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By Sandee LaMotte, CNN

April 20, 2021

If you’re trying to get by on about six hours or less of sleep a night during the workweek, you’re setting up your brain for future failure, according to a new study published in the journal Nature Communications. Sleeping less than six hours a night in middle age can increase your dementia risk, a long-term study has found.

After following nearly 8,000 people for 25 years, the study found a higher dementia risk with a “sleep duration of six hours or less at age 50 and 60” as compared to those who slept seven hours a night. In addition, persistent short sleep duration between the ages of 50, 60 and 70 was also associated with a “30% increased dementia risk,” independent of “sociodemographic, behavioural, cardiometabolic, and mental health factors,” including depression, the study said.

“Sleep is important for normal brain function and is also thought to be important for clearing toxic proteins that build up in dementias from the brain,” said Tara Spires-Jones, who is deputy director of the Centre for Discovery Brain Sciences at The University of Edinburgh in Scotland, in a statement. Spires-Jones was not involved in the study.

“What’s the message for us all? Evidence of sleep disturbance can occur a long time before the onset of other clinical evidence of dementia,” said Tom Dening, who heads the Centre for Dementia at the Institute of Mental Health at the University of Nottingham in the UK, in a statement.

“However, this study cannot establish cause and effect,” said Denning, who was not involved in the study. “Maybe it is simply a very early sign of the dementia that is to come, but it’s also quite likely that poor sleep is not good for the brain and leaves it vulnerable to neurodegenerative conditions like Alzheimer’s disease.”

It’s well known that people with Alzheimer’s suffer sleep issues. In fact, insomnia, nighttime wandering and daytime sleepiness are common for people with Alzheimer’s, as well as other cognitive disorders such as Lewy body dementia and frontal lobe dementia.

But does poor sleep lead to dementia — and which comes first? This “chicken and egg” question has been explored in prior studies, with research pointing both ways, according to neuroscientist Jeffrey Iliff, a professor of psychiatry and behavioral sciences at the University of Washington School of Medicine.

“In experimental studies, there does seem to be evidence of both chicken and egg,” Iliff told CNN in a prior interview. “You can drive it in either direction.”

Some recent studies, however, have explored the damage sleep deprivation may cause.

People who get less REM, or dream-stage sleep, may be at higher risk for developing dementia, one 2017 study found. REM is the fifth stage of sleep, when the eyes move, the body heats up, breathing and pulse quicken and the mind dreams.

Healthy middle-aged adults who slept badly for just one night produced an abundance of beta amyloid plaques — one of the hallmarks of Alzheimer’s disease, another study published in 2017 revealed. Beta amyloid is a sticky protein compound that disrupts communication between brain cells, eventually killing the cells as it accumulates in the brain.

A week of disrupted sleep increased the amount of tau, another protein responsible for the tangles associated with Alzheimer’s, frontal lobe dementia and Lewy body disease, the study found.

Yet another 2017 study compared dementia markers in spinal fluid against self-reported sleep problems, and found subjects who had sleep issues were more likely to show evidence of tau pathology, brain cell damage and inflammation, even when other factors like depression, body mass, cardiovascular disease and sleep medications were taken into account.

“Our findings align with the idea that worse sleep may contribute to the accumulation of Alzheimer’s-related proteins in the brain,” Barbara Bendlin of the Wisconsin Alzheimer’s Disease Research Center told CNN in a prior interview about the 2017 study.

“The fact that we can find these effects in people who are cognitively healthy and close to middle age suggest that these relationships appear early, perhaps providing a window of opportunity for intervention,” Bendlin said.

Because the new study followed a large population over an extended period of time, it adds “new information to the emerging picture” on the link between sleep deprivation and dementia, said Elizabeth Coulthard, an associate professor in dementia neurology at the University of Bristol in the UK, in a statement.

“This means that at least some of the people who went on to develop dementia probably did not already have it at the start of the study when their sleep was first assessed,” said Coulthard, who was not involved in the study.

“It strengthens the evidence that poor sleep in middle age could cause or worsen dementia in later life,” she said.

At this time, science has no “sure-fire way to prevent dementia,” but people can change certain behavior to reduce their risk, said Sara Imarisio, who heads strategic initiatives at Alzheimer’s Research UK, in a statement. Imarisio was not involved in the study.

“The best evidence suggests that not smoking, only drinking in moderation, staying mentally and physically active, eating a balanced diet, and keeping cholesterol and blood pressure levels in check can all help to keep our brains healthy as we age.”

If you have ever tapped on your back pocket or fished through your purse and come up empty, you know how it feels to find yourself without your wallet. Losing your wallet is frustrating. Having it stolen is downright stressful and violating.

