Having studied economics academically in undergraduate and graduate courses, then living and helping clients through the economics of U.S. Healthcare system through many surgeries and healthcare issues, I would offer the following adjustment to the U.S. Healthcare system.

1. Everyone would contribute to a Health Savings Account (HSA) of at least $5,000. maximum each year for each individual (adult and child) up to a maximum of $25,000. for a large family. These accounts would be mandatory and would be tax deductible and tax free. There would be tax deductions for anyone making matching contributions to these HSA accounts, including corporations that now contribute to health benefits. These accounts could “roll over” the balance of the accounts every year and into retirement. These monies out of the HSA accounts could be utilized for not only current post health care but also preventive care and “well-being” items (smoking cessation, weight loss help, gym memberships, etc.) These accounts could be invested in conservative or balanced investments only after 50% of the account stays in cash.
2.  Make health insurance only “catastrophic care” and kick in only when a healthcare cost is above $5,000 per person or $25,000 per family per occurrence. All smaller costs would be paid with an HSA debit card and at discounted fees/prices by the healthcare provider. All costs would have to be posted and given to each patient before any care. This way patients could “shop” and “compare” costs for minor health care issues (sinus/allergy issues, vaccines, annual medical exams, etc.)
3. All minor health issues could be completely handled by a Physician’s Assistant who doesn’t have to attend medical school as long or as expensive as a full medical doctor.
4. No health procedures, except emergencies, could go forth without a full declaration of cost before the procedure is started. The patient must be included back into the cost equation as many health issues are not life threatening and should be shopped and compared.
5. Competition must be added back into the equation of healthcare decisions. When was the last time you knew how much a non-emergency procedure, major healthcare process or hospital stay cost before you had that healthcare procedure? Cost and value should be put back into healthcare.
6. Quality of care, along with cost, must be quantified and qualified and published for all potential patients before they need healthcare. A uniform rating system must be instituted for all facilities and healthcare providers. This should not be kept by a government or government agency instead it should be policed by a combination of patients, consumers, and healthcare professionals. 
7. “Transparency” and simple messaging must be the keys to all healthcare from now on.
8. Proactive healthcare must also be key. There must be incentives, both positive and negative, for individuals to pro-actively improve their health. If I am overweight, which I am, I should pay more for my healthcare insurance than someone of my same age that exercises frequently, diets and keeps their weight in check better than I do. 
9. A new Certified Healthcare Cost Analyst could be paid by any patient to help with complicated cost benefit analysis. This specialist would have to be a fiduciary and work only for patients not insurance companies. Their fees could also be paid out of the patient’s H.S.A.

These are only a few suggestions. And there are no perfect plans or ideas, but we must continue to seek out new ideas to improve overall healthcare. However, I am adamant and have studied and experienced that a monopoly in healthcare, such as a single payer system like the government, would be the most inefficient idea possible. This would hurt all patients and healthcare providers both, but the end user, the patient, must be placed back in the forefront of decision making when it comes to their healthcare. No government, nor insurance company, should supersede the patient.

Big changes happen when it is time to retire. Your financial life such as sources of income and expenditures can change. Where do you begin to manage it all? When it comes to retirement cash flow there are 2 main ideas to understand: cash flow and liquidity. 

Cash flow is the amount of money you have coming in and out each month. Income includes social security, annuity income, pension income, investment income, etc. Expenses could be your living needs (housing, groceries, HOA fees, taxes, insurance, vehicle) and other expenses such as entertainment, travel, and repairs. 

Liquidity is defined as turning assets into cash. The more 'liquid' it is the easier it is to turn into cash. An example could be selling mutual funds, converting insurance policies into cash, selling art or coin collections to pay for your expenses. It is a balancing act of sorts as you don't want too much money in cash and then be missing out on potential growths. 

To start, you need to replace your weekly/bi-weekly income in retirement. The replacement income could be social security, pension disbursements, part-time employment, or real estate rental income. With multiple sources of income, it is convenient to set up direct deposit or remote banking (scanning checks for deposit with your smart phone). Keeping your income organized will help you easily manage it all.

Many times, you will have excess cash from your multiple sources of income. In this case, use these tips to invest the cash. For living expenses, invest in lower-risk, high liquid funds such as money markets. For your short-term savings goals, consider treasury bonds or FDIC-insured CDs with maturities that fit the same date you need the money. For emergencies, make sure to save 3-6 months of expenses in case any unexpected expenses arise. 

Another thing to keep in mind is that once you reach the age of 70 1/2 there are Required Minimum Distributions (RMDs) you must take from your retirement account. You have until December 31st each year to take your RMD. Consider automatic withdrawals or a one time distribution to avoid paying a penalty for forgetting to take your RMD. 

'The key to managing cash in your retirement is to make sure your money can be easily accessed, moved, and invested according to your needs, and, ideally, to do so in a way that mitigates overall fees' according to Fidelity Viewpoints. Make sure to take advantage of ways to streamline how you manage money coming in and going out. Your cash flow will change during the course of your retirement so make sure to contact Brien at Traditions Wealth Advisors at [email protected] or 979-694-9100 to manage your financial resources.

Austin Trip 7/23/19 Reflection by Madison Flores
           
​On Tuesday, Brien and the current Aggie student interns at Traditions Wealth Advisors road tripped from College Station to Austin for the day. We were able to meet with Liberty Park Capital Management and Dimensional Fund Advisors in Austin to get more information on what their companies are all about. We met with Chuck Murphy of Liberty Park Capital Management who was an intern for Traditions Wealth Advisors back in 2004. Chuck graduated from Texas A&M and went straight to Wall Street. After several years of researching, Chuck was named the #1 small cap researcher on Wall Street and was written up in the Wall Street Journal. He then parlayed that honor into his own firm back in Austin. Chuck gave us insights on small-cap funds and what he focuses on to give his clients the best possible returns. Their expertise in the field helped us gain knowledge on what to look for when adjusting stock recommendations and why. He was also able to give a broader definition of what a hedge fund can look like which will help when looking at news that could be giving off construed financial information. He helped us learn how to separate the noise from what information is important for investments.

We also visited Dimensional Fund Advisors. They let us investigate their business model and how they manage their systematic investment approach. By listening to their firms take on economic indicators, it helped broaden the scope of what to pay attention to in the news as well as what economic trends have been historically important.

Both firms brought two different ideas together and gave us insights on what to focus more of our research on to make sure the necessary information is being taken into our clients' portfolios.  

​As the Accounting Intern here at Traditions Wealth Advisors, Dan assists Brien Smith (CEO) in managing different functions of TWA. Dan handles the bookkeeping, cash flow forecasting, and other accounting related functions around the office. He is dedicated, precise, and loves to work within Excel.

Dan is currently a senior accounting major at Texas A&M University. He is enrolled in the Professional Program in Accounting (PPA) at Mays Business School and will receive a bachelor’s degree and a master’s degree in accounting. Before his graduation in 2021, Dan hopes to get his CPA and secure a career at a Big 4 accounting firm.
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In addition to working at Traditions Wealth Advisors, Dan is involved with multiple organizations at Texas A&M.  He is a counselor for Fish Camp as well as a member of Ol’ AGS, a men’s organization on campus. In his spare time, he likes to golf, watch sports, and spend time with his friends and family.