Ray's Retire Right Report
Retire Right — Retire Smart!
Raymond T. Martin, Retirement Coach and Medicare Planning
July 2016
Happy July! This month marks the 47th
anniversary of the Apollo 11’s landing on the
moon. (See This Month in History. It’s also
high time for sun, summer fun and grilling.
Happy Independence Day!
July is
"National Horseradish Month"
July 3rd – 9th is
"Be Nice to New Jersey Week"
And July 11th is
"Slurpee Day (or 7-11’s Birthday)"
Medicare Maze…Part 1
When you think about retiring, where will you get
health insurance? “Simple,” you might reply, “I’ll
go on Medicare.” Well, welcome to an intricate
decision, especially if you (or your spouse) keep
working past the usual retirement age. Medicare is
for people 65 and up and comes in 4 parts. Part A,
covers you if you are admitted to a hospital and is
“free’ and supported by the payroll tax, but also
has copays and deductibles. Part B, which covers
doctors’ bills, and Part D, which covers
prescription drugs, charges a monthly premium.
Here’s a couple of things to consider before you
pull the trigger on your Medicare benefits
A Fishy Story
Still Working Past Age 65?
In a bizarre story from the Safari Park in
Shenzhen, China, a black swan there had taken on
the responsibility of feeding the Koi fish every
day. The workers set out the food but it is the
swan that actually feeds the fish. He arrives at the
same time each day, picks up the food and places
it in one hungry mouth at a time. The koi fish,
who are accustomed to this routine, crowd around
him jostling for their turn to eat from the bill of
their feathered friend. A keeper at the park
explained, “W hen everyone has eaten enough, the
swan goes back into the water and plays with his
fish friends again. They became close friends
after three years of playing together.”
If you (or your spouse) are still working at 65 or
beyond and are covered by an employer health
plan, consider signing up for Medicare Part A with
NO premium cost. It can cover the portions of the
hospital bills that your employer plan doesn’t pay
once you’ve met the Medicare deductibles.
How much does the Liberty Bell weigh?
(See the Answer Area.)
If you are not sure which options is best or have
other questions about your Medicare just give us a
call.
Put a Pause On Part B
If you reach your full Social Security retirement
age, say 66, and are still working, you have
another option. You can augment your salary by
filing for your FULL Social Security retirement
benefit (at that age, payments are not reduced for
people with earnings). When you file, you’ll be
signed up, automatically for Medicare Parts A and
B. Keep the free Part A. But if you’re still covered
by an employer plan, call Social Security and
decline Part B.
© 2016 by CCS. All Rights Reserved.

To celebrate the 47th anniversary of the Apollo
11 moon landing on July 20th, here are some
fascinating facts:
 The original name for the lunar module was
Snowcone. Astronaut Jim Lovell suggested
the name be changed to Eagle.
 The command module, now called Columbia
was first named Haystack.
 The moon’s Sea of Tranquility, the chosen
landing site, got its name because in
photographs it appeared smooth. It was
actually strewn with many boulders. The
Eagle had to be flown two miles in search of
flat ground suitable for landing.
 Commander Neil Armstrong carried a piece
of the Clan Armstrong plaid to the lunar
surface.
Astronauts frequently become attached to their
space craft. Following the Apollo 11 mission,
while the crew were in their decontamination
unit, Command Module Pilot Michael Collins
made his way down to the Columbia and
wrote in the engine bay, “Spacecraft 107 –
alias Apollo 11 – alias Columbia. The best
ship to come down the line. God Bless Her.
Michael Collins, CMP”.
After the American Revolution, the U.S. was
eager to break with all things British – including
their complex and confusing monetary units of
pence, shilling and pound. In 1782 it was
recommended to Congress that the U.S. adopt a
decimal system of currency. Thomas Jefferson
suggested that the smallest part, 1/100 of a dollar
be called a cent from the Latin word for hundred
and that a tenth of a dollar be a dime, from the
Latin for tenth. In 1792 America became the
first country with a completely decimal-based
monetary system.
"Always dream and shoot higher than you
know you can reach. Don’t bother just to be
better than your contemporaries and
predecessors; try to better than yourself."
© 2016 by CCS. All Rights Reserved.
29. Baseball's Mel
Down
1. Fresh talk
2. Religious image
3. Yucatán natives
4. Ropes used for towing a gun
carriage
5. Lung compartment
6. Genetic initials
7. Italian wine area
8. Come across as
14. Safari sightings
17. Honshu city
18. Part of U.S.D.A.: Abbr.
19. ___ and terminer
21. Convene
22. Bridge position
24. Mamie's man
(See the Answer Area.)
Across
1. Actor Alastair
4. Turkish coins
9. Alias preceder
10. Dentist's direction
11. ___ sauce
12. Emulate Cicero
13. Tangles
15. "___ a little teapot..."
16. Young hog
18. Perform
20. Earnings
23. Checking out
25. Mauna ___ (Hawaiian
volcano)
26. Black tea
27. "Indeed"
28. Lock of hair
Unknown