If you lose your wallet, you don’t have to lose your cool. By following a simple checklist, you can limit your liability and protect your identity from further danger. If your wallet is lost or stolen, you don’t have to worry because, as an Experian ProtectMyID member, our Lost Wallet feature is part of your plan. Below are some of the steps our specialists will perform on your behalf to restore your wallet contents and tips you can use to respond.

1. Report Your Debit Card as Stolen With Your Financial Institution

Generally, the faster you report your debit card stolen, the less unauthorized charges that you’ll be responsible for paying. If you report a debit card missing within two business days, you’ll only be liable for up to $50 in unauthorized purchases. Waiting longer (less than 60 days) could cost you $500 in unauthorized charges. If you go past 60 days without reporting your card stolen, you could be on the hook for all unauthorized charges.

Along with reporting your debit card stolen, you can request that your bank freeze your checking account, so if you had checks in your wallet, the purchases would not be approved. You’ll also want to close your account and get a new one with another account number.

2. Contact Your Credit Card Issuers

After reporting your card as lost or stolen, the card issuer will cancel your credit card numbers and mail you new ones. Also, they will credit your account for fraudulent charges. When you cancel the cards, update your automatic recurring payments with your new card information.

If you’re not sure what cards were in your wallet, it may be wise to either cancel all of your credit cards, including retail cards, to avoid confusion and potential future fraud. Reviewing your credit report can ensure you’ve remembered all of your accounts.

3. File a Police Report

Filing a police report is an important step in safeguarding your identity if your wallet is lost or stolen. If you become a victim of fraud or identity theft, a police report can serve as evidence that you were a crime victim.

When you file a police report, be prepared to provide key details, including what was in your wallet, when, how, and where it was stolen or lost and any other details about the wallet.

Once you’ve completed the report, get the case number and keep a copy of the report for your records.

4. Keep a ‘Copy’ of Your Wallet Contents

As a general guide, it’s a good idea to make a copy of your wallet contents in case it’s lost or stolen. Medical identity theft is a growing crime, so if you had insurance cards in your wallet, be sure to contact your insurer to cancel your old card and get a replacement. If not, your card information could be at risk of someone using it to pay for their medical expenses.

5. Place a Fraud Alert on Your Credit Report

Monitoring your credit reports is an important part of protecting your identity. When you place a fraud alert on one of your credit reports, the other two major bureaus must be notified of your request.

If you want even more protection, you should freeze your credit to prevent lenders from issuing new credit in your name, which can impact your credit score in the long run.

6. Replace Your Driver’s License

Each state has its own rules for driver’s license replacement, so visit your state’s DMV website or office for details. Some states may request a police report number.

7. Report Your Social Security Number Stolen

Carrying your Social Security card in your wallet is a general no-no, but if it’s lost or stolen, you’ll need to contact the Social Security Administration so a new card can be issued. Keep in mind that you will not receive a new Social Security number (SSN), just a new card.

By Leo LaGrotte – Life Settlement Advisors

Did you know you can sell all or a portion of a life insurance policy, even term insurance?

The opportunities to surrender or sell a life insurance policy represent a chance for many individuals to convert an expense into a liquid asset. But what does that mean for taxes? Here’s what you need to know about taxes on the surrender or sale of a life insurance policy.

What are the Tax Consequences of Surrendering a Life Insurance Policy?

The amount of your life insurance surrender payout that is taxed as income depends on the premiums you have paid into the policy.

The total of premiums you have paid into the policy is known as the cash basis. When you surrender the policy, the amount of the cash basis is considered a tax-free return of principal. Only the amount you receive over the cash basis will be taxed as regular income, at your top tax rate.

However, remember that for every $100,000 in coverage, only an average of $460 is received in surrender benefits. Depending on how long you’ve had the policy, you may not even break even on the cash basis in the surrender, especially when the surrender fees are between 10-30%.

Taxable Gains on Life Insurance Policies Sold in a Life Settlement

Much like with a life insurance surrender, the cash basis returned during your life settlement is tax-free. However, because life settlements return so much more value from the policy on average, the tax on the profits in the transaction is levied a little differently.

The proceeds received up to the tax basis (total premiums paid) are free of income tax. Proceeds received that are greater than the tax basis up to the amount of the cash surrender value are taxed at ordinary income rates. Luckily, there are many ways to minimize the impact of the capital gains tax, from reinvesting the funds in a retirement account, to making charitable contributions.

We find it is almost always the case that life settlements pay many times more than the cash surrender value of a policy. While this might give you pause in consideration to taxes, consulting with a financial advisor or tax professional can help you make the most of this opportunity without paying an unexpected big tax bill.

February 11, 2021

By Emile Halle

The new world of working from the comfort of home has made employment a touch more tolerable, leading many to stay in their current jobs indefinitely, or accept new offers for part-time or temporary work. And perhaps the biggest motivator to stay employed is that there isn’t much else to do amid a global lockdown that has isolated friends and families for the better part of a year.

