Many experts expect healthcare costs will continue to rise, making it important that advisors help their clients plan ahead. According to the Kaiser Family Foundation, health care has become somewhat less affordable, even among those with health insurance. Since 2015, larger shares of people with health insurance say they have a difficult time affording their healthcare costs: from 27% to 37% for premiums; 34% to 43% for deductibles; and from 24% to 31% for copays and prescription drugs. Some experts estimate that a 65-year-old couple who retired in 2016 will need $260,000 to cover just healthcare costs in their golden years—6% more than the previous year's estimate of $245,000. That’s the highest estimate since such projections started in 2002, and chances are repealing and replacing the Affordable Care Act, not to mention the high cost of pharmaceuticals, could push retiree healthcare costs even higher. All of which highlights the need for advisors to discuss with clients the flexibility and power of Health Savings Accounts (HSAs). Read on for a summary of their analysis, or view the entire document here. [+] Read More

High income earners often find themselves in a bit of a quandary when it comes to retirement planning. Individuals making over $132,000 and married couples making over $194,000 are not eligible to contribute to a Roth IRA.1 For 401(k)s, the annual contribution limit of $18,000 ($24,000 for those over 50)2 is simply not enough for someone who made, say, $250,000 per year during their working years. Saving $18,000 a year is probably not sufficient for someone at that income level to maintain the same standard of living in retirement. Of course, this does not mean that high income earners should shy away from contributing to 401(k)s or other employer-sponsored retirement plans. The more a person can contribute to a tax-deferred plan, the better. But for high income earners, saving enough so that you can replace your income in retirement means turning to other methods and savings vehicles to reach your goals. Here are three potential options. [+] Read More

Retirement and financial planning can essentially be broken down into three phases: Saving Investment Distribution (Retirement Income) For many people, that means spending our working years making an income to provide for our families and to save for retirement. We then invest our savings in hopes of achieving a rate of return over time, to grow the assets and provide for our retirement. And finally, we devise strategies to generate retirement income from our savings. [+] Read More

Retirement planning in America is no simple task. Whether it’s navigating the ever-shifting tax code, factoring-in the rising cost of healthcare, or devising income strategies from various sources like Social Security and retirement investment accounts, investors have many decisions to make and potential strategies to pursue. So, amidst the many complexities involved with retirement planning, it’s useful to take a step back and think about retirement planning in simpler terms. In other words, start with a basic framework first, and then grind down into the details from there. Here are 3 practical tips for setting a solid course for your retirement. [+] Read More

With retirement planning, there is always the need to plan for the “unexpected”: emergency needs, potential home repairs, major medical situations, and so on. But there are also several expected—and fairly predictable—expenses that many investors may not fully take into account. This is not necessarily because of lack of planning, but more so because these expenses can be somewhat academic and less easily understood. [+] Read More

There is an emerging concept in health care known as “precision medicine.” According to the National Institutes of Health, “precision medicine is an emerging approach for disease treatment and prevention that takes into account individual variability in environment, lifestyle and genes for each person.” In other words, instead of treating an illness with a blanket, ‘one-size-fits-all’ approach, every individual is viewed as unique—which means their treatments are customized. [+] Read More

When you encounter articles focused on retirement planning, the subject matter is generally about how to invest—what strategies are good for growth vs. income, what products are useful for different investment and tax objectives, and so on. Often left out are insights about how to spend, which is an equally—if not more—important aspect of planning. An investment plan that does not adequately account for how cash flow needs and expenses change over time could put an investor at risk of running out of money too early. [+] Read More

With less than a month left in the year, time is running out to make adjustments to your IRAs that count towards this tax year. Here is a short checklist of IRA actions to consider before year-end, but please note that this list is by no means comprehensive. We would strongly recommend reaching out to a financial advisor between now and the end of the year to make sure you’re in good shape going into the New Year. [+] Read More

For many investors and retirees, the task of navigating Social Security is often a tricky (and sometimes confusing) undertaking. In fact, it is complex to the point that Fidelity Investments recently brought to light several “myths” about Social Security, which are really misunderstandings more than anything else. In several surveys, Fidelity found that investors had misconceptions about some of the key features and rules surrounding Social Security Retirement Benefits. These misconceptions can cost retirees money over time, so it’s important to work with a financial advisor when making the important decisions about when and how to take your benefit. [+] Read More