The darker green a vegetable is, the more
vitamin C it contains.

Ketchup was once sold as medicine.
If the average male never shaved, his beard
would grow to 13 feet long in his lifetime.
The human body contains about 60,000 miles
of blood vessels.

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



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Jackrabbits got their name because their ears
look like a donkey’s (jackass).
If you lined up in a row all the Slinkys ever
made they could wrap around the earth 126
times.
The tomato comes in over 4,000 varieties.
The heel of a sock is called the “gore.”
The chance that a public road in the U.S. is
unpaved: 1%. (In Canada it’s 75%.)
A fetus can hiccup.
1 in 12 Americans alphabetizes their spice
rack.
A suriphobe is someone who’s afraid of mice.
A queen termite can lay 86,000 eggs a day –
one every second.
In 1797 James Hetherington invented the top
hat and wore it in public. He was arrested for
disturbing the peace.
ONE YEAR, ONE TRILLION - The
national debt was $18.152 trillion as of
5/21/15. The national debt was $19.212
trillion as of Thursday 5/19/16 (source:
Treasury Department).
LOWER STILL - The yield on the 10-year
Treasury note closed at 2.19% on 5/21/15. The
yield on the 10-year Treasury note closed last
Friday 5/20/16 at 1.84% (source: Treasury
Department).
NO BIG SURPRISE - The top 3 problems
facing our nation (based upon a survey of
1,025 adults in early May 2016) were (1) the
economy, (2) dissatisfaction with the
government, and (3) unemployment/jobs
(source: Gallup).
Trivia Teaser: The Liberty Bell
weighs just over a ton,
2,080 pounds.
Leaf-cutter ants can build anthills 16 feet deep
and an acre square.
The Answer Area

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Staff Directory
Lori Verst
Craig Kennedy
Dave Hart
Kathy Akuzawa
Stan Salah
Carol Graham
Julie Scott
Carin Tupman
Raymond T. Martin
Investor Coach and Registered Investment Advisor
Sales & Service (800) 464-4941
Fax (949) 266-9508
www.FreeMedicareBook.com
[email protected]
5020 Campus Drive, Newport Beach, CA 92660
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© 2016 by CCS. All Rights Reserved.
Ray Martin
5020 Campus Drive
Newport Beach, CA 92660
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Ray's Retire Right Report
Ray Martin specializes
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Investor Coaching,
Medicare Planning
and is the author of . . .
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© 2016 by CCS. All Rights Reserved.
Must You Pay Income Tax on a Life Insurance Settlement?
A
re proceeds from a life insurance
policy subject to income tax? The
short answer is no. But taxes are a
complicated subject so there is more to
the answer.
Certain amounts paid as
accelerated death benefits are excluded
from income if the insured person is
terminally or chronically ill. That
exclusion from income does not apply
to any amount paid to a person who has
an interest in the life of the insured
because:
Lump Sum Payment
If death benefits are paid to you in
a lump sum or other than at regular
intervals, you would include in your
income only the benefits that are more
than the original death benefit, such as
interest.
Installment Payments
If you receive life insurance
proceeds in installments, you may
exclude part of each installment from
your income.
To determine the excluded part,
divide the amount held by the
insurance company (generally the total
lump sum payable at the death of the
insured person) by the number of
installments to be paid. Include
anything over this excluded part in
your income as interest.
Here's an example to illustrate:
The amount of the policy is $75,000
and, as beneficiary, you choose to
receive 120 monthly installments of
$1,000 each. The excluded part of each
installment is $625 ($75,000 ÷ 120), or
$7,500 for an entire year. The rest of
each payment, $375 a month (or
$4,500 for an entire year), is interest
income to you.
Installments for Life
If you are entitled to receive the
proceeds in installments for the rest of
your life without a period-certain
guarantee (for instance 10 years), you
figure the excluded part of each
installment by dividing the amount
held by the insurance company by your
life expectancy. If there is a refund or
period-certain guarantee, you will need
professional help to calculate the
amount that is taxable.
Interest Only Option
If an insurance company pays you
only interest on proceeds from a life

