Aspyre Chief Wealth Advisor Jessi Chadd CFP® shared her views on what peak earners can do to amplify their retirement savings.
Retirement Savings Now
Jessi encourages investors with access to a health savings account (HSA) to maximize their contributions each year while they are still working. Forego using those dollars today to save them for retirement by creating a tax-advantaged health savings mechanism for your later years.
“I believe we need to be talking about healthcare planning in our 30s, 40s and 50s alongside all other retirement conversations — save your money and your body,” said Jessi Chadd, chief wealth officer at Aspyre Wealth Partners.
Chadd believes most discussions about healthcare planning for retirement are geared towards saving enough to pay for it. By talking about health when you are young there is more time and ability to embrace behavioral changes that can have a positive impact medically and financially.
“Because if you don’t have your health, the bulk of your savings end up being used for medical expenses instead of the fun things you’ve planned for retirement.”
Long-term care needs in retirement can strain a healthy spouse or family members, too. They may sacrifice their own health to provide care or face financial burdens from hiring help, which depletes their retirement savings and hinders their ability to live out the retirement dream.
Costs range depending on where you live but can be as much as $10k/month if full time care is needed. Because costs are so high, others in your family (children, grandkids, others) may end up helping physically or financially, which comes at an expense to their savings, health and time, as well.
Be sure to talk with your financial planner about your health situation and strategies to maximize your ability to save for future healthcare expenses.
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