As of the most recent consumer price index (CPI) reading on Aug 10, inflation came in at 8.5% annualized. While the rate has come down from the 9.1% reading in June, it remains to be seen if this is a temporary step in the right direction or if inflation has in fact peaked. Any way you slice it, Americans are experiencing the worst level of inflation since the end of 1981.
Read MoreRoughly 75% of employers that Fidelity serves as an administrator offer a ROTH option in their 401K plans. If you were amongst the lucky 75%, when you enrolled into your 401K and were customizing contributions, you may have noticed that you had a choice between a Traditional or a ROTH 401K. Most people select the “Traditional 401K” option, and only 13.6% opt to contribute to a ROTH account. It could very well be that majority of plan participants do not take the time to research which choice would serve them better and go with the safe sounding “Traditional” option. So, when does it make cents (HA!) to choose one over the other? The answer depends on your financial priorities now versus the future, let’s take a look.
Read MoreOn the surface, converting your traditional IRA to an investment vehicle that offers tax-free benefits like a Roth IRA sounds like a great idea. Why is that? It boils down to one thing – the words TAX-FREE. Americans love the word FREE, especially when it is associated with taxes. You might be a Russian communist if (in my Jeff Foxworthy voice) … You enjoy giving the government all your money.
Read MoreYou’ve been told that it is important to save for your retirement, so with your first job you started contributing to your 401k at work. This was a great option as your company had matching dollars for the dollars you contributed AND it helped to lower your income for income tax purposes. You’ve done a great job saving and are looking for other options to save for retirement. Where to save those additional dollars now?
Read MoreBefore we dive into the main components of this article, which is Health Savings Accounts (HSA) and Medicare, let’s do a brief primer on how these types of accounts operate. HSAs are tax deferred savings vehicles that allow contributions to go in tax-free, and for withdrawals to be taken out tax-free – as long as the money is used to pay for qualified medical expenses. Therefore, HSAs are truly the only triple tax savings accounts allowed by the IRS.
Read MoreYou will encounter many important dates and deadlines once you peer into the world of Medicare and you will want to attend to these matters earlier than later – each day 11,000 people turn 65 and “get in line” to sign up for benefits. We hope this article will help you stay on top of things and have a smooth experience signing up for Medicare.
Read MoreWhile private health insurance plans have been a part of Medicare since the mid 1960’s, they didn’t become what they are today until the Balanced Budget Act of 1997 and the introduction of Medicare+Choice that eventually was named Medicare Advantage in 2003. Medicare Advantage was designed to give recipients an alternative to “Traditional” Medicare. As of 2021, 42% of the Medicare population is enrolled in Medicare Advantage.
Read MoreWe know that government programs – such as Medicare and all the parts that come with it, including Medigap plans – are as straight-forward as a ball of spaghetti. We hope that you find our insights helpful as you plan out your medical expenses during retirement.
Read MoreIRMAA is an acronym that is otherwise known as the Income-Related Monthly Adjusted Amount. This is a surcharge that gets added to your Medicare Part B and Part D base level premiums. Just what you wanted to hear… You have to pay more for the same level of coverage – only because you make more income. Effectively this is means-testing within the Medicare system.
Read MoreIf you opt to go with Traditional Medicare, you will need to purchase a Part D plan to have coverage for prescription medications. You may not need a Part D plan if you choose to go with Medicare Advantage instead; as most advantage plans include Part D already, but make sure to consider the limitations of Advantage plans before making your choice.
Read MoreFor those who have been covered by group insurance for all their working years, transitioning to Traditional Medicare’s Part B can be a little confusing as there are nuances about Part B enrollments, costs, etc. that should be understood BEFORE you turn 65. We hope to explain some of those nuances here.
Read MoreWith the second installment of our Medicare blog series, this article will be overviewing Medicare Part A, commonly referred to as hospitalization coverage. Note that there are many components to Medicare, and some of those components are intertwined. So, if you are interested in getting the full picture, we suggest you refer to our Medicare blog series page to keep up with the details you need.
Read MoreMedicare: The United States’ version of universal healthcare for individuals aged 65 and older. Eligibility is a milestone that many retirees are excited to reach. Why? For those who retired prior to age 65, it often means lower costs or more comprehensive benefits. Unfortunately, regardless of age it’s usually also a rude awakening to the complex world of healthcare choices.
Read MoreThis is a quick update for our readers about what the markets are doing and what our outlook is.
Read MoreToday we will be answering questions from Mr. Skeptical (who may or may not be one of my family members) on Health Savings Accounts (HSA). I hope you find this blog post useful and the Q&A format easier to get through than an article laden with IRS statutes, random dates, and dollar amounts.
Read MoreThe Affordable Care Act (ACA) has been an important healthcare option since its inception in 2010. In 2022, enrollment hit an all-time high with 14.5 million consumers purchasing coverage through the ACA federal or state exchanges.
Read MoreIn this article, we’ll discuss an overview of the ACA system and things to consider if you are considering this coverage. Then, in our next post, we’ll put financial strategy to work by looking at one component of the ACA system – premium subsidies – and discuss how to optimize income to better take advantage of subsidies that reduce your out-of-pocket costs for monthly premiums.
Read MoreShort Term Health Insurance Plans are health insurance plans that fill that short term gap in health insurance coverage you may have anywhere from 3-6 months up to a year. These plans were more recently in the news when President Trump signed an Executive order in August 2018 allowing these plans to cover individuals for up to one year versus the previous 3-month regulation, however, these plans have been in existence for decades.
Let’s discuss how this health insurance option might work during your pre-Medicare years and what things you should consider when evaluating this option.
Read MoreConcierge healthcare may be the newest of these pre-Medicare choices; it’s certainly the most rapidly changing. It stems from the dissatisfaction of patients and practitioners alike with the current healthcare system in the United States. Instead of long waits for an appointment where the physician may only have 15 minutes to see the patient, uncertain costs, and insurance haggling, concierge care seeks to do things different, and better, for all parties involved.
Read MoreOn average a 65-year-old couple will spend about $300,000 on health care throughout their retirement, therefore it is one of the most common worries for those nearing retirement. This can be such a worrisome topic, that some affluent people may opt to delay retirement and continue working - just so they have medical coverage until reaching Medicare age.
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