September 1, 2021

Pass on the Risk or Self-Insure?

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As we plan for retirement, it is important to think about our own mortality. Saving for that dream vacation and building a family nest egg was easy but planning for health and long-term care costs can be more challenging.

According to the Fidelity Retiree Health Care Cost Estimate, an average retired couple at age 65 may need as much as $300,000 for health care expenses in retirement.

The question becomes… should you self-insure or pass on the risk to an insurance company?

What about Medicare?Most people see it as a one-stop health insurance solution for retirement, but while it covers hospital stays, doctor appointments, medical tests and more, it only pays for about 80% of outpatient expenses, according to Boomere Benefits.

How about long-term care?According to the AARP, 70% of seniors will require long-term care and delaying getting it only makes it more expensive. For example, the average 55-year-old couple will pay about $2,500 per year in annual premiums for long-term care insurance, but by the age of 70, that same policy could cost as much as $14,000 per year, according to the AARP.

The truth is, regardless of your wealth, long-term care insurance is worth considering.

So, what should you do?Together, we can take a look at your health, age, location, and family history to determine what you should budget for (self-insure) or shift the responsibility to (long-term care insurance) as part of your retirement planning strategy.

You have worked hard. You deserve a legacy. Your retirement savings should not be siphoned by health care costs. Call or email today to learn more or to have this topic added to our next meeting agenda.


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Galina Berkovich, CPA
Partner/ Woodland Hills, Beverly Hills
DK Wealth Management LLC
21600 Oxnard Street, Suite 2000
Woodland Hills, CA 91367

Tel 818-385-0585
[email protected]

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Suzie Korth, EA
Partner, University Heights
DK Wealth Management LLC
4304 Park Blvd.
San Diego, CA 92103

Tel 619-295-2637
[email protected]

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Kristopher Lindley, CFP®
Financial Consultant
DK Wealth Management LLC
12555 High Bluff Drive, Suite 210
San Diego, CA 92130

Tel 619-550-4619
[email protected]

DK Wealth Management LLC | La Jolla | University Heights | Woodland Hills | Beverly Hills

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