A smooth transition into retirement comes down to planning. If you’re here, you’re likely onboard with the planning piece. To help you avoid common retirement misconceptions, we’re reviewing these 3 common retirement planning myths:
It’s Too Late to Start Saving
Medicare Will Cover All Medical Expenses
You’ll Spend Less in Retirement
Retirement Planning Myth: It’s Too Late to Start Saving
It’s never too late to start saving for retirement. Whether you want to retire in 5 years or 25 years, many of the same tried and true saving and investing principles apply to you. Many with a desire to retire in the next 10 years feel like the clock is ticking; you may have a solid foundation but need to make wise decisions to actually reach your retirement goals.
Others need help getting back on track. If this is you, start by verifying you’re contributing enough to your 401(k) to maximize company contributions. And if you have a neglected IRA, remember it takes just $6,500 (or $7,500 for those 50 or older) to max out your account annually and receive the full tax savings benefit.
When you meet with an Integrated Wealth Management advisor, we’ll show you estimated projections for your retirement fund using our evidence-based investment strategy. We’re here to empower you to maximize the years until your desired retirement day.
Realities of Retirement — Medicare Likely Won’t Cover All Medical Expenses
As you begin planning for your transition from traditional health insurance to Medicare, it’s easy to focus on the enrollment process and premiums. You can expect Medicare Part A and B to cover hospital and doctor visits in a similar fashion to your current insurance. For additional services and prescription drug coverage, you’ll want to dig into Medicare Part C and D.
Researching plan offerings is your best bet for offsetting your healthcare costs. This is not a time to simply sign up and assume you're covered, or worse yet, obtain a policy matching a loved one.
Hearing aids, glasses, dental work, prescriptions — these are all services not covered through Traditional Medicare (Parts A and B), yet they’re common needs for aging adults. Medicare is cost effective coverage, but you still need to understand your policy to avoid surprises.
On the topic of Medicare, there’s often an elephant in the room. We haven’t addressed long-term care. In Delaware, the average price of a private room in a long-term care facility is $12,699 per month. The same review suggests annual costs could increase by 30% over the next 10 years. So how much of that will Medicare pay, you’re wondering.
Medicare pays for your first 20 days of skilled-care needs. Day’s 21-100 come with a daily coinsurance of $200 in 2023. Beyond day 100, the recipient is liable to pay 100% of the cost. Keep in mind skilled-care is prescribed by a doctor and does not include services typically obtained from a home health agency like bathing, cleaning, dressing, or meal delivery.
The future is too uncertain to put a dollar amount on your future needs, which is why we assist clients in saving in a manner aligned with their personal and family health history, average costs, and personal desires. This is one way we plan and educate people on the realities of retirement.
Common Misconceptions About Retirement — I’ll Spend Less in Retirement
Will you spend more or less in your daily life once you retire? This is a question only you can answer. Everyone’s goals and desires differ — some may wish to stay put and enjoy a slow paced and simple lifestyle where others want to travel, invest in hobbies, or contribute to a grandchild's college fund.
Deep down, you likely know the answer to this question. Now is the time to be honest about your retirement lifestyle expectations so you can plan accordingly. It’s natural for plans to change, but under-estimating your budget can lead to disappointment down the road.
Retirement Planning in Wilmington & Rehoboth Beach, DE
As you review your retirement portfolio — do you feel a sense of confidence and pride? Or are there concerns about factors potentially missed or hesitation in reaching a magic number?
At Integrated Wealth Management, we help people like you gain confidence in their retirement plan. Through education, we empower clients to make sound financial decisions and provide guidance and support along the way. By creating long-term relationships, we’re helping people all across Delaware and beyond enjoy retirement to the fullest.
If you’re ready to take your retirement plan by the horns in 2023 — give us a call to set up an initial meeting so we can learn about your retirement dreams.
Disclosure Statement:
This presentation is not an offer or a solicitation to buy or sell securities. The information contained in this presentation has been compiled from third-party sources and is believed to be reliable; however, its accuracy is not guaranteed and should not be relied upon in any way whatsoever. This presentation may not be construed as investment, tax, or legal advice and does not give investment recommendations. Any opinion included in this report constitutes our judgment as of the date of this report and is subject to change without notice.
Additional information, including management fees and expenses, is provided on our Form ADV Part 2 available upon request or at the SEC’s Investment Adviser Public Disclosure website, Past performance is not a guarantee of future results.