Mark returns with his latest Weekly Webinar, offering up-to-date market insights, a review of recent economic events, and a specialized financial planning segment dedicated to assisting you in managing your retirement finances more effectively. This week Mark continues with a 4-part series on common retirement mistakes, focusing this week on medical expenses after Medicare.
Mark begins the conversation with updates out of the Slott Group where he first discusses common financial planning questions and then addresses two complex topics: Net Unrealized Appreciation (NUA) and See-Through Trusts. NUA involves distributing highly appreciated employer stock from a retirement plan, while See-Through Trusts can utilize the 10-year rule for inherited IRAs. Mark emphasizes the need for professional guidance due to the intricacies involved in these matters and suggests reviewing trust beneficiaries in light of recent legislative changes.
Moving on to market updates, Mark begins by sharing that the markets have had a historically bad month in September, influenced by factors like potential Federal Reserve rate hikes due to strong economic growth, political tensions, high oil prices, and stretched consumers. The Dot Plot indicated the central bank’s expectations for prolonged higher interest rates, while concerns about tensions with China added to the market’s challenges. Bond prices fell as interest rates rose significantly. Despite these difficulties, stock declines were relatively controlled, and seen as a positive development.
BlackRock suggested that interest rates would remain high due to robust growth, making fixed-income investments attractive. Goldman Sachs’ analysis of government shutdowns since 1980 showed that market impacts have been relatively mild historically, with the S&P 500 performing well during these periods. Mark emphasizes the importance of considering various factors affecting market performance and seeking professional advice when navigating complex financial situations.
Medical Expenses After Medicare
In the Financial Fifteen segment, Mark highlights often overlooked financial considerations. He points out the significant costs tied to Medicare for individuals over 65 and how this aspect is frequently neglected by financial planners. The historical focus has been on acquiring clients and investments rather than comprehensive financial and tax-efficient planning. Mark discusses various Medicare-related expenses, including premiums, co-insurance for hospital stays, Part B and Part D premiums, deductibles, and Medicare Advantage plan costs, which can accumulate to $112,000 annually for a married couple. Budgeting for these expenses is crucial to maintaining one’s retirement lifestyle.
Mark briefly touches on legislative changes like the Secure Act and Inflation Reduction Act, emphasizing the need to stay informed about evolving regulations and their financial impact. He stresses the importance of healthcare expenses in financial planning, particularly for retirement, to ensure financial security and maintain one’s standard of living. Mark provides data on average out-of-pocket expenses, which can range from $5,800 to $6,000 per year per individual, with a 5% inflation rate, totaling $10,000 to $12,000 annually for a married couple. Planning for these costs is vital as everyone will require medical care. Ignoring these expenses is unwise. Mark advises setting aside funds for potential medical costs to avoid later adjustments to one’s standard of living.
Mark underscores the significance of planning for post-Medicare medical expenses, differentiating it from long-term care costs. Proper financial preparation should encompass these often-underestimated out-of-pocket medical expenses.
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The opinions expressed in this program are for general informational purposes only and are not intended to provide specific advice or recommendations for any individual or on any specific security. It is only intended to provide education about the financial industry. To determine which investments may be appropriate for you, consult your financial advisor prior to investing. Any past performance discussed during this program is no guarantee of future results. Any indices referenced for comparison are unmanaged and cannot be invested into directly. As always please remember investing involves risk and possible loss of principal capital; please seek advice from a licensed professional.
Attleboro Wealth Management, LLC is a Registered Investment Adviser. This program is solely for informational purposes. Advisory services are only offered to clients or prospective clients where Attleboro Wealth Management, LLC and its representatives are properly licensed or exempt from licensure. Past performance is no guarantee of future returns. Investing involves risk and possible loss of principal capital. No advice may be rendered by Attleboro Wealth Management, LLC unless a client service agreement is in place.
0:00 – Introduction & Upcoming
03:18 – Slott Update
11:21 – Market Update
20:43 – The Financial 15: Medical Expenses after Medicare