Planning for retirement? Don’t forget about healthcare—it’s a must!
Healthcare costs rise faster than many other expenses. Tina Mistry, a Senior Financial Advisor at Portfolio Advisors, explains that understanding your health insurance options is essential, especially six to twelve months before you retire.
If you retire before 65, you can’t use Medicare. So, if you retire at 60, you’ll need private insurance for a few years. This can be a complicated choice. Mistry suggests thinking about your cash flow, what you can afford, and your family’s health history.
One option is long-term care insurance. Familiarizing yourself with your state’s rules can also help you save money, using retirement savings and state funding when possible.
Another option is a Health Savings Account (HSA). These funds can stretch beyond just medical costs. Often, after maintaining a minimum balance, you can invest the rest in stocks or bonds.
Some employers also offer Flexible Spending Accounts (FSAs). Just be careful—these benefits can be “use-it-or-lose-it,” so keep an eye on your balance!
In summary, as you plan for your retirement, remember that healthcare will play a significant role. Get informed early to make the best choices for your future health and finances.
For more insights, you can refer to the Centers for Medicare & Medicaid Services for updates on healthcare options.
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