“I have had a number of clients postpone retirement due to the pandemic. From their perspective, these are lower stress bonus years. The extra income and savings give them peace of mind, and the work keeps them busy,” said Catherine Gearig, partner at LifePlan Financial Advisory Group, in an email. “They tell me that working from home is significantly less stressful. And, if they did retire, they wouldn’t be able to do much — no travel, limited family get-togethers, etc.”

When the world begins to return to normal and the pandemic subsides, people will likely revisit the idea of retirement, Gearig said.

PRACTICE RUNS

It’s hardly unusual for someone recently retired to go back to work in some capacity. Being financially secure is an important step in retiring, but so too is having regular social connections and a meaningful way to spend one’s time.

Michigan resident Craig Childers, who works in automotive parts sales, came out of retirement for the second time during the pandemic.

“My first retirement was when I turned 65, in 2018,” said Childers, 67, who is Gearig’s client. “I retired, and the summer was great, the fall was great.” He spent much of his time doing what he loves: backpacking, cycling and kayaking. Then winter came. Friends escaped the cold by going to Florida, but that wasn’t for him. Childers was back at work in April 2019, having been retired for 10 months.

“That social aspect of work is really underrated,” he said. “At some point in retirement you’re sick of the to-do list … There’s a little bit of mental pressure to that.”

Some people who were on the fence about retiring have realized that much of what they wanted to be done with was their commute, not necessarily the work itself, said adviser Michael Meehan, vice president at TFC Financial.

One client, a medical doctor in her early 70s, has found an extended career in telemedicine, Meehan said. That has helped her maintain a good income and focus on “doing what she really loves — connecting with patients and helping people, without physically having to be there, risk COVID and deal with office structure,” he said.

In some cases, clients “are going stir-crazy,” said Chris Mellone, an adviser at VLP Financial Advisors. Plans to retire are being put on hold until at least the summer, when people are hopeful that travel will be possible and vaccines will be more widely available, he said. Until then, clients are thinking about what they want “retirement” to look like. For example, does it mean phasing out work, or is it an abrupt cessation?

For those who want a lighter work schedule, the present is a good time to negotiate that, he said. Employers are much more willing to accommodate remote work and consulting arrangements, given the success they’ve seen during the pandemic. “This has almost been like a dry run for a lot of people,” Mellone said.

OPPOSITE EFFECT

Even with remote work capabilities and limited opportunities for travel and leisure, COVID-19 has led some clients to retire early, one adviser said.

“We have some clients who quite frankly, it’s made them think about their own mortality,” Meehan said. “Some younger people like that are starting to think about, ‘How do I get to my number and retire sooner than I had planned to?’”

Business owners are a prime example. In some industries, merger and acquisition activity has been on a tear, making it an opportune time to sell. And potential tax changes on the horizon are prompting deals to move quickly.

A client couple in their early 50s who own a media business is doing just that, Meehan said. “They’ve decided that now is a good time to sell their business. Multiples are high, and valuation was extremely strong,” he said. “They’re using it as an opportunity to almost reboot, and do what they love, focus on something different.”

FINANCIAL CONSIDERATIONS

There is a financial benefit to delaying retirement, particularly during the pandemic, for those who are fortunate enough to work remotely.

“If they can make working from home enjoyable, I think they would delay retirement a little longer if they have the choice,” Scott Hammel, a financial planner at Apeiron Planning, wrote in an email. “Without the ability for these would-be retirees to travel, there’s a ‘wait and see’ approach to working. Certainly, most are saving more than they would have otherwise with traveling and going out less, combined with working longer.”

Of course, many people who work with advisers are more financially secure than those without their services. And the COVID economy has been brutal, with workers of all ages suddenly out of jobs.

In January, the unemployment rate for people 55 and older fell to 5.3%, down from 6% in December and a high of 13.6% in April, according to data released Friday by the U.S. Bureau of Labor Statistics. But many of those who were near traditional retirement age and were laid off last year are struggling to find employment, especially if they worked in industries that were hardest hit by the effects of the pandemic. And for many of those workers, an early, unplanned retirement will necessitate lifestyle changes.

SETTING PRIORITIES

The newfound work flexibility some have found over the past year has led to an “introspective conversation many people have had with themselves … and placing a priority on the things they value most,” wrote Matthew Gaffey, managing partner of Corbett Road Wealth Management, in an email. Even in normal times, recently retired clients go back to work within two years, he said.

“Not always do people take this path because they’re forced to, but many because it gives them a sense of purpose, interaction with others, or they are charitably inclined,” he said.

