Healthcare is an often-overlooked piece to the puzzle of your retirement finances. But it’s one of the largest, most important costs you’ll have to cover in your later years.
It’s important to mention any health risks you have or may develop to your financial advisor. You don’t need to go as in-depth as you would if you were discussing with a doctor, but any basic information you can provide about potential medical conditions will help your financial planner greatly when helping you prepare for those healthcare expenses during your golden years.
Assuming Medicare costs nothing and will take care of itself is a common misconception among people under 65. When you sign up for Medicare upon retirement, you will find you have to pay regular monthly premiums for both Part B and Part D coverage in addition to hospital and outpatient deductibles and coinsurance. Your share of expenses under Medicare will be very similar to your share of healthcare expenses under your insurance coverage now. Don’t let the “Medicare is free” myth get the better of your retirement strategy!
Thinking you will stay in good health is a common oversight that many make when they are in good health. It isn’t the most uplifting thing to keep in mind, but medical setbacks in our older years are likely more common and severe in nature. In many cases, people who develop unexpected illnesses are forced to begin their retirement benefits before they expected to. These setbacks can pose a significant expense in healthcare spending and can take a big chunk out of your savings.
Medicare only covers a limited amount of long-term care needs. It does not cover assisted living or nursing home care. So, it’s essential that you factor long-term care costs into your long-term financial strategy. Assisted living can cost thousands of dollars each month. So, if you’re healthy plan to set aside money for this expense or consider a long-term care insurance policy now when you can qualify. Purchasing a long-term care policy is a great way to prepare and relieve your family of any burden of having to pay for this type of care in the future.
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Healthcare, specifically long-term care, is a crucial piece of the retirement puzzle. Even though it may not involve your IRAs, 401(k)s, or investment options, a financial professional will look at your whole financial picture, including healthcare costs, and help you plan accordingly. Contact us at (540) 720-5656 to get started.
Source: https://womenwhomoney.com/healthcare-costs-retirement-avoid-mistakes/
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. Megan is also a fully licensed Life, Health, and Annuity agent. When not at work, Megan enjoys sitting on the back porch with family and friends enjoying food and music.
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.
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.
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.
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.