Episode #64: Health Insurance Options Before Medicare

Side Thoughts:

Taking an early retirement is tempting, but have you considered your health insurance options? Matt reviews your coverage options in lieu of Medicare.

(Click the featured times below to jump forward in the episode)

Here Are Just A Handful Of Things You’ll Learn:

1:07 – Setting The Stage.

When you turn 65, you’re eligible for Medicare (Note: Today’s podcast is not about Medicare). However, if you’re retiring earlier, you’re going to need other healthcare options. Once you retire, you’ll still need health insurance, but you’ll no longer have employer-sponsored healthcare. Therefore, you need to know what coverage options you’ll have available to you.

3:55 – Understanding The Affordable Care Act.

Under the Affordable Care Act (ACA), the premiums you’ll pay on your insurance are 100 percent based on your income. Specifically, they’re based on your reportable income and your taxable income…Ummm…What? We’re working with several clients who we’re assisting in keeping their income within a specific range. That way, we can assure their premiums will remain affordable. If your income is too high, your premiums could skyrocket to anywhere from $1,000 to $1,400 a month. However, ACA gives you a tax credit to offset your costs. Here’s the kicker, it’s based on your taxable income; not your assets. Therefore, you need to spread your tax burden appropriately. If all of your wealth is in an IRA, you’re going to drain it faster than you should just to obtain healthcare.

8:25 – Your Health Insurance Options As A Tweener.

If you do not have a retirement health insurance plan until the age of 65, you’re probably going to have to enter the private healthcare market. At that point, you can either pay insurance companies directly with no tax subsidies, or you can go through the Marketplace (ACA).

Other Smart Money Points:

8:56 – Understand Your Options Before Walking Out The Door.

The Answer:

If you're going to retire early, you're what we'd call a tweener. This means you'll no longer have company-sponsored insurance, nor will you qualify for Medicare. Know your healthcare options before retiring. - Smart Money Questions

Tweet This

Do You Have A Smart Money Question?

Ask Matt your smart money question. Click here.

GOT A SMART MONEY QUESTION?

Do you have a question that we haven’t covered yet? Just leave me a message and your question just might be on my next podcast!

Why Ask A Question?

Although everyone’s situation is different, your question might help hundreds of other people who are in the same boat. Don’t be afraid of the answers, be afraid of not asking the question!

What Do You Get?

The clearest answer I can give on how to address your retirement question and links to resources that may help you.

Don't Have A Microphone?

Just fill out the form below to ask your question!

SCHEDULE A TIME TO MEET

It’s fast and easy to make an appointment with Matt. You can start with a 30-minute conference call or meet in-person at the office in Malvern, PA.

Book Appointment

Contact

All written content on this site is for information purposes only. Opinions expressed herein are solely those of Smart Money Questions and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. ©2018 All written content on this site is for information purposes only. Opinions expressed herein are solely those of Old Security Group and our editorial staff. Material presented is believed to be from reliable sources, however, we make no representations as to its accuracy or completeness. All information and ideas should be discussed in detail with your individual advisor prior to implementation. Fee based financial planning and investment advisory services are offered by Old Security Group a Registered Investment Advisor in the State of Pennsylvania. Insurance products and services are offered through Old Security Trust Corp. Old Security Group and Old Security Trust Corp. are affiliated companies. The presence of this web site shall in no way be construed or interpreted as a solicitation to sell or offer to sell investment advisory services to any residents of any State other than the States of Pennsylvania, Delaware and Maryland or where otherwise legally permitted.