Income in retirement is not what you think when your health is on the line
For those in and heading towards retirement when it comes to generating income there may be some hard truths that may appear along the way as federal regulations surrounding health coverage tend, at times, to not be planned for adequately. […]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
Women, Retirement and Long Term Care
- Annuities, financial planning, Life Insurance, Retirement, Reverse Mortgage, Women, Women and Investing
Have you ever wondered why nursing home residents are primarily women, and why they never seem to have visitors?
Data confirms this, as according to the Centers for Disease Control and Prevention (CDC), of the roughly 1.4 million Nursing Home residents in 2013, about 67.7 percent or roughly 960,000 were women.
The question that should be asked, is how did it gets this way? Yes, it is understandable that women tend to outlive men in general. The CDC is reporting that the average life expectancy for a person who was 65 years old in 2012 is another 19.3 years: 20.5 years for women, and 17.9 years for men.
Is merely the fact that they live longer the primary reason why women tend to make up the vast majority of residents in nursing facilities, or are there other factors at play? (more…)Read more
Fidelity Investments’ $220,000 Healthcare Number, is it right
- Annuities, Fidelity, Fidelity Health Care, financial planning, Health Costs, Healthcare Costs, Life Insurance, Market watch, Means Testing, Medicare, MediGap, Part B, Part D, Plan F, Retirement, Social Security
It seems like every spring season there is a new healthcare amount announced by Fidelity Investments for people who are turning 65 during the year and this spring season is only slightly different from the last.
This difference lies in the total cost or the reduction of the overall cost of projected healthcare, which Market Watch, ABC, Kiplinger’s and even Nationwide is also heralding.
For those who are 65 years old today and entering into retirement today they are being told by Fidelity and the financial community to prepare for a total cost of $220,000 for their healthcare in retirement which, just happens to be a reduction from the previous year when Fidelity pegged the total cost at $240,000. (more…)Read more