by Jack Waymire
The number one reason Americans file for personal bankruptcy is medical expenses. And, Obamacare just increased this risk for millions of Americans who may not have the protection they think they have. A plan for retirement requires some deliberate actions on your part.
One solution is to save as much money as you can for medical expenses that may not be covered by Medicare and private insurance. But, how do you save enough money to pay for open-heart surgery that costs more than $1 million? You can’t. You can only hope you do not need this type of surgery during your lifetime or you can have the procedure done outside the country for 15% of the U.S. cost.
Saving more money insulates you from some of this risk, but saving may only apply to the top 1% of wage earners in the U.S. The other 99% is struggling to survive with mortgage payments, college tuition, and other major expenses that impact their ability to save. So increased saving rates sound good, but they are not practical for tens of millions of Americans.
The first generation that is going to get hit with this reality is 78 million baby boomers who are just beginning to retire. They are not as lucky as their parents. They did not work for companies that sponsored defined benefit pension plans that paid retirement income and medical benefits for life. They are retiring from companies that sponsored 401k plans that made employees responsible for their own performance. And, matching contributions were tied to employee savings rates. Retirement assets have become a game of Russian roulette. You could be in real trouble if you retire at the end of bear market like 2008. You will benefit if you retire at the end of a prolonged bull market like 2013. The most important point – there are no guarantees, except medical expenses will keep going up, up, and up and the financial solvency of the U.S. will keep going down, down, and down.
One solution is to assemble a team of professionals who can help you maximize the assets you have available for your retirement years. You will need five types of professional advice and services. The good news one financial advisor may be able to provide three of the services: Retirement planning, investment services, and insurance advice. This can reduce your overall expense if you select a competent, ethical professional who is an expert in all three disciplines. You will also need tax advice and legal advice to prepare your will and other estate planning documents.
Retirements, that may last 30 or more years for one or both spouses, will be fraught with financial risk and other unknowns. Your solution is not Obamacare, Medicare, and other entitlement programs that may be bankrupt in the next 10-15 years. It is disciplined savings, conservative lifestyles, and sage financial advice.
To learn more , download our FREE ebook 5 Frightening Facts About Retirement in America.
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