These notes are from a Fidelity presentation offered by my employer. Good for future reference as I and my friends near retirement. Any misinformation is the fault of the note taker.

– Males 22 % live age 90
– Females 34% live to age 90

– Medical advances enable us to live longer but medical expenses go up.
– Inflation showing in stamps 15C decades ago and 55 cents in 2019
– Healthcare costs are not immune to inflation. 2026 health care costs will be higher than 3% in other areas. Health inflation will grow at 5.5 % to yr. 2026 based on medicate sensors.
– Retirement healthcare expenses will increase.
Step 1: determine the employer and other health benefits.
– Most corporate jobs are deferred to Medicare as their primary insurance at age 65
– Government jobs have government-provided health benefits for a couple.
– Questions to ask a. Will have higher medical coverage costs b. Will additional assets be required? Yes (deductibles and co-pay)
– At 63 1/2 get cobra benefits until age 65. The corporation doesn’t pay. At age 65 jump on Medicare.
– 65 is the Medicare start date not influence by SS dates.
– ACA (affordable care act) gives you access to get a government subsidy for government help. Healthcare.gov is the website.
– Think of health care as knowing what you’re out of pocket costs will be by mo. and by yr. add that total up.

Step 2: understanding your Medicare benefits.
– You are automatically enrolled at age 65.
– Contact Medicare 3 months before becomes age 65.
– Medicare part of the traditional form. Hospital insurance. Funded by payroll taxes.
– Jan to march can change insurance
– Medicare part b is the dr. visits. Traditionally paid by social security. The monthly payment 135.50 – 500 a month if you happen to sell a stock
– The funding is based upon taxable/ taxable gross income two years ago.
– Medigap: Is extra health insurance provided by private insurances. You have to pay 20% of a hospital bill, while Medicare part A pays 80%. This gap insurance can help you in coverage other insurance does not over.
– Married partners don’t have to have the same insurance.
– Medicare advance part c
– Medicare part d Prescriptions pay $33 a month.
– Medicare and Medigap do not cover:
– Most dental care and dentures, Acupuncture, Eye examinations related to prescription glasses Hearing aids and exams for fitting them.
Step 3: understanding our Medicare costs.
– 15% of the average retirees’ annual expenses will be used for healthcare-related expenses including Medicare premiums and out of pocket expenses.
– In 1965 Medicare paid benefits of $60. 2017 paid 1626-5 K
– Not all investments count as income by Medicare:
– Distributions from health savings accts, roh irsa or Roth 101
– Proceeds from a reverse mortgage
– Build a tax diversified portfolios by having assets that are taxed differently. Suggests moving retirements to a Roth or put money into a health account.
Step 4: think about long term care.
– Long term care costs can be very high and are not typically covered by traditional health insurance plans.
– Medicare will cover the first 100 days of rehab (sp). After that, you are on your own.
Q: would it be wise to transfer 401 to Roth? Currently, it is friendly so it might be advisable.

If you have suggestions to add, please do so in the comment section of this blog. Thanks.