Strategic Financial

I’m retiring before 65. How much should I plan for health insurance?

For many early retirees, budgeting roughly $10,000 to $20,000 per person, per year is a reasonable planning estimate until Medicare begins.

That number surprises a lot of people.

But health insurance can become one of your biggest expenses, especially if you want to retire before Medicare kicks in.

The good news? You have options.

You may be able to stay on your employer's plan through COBRA for up to 18 months. Your premium will likely increase, but your coverage stays the same, which can be a huge advantage if you're in the middle of treatment or don't want to switch doctors.

If your spouse is still working, coordinating your retirement around their employer's coverage could be another option.

And if neither fits, get an actual quote through the Health Insurance Marketplace. Premiums can vary dramatically based on your state, income, age, and the plan you choose.

One more thing: if you have access to an HSA at work, consider funding it as much as possible in the years leading up to retirement. When invested, those dollars can grow tax-free, and qualified medical expenses can be paid tax-free. Making an HSA one of the best tools for covering healthcare costs before Medicare.

If you're within five years of retirement, we'll help you map healthcare costs alongside your income, taxes, and Medicare timing so there aren't any surprises.

Send us a message. We'd be happy to help.

What does your life actually cost?

Beyond your income and bills.

The actual cost to live the life you want today and in the future.

Those are very different numbers.

Your "life cost" isn't just your mortgage, groceries, or utility bills.

It also includes the lifestyle you want, the flexibility you expect while you're working and in retirement, and the future you're trying to build.

That's why your retirement number isn't something you can pull from a simple formula.

If you haven't first defined the life you're saving for, how do you know you're aiming at the right target?

The real work is pressure-testing that number. Run different scenarios.

Talk through your priorities.

Decide what you're willing to spend more on today, what you're willing to postpone, and what really matters to you over the long term.

Because if your number is wrong, your entire plan is wrong.

And that could mean years of extra work or unnecessary stress, trying to hit a goal that never actually matched the life you wanted.

If you've never calculated what your lifestyle really cost, not just your expenses, it's worth doing.

That's exactly what we help clients figure out.

Link in bio.

What do I need to know before signing a senior living contract?

Most families tour the apartments, sample the food, and look at the activity calendar.

But choosing a senior living community isn't just about finding a place you'll love today.

It's about understanding what happens financially over the next 10, 15, or 20 years.

And often the aging parents are relying on the kids to ask the right questions.

Before you sign any agreement, make sure you understand:

• How the entrance fee works and whether any of it is refundable.
• What your monthly costs could look like if your care needs change.
• Whether part of your monthly payment may qualify as a medical expense deduction.

These details are super important.

They can affect your retirement, your estate, and how long your savings last.

The right community should provide peace of mind for your family and not come with unexpected financial surprises.

How do I get the best mortgage rate?

Most people think the answer is their credit score.

Credit matters for sure. But once you're talking to lenders, how you shop and negotiate for the mortgage can have just as much impact as your credit profile.

The biggest mistake people make is treating a mortgage quote like a price tag.

It isn't. It's an opening offer.

Start by getting quotes from at least three lenders, and make sure at least two of them are banks, not just mortgage brokers.

Banks compete for your business, but they usually won't sharpen their pencil unless they know another lender is in the running.

Next, ask every lender one simple question: "What do I need to do to qualify for your best rate?"

Some banks offer relationship pricing if you keep a certain amount of assets with them. Others only need proof that you have those assets elsewhere.

That's an important distinction.

Know which one you're dealing with before moving any money.

Finally, don't negotiate with an email. Negotiate with an Official Loan Estimate.

It's a standardized document, so when you hand one lender's estimate to another bank, they know they're looking at a real offer, not a casual quote that can be brushed aside.

That's when the conversation often changes.

On a $600,000 mortgage, reducing your rate by just 0.25% can save tens of thousands of dollars over the life of the loan. That's a pretty good return for spending an extra week shopping.

Your financial advisor can help you through this process and give everything a look. A second opinion on one of the biggest financial decisions you'll ever make can be worth far more than the hour it takes to review it.

Should your retired parents buy or rent if moving closer to family?

