Ask an Advisor: How can a married couple in their late thirties plan for potential healthcare costs and ensure financial security in the future?

Q: How can a married couple in their late thirties plan for potential healthcare costs and ensure financial security in the future?

Planning for healthcare costs and ensuring financial security in the future is crucial, especially as you age. Being proactive on these topics is always a more prudent strategy than kicking the can down the road, and can lead to more flexibility for you when the time comes.

Here is a comprehensive approach & checklist for folks in their late thirties:

• Health Insurance: Ensure you both have comprehensive health insurance coverage. Review your policies annually to ensure they meet your evolving needs. Consider factors like deductibles, co-payments, and coverage limits.
• Emergency Fund: Build an emergency fund that can cover at least 3-6 months’ worth of living expenses. This fund can help cover unexpected healthcare costs or other emergencies without dipping into your long-term savings.
• Retirement Savings: Maximize contributions to retirement accounts such as 401(k)s, IRAs, or other retirement savings plans available to you. Take advantage of any employer-matching contributions. The earlier you start saving for retirement, the more time your investments have to grow.
• Health Savings Account (HSA): If eligible, contribute to an HSA. You will need to establish a high-deductible health plan to qualify for an HSA. HSAs offer triple tax benefits: contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. HSAs can serve as a valuable tool for covering healthcare costs in retirement. HSAs are one of my favorite accounts.
• Long-Term Care Insurance: Probably more important to consider when you are in your 50s/early 60s – long-term care insurance covers potential costs associated with assisted living, nursing home care, or in-home care in the future. Premiums are typically lower if purchased at a younger age.
• Regular Health Check-ups: Prevention is key to managing healthcare costs. Schedule regular health check-ups and screenings with your primary care physician to detect any health issues early, when they’re often easier and less expensive to treat.
• Healthy Lifestyle: Invest in a healthy lifestyle to reduce the risk of chronic diseases and associated healthcare costs. This includes regular exercise, maintaining a balanced diet, managing stress, getting enough sleep, and avoiding unhealthy habits like smoking and excessive drinking. Health is wealth!
• Review and Update Estate Plans: Ensure your estate plans, including wills, trusts, and beneficiary designations, are up-to-date. Consider factors like healthcare directives and powers of attorney to ensure your wishes are carried out in the event of incapacity.
• Financial Planning: Consult with a financial advisor to create a comprehensive financial plan tailored to your goals and circumstances. They can help you prioritize your financial goals, allocate assets appropriately, and adjust your plan as needed over time.
• Education and Awareness: Stay informed about changes in healthcare laws, insurance policies, and financial regulations that may impact your planning. Continually educate yourselves about personal finance and healthcare topics to make informed decisions.

By following these steps, you can proactively plan for potential healthcare costs and enhance your financial security in the future. Feel free to visit my website, Platinum Point Financial, if you would like to have a more personalized conversation about your specific circumstances and goals.

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About the Author

Charlie Burguieres, CFP®

Helping You Align Your Wealth With Your Life.

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Education Funding
Financial Life Planning
Investment Management
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Charlie Burguieres, CFP®
| Platinum Point Financial

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