Can I Retire… Please?

POTENTIAL SITUATION

Lindsay, age 62, has been working as a medical practice manager for decades. While she earns a comfortable living, she also is becoming increasingly burned out navigating constantly changing insurance contracts and healthcare laws. Almost daily, she dreams of retirement – counting the days until the weekends, and the hours until the end of the workday.

However, after all these years of saving, she has no idea if she’s ready to retire. What would she do about health insurance? Does she have enough to live on – for the rest of her life – without working?

PARAGON’S SOLUTION

Paragon would invite Lindsay in for what we call a discovery meeting to see if she and the experienced financial advisors at PARAGON are a good fit. Once it is determined that we are, we would then perform a thorough analysis of Lindsay’s assets, income streams, former retirement plans, Social Security, and anticipated medical costs in retirement, using our state-of-the-art retirement planning software and scenario stress-testing to help her decide if her job has become… OPTIONAL!In this scenario, let’s say Lindsay had done a good job of savings; and even though initially paying out of pocket for health care before Medicare started at age 65 was going to be expensive, a long-term analysis of her cash flow determined that once her investments were optimized, she had more than enough to generate the retirement income she desired for the rest of her life.

Even if the first few years would require some heavy portfolio withdrawals, the analysis would reveal that once her Social Security income and the mandated Required Minimum Distributions from her retirement accounts began, she would have more than enough income to live comfortably throughout retirement.

VALUE TO THE CLIENT

Lindsay would be able to confidently inform her bosses that it was time for her to retire, and within 6 months, she can transition to a new, exciting, and rewarding phase of her life!

Video: How Does Wealth Management Make Your Job Optional

*Please Note: Limitations: The above Case Study is hypothetical-not involving actual Paragon clients. Case Studies illustrate the hypothetical experience of a fictitious client based on a scenario that an actual client might experience. The Case Studies are designed to generally illustrate how we may provide our services to our clients. Keeping in mind that no two clients, situations, or experiences are exactly alike, the Case Studies are not to be construed as an endorsement of Paragon by any of its past or current clients, nor any assurance that Paragon may be able to help any client achieve the same satisfactory results. To the contrary, none of the Case Studies should be construed by a client or prospective client as a guarantee that he/she will experience a certain level of results or satisfaction if Paragon is engaged, or continues to be engaged, to provide investment advisory services.

Health Care for Early Retirement

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Today we will be answering questions from Mr. Skeptical (who may or may not be one of my family members) on Health Savings Accounts (HSA). I hope you find this blog post useful and the Q&A format easier to get through than an article laden with IRS statutes, random dates, and dollar amounts.

ACA Subsidies and How a New Retiree Can Maximize Them

The Affordable Care Act (ACA) has been an important healthcare option since its inception in 2010. In 2022, enrollment hit an all-time high with 14.5 million consumers purchasing coverage through the ACA federal or state exchanges.

A Healthcare Choice Available to Every Pre-Medicare Retiree: Affordable Care Act (“ACA”) Coverage

In this article, we’ll discuss an overview of the ACA system and things to consider if you are considering this coverage. Then, in our next post, we’ll put financial strategy to work by looking at one component of the ACA system – premium subsidies – and discuss how to optimize income to better take advantage of subsidies that reduce your out-of-pocket costs for monthly premiums.

Short Term Health Insurance Plans: A good option to bridge the gap before Medicare?

Short Term Health Insurance Plans are health insurance plans that fill that short term gap in health insurance coverage you may have anywhere from 3-6 months up to a year. These plans were more recently in the news when President Trump signed an Executive order in August 2018 allowing these plans to cover individuals for up to one year versus the previous 3-month regulation, however, these plans have been in existence for decades.

Let’s discuss how this health insurance option might work during your pre-Medicare years and what things you should consider when evaluating this option.

Concierge Healthcare Plans: Wave of the Future?

Concierge healthcare may be the newest of these pre-Medicare choices; it’s certainly the most rapidly changing. It stems from the dissatisfaction of patients and practitioners alike with the current healthcare system in the United States. Instead of long waits for an appointment where the physician may only have 15 minutes to see the patient, uncertain costs, and insurance haggling, concierge care seeks to do things different, and better, for all parties involved.

The Top Benefits and Drawbacks to Know About Healthcare Sharing Ministry Plans

Continuing with our health care for early retirement blog series, our next featured article discusses a strategy known as Healthcare Sharing Ministry plans.

The main benefits associated with this type of plan include discounts on healthcare, limited out of pocket costs and predictable monthly payments. It should be noted that these plans are not considered insurance. More on this a bit later.

COBRA Insurance: A good option for Pre-Medicare Retirees?

Maybe you’ve heard of COBRA as a back up health insurance plan if you were to ever lose your job, but have you considered how COBRA can also help you make that transition into retirement a little easier?