September 1, 2021

Pass on the Risk or Self-Insure?

Header Picture Header Picture 2

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.

BROUGHT TO YOU BY:

Profile Picture

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
galina@dkllpcpa.com

Profile Picture

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

Tel 619-295-2637
suzie@dkllpcpa.com

Profile Picture

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

Tel 619-550-4619
Kristopher.Lindley@LPL.com

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

Investment advice offered through Integrated Financial Partners, doing business as DK Wealth Management LLC, a registered investment advisor. DK Wealth Management LLC and its individual partners are solicitors to Integrated, compensated for solicitor services. DK Wealth Management LLC and its individual partners do not provide investment advice. DK Wealth Management LLC and its individual partners are not affiliated with Integrated Financial Partners. Click on the links for a copy of the firm’s ADV and solicitor disclosure statement.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.

The information contained in this e-mail message is being transmitted to and is intended for the use of only the individual(s) to whom it is addressed. If the reader of this message is not the intended recipient, you are hereby advised that any dissemination, distribution or copying of this message is strictly prohibited. If you have received this message in error, please immediately delete.

InTouch Picture