Having a plan for retirement is of utmost importance for most people. The juxtaposition of your golden years, in which you gradually become more fragile, and generally unable to work. Those who aren’t able to reasonably cover their expenses have been shown to have shorter life expectancy, especially in the United States of America, where prices of prescription drugs – which are necessary for living a healthy, full life in your golden years – are most expensive than most other countries.
David Giertz, an experienced businessperson and retirement planner, has great advice regarding retirement to give to people nearing the end of their working years. Whether you’re 15 years away from your planned retirement age, or plan on halting work responsibilities tomorrow, these tips are important for you to follow.
The Cost Of Health Care Isn’t Always Factored Into Retirement Planning
Although it seems silly that anybody could overlook the cost of health care when planning for retirement, especially when keeping in mind that health care is of utmost importance in one’s later years, millions of Americans fail to save sufficient sums of money for staying healthy throughout retirement.
According to Fidelity, one of the largest financial planning organizations in the United States of America, a pair of 65-year-olds can reasonably expect to expend more than a quarter-million dollars throughout their retirement periods. Fidelity’s financial figure averages out at $275,000 for the average of the 20-odd years married couples are most likely to remain on earth, if not even longer.
David Giertz urges both singles and couples nearing retirement to consider that the older we get, the higher health costs will be, as a general rule of thumb. If you run out of sufficient stores of money to reliably pay for prescription drugs and doctors’ visits, it’s likely to occur in the later years of life. Not being able to afford health care at this point in time is exponentially more likely to result in one potentially passing away, as – although it goes without saying – the older people get, the more they can reasonably expect to pay out to hospitals, physicians, home health care services, and others involved in the costly field of health care.
Health Savings Accounts Are Great Investments For Retirement
Most financial planners, including David Giertz, recommends people of all ages invest in health savings accounts, also shortened to the initialism “HSA.” HSAs are retirement accounts that are offered by employers within the United States. As long as you’re covered under the umbrella of a compatible health plan, also called a High Deductible Health Plan, you’ll be able to contribute earnings to the health savings account, of which employers traditionally match the dollar amount of earnings you enter into such an account, at least up to a certain level.
Health savings accounts have what’s called a “triple tax benefit,” in which funds contributed towards HSAs are free of taxes, any growth accumulated while funds are actively earning interest is void of any required tax payments to the Internal Revenue Service, as is the use of any funds when allocated towards any medical expenditures that are considered eligible.
David Giertz informs his clients of several key characteristics that make health savings accounts so beneficial to working United States citizens that regularly enter earnings into such accounts. Here are a few of the most important characteristics to keep in mind:
- You’re able to fund HSAs, as well as your employer, and even independent agencies.
- Just like you’d take your belongings to another employer, health savings accounts can be transferred to future employers.
- You own every health savings account you’ve ever contributed to, not your employer, the government, or anybody else.
Although the contribution limit set by the Internal Revenue Service changes almost every year, the current contribution limit, that for calendar year 2017, is $3,400 for single people, or $6,750 for married people or singles with children.
The contribution limit for 2018 is slated to be $3,450 for single coverage, and up to $6,900 for family coverage. Those over 54 years of age can add up to $1,000 extra each year, given their accounts aren’t fully funded.
Long-Term Care Insurance Is Highly Important
Although nobody in the United States is required to maintain health insurance, every person that’s nearing retirement should unarguably hold long-term care insurance, as David Giertz recommends.
You might spend a few thousand dollars each year funding such an insurance policy, though it’s necessary for all Americans, unless you’re a multi-millionaire and can comfortably afford such expenses, even if they’re emergencies that you can’t predict.
David Giertz is currently employed by Nationwide, the nationwide insurance provider. He’s also a Certified Business Coach for the WABC. He’s even received a world-leading Gallup engagement score.
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