The Three-Legged Retirement Stool

No, this blog post won’t be about furniture. Instead, I’m going to suggest a unique way of looking at retirement, which may be helpful for those struggling to get ready for when they stop working. There are three legs to the retirement stool: finances, healthcare, and lifestyle. With the first leg–finances–you focus on getting your money in order, which means paying down your debts and figuring out where your money in retirement will come from. It also means focusing on your nest egg and how you will grow it. The second leg is healthcare. This includes deciding what you will Continue reading The Three-Legged Retirement Stool

Thinking Long-Term While Thinking Long-Term

Nobody likes to think about aging. After all, why would you want to think about getting old and all the aches and pains that goes along with it? However, if you want to live a comfortable retirement that’s financially feasible, you need to think about the costs that go along with aging. Growing old can be costly in America. Medical bills can really add up and they become even more unpredictable as you get older as our bodies are unable to recover like they did when we were young and spry. In particular, the costs of long-term care can be Continue reading Thinking Long-Term While Thinking Long-Term

Health Care Costs: Expecting the Unexpected in Retirement

Health care costs can wreak havoc on your retirement savings and are often a huge expense for retirees. According to data collected by Fidelity Investments, the average American couple will need to save $260,000 to cover health care alone in retirement. That’s a good chunk of change. While most prudent retirement planners factor health care costs into retirement savings, that may not always be good enough. Health care is unpredictable and no one really knows what to expect regarding health as they age. All it takes is one medical emergency and your health care savings can be decimated. That’s why Continue reading Health Care Costs: Expecting the Unexpected in Retirement

Taking Advantage of Tax Reform Changes to Cover Medical Expenses

If you have high medical expenses, you might be happy to hear that the tax reform legislation passed by Congress late last year could be very helpful. While the big discussion in the financial advising community has circulated around how the tax reform impacts the ability to recharacterize and the ability to deduct qualified charitable contributions, there were other changes that flew under the radar. One change that could really benefit people with high medical expenses is the lowering of the threshold required to qualify for penalty-free distributions. For your 2017 and 2018 tax returns, if your medical expenses exceed Continue reading Taking Advantage of Tax Reform Changes to Cover Medical Expenses