That Traditional 401(k) is bad for your health when it comes to retirement
Americans who are planning and saving for retirement can often expect to hear financial experts dole out the following advice: Invest in your company’s Traditional 401(k), but the problem, though, is that a Traditional 401(k) is bad for your health.
The advice resonates well. Where else can one have the advantage of taking pre-tax dollars and investing them into the stock market, and with the possibility of receiving a “company match”? A company match is where the employer also invests “free money” into your account under some agreed-upon formula (e.g., dollar for dollar up to 6% of your contributions). This does have a lot of appeal.
Americans, for the most part, have seized upon this retirement savings vehicle in bold fashion. According to the Investment Council Institute (ICI), as of June 2014 there was roughly $4.4 trillion in these accounts alone. This is a growth of 50% in just 9.5 short years!
Amazingly, 401(k)’s make up just under 20% of all assets earmarked for retirement. The total retirement allocation is just over $24 trillion. One has to start to believe that all of the doom and gloom about Americans not saving enough may just be a tad bit overblown. It would almost appear that a good chunk of the majority has actually done the responsible thing and saved for their futures. (more…)Read more
Another way to look at Amnesty that may impact your health care in retirement
- Dan McGrath, financial planning, Healthcare Costs, Long Term care, LTC, Retirement, Social Security
Today, the United States is facing a major problem it has yet to encounter in its entire 200 year history, and is one that could possibly alter the economic and political landscape going forward.
Despite what you may think while standing fourteen deep in the express checkout line at the grocery store, the United States doesn’t have enough people.
I understand this may not seem to make much sense, but let’s take a closer look at what we know:Read more
4 reasons why you need life insurance that no financial firm will tell you
When it comes to retirement planning, investing and insurance there is no shortage of financial (*cough*) “experts” who espouse the supposed sage advice of eschewing permanent life insurance vehicles such as Whole Life Insurance, Universal Life, or Indexed Universal Life in favor of Term Life Insurance.
They recommend taking the premium savings and investing the difference in the stock market. All one needs to do is scan the internet for quotes from the likes of Suze Orman, who is on record as stating that she “HATES WHOLE LIFE INSURANCE”, and that everyone should just buy Term Insurance.Read more
5 Reasons why you need an Annuity that the Motley Fool will never tell you
- Annuities, Filial Support Law, financial advisors, Health Care, Healthcare, Healthcare Costs, Medicare, Retirement, Social Security
For the past few years, the Motley Fool has been releasing articles on the five worst things that you can do with your money. Their latest advice (brought to you by Sean Williams, a “Fool” since 2010), does not make sense in the big picture of retirement, especially when your health care costs are factored in, but does your health really matter to the financial industry?Read more
Why fiscal Republicans should only vote Democrat
If you are a Republican, and consider yourself to have strong core Republican values, there is only one course of action this election season: borrow your local university president’s Prius, drive it slowly and considerately (carpooling with fellow Repubs, if possible) to the decrepit high school gym and/or fallout shelter, and vote nothing but Democrat.Read more
Predicting health care costs???
When we are confronted with the topic of health care costs (particularly those faced by retirees), numbers are often bandied about that seem not only vague, but oftentimes misleading.
Unfortunately, this is due to a serious lack of understanding amongst the American populace of the true extent of health care costs, and how greatly these costs will impact their lives and savings.
For example, a recent article by Michael Essany of Digital Journal titled, “Seniors struggling with health care costs, retirement planning,” highlighted this very issue. Mr. Essany reported that according to the Employee Benefit Research Institute, “out-of-pocket health care costs clocked in at $4,760 in 2011 for a 65-year-old in poor health, and $4,450 for a 65-year-old in good health.” (more…)Read more
2015 Medicare Part B premiums to stay level
For the third straight year Medicare Part B premiums are expected to remain the sames as they were in 2013 and 2014. The U.S. Department of Health and Human Services is reporting that “thanks to slower health care cost growth […]Read more
Affordable Care Act heavily favoring Medicare over Medicare Advantage Plans
With open enrollment for Medicare creeping closer many of those eligible may want to look at the fine print of the Affordable Care Act (ACA) before opting for coverage as this law appears to be designed to benefit those that choose to stay within Original Medicare instead of selecting a Medicare Advantage Plan (MA Plans).
Apparently, the ACA has created a very unique program to bring home health care to the chronically ill that will benefit only those enrolled in Original Medicare while leaving participants of MA Plans out in the cold to fend for themselves when it comes to Home Health Care.
On page 286 of the Affordable Care Act there is a section titled “INDEPENDENCE AT HOME MEDICAL PRACTICE DEMONSTRATION PROGRAM”.Read more
Women in Nursing Homes there can be choices
A simple vow, “To Death Do Us Apart” that a woman and man make to each other when unifying their eternal love for each other but the question that every financial professional should be asking each and every one of their clients: Whose death?
The easiest way to describe the problem of health costs is through a simple story of Mary & John, the quintessential couple that we have all heard about.
You know that couple: they are the ones that have been together for 60 years. They built their home together, raised children together, worked together, fought together, loved together and retired together, again the quintessential couple.Read more
Merrill Lynch survey – top retirement concern is health care costs
- CMS, CNBC, financial advisors, financial planning, financial plans, Health Care, Health Costs, Healthcare, Healthcare Costs, Medicare, Merrill Lynch, Retirement
According to a recent survey conducted by Merrill Lynch it would appear that, for people 50 years old and older, the major concern in retirement was the overall cost associated to health care.Read more