Total Financial Solutions President and CEO Arif Halaby recommends putting money aside for health care costs during retirement.
Sponsored Articles
After sharing his new yearly out-of-pocket deductible rate, which doubled recently, Halaby urges people planning for retirement to consider starting a health savings account.
Health savings accounts can allow someone who has a high deductible health plan to build up money and set aside dollars for health care costs.
Related: Total Financial Solutions: Small Business Owners Can Take Care Of Themselves By Planning For Retirement
“Your money has a purpose,” says Halaby.
Having health insurance during retirement calls for a plan, especially if retirement is done before the age of 65.
Retirement may occur at age 50, 55 or early 60’s, but Halaby warns there is a gap between the time of retirement and when Medicare age eligibility is obtainable.
Medicare doesn’t begin for individuals until they are 65 years old, but there are choices for early retirement.
Jeff Girard, Halaby’s co-host on “Total Financial Solutions Safer Money Hour” on KHTS AM-1220, explains that health savings accounts, or HSA, are different than FSA, or flexible spending accounts.
With a HSA, the amount carries over year after year and essentially, it’s an extra place to accumulate money and a potential source of paying for healthcare costs.
“You get to put that money aside, let it grow tax-free, and take it out tax-free later for qualified distributions,” says Girard.
Noting that retirement accounts typically shouldn’t be used for healthcare purposes, Girard explains account holders can have a card attached to their HSA so that items like prescription medication or an eyeglass prescription might be bought.
Girard also shares that money from an HSA can be rolled over to an IRA, or individual retirement account if it is later desired to be used as ordinary income.
Halaby encourages health savings accounts as a safety net and a necessity for life changes.
Ed. Note: This article is a KHTS Community Spotlight based on the latest “Total Financial Solutions Safer Money Hour” radio show on KHTS AM-1220.Total Financial Solutions offers assistance with preparing for retirement in Santa Clarita and the surrounding valleys. Santa Clarita financial professional Arif Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. As a well-known financial professional, Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners retirement planning tips and guidance for dealing with today’s ever-changing financial needs.
Total Financial Solutions, Inc.
24322 Main Street
Newhall, CA 91321
661-753-9683
800-990-7344
Breaking Down the Fiduciary Rule
The Department of Labor’s definition of a fiduciary demands that advisors act in the best interests of their clients, and to put their clients’ interests above their own. It leaves no room for advisors to conceal any potential conflict of interest, and states that all fees and commissions must be clearly disclosed in dollar form to clients.
Read more: DOL Fiduciary Rule Explained as of August 31, 2017 | Investopedia https://www.investopedia.com/updates/dol-fiduciary-rule/#ixzz4y5749V2e
Follow us: Investopedia on Facebook