I've found COBRA to be an expensive option. It has made me appreciate what the employer has been paying on my behalf. With subsidies, a private plan found on the healthcare marketplace has been quite affordable for me. (I have used this during any gaps in my employment)
I plan to retire at age 57, so until I'm eligible for Medicare, I plan to use private healthcare, and hope it remains relatively affordable with subsidies.
For those not in retirement yet, do all you can to set up your medical before you retire. I work in Adult Protective Services, and everyday I work with seniors struggling with getting the proper medical care.
I've heard you spend 80% of your medical expense during the last 20% of your life. Thank you for putting this video together. It provides a lot of things to think about. I know I'll be coming back to it several times to review what has been said.
Thanks for watching, and I hadn't heard that before, but it seems reasonable. Let us hope we're fortunate enough to live most of our years without significant medical needs, and deepest sympathies for those with chronic conditions and injuries!
That's a great question, and it may be possible to get a deduction. You'd be best served by reviewing the situation with somebody who prepares and files taxes for business owners. That's not something I do, and it can be complicated, so I'd suggest verifying your specifics with somebody smarter than me.
For short-term care, I generally think of that as falling under medical coverage and friends/family, and being paid for out of any assets you have (assuming you're fortunate enough to have some/all of those resources-which is unfortunately not the case for many). That's not to say short-term insurance is bad, but I don't see it often and can't claim to have expertise on any specific policies.
Do you have experience working with clients who are federal employees, who carry their federal health benefit into retirement, even in tandem with Medicare part B?
Yes, I've worked with federal retirees who use the health benefit. However, my expertise is not in selecting specific health plans, so you probably wouldn't want to hire me if this is the primary area you want information on. I'm really more of a retirement income and investment person, and I often model health costs using public data and client-supplied details about health conditions. For specifics on your projected costs and options, you might benefit from chatting with a Medicare pro with expertise in FEHB.
@@JustinOnRetirement Thank you. I am pretty on top of the cost/benefit options for this but was just checking your experience level in including that information in your forecast or software. I like your perspective on things. I am thinking about retiring in about a year and a half but a number of folks tell me that they would retire now if they had our assets / future income stream. I use two different software that tell us we are in great shape but the problem with software is that it is so dependent upon the input of the proper data with reasonable expectations of future returns. I may reach out in the future. Not sure I trust any of the software although my first degree is in Finance. Thank you.
I believe that they would. Now here's a kicker for some people to think about. You can deduct the full premium amount if you're self employed to reduce your income and get subsidies back when you file taxes.
It is certainly possible for Roth conversions to bump up your income to a point where you cause some problems. So, it could be ideal to do those conversions before or after you need the subsidies (and/or be cautious about which thresholds you hit each year). That said, I could be misunderstanding the question here. There are always details beyond what we can get into here, so anybody reading these comments should triple-check with their CPA or a professional who is familiar with their specifics because this information could be inaccurate, outdated, and/or not relevant to your situation.
This is excellent. Thank you for the explanation.
I've found COBRA to be an expensive option. It has made me appreciate what the employer has been paying on my behalf. With subsidies, a private plan found on the healthcare marketplace has been quite affordable for me. (I have used this during any gaps in my employment)
I plan to retire at age 57, so until I'm eligible for Medicare, I plan to use private healthcare, and hope it remains relatively affordable with subsidies.
Thanks, Steve, it is certainly an eye opener to find out what self-pay insurance costs look like. Good to hear you've got a plan in place.
Thank you. I enjoy your videos. Keep ‘em coming!
For those not in retirement yet, do all you can to set up your medical before you retire. I work in Adult Protective Services, and everyday I work with seniors struggling with getting the proper medical care.
What do you mean set up your medical?
Holy cow, healthcare is what I call a retirement dreams killer.
I've heard you spend 80% of your medical expense during the last 20% of your life.
Thank you for putting this video together. It provides a lot of things to think about. I know I'll be coming back to it several times to review what has been said.
Thanks for watching, and I hadn't heard that before, but it seems reasonable. Let us hope we're fortunate enough to live most of our years without significant medical needs, and deepest sympathies for those with chronic conditions and injuries!
you do if you eat the american diet
80% of healthcare expenses during the last 20% of life …get a plan !
Very thorough! Thanks!
Great video, Justin. Thank you.
Glad you enjoyed it!
I'm glad that even if I'm not rich , I have a TRICARE for life and VA insurance with zero co pay.
Please comment on whether a self-employed individual can deduct these health care costs to reduce their income?
That's a great question, and it may be possible to get a deduction. You'd be best served by reviewing the situation with somebody who prepares and files taxes for business owners. That's not something I do, and it can be complicated, so I'd suggest verifying your specifics with somebody smarter than me.
What about short term care vs long term care policies and costs?
For short-term care, I generally think of that as falling under medical coverage and friends/family, and being paid for out of any assets you have (assuming you're fortunate enough to have some/all of those resources-which is unfortunately not the case for many). That's not to say short-term insurance is bad, but I don't see it often and can't claim to have expertise on any specific policies.
When you stop working …it’s your choice !
Do you have experience working with clients who are federal employees, who carry their federal health benefit into retirement, even in tandem with Medicare part B?
Yes, I've worked with federal retirees who use the health benefit. However, my expertise is not in selecting specific health plans, so you probably wouldn't want to hire me if this is the primary area you want information on. I'm really more of a retirement income and investment person, and I often model health costs using public data and client-supplied details about health conditions. For specifics on your projected costs and options, you might benefit from chatting with a Medicare pro with expertise in FEHB.
@@JustinOnRetirement Thank you. I am pretty on top of the cost/benefit options for this but was just checking your experience level in including that information in your forecast or software. I like your perspective on things. I am thinking about retiring in about a year and a half but a number of folks tell me that they would retire now if they had our assets / future income stream. I use two different software that tell us we are in great shape but the problem with software is that it is so dependent upon the input of the proper data with reasonable expectations of future returns. I may reach out in the future. Not sure I trust any of the software although my first degree is in Finance. Thank you.
Do ROTH conversions count toward your annual income such that it impacts your healthcare costs? Relative to subsidies?
I believe that they would. Now here's a kicker for some people to think about. You can deduct the full premium amount if you're self employed to reduce your income and get subsidies back when you file taxes.
It is certainly possible for Roth conversions to bump up your income to a point where you cause some problems. So, it could be ideal to do those conversions before or after you need the subsidies (and/or be cautious about which thresholds you hit each year). That said, I could be misunderstanding the question here. There are always details beyond what we can get into here, so anybody reading these comments should triple-check with their CPA or a professional who is familiar with their specifics because this information could be inaccurate, outdated, and/or not relevant to your situation.