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NEWSLETTER 2023 • Quarter 1 • Issue 5

Robert Dumais Principal, LBA

FROM BOB DUMAIS' DESK Friends in Labor, When we have follow-up meetings with folks after they have been retired for a while, some are happy and others are not - regardless of how great their retirement plan is. I absolutely believe that the team we've assembled at Legacy Benefit Advisors is second to none. Yet when it comes to taking folks through the various steps to transition into retirement, the one thing that we cannot do despite our efforts is to make everybody happy. Why is it that? Recently, my daughter saw these seven points highlighted on a bulletin board and shared them with me. I found them impactful and would like to share them with you. I suggest that you read them over a few times, as they might put a smile on your face and enhance your outlook for the future: Make peace with your past, so it won’t screw up the present. What others think of you is none of your business. Time heals almost anything. Give it time. Don’t compare your life to others and don’t judge them. You have no idea what their journey has been like. Stop thinking too much. It’s all right to not know all the answers, and they may come to you when you least expect it. Smile! You don’t own all the problems in the world.  No one is in charge of your happiness except you. Perhaps there is more to happiness in your retirement than a solid plan and financial security. Life is too short to forget to smile. As we begin 2023, we would like to wish all of our friends, and the friends we look forward to making, a very happy and healthy new year! Bob Principal, LBA

TABLE OF CONTENTS Now That's Funny LBA 911 Good To Know What's Uncle Sam Up To It's Your Money Free Retirement Planning Workshops

NOW THAT'S FUNNY

LBA 911 What's The Deal with Online Pharmacies?

It’s without a doubt that many new prescription drugs can be life-saving or life-changing. The problem is that the cost of some of these new medications can be absolutely astronomical, making them unaffordable for most folks. If your doctor is recommending a new prescription drug that has been advertised on television, in magazines, or on social media, it may be very expensive. As a result, many folks end up searching online for lower cost alternatives. While there are some safe options, others are not safe and not recommended. The FDA suggests that your online pharmacy should: always require a doctor’s prescription. provide a physical address and telephone number in the United States. have a licensed pharmacist on staff to answer your questions. have a valid pharmacy license in their state. Some online pharmacies operate legally and can offer convenience, privacy, and lower cost, but others may be selling unapproved, counterfeit, and unsafe medications. Warning signs to watch for include medications that look different from what you receive at your usual pharmacy, arrive in questionable packaging, are labeled in a foreign language, or have no expiration date or have already expired. While new federal government legislation may provide some financial relief on a long-term basis, you should not expect financial assistance from the government in the very near future. Most prescription drug prices in the US are not regulated, so we recommend that you do a little shopping. Below is a list of some of the discount prescription drug programs that are available, with most of these coming at no cost to you: Good Rx GLIC Rx Single Care Americas Pharmacy AARP Prescription Drug Optum Perks Script Save Well Rx Medicare Extra Help Walmart Rx Program Costco Wholesale We have clients who have had success purchasing medications from a foreign country, such as Canada, whereas others have found that reaching out to the manufacturer could result in a deeply discounted (or free) price tag. Unfortunately, there is no simple solution.

GOOD TO KNOW

LONG-TERM CARE: ADDRESSING THE "WHAT-IF'S" OF RETIREMENT

There are topics relating to retirement and the aging process that we’d rather not think about, but unfortunately not thinking about them doesn’t make them go away. One of those topics is long-term medical care, when you're unable to perform the basic activities of daily living on your own. We can all hope that it doesn’t happen to us or a loved one, but it's a topic that you should think about. My personal philosophy has always been to “hope for the best, but prepare for the worst.” Did you know that: roughly 50% of people will need long-term care at some point in their lives?  the average long-term stay is around 24 months?  the average price of skilled nursing care in the Rhode Island area is somewhere between $10,000 and $16,000 per month?  there are numerous cases of families’ entire nest egg being wiped out because one person needed long-term care? Long-term care policies were once a viable option to consider. The problem is, as life expectancies continued to go up, the cost of these long-term care policies, and the ability to actually secure one, put them out of reach for most people. An option to consider may be one of the various life insurance related products that offer long-term care riders. These riders work in various ways, but essentially they add coverage to your policy and can increase the amount of your savings exponentially if a long-term care need arises. Other life insurance products offer "living benefits". Under certain circumstances, these allow you to access your death benefit to cover expenses while living.

