Akron Life November 2022

FINANCIAL PLANNING

“It depends on your income needs. It depends on longevity. It depends on how much money you’ve saved. It depends on how long you want to work,” Presper adds. “We throw all these different factors in, and you come up with a plan that makes the most sense for that person or that couple.” SPENDING TIME Upon reaching retirement age, higher health care costs may be on your mind. The number of doctors’ visits you attend might increase, and the potential need for medication and surgeries may present challenges. One option Presper and Garner often discuss with clients is traditional Medicare, which consists of Part A, which is free, Part B, which costs about $175 each month, and a Medicare supplement used on expenses like doctors’ visits. “The health care coverage through Medicare, in our opinion, is good coverage for the cost,” Presper says, adding that with traditional Medicare, you don’t have to worry about being out of network since it is not run through a private company. You might also consider Medicare Advantage, also known as Part C, which operates through a specific health system, such as Summa Health locally, and provides low cost coverage for doctors’ visits within that system. With this plan, however, if you need to get care outside of that health system such as during a vacation, the costs likely will not be covered and can be hefty. Then there’s the challenge of long-term care, such as assisted living or nursing home facilities, which Medicare does not cover. “The challenge with long-term care is there’s huge costs involved,” Garner says. He often explains three different options to clients. The first is to not purchase long term care insurance and instead have a plan in place to save and draw money from cho sen accounts if you eventually need to move into a facility or hire in-home care. The next is to purchase traditional long-term care insurance, which involves a premium each year and policy benefits if you enter a facility. If you do not ever need long-term care, however, the money you’ve invested in

that kind of policy is lost. The last option Garner discusses with clients is asset-based long-term care insurance, which can pro vide you some money back when you enter a facility, or it can provide your family with some money back if you do not need to move to a facility. “Somebody’s going to get value for this money,” Garner says. “It’s either going to be me in a facility, or it’s going to be my family — my beneficiaries — when I pass away.” It’s important to remember that when it comes to choices involving health care, or any other financial challenge after retirement, the best path is different for everyone. “Although some of the strategies may be the same, it still is going to be different for each individual,” Presper says. “So that’s why you have to take a step back, look at all the pieces and come up with a plan that’s really individualized.”

Financial adviser Tom Presper gives tips on what to do toward the end of the year. CHECK LIST

• Medicare open enrollment: Through Dec. 7, you can start or

switch Medicare plans. • Required minimum

distributions: By age 72 you’re required to make distributions from your retirement account. Check with your financial adviser about the amount you’re required to withdraw before Dec. 31. • Final gifts: It’s time to give tax free distributions to charities,

which can be done out of an IRA if you are at least 70 ½ years old.

[ Assistant Editor Alexandra Sobczak is passionate about inclusivity, correct grammar and pop music. ] Comments? Email them to Kelly Petryszyn [kpetryszyn@bakermediagroup.com].

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