Displaying items by tag: health insurance

(New York)

When clients think about retiring early, Social Security benefits and their timing are often a critical consideration. However, what most don’t realize is that health insurance costs are often the biggest hindrance to retiring early. This means advisors have a crucial role to play in helping advisors plan for retirement healthcare costs. One of the main options for keeping costs lower is to use Obamacare (ACA insurance) for the period between retirement and Medicare eligibility. However, this takes significant planning, as the pricing for this is based on modified adjusted gross income (MAGI). The way MAGI is calculated includes some standard forms or income, but excludes others, such as Roth RIA contributions.

FINSUM: Advisors need to be careful in how to structure client income during this period of retirement as it can have a very material effect on insurance pricing and thus cost of living.

(Chicago)

There is a very large, but little-discussed issue when going independent. When you move from being an employee advisor to an independent, your health insurance situation can be difficult. Not only is there the issue of keeping your health insurance intact immediately following your departure, but you also need to establish a significant health insurance plan with an insurer that can support your current and future employees. So it is good news to hear that the Financial Services Institute has launched a new program aimed at helping advisors with this transition. Not only will the FSI help with transitioning, but they can also provide cost savings.

FINSUM: This seems like a very good idea. This is an issue for everyone transitioning to owning a small business, not just advisors. Learn more here