Retirement planning? There is more to it than meets the eye when it comes to your health.
Within the world of financial planning when it comes to retirement there is a plethora of advice. This advice encompasses almost everything under the sun as it includes when to retire, why not too retire, what to invest in as […]Read more
4 must conversation you have to have with your financial advisor before retirement!
- Annuities, financial advisors, financial planning, Healthcare Costs, IRMAA, Retirement, Social Security
In retirement income is the key. Without it the ability to maintain your life-style as well as fund the basic necessities is next to impossible. Unfortunately, though, the rules have changed and not all income is the same in retirement. […]Read more
U.S. Debt is over $20 Trillion…don’t worry about it, you will pay it down…really.
- 401(k), Fidelity Health Care, financial planning, Hold Harmless Act, IRMAA, Medicare, Part B, Retirement, Roth, Social Security
It is being reported that the U.S. debt is over $20 Trillion and for many there is a belief that there is no turning back as there would appear to be no ability to even attempt to pay off this huge amount […]Read more
Demographics, There Are Numbers and There Are Numbers.
- Baby Boomers, financial planning, Gen X, Healthcare, Medicare, Millennials, Retirement, Social Security
Webster’s Dictionary defines demographics as “the statistical characteristics of human populations (as age or income) used specifically to identify markets.”
In the United States, we often break down the population into generations. The most common generations are the Baby Boomers, Generation X (Xers), Generation Y (Millennilas) and finally Generation Z.
The Pew Research Center and others define the Baby Boomers as those between the years 1946 through 1964. The Gen Xers were born between 1965 and 1980. The Millennials between the years 1981 through 1997, and finally Gen Z from 1998 and 2014.
The population in America is growing. This is from births and immigration. However, the problem that few want to address is the fact that the generations have not been growing at consistent rates. The consequences of the inconsistent growth may produce dire consequences. (more…)Read more
CNBC Feature – Medical costs take big bite out of Social Security benefits
- CNBC, Dan McGrath, financial planning, Health Care, Healthcare Costs, Medicare, Retirement, Social Security
Social Security planning is a major focus for financial advisors and their clients — and with good cause. If you look at the data and statistics from Social Security, the reason is clear: Among elderly Social Security beneficiaries, 53 percent […]Read more
Are health-care costs really ‘just’ $245K in retirement?
Are health-care costs really ‘just’ $245K in retirement? When it comes to planning for health care in retirement, I want to discuss a recent report from a financial services corporation that estimates a couple age 65 today should expect to […]Read more
Planning for healthcare in retirement – some pros & cons of investment products
- 401(k), financial planning, Health Care, Healthcare Costs, Life Insurance, Medicare, Retirement, Roth, Roth 401(k), Roth 403(b), Social Security
As you may already know by now, you will have a mandatory expense in retirement known as health coverage, and surprise! – it will be determined by the amount of income you will have in retirement.
In 1993 there were changes to Social Security’s Program Operations Manual System (POMS). A person receiving Social Security Retirement benefits must also accept Medicare Part A, or else face the penalty of having to forfeit all current, future, and even past Social Security benefits.
Granted, Medicare Part A is free if you meet the same 40 quarters definition for Social Security. But Medicare Parts B & D are not free, and they both come with a late penalty for delaying enrollment past age 65. There are also surcharges to the Part B & D premiums for anyone earning “too much” income.
The income test that is used, as defined by Social Security, is “your adjusted gross income plus any tax exempt interest you may have or everything on line 37 and 8b on the IRS form 1040.” The technical term for this income is Modified Adjusted Growth Income, or MAGI.
Some examples of income that are part of MAGI: Wages, Social Security, most Capital Gains, all Dividends, Rental & Pension Income, withdrawals from most retirement savings plans, and even most Annuities.
Unfortunately, certain Medicare premiums and all surcharges due to income, along with any late penalties, are automatically deducted from any Social Security benefit you may receive. So what you think you may be getting in terms of a benefit may not actually be what you ultimately receive.
Below is a list of some of the popular retirement options, and how they may or may not affect your future health costs. (more…)Read more
Another Debt Crisis could mean more to the U.S. Postal Service and Retirees
- Baby Boomers, Congress, Dan McGrath, Debt Crisis, Demographics, financial planning, Health Care
While the Debt Ceiling debate is once again starting to make some headlines, not enough attention has been focused on rules put into place giving the federal government ways to still keep spending, no matter what. In 2012, the Treasury […]Read more
Medicare Means Testing (IRMAA)
- ACA, Affordable Care Act, Dan McGrath, financial planning, Healthcare Costs, Income, IRMAA, Means Testing, Medicare, Medicare Modernization Act, Part B, Part D
Within Medicare if you are earning too much in retirement will be subject to higher premiums than others through its Income Related Monthly Adjustment Amount or IRMAA. What is it? As defined by Medicare: “If you have higher income, the […]Read more
And the Regulations will be Televised
- 401(k), ACA, Affordable Care Act, Congress, Dan McGrath, Fidelity Health Care, financial planning, Healthcare, Healthcare Costs, Healthview, Medicare, Modern Healthcare, Obamacare, Part B, Part D, Retirement, Social Security, the Budget
Back in 1997, our government began its quest to tackle the unsustainable increase in healthcare spending by enacting legislation which created a formula, aptly titled “the Medicare Sustainable Growth formula”, through the Balanced Budget Act of 1997 (BBA).
This formula was designed to limit the “growth in spending for physicians’ services by linking updates to target rates of spending growth. The law provides for a mechanism for enforcement of the target rate of growth. When spending increases exceed the targeted rate of growth, payments are automatically reduced across the board”. (more…)Read more