growth.The economy continues to expand, despite some job growth slowing, and Powell reassures usthat a soft landing is still possible.The Fed’s balancing act is proactive, aiming to keep the economy strong while avoiding bothinflation and recession.Investor caution is key in times of market highs—stick to your long-term strategy and avoidtaking on unnecessary risk.Best Fall Markets and Festivals to Check Out in Rochesterand the Finger LakesFall is the perfect time to get out and enjoy everything Rochester and the Finger Lakes region have tooffer. From vibrant farmers markets to charming craft fairs and festive fall events, here’s your guide tosupporting local artisans, stocking up on seasonal goods, and soaking in the festive atmosphere.

12O C T O B E R 2 0 2 4 V O L U M E 1 0Celebrate Italian American Heritage Day at the RochesterPublic MarketMark your calendars for a day filled withculture, tradition, and delicious food as theRochester Public Market celebrates ItalianAmerican Heritage Day! This special eventhonors the rich history and contributions ofItalian Americans in our community, withfestivities that will transport you straight tothe heart of Italy.Authentic Italian cuisine from localvendors, including pizza, pasta,cannoli, and moreLive performances by traditionalItalian musicians and dancersFamily-friendly activities, games, andcultural displaysArtisan booths featuring handcraftedItalian goodsHighlights include:Come join the celebration and experience the joy and vibrancy of Italian American culture at theRochester Public Market!October 6th, 2024 (11:00 am to 4:00 pmFree AdmissionRochester Public Market, 280 N. Union Street,Rochester, NYFor more details: www.rocitalians.org/hertiage-day.htmlDetails:

13O C T O B E R 2 0 2 4 V O L U M E 1 0Experience Fall Like Never Before: Bristol Mountain FallSky RidesFor a breathtaking view of the Finger Lakesin full autumn splendor, hop on the BristolMountain Fall Sky Rides. This one-of-a-kind experience offers a peaceful chairliftride to the summit of Bristol Mountain,where you’ll be treated to panoramic viewsof the region’s vibrant fall foliage.A leisurely 15-20 minute chairlift ridewith stunning views of the surroundinghills and lakesThe opportunity to explore scenichiking trails at the top of the mountainPerfect photo opportunities to capturethe vibrant fall colorsFun for the whole family—whetheryou’re a leaf-peeper or just looking for arelaxing day outWhat to Expect:Whether you’re a local or visiting the Finger Lakes region, the Bristol Mountain Fall Sky Rides offera perfect way to embrace the beauty of fall from new heights!September & October 2024 (WeatherPermitting), 2024 (Noon - 4:00 pm)To Learn More: Visit the websiteDetails:Bring your camera, a warm sweater, and a sense ofadventure for a memorable way to enjoy autumn inthe Finger Lakes.

14O C T O B E R 2 0 2 4 V O L U M E 1 0RMSC Monster Bash 2024: A Spooky Night of Fun andFrightsGet ready for a ghoulishly good time atthe RMSC Monster Bash 2024! Thisannual Halloween celebration at theRochester Museum & Science Center isthe perfect blend of spooky andspectacular, offering something foreveryone—whether you're into eerieexperiences or family-friendly fun.A costume contest with prizes for themost creative and creepy costumesLive music, DJ, and dancing for all agesSpooky science demos and hands-onactivities throughout the museumDelicious food and drinks to fuel yournight of funEvent Highlights Include:So, put on your best costume and get ready for a frightfully fun evening at RMSC’s Monster Bash2024—where science meets spooky!October 26, 2024 - 6:30 pm - 10:30 pmTo Learn More: Visit the websiteDetails:This event is perfect for both families and adultslooking to get into the Halloween spirit in a uniquesetting. From spine-tingling science experiments tofestive decorations, the Monster Bash transformsRMSC into a haunted haven you won’t want to miss!

As we dive into the fall season, there’s so much to look forward to—whether it’s enjoying thevibrant foliage, celebrating at local festivals, or cozying up with a warm meal and good company.We hope this month’s newsletter has given you plenty of ideas to embrace the spirit of autumn,from exciting local events to helpful tips for staying on top of your financial goals.As always, we’re here to support you, whether you have questions about your investments orsimply want to chat about how to make the most of the season. Feel free to reach out anytime.Wishing you a wonderful fall filled with fun, family, and a little bit of adventure!O C T O B E R 2 0 2 4 V O L U M E 1 015LynnLeigh & Company - A Registered Investment AdvisorThis information is provided by LynnLeigh & Co. for general information and educational purposes based upon publicly available information from sources believed to be reliable – LynnLeigh& Co. advisors cannot assure the accuracy or completeness of these materials. The information presented here is not specific to any individual’s personal circumstances. To the extent that thismaterial concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. Each taxpayershould seek independent advice from a tax professional based on his or her individual circumstances. The information in these materials may change at any time and without notice. Pastperformance is not a guarantee of future returns. Wrapping Up with Gratitude...