#2 Healthcare and Insurance
This is a series about the 6 key things to consider before you retire. If you would like to consider building a personalized Prosperity Financial Plan, don’t hesitate to reach out. Schedule a Meeting
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#2: Healthcare and Insurance Needs
Retirement planning must account for insurances, and especially healthcare insurance, Let’s breakdown what you need to know before it blocks the cash flow stream we talked about last time.
If you are planning to retire before age 65, mind the gap! The magical 65th birthday month, when Medicare becomes available to you, is one of the best things about that age. And how big the gap is depends on how soon you retire prior to that date. I’ve advised a bunch of clients that were subscribing to the FIRE movement. You know, Financial Independence, Retire Early. While it’s nice to think about life without the need for a paycheck, retiring early takes a LOT of planning…and confidence in your plan. Most folks I’ve advised can bridge the chasm with come careful planning. There may be options for you that you may not have thought about. Do you qualify for COBRA after you leave your employer? Maybe that will get you part or all the way there. If you’re married and your spouse is working, perhaps they have coverage that can add you. Or maybe you look for part time work that offers some benefits (those companies are hidden in the field behind the unicorn pens.) HSA’s can be another nice option to max out and potentially use for healthcare premiums in the gap.
Health insurance can be really expensive in the open market, so best to explore all options before pulling the retirement trigger. (Here’s a link to the legit government site for estimating open market costs.) And once you retire, there may be other insurances you can alter, like disability and life insurances. So it’s important to carefully look at your needs and expenses during your planning process.
It’s good to have a plan, and someone to talk to with the knowledge and resources to help. I’m here for you.
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