For Childers, the automotive parts seller, the new retirement date is tentatively in April. Having the extra income has provided a little extra breathing room, in addition to the social benefits of working, he said. “I’m really glad we got a financial planner,” he said. “We’re in good shape. But a little extra money is nice.”

By Kelsey Waddill for Health Payer Intelligence

Although seniors still have concerns around affordability related to their Medigap policies, they appreciate lower out-of-pocket costs on hospital and physician services.

February 26, 2021 – Seniors who choose Medigap policies have high rates of satisfaction with their choice, particularly due to reduced out-of-pocket healthcare spending, according to a survey that America’s Health Insurance Plans (AHIP) commissioned.

“More than 14 million Americans rely on Medicare supplemental insurance, and more than a third of seniors with a traditional Medicare plan choose to enroll in a Medicare supplemental plan because they offer enhanced protection, consistent coverage, and access to high-quality care,” AHIP asserted in a blog post when the organization released its report.

Global Strategy Group conducted an online survey for AHIP from January 14 to January 20, 2021. The survey had 500 American, senior participants who were covered by traditional Medicare and a Medigap policy.

Medigap beneficiaries reported strong satisfaction with their benefits, their Medigap policies customer service, and other aspects of their coverage.

Beneficiaries were slightly more satisfied with their Medigap policies than with their traditional Medicare coverage, with 89 percent expressing extremely high or somewhat high satisfaction with their Medicare supplemental plan while 87 percent were very or somewhat satisfied with their traditional Medicare coverage.

 In 2019, the last time that AHIP conducted this survey, 87 percent of beneficiaries felt very or somewhat satisfied with traditional Medicare, and 86 percent felt the same way about their Medicare supplemental coverage.

Only around two percent of Medigap beneficiaries have characterized the value of their Medigap policy as “poor” in this biennial survey over the course of the past four years. Meanwhile, the percentage that would characterize the value as “excellent” or “good” has hovered around 77 to 79 percent.

More specifically, the seniors appreciate that their Medigap policy covers hospital expenses not covered by traditional Medicare (79 percent) and likewise that it covers physician expenses not covered by traditional Medicare (69 percent).

Beneficiaries were most dissatisfied with the affordability of their Medigap policy. Although almost three-quarters of beneficiaries were extremely, very, or somewhat satisfied and 11 percent had no opinion, 15 percent found their Medigap policy’s affordability was “poor.”

But 94 percent of seniors were “extremely/very satisfied” or “somewhat satisfied” with the services and benefits that their Medigap policies covered and 93 percent were “extremely/very satisfied” or “somewhat satisfied” with the enrollment and renewal processes.

Medigap policy beneficiaries seemed to be ambivalent about their payer’s member engagement. Seventeen percent said that they were neither satisfied nor dissatisfied with their policy’s responsiveness or the communications that they had received from their payer.

More than nine in ten Medigap beneficiaries “strongly” or “somewhat” agreed that Medigap enabled them to see their providers without concerns about out-of-pocket healthcare spending. Positive sentiment around this element of Medigap coverage has grown over the past four years but has not dipped below 92 percent satisfaction in the biennial surveys.

While 15 percent of seniors may not have been completely satisfied with the affordability, 44 percent strongly agreed and 40 percent somewhat agreed with the statement: “it provides good value for my money and peace of mind at an affordable cost” and 53 percent strongly agreed that it saved them thousands of dollars in out-of-pocket healthcare spending. Indeed, separate studies have indicated that seniors choose Medigap policies for budgeting reasons.

Seniors acknowledged that without their Medigap policies they would have financial concerns about covering their healthcare needs. Primarily, they would be worried about covering co-pays and co-insurance, losing their financial security, and covering deductibles. More than half of seniors worried about foregoing routine or preventive care without their Medigap policy.

If they were to lose their Medigap policy, most of the respondents (32 percent) said that they would rely solely on Traditional Medicare to cover their medical expenses, although 26 percent said they would turn to Medicare Advantage. Affordability would be the driving factor in that decision for 34 percent of seniors.

Before they settled on a Medigap policy, 36 percent of seniors somewhat or seriously considered a Medicare Advantage plan, where costs can be more predictable. However, the span of healthcare providers available through a Medigap policy was one of the main factors that drew them to Medigap policies, along with lower out-of-pocket healthcare spending and the affordability of routine care.

“Medicare supplemental coverage brings seniors a very high level of satisfaction because it allows seniors to get the care they need from the doctors they prefer at an out-of-pocket cost they can afford,” Winthrop Cash, executive director of product policy at AHIP, said the blog post that attended the report.  “Seniors value highly the peace of mind that their Medigap coverage provides them.”

Medigap policies have seen stable enrollment from 2015 through 2018, with Medigap Plan G experiencing a surge in recent years.