Long-term care is generally the most significant question mark when saving the optimal amount for your retirement years. According to Financial Professional Barry Bigelow, “statistically, if you’re a married couple, there’s a 25% chance one of you’ll need this type of care.” The concern here because, it’s an unknown expense based on unknown needs. This frustration is a leading reason why many people continue to work longer than intended.
If you’re eligible, start using a health savings account (HSA). Married couples can put away $7,300 per year. The money goes in pretax and comes out without taxation when you use it for qualified medical expenses, so it’s a solid financial move. If possible, hold your HSA money as long as possible, and pay any medical bills out of pocket. Using your HSA as a savings tool encourages growth, and when you retire, you can reimburse yourself for past expenses.
Another overlooked expense falls into play when people retire early (before age 65) and discover they’ve lost health care coverage. While you can take Social Security as early as age 62, Medicare won’t kick in for another three years. Before making that leap into your retirement years, you’ll want to look into options such as continued coverage from your employer, a spouse’s coverage, or the cost to purchase coverage through the Affordable Care Act.
After working through health care expenses, it’s time to consider the care of your home. Where you live now might end up too big, with too many stairs, and too far away from doctors and family. Your home will likely need renovations to make rooms, especially bathrooms, safer as you age, and as the cost of living increases, so will the cost to have someone make these changes. It’s worth looking into what you can do now and how much you need to budget to spend later on.
Planning for expenses during your retirement can feel frustrating with so many unknowns. As financial professionals, we can help you with planning, by answering questions, and connecting you with other professionals you’ll need during your journey. Give us a call today at (540) 720-5656 and let’s talk.
Amy Anderson joined the ILG Financial team in 2023 as the client relations coordinator. Her responsibilities include scheduling of appointments, annual check-up notifications, and annuity and required minimum distribution assistance. She is a graduate of Harding University with a degree in Computer Information Systems. Amy and her husband have two children and she enjoys reading, crocheting, music and spending time with her family.
Chase Lopez joined the ILG Financial team in 2020 as an advisor. Chase is a 2016 James Madison University graduate with a degree in management. Chase has been trained under the tutelage of Dave Lopez, who is not only the founder and managing member of ILG Financial, but also is Chase’s uncle and godfather. He also enjoys working alongside his cousin, Megan, who is Dave’s daughter. Chase, as a fiduciary, believes in putting his clients interests first, and building out plans for his clients where they can have a happy and fruitful retirement. He married his beautiful wife in February 2022 and both use most of their free time chasing around their little pup, Aurora.
Jessica Carson joined the ILG Financial team in 2018 as an agent. Jessica and her husband have four children, two dogs, 3 barn cats, 5 chickens, and three parakeets. She indeed loves her children and pets! When not at work, Jessica enjoys playing the piano and cello as well as traveling and spending time outside with her family, hiking, fishing, and boating.
Terri Center joined the ILG Financial team in 2019 as client services manager. She handles client records, application processing, and gathering information to provide a professional and friendly experience with all of our clients. Terri is a graduate of Oakland University. She is married and has two children. She enjoys hiking, family time, and puzzle challenging video games. She also likes to share her creativity in her canvas paintings and sewing projects.
Megan Jones joined the ILG Financial team in 2020 as marketing director. Megan and her husband live in Fredericksburg, VA with their German Short Haired Pointer, Gus. Megan is a graduate of Longwood University and holds a degree in communications. Megan is the oldest of Dave Lopez’s three children and not only enjoys working alongside her father, but also with her cousin, Chase, who joined the ILG Financial team in 2020 as an advisor. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.