Acclaro Blog

In most instances, retirees who collect Social Security benefits are eligible for Medicare after their 65th birthday. If you retire before age 65, you will need to find another source of health insurance before you qualify for Medicare. Depending on your situation, your options may include the following:

A Former Employer — Determine whether your former employer provides a group plan for retirees. In many instances, premiums paid by retirees are more expensive than those paid by workers, but you may be able to rely on this type of coverage until you qualify for Medicare. Employers who provide retiree coverage (not all do) may require participants to have a minimum tenure with the organization (such as 10 years or more) to qualify. Also, be aware that rising health care costs are prompting many employers to raise premiums for retirees or to eliminate this coverage altogether.

A Spouse or Partner’s Plan — Many employers permit workers or retirees to elect coverage for spouses or partners. This may be a convenient option if available.

A Professional Association — National organizations representing lawyers (such as the American Bar Association), accountants (such as the American Association of Certified Public Accountants) or doctors (such as the American Medical Association) may enable members to participate in group health care coverage. If you belong to such an association, or are eligible to join, determine whether the association offers medical insurance to members. You may be required to pay dues, maintain a professional license or otherwise show evidence of professional stature.

A New Job — If you will not qualify for Medicare for several years, consider whether you may want to return to work in the interim and participate in an employer-sponsored medical plan with a new employer. In addition to obtaining medical coverage, you will have an opportunity to earn money, potentially contribute to your retirement savings and remain active.

Insurance on the Open Market — This is likely to be your most expensive option. When purchasing insurance on the open market, it may cost you thousands of dollars annually in premiums, not to mention copayments and other out-of-pocket expenses. You may want to consider this option only if other avenues are not available.

The simple answer is: It never hurts to ask. A study conducted by the U.S. Public Interest Research Group found that more than half (57%) of those who called their credit card issuer and requested a lower interest rate were successful. On average, the rate was lowered by between 7 and 10 percentage points.

Now that most of the provisions of the Credit Card Act (signed into law last May) have finally gone into effect (as of February 22, 2011), there is no better time to review your own credit situation with an eye toward making improvements.

Getting to Yes
Your chances of getting a lower rate are improved if you meet most of these qualifying factors:

• Good credit rating. A good rating applies both in terms of your payment history with the card issuer and your overall credit score. You are entitled to a free copy of your credit report every year from each of the three major credit-reporting agencies: Experian, Equifax and TransUnion. To save time, log on to www.annualcreditreport.com to access reports from all three. For a small fee, these agencies also provide personal credit scores.
• Low card balance. You have a history of paying off the entire balance or paying more than the minimum required each month.
• Track record with card issuer. You have held the card for a year or two before requesting the rate change.
• Your card is not classified as “subprime.” The credit card is not marketed solely to consumers with bad credit.

The Law of Averages
To negotiate successfully with the credit card company, you will have to be prepared. Know what your current interest rate is and make sure that it is not a promotional rate that will expire within a matter of months. Also research what other banks and credit card companies are charging their customers.

If you are paying significantly more than that and have done your research, you are ready to make the call. Be sure to remain upbeat, confident and persistent. If the first person you speak with turns you down, ask for his or her manager. Base your argument on logic and facts and politely threaten to take your business elsewhere unless you get some satisfaction.

Remember, the better your payment record with the card issuer and the higher your credit score, the better your bargaining position.

One final word of advice: Be careful about getting overly zealous in your search for the lowest rate card. Applying for multiple new cards at the same time (three or more inquiries in one month) could cause your credit score to be lowered.

Doing Your Homework
Visit these Web sites for competitive rate information and more.

http://www.creditcards.com
http://www.lowcards.com/CreditCardIndex.aspx
http://www.bankrate.com/brm/rate/brm_ccsearch.asp

On Friday March 11, 2011, the largest earthquake on record in Japanese history struck northeastern Japan. A devastating tsunami followed with 30 foot waves swallowing entire cities across the Pacific coastline. The full scope of the damage is still unknown, though the confirmed death toll has already exceeded 1,600, and is expected to rise significantly. Several cities and villages remain completely isolated, accessible only by helicopter.

Earthquakes are not new to Japan. Its long history is marked with numerous disasters.  Still, what has surprised us is Japan’s ability to restore a sense of normalcy in a timely manner. Learning from their past experiences and failures, we are confident that Japan can put itself back on its feet. In fact, several retail chains have already restored operations in some of the hardest hit areas to provide food and daily necessities. 

We have no intention of underestimating the negative impact on Japan’s economy. In the short term, businesses in the retail, insurance and manufacturing sectors are likely to struggle. Electric power is in short supply due to the closure of most nuclear power plants on the Pacific coast, with several reactors possibly experiencing a meltdown. Electric power companies have announced plans to implement scheduled power outages across the Kanto region. Industrial production in areas affected by the power outages will likely remain low for the time being.

However, there are positives emerging from the rubble. Political feuding within the majority Democratic Party of Japan, as well as with opposition parties, which had threatened a budget impasse, has subsided. For a change, Japan is finally seeing leadership from its politicians. As was the case with the Kobe earthquake, a large stimulus bill will likely be passed for the reconstruction of infrastructure. This will create much needed domestic demand. Additionally, the Bank of Japan (BOJ) has announced it will consider every measure to provide sufficient liquidity, starting with a massive 15 trillion yen open market operation, where the BOJ will buy bonds from banks to provide them with short-term liquidity. On top of this, the BOJ doubled its risk-asset purchase program to 10 trillion yen. Japan’s financial system remains solid.

Earthquakes of this scale are difficult to foresee or model. These events remind us of the importance of maintaining a well-diversified portfolio. Over the next few weeks, we will continue to monitor the situation and adjust our strategy accordingly, taking into consideration the long-term impact of this earthquake.

Last but not least, Japan has received offers of aid from more than 90 countries around the world. Rescue teams from Korea, Singapore, China and other countries have already arrived and are heading toward the disaster area. U.S. military forces are also on the scene to assist in various capacities. On behalf of my fellow Japanese, we would like to express our deepest gratitude.