Watch Out for This Early Retirement Hazard
For Mark Roberts’ Use: You expect to retire around age 65, perhaps even later, but sometimes things don’t work out as we had planned. In fact, 7 of 10 current retirees stopped working before they reached their 65th birthday. Sometimes an early retirement is intentional, but often the decision is forced upon us by illness, disability, or a poor job market. And since you’re not eligible for Medicare until you turn 65, an early retirement could leave you without healthcare coverage.
Once upon a time, large companies provided healthcare benefits to retirees. But like pension plans, retiree healthcare benefits are rapidly disappearing due to rising costs. Only about half of large companies currently offer these benefits, and the numbers are dwindling each year.
With retiree healthcare benefits going the way of the dodo bird, you could find yourself in a bit of a pickle if you need to retire before the age of Medicare eligibility. You can shop for your own health insurance policy through the exchange established by the Affordable Care Act. However, you should remember that your premiums could vary wildly depending upon your state of health, and your retirement plan should take these expenses into account. Plan carefully to pay insurance premiums, plus deductibles and co-pays, for the years before you reach age 65. Keep in mind, too, that premiums generally rise a bit each year.
If you’re considering an early retirement, watch your mail closely for notices from your company’s human resources department. If your company does drop retiree health benefits, you should consider that change when creating your retirement budget. And as always, give us a call if you have any questions about retirement. We can help you create ways to bridge the Medicare gap, or discuss solutions for any other dilemmas you face.
Share This Story, Choose Your Platform!
In addition to managing clients’ money and giving investment and diversification advice, Mark offers something that “the other guys” don’t - a unique approach to Retirement Tax Strategies and distribution. Time and time again, Mark meets with new clients who tell him they have a great relationship with their financial advisor but have never been offered information on this kind of approach to securing their financial futures. Mark has taken this feedback to heart and works tirelessly to ensure that his strategies focus on taxes and distribution.
Mark started selling insurance for a major insurance company right out of high school to help put himself through college. After graduating with a degree in finance, he dove into estate planning on the financial side to set himself apart from other financial advisors. However, as changes were made to estate tax laws over time, Mark shifted his focus to income tax strategies.
Mark’s philosophy is “the blue prints are more important than the wall paper or carpet.” The wall paper and carpet represent products like investments and insurance policies, whereas the blue prints represent the strategies. Once strategies that truly fit the client’s needs are put in place, our focus can shift to providing you with the right products. According to Mark, “It doesn’t matter what carpet we use if the walls are not in the right place.”
Our approach to money management is designed to generate the largest alpha (quality) with the lowest standard deviation and beta (risk). By doing this, we help provide clients with the highest return on the lowest risk. Generating income for our retirees is also very important. Because withdrawing money from your portfolio hurts the account rather than helping it, our goal is to design income strategies to harm the portfolio the least making the money last longer.
Leave A Comment