Just a reminder - if you had your taxes prepared elsewhere, please forward a copy to me so I can review it for potential tax saving strategies. And if you need some help after reading about college loan consolidation, Medicare Part D, and Savings Bonds rates, call or email me.

Nearly a quarter of those eligible for the new Medicare Part D prescription drug program have not yet enrolled. If you or someone you care about falls into this category, double-check your decision not to enroll.

• If you are currently eligible, and do not enroll by May 15th, but decide later that you need the coverage, you will be hit with a penalty that will last the rest of your life. The penalty is 1% of the premium for every month that you wait beyond May 15th to join.
• If you have prescription benefits through a current or former employer, you should have received a letter from them stating that your coverage is creditable. Keep this letter because if you decide after May 15th to switch to Medicare Part D, this letter will keep you from paying the penalty.
• Even if you currently do not take any prescriptions, and think you do not need the coverage, your situation may change in the future. Consider signing up for the cheapest plan available so you aren't hit with the penalty if you change your mind later.
• A wealth of information to help you make this decision is available at www.medicare.gov.

This July 1st, the rules change and new higher rates go into effect for Stafford and PLUS loans, so consolidate now - even if you or your child is still in college. If you have one or more Stafford Loans, or one or more PLUS loans, you can convert them to fixed rate loans BEFORE July 1st at rates about two full points lower than if you wait.

• To put some misconceptions to rest: you can "consolidate" even if you have only one loan (it lengthens the term and fixes the rate); you can do it more than once (as long as you have new loans); and until July 1st you may be able to consolidate even if you are still in college.
• The current "in school" interest rate for Stafford loans after July 1st will likely increase from 4.7% to over 6%. The interest rate for existing PLUS loans is likely to rise from 6.1% to nearly 8%. Consolidating now will lock in the lower rates.
• As part of the Federal Deficit Reduction Act of 2005, Congress has decreed that new education loans after July 1st will be fixed rate loans - 6.8% for Staffords and 8.5% for PLUS loans. The impact of rule changes after July 1st will likely be that consolidation will only lengthen the term (reducing the monthly payment), and you'll only be able to do it after the student leaves college.
• There are some restrictions for consolidating. Some lenders won't consolidate loans that total less than $10,000 - others have a lower $7,500 threshold. This can make it difficult to consolidate Stafford loans while the student is still in school because they haven't borrowed "enough".
• If you have only one Stafford or PLUS loan, you'll have to consolidate with your lender. If you have loans from more than one lender, you can shop around for the best deal. They all charge the same basic interest rate, but some give rebates for direct deposit, or timely payments, so check around. Call your lender now get your application in before July 1st!

Seven Secrets to Financial Independence - Wednesday, May 3rd, 7 to 9 p.m. To register call Acton-Boxborough Community Education at 978-266-2525.

The Coming Generational Storm, by Laurence J. Kotlikoff and Scott Burns. The authors present a chilling analysis of the burden that baby boomers are placing on their children. Politicians downplay the Social Security and Medicare fiscal gaps ($10 trillion and $50 trillion, respectively) because the policy options are so unpalatable. However, the longer we wait, the more painful the fixes become. The authors make educated guesses about the environment 30 years from now—later retirements, taxes on more or all of Social Security payments, and much higher income tax rates. From this they provide some advice on how individuals can plan for the coming storm. Gotta go now, the sky is getting dark . . . .

Stay tuned. Interest rates on U.S. Savings Bonds (I Series and EE Series) will change on May 1st.