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If you’re approaching retirement, you likely have a number of big projects on your plate. You may be weighing your options for things like Social Security benefits, investment choices and even decisions about lifestyle.
 
One of your biggest decisions may be when and how to file for Medicare. Health care is likely to be a major expense in your retirement. According to a Fidelity survey, the average 65-year-old couple can expect to spend nearly $245,000 on health care expenses in retirement.1  Keep in mind, those are out-of-pocket costs. That means Medicare is likely to pick up an even larger tab.
 
You may be unsure of which options you should choose, when you should file for coverage and what services come with your Medicare enrollment. Below are a few important facts to guide you through the process.

You have several options to choose from.
 
Medicare is the general name for the system that provides health care coverage to retirees. However, there are actually several different components to Medicare coverage. You can choose the options that best fit your needs and your budget.
 
Traditional Medicare includes Part A and Part B. Part A generally covers hospitalization and some skilled nursing care to treat a specific condition. Part B covers other components such as lab work, ambulance costs, mental health care, costs for equipment like wheelchairs and more.
 
You can also choose something called Medicare Advantage, which is often referred to as “Part C.” This is a combination of Parts A and B, but it’s offered through a private insurer rather than through Medicare directly. Medicare Advantage may offer you greater access to specific doctors.
 
Finally, there are also Medicare Part D and supplemental policies. Medicare Part D provides coverage for prescription drugs. Supplemental coverage helps you pay out-of-pocket costs like copays, deductibles and more. You have several options available, so it’s important you consider all of them before making your selection.

Your selections aren’t permanent.
 
Many new retirees hesitate to choose a Medicare option because they’re afraid they’ll make the wrong selection. It’s certainly hard to know in advance which types of coverage you will need in retirement. That’s why Medicare offers an annual open enrollment period in which you can change your coverage. Your initial selections aren’t permanent. You’ll have an opportunity to change them later if you find they don’t fit your budget or they don’t give you access to certain providers. It may be wise to review your coverage annually to make sure it still fits your needs.

You don’t have to start Medicare and Social Security at the same time.
 
Many retirees start Medicare and Social Security at the same time, but you don’t have to. It’s possible you may start Social Security benefits while your spouse continues employment, thus providing employer-based medical coverage, or you may have some form of extended coverage from your employer after you retire.
 
Similarly, you may be ready for Medicare coverage but want to delay Social Security benefits. By deferring payments, you may be able to increase your potential benefits. When you enroll through Social Security, you can state whether you’re filing for Medicare, Social Security or both.

You get free health care services with your Medicare coverage.
 
Many retirees don’t realize they’re entitled to free services once they start coverage. For instance, you get a free physical as a form of preventive care. You may also get a vision test, a measurement of your body mass index and a screening for depression. And you may also schedule free annual wellness visits with your doctor to catch issues before they become serious.
 
Why does Medicare offer these free services? As you can imagine, treating a medical issue is often more costly than preventing one. Medicare wants you to be healthy and to take preventive action.
 
Have questions about health care and other major retirement expenses?  We welcome an opportunity to help you identify your needs and develop a plan of action.

1 https://www.fidelity.com/about-fidelity/employer-services/health-care-costs-for-couples-retirement-rise
 
This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice.
15717 – 2016/5/31

 
Are you considering early retirement? If so, you’re not alone. For many Americans, early retirement is the ultimate financial dream. Making the dream a reality requires focus and disciplined saving.
 
Unfortunately, many workers may not be able to retire at all, let alone retire early. A recent analysis of the Federal Reserve’s 2013 Survey of Consumer Finances found that the average American couple has only $5,000 saved for retirement.1
 
However, if you’ve saved a significant amount of assets, it’s possible that early retirement could be in the stars for you. There are a few challenges you’ll need to address before you leave the working world though. Below are three such items. If you haven’t planned for these issues, you may want to do so before you consider retiring early.

How will you pay for health care?
 
