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It's that time again! Every year, during the open enrollment period from October 15th through December 7th, we recommend that all seniors review their Medicare coverage and see what new options might be available to them. It's also extremely important that new retirees who are signing up for Medicare for the first time get a handle on the ABCDs of Medicare, as well as the things that Medicare does and doesn't cover.
According to a recent study by Fidelity, a 65-year-old couple retiring today will need $300,000 to cover their medical expenses. Unfortunately, that eye-watering number only includes insurance premiums, deductibles, and copays. If you or your spouse need long-term care, which isn't covered by Medicare, your health care costs could end up putting a serious crack in your nest egg.
The pandemic closed a lot of doors in 2020. But for cybercriminals, business is always open. The more time folks spend socializing, working, shopping, and managing money online, the more sensitive data could be vulnerable to hacks and scams. Click on the wrong link or answer the wrong phone call and you could be at risk for significant financial loss or identity theft issues that can take weeks, months, or years to sort out.
Recently, while answering some listener questions about early retirement, I pointed out that every piece of your financial plan is connected to every other piece. Adjust one lever, and you might trigger some unexpected consequences if you're not working with a professional who can help you anticipate and prepare for further changes.
The pandemic given us all a new perspective on our lives and our work. I think that’s a big reason why we’ve had a number of our clients at Keen Wealth ask us about early retirement scenarios this year. After a year of locking down, missing friends and family, working from home, and in far too many cases, losing loved ones, folks want more than just financial security. They want to use their assets to live their best lives for as long as they can.
As good as it feels to be exiting the pandemic and enjoying a relatively normal summer, the ongoing economic fallout from COVID-19 and the levers our government pulled to accelerate recovery have a lot of folks worried about inflation. Those fears spiked recently after the Bureau of Labor Statistics reported that consumer prices rose by 5% during the month of May, the biggest jump since 2008. Those numbers are ringing alarm bells for some of our older clients who don't like being reminded of 1970s stagflation as they're nearing or beginning retirement.