insurance settlement left on deposit
with the company, that interest is
taxable.
Cash Surrender of Policy
If you surrender a life insurance
policy for cash, you must include as
income any proceeds that are more
than the cost of purchasing the life
insurance policy. In most cases, your
cost (or investment in the contract) is
the total of premiums that you paid for
the life insurance policy. Subtract from
that sum refunded premiums, rebates,
dividends, or unrepaid loans that were
not included in your income earlier.
Endowment Contracts
An endowment contract is a policy
under which you are paid a specified
amount of money on a certain date,
"maturity", unless you die before that
date – in which case, the money is paid
to your beneficiary. Endowment
proceeds paid in a lump-sum to you are
taxable only if the proceeds are more
than the cost of the policy.

The insured person is a director,
officer, or employee of the person,
or
The insured person has a financial
interest in the person's business.
So, in summary, life insurance
proceeds paid to you because of the
death of the insured person are not
taxable as income unless the policy
was turned over to you for a price.
However, interest income received as a
result of life insurance proceeds may
be taxable. And there are other types
of taxes.
Estate Taxes
Income tax and estate tax are
different. You may still owe estate
taxes even if you would not owe
income tax on life insurance proceeds.
Estate tax rules are very complicated.
If you have accumulated some wealth,
I recommend you get advice about
estate planning for your specific
circumstances.
Include in your taxable income the
part of the lump-sum payment that is
more than your cost. Proceeds paid in
installments instead of as a lump-sum
are taxed as an annuity. You will need
professional advice for the calculation.
The most important questions to
ask about life insurance right now are:
do you have enough coverage and do
you have the right kind for your needs
and budget? Those are questions I'd be
happy to lend my professional
expertise to. Call my office for a norisk, no-obligation quote and
consultation.
Accelerated Death Benefits
------------------------
"Accelerated death benefits" are
payments from life insurance while the
insured person is still living (for long
term care or terminally ill persons.)
These are not an option on all policies.
Another way to accelerate death
benefits is for a person with a terminal
illness to sell the policy to a third party
for less than the face value. This is
called a viatical settlement.
Ray Martin is an Investor Coach and
Investment Advisor Representative
for Martin Wealth Management, LLC.
(800) 464-4941
Registered Investment Advisor
© 2016. All rights reserved.
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On a Personal Note
New Puppy and a Cake!
This past month my daughter has added a new member to the family. This one is BIG, I mean really
big…such as in Massive. Yes, my daughter, Hanayo,
adopted a Bullmastiff puppy. His name is Bulloney.
My first response
was… “Really? That
dog will be huge!
How big does it
get?” My second
question was…
“How are you going
to take care of a Dog
Hanayo and Bulloney
that size?” . Well
never use the word can’t with an entrepreneur; she
will find a way. So anyway, the ‘little’ puppy is
already 30 lbs. and is only 3 months old. Oh Boy!
My daughter’s cupcake store, Hapa Cupcakes, is now
in its 3rd year of business.
They have added all kinds
of cakes to their menu:
birthday bakes, wedding
cakes, anniversary cakes,
baby shower cakes and
here’s a new one,
Quinceañera Cake (a girl’s
15th birthday celebration
popular in Latin culture.)
The two girls (Hanayo and
Quinceañera Cake
Akemi) have come a long
way since opening the Fullerton location. Stop by to
buy a treat for yourself and meet her too!
I’ll continue to follow their progress and give you
reports here in On a Personal Note feature. Entrepreneurs Rock!!