It’s a complicated topic, but you can take comfort in knowing that the advisors at LBA have the experience and knowledge to address these what-if scenarios.

WHAT'S UNCLE SAM UP TO Secure 2.0 Act: Revisited In our 2022 Quarter 2 Newsletter, we discussed the Secure 2.0 Act. The act was passed in the final days of 2022 which is good news for retired folks and folks planning to retire in the near future!

The goal of the Secure 2.0 Act is to strengthen the retirement system and help Americans be financially prepared for retirement. For people who are retired or nearing retirement, here are some key points from the Act: The age to start taking Required Minimum Distributions (RMD) has been increased from 72 to 73. The penalty for failing to take RMD‘s will decrease from 50% to 25%, and down to 10% if corrected in a timely manner.  Beginning in 2024, RMD’s will no longer be required on Roth accounts in employer retirement plans.  Catch-up contributions will increase in 2025 for many types of qualified retirement plans.  Defined-contribution retirement plans, such as a 401k or 403b, will be able to add an emergency savings account associated with a Roth account. Effective immediately, for in-plan annuity payments that exceed the participant’s RMD for the year, the excess annuity payment can be applied to the following year’s RMD.

For more details, the knowledgeable advisors at LBA are always available to answer your questions.

IT'S YOUR MONEY BULL VERSUS BEAR: WHY YOU SHOULD CARE You have probably heard the terms “Bull” and “Bear” market and wondered what they meant. These terms refer to the stock market. A bull market is an optimistic market, where most people feel that stock values are going to go up in the future. A bear market is a pessimistic market, meaning that most people are expecting values to go down.

After a very long bull market run, we have been in a bear market for the last 12 months. Depending on which index you look at, the numbers may differ slightly, but stock values are down about 19% since January of 2022. Historically, bear markets have lasted less than 10 months on average, but some have lasted for over 20 months. The question now is, how long will the bear market continue, and how will your investment portfolio be impacted moving forward? In your younger years, you wondered how the stock market would perform, but knowing that you had many years to work before you would actually need to access your funds, you probably did not spend a lot of time thinking about it. Now in your later years, whether retired or nearing retirement, at some point “wonder” may turn into “worry.” Opinions differ as to whether or not we are in a recession right now, but if we’re not, many experts believe that we are headed for one. Rising interest rates and record high inflation are not positive indicators for the stock market. If you’re still heavily invested in the stock market, what is your plan moving forward? Do you get out of the market now in hopes of eliminating future losses, or do

you ride it out and hope that the market changes course soon? In our opinion, the real question you have to ask is how much more can you afford to lose if the market continues its downward slide? If you have lots of other financial resources, you may want to ride it out. But, if your market holdings represent a high percent of your net worth, you might feel differently. Another way to look at things is if you were a 65-year-old with no money saved at all and you hit the lottery and won $100,000 — would you put it in the stock market today? You may have heard the term “sunk cost,” which essentially means that you may never get back what you lost in 2022, and if that’s a possibility, how do you move forward? Everyone has done it at one time or another; you pushed the winning streak a bit too far, and now you’re falling deeper in the hole trying to win it back. Maybe it’s time to take your marbles and go home! We suggest that now may be a good time to meet with an LBA advisor. There are investments available where you can eliminate the worry and move to safer ground. Some even offer up-front bonuses to ease the stress from recent losses you may have incurred. Schedule an appointment today!

Free Retirement Planning Workshops

Each month we offer virtual and in-person workshops for anyone who is thinking about retirement and wondering where to start, as well as those who may be semi- or fully-retired. LBA will help you: Select the best Medicare plan Decide your Social Security strategy Consolidate your "nest egg" and provide investment growth without risk Generate a steady, lasting income stream Provide a safety net for loved ones We are currently planning all of our 2023 workshops. When they are available, you'll be able to sign up for them using the calendar on our website below! LBA Workshop Calendar Click on the date and time that you're interested in, and then click the Eventbrite link to head over to the registration page.

If you'd like to learn more about the important considerations you should be making to ensure an enjoyable and stable retirement, we're here to help. Don't see a time that works for you? Contact us to meet with an LBA advisor today!

LBA consultants are members of OPEIU Local Robert Dumais, Principal 275 West Natick Road Suite 450 Warwick, RI 02886 401-868-1400 (O) 774-991-3369 (M) 401-737-0330 (F) RDumais@LBAri.com www.LBAri.com

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