Building Retirement Knowledge

Income Replacement Ratios

2017-10-03T14:54:31+00:00

Income Replacement Ratios  An income replacement ratio (IRR) is the percentage of estimated pre-retirement income that you will need to maintain your desired lifestyle after you stop working.  This projection must cover various household expenses, such as food, shelter, and transportation, as well other variables, including health care costs and discretionary income. The most widely [...]

Medicare Means Testing : Reducing MAGI in Retirement

2017-09-19T13:41:51+00:00

In order to prepare for potential means-testing surcharges, portfolios must be adjusted to account for retirement income distribution – not just accumulation.  Because not all sources of income count as MAGI, knowledgeable advisors can help retirees significantly reduce the impact of these surcharges – if not eliminate them altogether, by investing in specific products that [...]

Medicare Means Testing

2017-08-31T20:17:40+00:00

Medicare Means Testing? Medicare currently provides health coverage to over 50-million subscribers.  Enrollment is projected to reach 64 million in 2020 and 81 million in 2030.  Couple this with a projection of only 2.5 workers to every retiree by 2030, and this federal entitlement will likely dwarf all other spending programs.  To increase funding, The [...]

Health Care Inflation and Retirement Health Care Cost Index

2017-08-31T20:16:11+00:00

One of the most subtle yet dynamic variables that contributes to rising medical expenses is health care inflation, which is projected to grow between 5% and 6% annually for the foreseeable future – more than twice the historic rate for Social Security cost of living adjustments (COLAs). The compounding effect of this differential over the [...]

Long Term Care

2017-08-31T20:19:35+00:00

What is Long Term Care? Long-term care (LTC) refers to assistance with daily living activities – including bathing, eating, and dressing – for a prolonged period of time (usually over 90 days). LTC can range from support with Instrumental Activities of Daily Living (IADLs), such as taking medication and shopping, to 24-hour nursing home care. [...]

NEW: Introduction to Social Security: Part II

2017-07-11T17:50:33+00:00

Introduction to Social Security: Part II (Policy)  Understanding FRA is important, but it is also necessary to understand how additional policies could potentially impact benefits.  Working in Retirement For those who claim before FRA, Social Security’s Earnings Test will automatically reduce benefits to the extent your wages exceed the below (in 2017).   Year Earnings [...]

Introduction to Social Security: Part I

2017-07-11T17:49:56+00:00

Introduction to Social Security: Part I (Overview) Millions of Americans rely on Social Security as a source of income in retirement.  Despite its importance, most only have a cursory understanding of the program – including how benefits are calculated, the best time to claim, and how much will be deducted from monthly disbursements to pay [...]

Understanding Basic Medicare

2017-07-11T17:47:57+00:00

Understanding Basic Medicare: Parts A, B, D, and Supplemental Insurance Medicare enrollment and coverage can be confusing, and many Americans still mistakenly believe that Medicare will cover all or most of health care costs in retirement. The truth is original Medicare (Parts A and B) will only cover approximately 20 percent of total costs.   In truth, [...]

Using Data to Make a Difference

2017-07-11T17:45:42+00:00

Traditional health care plans failed to incorporate variables such as longevity, health care costs, and long-term care into retirement plans; however, the financial industry is evolving, and many firms are now utilizing these data points to create a more holistic approach to planning.   With just a few client inputs, you can create personalized reports [...]