Think Medicare will pay all your health care expenses? Think again. You’ll likely have significant out-of-pocket costs above and beyond Medicare coverage. According to Fidelity, the average 65-year-old retired couple can expect to spend $280,000 in retirement on things like deductibles, premiums, copays and more.2 That figure doesn’t include any potential long-term care costs.
 
Do you have a plan to pay for medical expenses? If you retire early, you may have to pay out of pocket or buy a private policy before you’re eligible for Medicare. Consider maxing your contributions to your health savings account (HSA) and possibly looking into a long-term care insurance policy.

How will you manage your spending in retirement?
 
A budget can be your most powerful financial tool in retirement. It helps you see where you spend your money, how much you can afford to spend and what changes you may need to make to stay within your income.
 
Developing a budget is only the first step, though. You also may want to take your retirement budget for a test drive. That’s especially true if you hope to live on a tighter spending level after you retire. Try living on that spending level for three or even six months to see if it’s feasible. If so, retirement may be a possibility.

How will you spend your free time?
 
Believe it or not, boredom is a serious challenge for many retirees. They struggle to transition to a free and clear schedule. Without work, they may not know how to fill their time or they may feel that they lack purpose.

Some retirees fill the void with costly activities like travel, shopping, and new hobbies. The result is that they spend too much money in the early years of retirement and leave themselves in a challenging position in the later years.
 
If you don’t know how you will spend your retirement, you may not be ready to stop working. Develop a plan not only for your money in retirement, but also for your time. Think about what your ideal day would look like or what activities may be meaningful for you. Consider ways to enjoy yourself without busting your budget.
 
Wondering if you’re ready to retire early? Contact us at Beacon Retirement Planning Group. We can help you analyze your needs and objectives and determine whether early retirement is right for you. Let’s connect soon and start the conversation.
 
1http://www.marketwatch.com/story/the-typical-american-couple-has-only-5000-saved-for-retirement-2016-04-28
2https://www.fidelity.com/about-fidelity/employer-services/a-couple-retiring-in-2018-would-need-estimated-280000
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
18087 – 2018/10/1

​Life can change quickly. When it does change, it’s helpful to review your financial strategy and make sure it still aligns with your needs and goals. Of course, life can also be hectic, so it’s easy to forget to review investment accounts, retirement plans and important financial documents.
 
If you own life insurance, it’s possible that you haven’t reviewed your coverage in years. Maybe you’ve never reviewed it. After all, life insurance operates in the background. It provides protection when you pass away, so you may not feel a need to review it. It’s a financial tool that you hope never gets put to use.
 
However, there are some changes in life that can have a sizable impact on your life insurance needs and protection. Below are a few such changes. If any of these sound familiar, it may be time to meet with your financial professional and review your coverage.

You’ve added dependents to your household.
 
Having a child is a major life change in many ways, but it’s an especially sizable change to your financial strategy. Your child is completely dependent on you for food, shelter and a wide range of other needs. If you pass away unexpectedly, your child could be in a financially challenging situation. Life insurance helps mitigate that financial risk.
 
Similarly, your financial strategy could change when your child moves out of the home and becomes financially independent. If they’re no longer dependent on you for financial support, you may not need as much life insurance. Whether you’ve added a child or recently become an empty nester, take time to review your coverage and make sure it’s appropriate.

You got married or divorced.
 
Your spouse also may be dependent on you for financial support. If so, your death could be a financial disaster for them. Again, life insurance is a helpful tool to provide financial support to your spouse in the event of your death.
 
If you recently divorced, you may want to check and see if your life insurance is still necessary. Also, be sure to check your beneficiaries. If you don’t make a change, your ex-spouse could get a large life insurance benefit that should have gone to a child or other loved one.

You took out a sizable loan.
 
Did you recently buy a home, vacation property, boat or other big-ticket item? Did you take out a loan for that purchase? If so, that loan could become a big burden for your family if you pass away. They may not be able to sell the item for full value, and that could leave them saddled with the loan balance. Consider life insurance as an affordable protection tool to cover the loan balance in the event that you pass away.

You made a career change.
 
