In preparing for retirement, many of us overlook health care costs, possibly because we think Medicare will pay for everything. But that’s not the case. In fact, you could eventually face major health care-related expenses. How can you cope with these costs?
For starters, identify the age at which you plan to retire and estimate your out-of- pocket costs for health care. Then, as you near retirement, review your insurance options.
Also, develop a strategy to protect yourself against long-term care costs, such as an extended stay in a nursing home. These costs can be extremely high, so consult with your financial advisor about your options.
Finally, health care costs typically rise as you move further into retirement. So you’ll need to allocate a reasonable portion of your assets to investments with potential for both growth and rising income.
Preparing for health care costs can help you avoid unhealthy surprises when you reach retirement. So start thinking about what moves you may need to make.
Mary Jo Titcombe, your Edward Jones financial advisor located at 2055 S Oneida St, #240, Denver, CO, 303-691-6891
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