Medicare Retirement Planning


Some Basics on retirement planning

As surprising number of retirees do not have a Financial Planner. Even those with a Financial Planner have mostly focused on building a nest egg not Medicare insurance planning. Most have focused on income growth, not Medicare.  

Having an experienced Insurance Agent, who's entire client base is over 65 or those considering retirement, and represents all Medicare insurance providers in Minnesota, is the best retirement investment you can make.

How to get your Nest Egg in order before Retirement

If you are still working, middle aged, and not ready for retirement. Here is an estimated timeline you need to start planning for retirement:

1) At age 50 start making catch-up contributions to your 401(k) and max out contributions as soon as possible. Once you have max'd out your yearly contributions then start putting monies into an IRA account. This way you can maximize your nest egg while you’re still employed.

2) Know that at age 59 1/2 there are no more penalties on early withdrawals from retirement accounts. This would be a good time to look at Whole life insurance with long-term-care riders. 

Annuities are an option, but I would highly recommend you not tie up you money unless you have read all of the fine print, understand the surrender charges, know what your waiting period will be, be aware of the yearly commission and fee charges and finally,  will you really have access to your money when you need it most.

3) At age 62 you can start receiving Social Security checks but the amount will be greatly reduced. Unless necessary, I would not recommend you do this. At age 65 you are eligible for Medicare benefits and you can choose to retire or continue to work.

4) If you’re going to continue working after 65, you need to know that at age 70 you are eligible for full Social Security distributions and must enroll in Medicare.

5) At age 70 1/2 is when you must start taking withdrawals from most investment accounts or be charged tax penalties. This is an ideal time to invest in a lump sum whole life insurance policy. 

Life insurance is guaranteed and protected, unlike market-based investments. Generally, at an older age, it is prudent to be more conservative with your money. Some policies allow you to have access to ‘liquid money’ and still maintain the face value. So, you can make cash withdrawals and still have a death benefit.

Now you'r retired. Can you out live your money ?

If today your very healthy, with no history of chronic diseases, do not use medications and have a healthy family history, it is possible to live a very long healthy life.

Unfortunately, health issues do arise and many of us are not that blessed in the first place. The reality is that most of us are on meds and do have health issues. The good news is that despite those facts, we are living longer.

So, yes you can out-live your money!

Even if your health falls short, with innovations is medicine and medications, chances are that you could still out live your money. Medicare does not cover everything, and you can lose your nest-egg if you do not plan.

The odds of needing Long Term Care is real

As we age and live longer, we are slowly depleting our nest-egg. Downsizing can extend this slow financial trickle. However, many are overwhelmed by the thought of financing their future long-term care or living expenses.

In many cases the solution is reviewing your current insurance policies. Even if you have a Long-Term-Care policy it still may not be enough.

You can convert a paid-up Whole Life policy for cash, or you can convert a Whole Life or Universal Whole Life policy over to a Hybrid Whole life policy with a long-term-care rider to offset the costs of assisted living, long-term-care, home health care or living expenses. 

Contact me for more information 

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