Plan after retirement Health Costs with Medicare supplement plans

Planning ahead is a smart work especially before your retirement. It is important to plan health-care costs as these costs may be the biggest expenses faced after retirement. Learning to plan health costs based on the amount to pay for Medicare Supplement Plans 2019 premiums is mandatory. Besides also understand the plan available in the area you are living.


Parts A and B- Traditional Medicare

People eligible for the benefits of Medicaid and Medicare means Medicaid pays for the premiums such that the premium per month will be $134 for Part B. However, on meeting the eligibility, this premium is paid by Medicaid.


In certain situations, you need to pay Part B as higher premium and this is when your income is more as per your tax return. You may pay Part B premium high even if you do not sign for coverage on becoming eligible.


Medigap- Medicare Supplement plans

Medigap that are Medicare supplement plans are sold privately and are the optional policies designed to cover several expenses that go from the pocket. It is related to the Traditional Medicare coverage.  However, it does not include the drug benefits, though it assists in clearing of coinsurance, copayments and deductible of the Traditional Medicare costs.


The Medicare supplement plans are in 47 /50 states and each is designed with a letter. The 3 states are Wisconsin, Minnesota and Massachusetts. They also have Medigap plans, but have an individual set. However, regardless of the place they live, once enrolled in Medigap implies paying for Part B Medicare premium is a must.


Medigap plans supplement the Traditional Medicare, but are not working with Medicare Advantage plans.


Keep away from late-enrollment penalties

There are beneficiaries that get enrolled automatically into the Original Medicare on turning 65 years or even on receiving the disability benefits of Social Security for 24 months and this is applicable for people have ESRD, end stage renal disease.


People who do not get enrolled automatically in Part A Medicare and also fail to sign up during the enrollment period of seven months initially, may be liable to pay a late enrollment penalty.  Actually once an individual is 65, he or she gets three months ahead and later including the birthday month, making a total of seven months period to enroll.


Beneficiaries ineligible for Part A Medicare premium-free  and also do not sign up during eligibility period are expected to pay monthly Medicare 10% more and this is twice the years of Part A they could have enjoyed, but failed to sign up.  For instance, if a person is eligible for two years for Part A, but failed to sign up means, you pay for the next four years high premium.

Investing for Retirement

Contrary to common belief, it is never too early to start planning for retirement. Social Security as a sole means is rarely enough to support you and should not be given due importance as your prime source of retirement income. Whether you are planning to take a trip around the world, employ an expensive new hobby or even take on active adult retirement at a senior citizen retirement home, you will need money to fund this lifestyle.

Start early- Starting to save small amounts from as early as your 20s can help you to accumulate greater wealth in the long run.

Invest aggressively- In order to earn a substantial amount for your retirement, it is essential to invest aggressively. The developing power of stocks will allow you to build and amass a huge portfolio especially in a bullish market. In the event of the market performing averagely or poorly, you may experience a shortfall during your working years, but once the withdrawals begin, the stocks’ growth potential will triumph, justifying your aggressive investing strategy. The reason for this is in the long term, stocks provide more inflation protection than bonds which prolongs the duration of your savings.

Earning Power- Besides stock investing for retirement planning, one must also think of extra earning power by working in some capacity during the retirement phase. Whether it is a new career, part-time job or a new entrepreneurial venture, the earnings from these will prove to be sizeable. It also reduces your withdrawals from investments and savings as you will now have the extra paycheck to dip into for daily expenses.

Home Equity- If you have invested in a home, over the years, you will be more likely be sitting on a goldmine of home equity. It may not be the first asset that you would want to use up, but it is a good back up. Moving to a less expensive home, borrowing a home-equity line of credit or taking out a reverse mortgage will allow you to stay in your home along with monthly payments throughout your retirement.

Managing your spending- Keeping in mind your retirement calculations, it is imperative to manage expenditure wisely once you have started tapping into the retirement investment portfolio. It keeps you well within your retirement planning schemes and allows you to live well during the golden years.

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Employer’s 401(k) – This is one of the best retirement planning tools. Not only can you make pre-tax contributions, thereby reducing your taxable income, but the earnings grow tax-deferred until retirement. Several employers may match a portion of your contribution.

Individual Retirement Account (IRA) – A traditional IRA allows pre-tax contributions to grow tax-deferred. This means that you don’t pay taxes until such time that you make the necessary withdrawals. Thus, the amount you would have paid in taxes earns income from the time you contribute it until you take it out.

Obviously, there are no guarantees with anything and so also retirement planning can be a gamble if not planned for prudently. But if you are determined to save, a flexible approach and a firm resolve will provide the requisite retirement benefits that will help you to lead a stress-free and financially secure life.