How to help clients optimize Health Savings Accounts for retirement

Posted by Ryan McCostlin on Fri, Sep 07, 2018 @ 09:09

Check out this article on healthcare costs in Financial Advisor:

As financial advisors and wealth managers know, there are lots of ways to help clients plan for retirement. Different strategies work better for some Americans than others, but most advisors agree that the most obvious strategies are maximizing investments in traditional retirement accounts such as 401(k)s and Roth or Traditional IRAs.

If your clients have the means, maximizing investments in these accounts is a smart strategy. However, there is another kind of retirement account that many consumers aren’t yet taking advantage of—health savings accounts (HSAs).

Much has been written about how these accounts can be used to pay for health-care expenditures tax-free, but savvy consumers are increasingly seeing the opportunity to use these accounts primarily as a tax-advantaged retirement vehicle.

Financial advisors are in a position to help clients better understand this option and how it can serve as another tool in their retirement strategy. Below are a few things advisors should know—and can help clients understand—about using HSAs as a retirement account.

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Tags: financial advisors, wealth managers, healthcare extension, healthcare advice, retirees, short-term health insurance

Are short-term health insurance plans a good fit for your clients?

Posted by Ryan McCostlin on Fri, Jul 06, 2018 @ 08:07

Check out this article on healthcare costs in Financial Advisor:

As health-care costs continue to rise and become a more substantial financial concern for Americans at every income level, financial advisors are increasingly being asked to weigh in on strategies for insurance and medical costs.

One option that advisors may be asked to weigh in on is the short-term medical plan. These plans are significantly cheaper than comprehensive coverage—premiums are often a fraction of the cost of traditional coverage. This is because they cover a lot less.

More Americans are becoming aware of short-term plans as an option because their coverage costs are rising so quickly. Further, President Trump’s administration has issued guidance to extend these plans and make them more competitive options against traditional, comprehensive coverage.

In some cases, choosing a short-term strategy can help your client avoid thousands in unnecessary premium costs. In other cases, selecting a short-term plan may expose your client to significant financial liability.

In either case, having a good grasp on these options and their differences allows financial advisors to help clients protect themselves and make the best decisions for medical coverage.

Here’s what financial advisors need to know about short-term plans, the risks of purchasing them and a few situations where they may be a good fit for your clients.

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Tags: financial advisors, wealth managers, healthcare extension, healthcare advice, retirees, short-term health insurance

How to help early retirees maintain health coverage

Posted by Ryan McCostlin on Fri, Jun 08, 2018 @ 06:06

Check out this article on healthcare costs in Financial Advisor:

Through inheritance, sale of a business or just old-fashioned careful financial planning, some Americans are in a position where they're giving serious consideration to retiring “early.” I put early in quotations because, for practical purposes, this just means someone is retiring before Social Security benefits are traditionally taken and before most people are eligible for Medicare at age 65.

Medicare isn't perfect, but for most people, it's an important milestone because it often provides more comprehensive healthcare coverage at a lower cost than is available to most Americans who don't have access to employer-based coverage. Furthermore, most people can get excellent coverage through Medicare without being subject to medical underwriting, which could include questions about pre-existing conditions or requests for medical records.

However, most clients retiring before age 65 won’t be eligible for Medicare. So a key factor in decision-making will be how to handle health-care costs and coverage in the gap years.

Here’s how financial advisors can help.

Things To Consider:

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Tags: financial advisors, wealth managers, healthcare extension, healthcare advice, Medicare Advice, ThinkAdvisor, retirees

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