Financial planning can be exciting when you think about all of the fun stuff you want to do after retirement like visiting your dream vacation spot or trying out a new recreational activity. However, a good financial plan should also account for the necessities. Learn more about why it’s essential to factor your health into your financial planning and how your trusted advisors at Maggi Tax can help!
Always Plan For Medical Expenses, No Matter What!
Have you ever met a senior citizen who didn’t have a doctor’s visit coming up? You might not be able to see the future, but it comes as no surprise that the older you get, the more likely it is for you to experience an increase in medical needs. That’s why it’s always a good idea to factor in the cost of the various types of healthcare.
Some of the most common health complications that come with age include:
- High blood pressure
- Heart disease
- Diabetes
- Osteoporosis
- Hearing loss
- Missing teeth
- Cancer
Of course, you can’t predict which problems you will face decades from now. All you can do is save up enough to cover any medical expenses that could come your way.
Best Ways to Incorporate Healthcare Into Your Financial Plan
Since healthcare is a basic need among retirees, there are countless ways to save up for future medical expenses. Let’s take a closer look at some of the more noteworthy options available to you:
Opening a Health Savings Account (HSA)
There’s a good possibility that only having a passive retirement savings account like a 401(k) won’t be enough to cover your medical bills. That’s why HSAs exist, to give you another means of saving that’s purely for healthcare expenses. Even small contributions here and there will be better than not having an HSA at all, so it’s worth looking into!
Making Higher Contributions to Your Retirement Accounts
The average income earner sets up their 401(k) and lets the savings accumulate automatically over time. While you are indeed collecting saved money this way, you could be saving even more. For employer-matched accounts, look into setting your contributions to the highest limit for greater savings that you can use for additional expenses like medical services.
Setting Up a “Paycheck” In Retirement
You can receive recurring payouts during retirement by setting up additional accounts like pension plans or annuities. These monthly paychecks can add up and help you with the cost of doctor’s visits, prescription medications, and more.
| What Medical Expenses Should I Be Planning For?
We’ve been talking a lot about the cost of healthcare, but are medical expenses really that high? The reason you should factor your health into your financial planning is that the various costs of healthcare services can be expensive or compound into a steep total. Such expenses may include long-term care, restorative dental procedures, and even trips to the emergency room. You won’t know what’s coming, and so it’s better to prepare for the worst. |
Worst Case Scenario: You Didn’t Plan For Medical Expenses
Imagine if you didn’t plan for the cost of healthcare after retirement because you truly believed that you wouldn’t need it. After neglecting to take proactive steps in factoring your health into your financial plan, you are unexpectedly hit with high medical bills that you aren’t able to cover out of pocket. To cover the costs, you would have to consider re-entering the workforce, limiting your doctor’s visits, or cutting expenses elsewhere. Of course, all of this can be avoided by planning ahead.
Let Maggi Tax Help You Secure Your Future Finances!
For curated tips on financial planning while considering your health, your team of trusted advisors at Maggi Tax is here to guide you through the planning process with personalized recommendations. Call us today at (727) 799-1701 to schedule a consultation!
In the meantime, you can read our guide with tips for choosing the best retirement investments in 2024.
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