Very few people stay with one employer their entire career anymore. Anytime you change jobs, it’s wise to review your life insurance protection. You may have been dependent on robust group life coverage at your old job. If your new job doesn’t offer such protection, you may want to fill in the gaps with an individual policy. Also, if your income increased substantially with the job change, you may need more coverage to replace your income if you pass away.
 
Ready to review your life insurance strategy? Contact us today at Beacon Retirement Planning Group. We can help you analyze your needs and adjust your plan. Let’s connect soon and start the conversation.
 


Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
17962 – 2018/9/4

Nearly 56 percent of Americans don’t own life insurance. Among those who do, 40 percent say they don’t have enough. Are you a part of those groups? Life insurance ownership has been on the decline for decades. In fact, LIMRA, an insurance industry organization, estimates that Americans as a group are underinsured by more than $15 trillion.1
There are many reasons why people don’t buy life insurance. You may buy into some of those reasons. However, if your death would cause financial hardship for someone else, you probably need some level of protection.
A wide range of different types of policies are available, so you can likely find one that fits your needs and budget. If you’ve been avoiding the purchase of life insurance, you may want to reconsider. It’s possible that you’ve bought into false ideas. Below are a few common myths about life insurance and why you shouldn’t believe them:

Life insurance is too expensive to fit in my budget.
 
The most popular reason why people don’t buy life insurance is that they think it’s too expensive for their budget. According to LIMRA, 83 percent of those who don’t have life insurance say they believe it’s too expensive. Another study found that most Americans believe life insurance costs more than double what it actually does.1
A term life policy could help you get the coverage you need and stay within your budget. These policies provide temporary protection for a set period of time, such as 10 or 20 years. Because the coverage is temporary, term policies are usually more affordable than permanent insurance. A financial professional can help you find the right policy for your budget.

I don’t need individual life insurance if I have it at my work.
 
Does your employer offer life insurance? It’s a common element in group benefit packages. Some group life coverage may be free, while additional coverage could be available at a relatively low cost. If you participate in your employer’s group life insurance plan, you may not feel that you need additional insurance.
 
Group insurance is helpful, but you still may need an individual policy. If you leave your employer, you’ll likely lose your insurance. If your health has declined, you may not be eligible to purchase insurance after leaving your job. Of course, you can avoid that risk by purchasing an individual life insurance policy today.

Death isn’t a risk for me because I’m young and healthy.
 
No one likes to think about dying. If you’re young and healthy, death may not be on your radar. After all, there are probably more pressing risks and needs to consider.
However, when you’re young and healthy is usually the best time to buy life insurance. Your premiums are based on the probability of you dying relatively soon. If you purchase when you’re young, there’s a low probability of that happening, so you get a lower premium. If you wait until you’re older, your premiums could be substantially higher. You can save yourself significant money over the course of your life by purchasing life insurance at a young age.
Ready to find the right protection for your needs and budget? Let’s talk about it. Contact us today at Beacon Retirement Planning Group. We can help you analyze your needs and develop a plan. Let’s connect soon and start the conversation.
 
1https://www.thinkadvisor.com/2013/08/30/the-shocking-statistics-behind-the-life-insurance/?slreturn=20180727144059
 
Licensed Insurance Professional. This information is designed to provide a general overview with regard to the subject matter covered and is not state specific. The authors, publisher and host are not providing legal, accounting or specific advice for your situation. By providing your information, you give consent to be contacted about the possible sale of an insurance or annuity product. This information has been provided by a Licensed Insurance Professional and does not necessarily represent the views of the presenting insurance professional. The statements and opinions expressed are those of the author and are subject to change at any time. All information is believed to be from reliable sources; however, presenting insurance professional makes no representation as to its completeness or accuracy. This material has been prepared for informational and educational purposes only. It is not intended to provide, and should not be relied upon for, accounting, legal, tax or investment advice. This information has been provided by a Licensed Insurance Professional and is not sponsored or endorsed by the Social Security Administration or any government agency.
 
17965 – 2018/9/4