The conversation is much bigger than the math.

For many retirees, especially those relocating in their 70s, flexibility is more important than the numbers.

Here are some factors to consider:

Is Mom or Dad comfortable taking on a long-term mortgage at this age?

Does pulling a lump sum from their portfolio still support the lifestyle they’ve planned for the rest of their life?

Maintenance: Do they want to deal with the headaches that come with home maintenance and unexpected repairs?

Flexibility: If health changes and they need to move to a care facility, what happens to the house and how long might it take if you need to sell?

Liquidity: Building equity in the house is great but if it’s needed and can’t be accessed quickly, that creates stress and limits options.

It doesn't mean renting is always the answer; buying might make perfect sense.

But before making a decision, make sure you're evaluating more than just the monthly cost or purchase price.

The most important question might be:

Which choice gives you the most options five or ten years from now?

If your family is having this conversation, we're happy to help you model both scenarios and think through the tradeoffs.

"I'm building and growing my business. But my family is also ready for a bigger house in a better school district. Can I afford to do both?"

We had this scenario come up a little while back.

The bank said yes.

The cash account said yes.

But neither of those answered the real question.

The real question was whether the business could support the new house while continuing to

fund payroll, taxes, growth capital,

along with retirement savings, college planning, and everything else the family wanted over the next 10+ years.

That's where the intersection of the business goals and personal goals can get really complicated and stressful.

Because the biggest financial decisions business owners often make aren't just business decisions.

They're personal decisions that the business has to fund.

That's why you need to model both sides, objectively, and really stress-test what it means before making a major move.

And then make sure the business has a well-defined path going forward to get to that outcome.

If you need a framework to plan this out, we're happy to help.

Do I need a lawyer for my estate plan, or can my financial advisor handle it?

You likely need both.

And they need to be talking to each other.

An estate planning attorney creates the documents.

A financial planner then makes sure all those wishes reflected in the documents show up in your accounts and overall financial plan.

And good coordination between the two should save you a whole bunch of time and headaches.

Here are some common disconnects when putting your estate plan together:

👉The trust gets created, but the accounts never get retitled.
👉The will gets updated, but the beneficiary designations still point somewhere else.
👉The documents say one thing. The accounts say another.

We've reviewed plenty of estate plans that looked great on paper but had missed a step in updating accounts that would have completely changed the outcome.

Remember, the goal is to make sure that everything lines up and works together, not just to have some well drafted documents sitting in a binder.

If you want to know whether your current plan is set up right, drop a comment or send me a message.

Happy to take a look.

“Should I put all my retirement savings into my 401(k)?”

Not necessarily.

Here is what you should evaluate.

A 401(k) is one of the best retirement tools available, especially up to your company match.

That match is like free money and it's usually the first place you should save.

But after the match, the decision gets more interesting.

Traditional 401(k) contributions lower your taxes today, but those dollars will generally be taxed as ordinary income when you withdraw them later.

And unlike Roth accounts, you'll eventually be required to take distributions whether you need the income or not.

Forcing you to increase your taxable income (and taxes) on money you might not need.

So how do you decide?

Start with one question:

What tax bracket do you expect to be in during retirement?

If you expect to be in a lower bracket, continuing to fund your traditional 401(k) may make a lot of sense.

If you expect similar or higher tax rates in retirement, you should be looking at Roth accounts or building additional flexibility in taxable accounts.

The goal is twofold. To save as much as you will need AND to save it in the right type of accounts.

That way you can generate the income you need and not give away more than you should in taxes.

In this week's video, we walk through a simple framework for evaluating the proper mix of traditional, Roth, and taxable savings to fund your retirement.

Link in bio if you'd like help running the numbers for your situation.

Is your business actually attractive to private equity?

Right now, the businesses attracting the most buyers have two things in common: recurring revenue and critical services people rely on every day.
Industries like:

• Skilled trades (HVAC, plumbing, pest control, etc.)
• Dental practices
• Managed IT and cybersecurity providers (MSPs)

Without teeth, tech, and toilets, society grinds to a halt.

With these types of businesses:

• Customers come back again and again.
• The services are essential.
• Revenue tends to be predictable.
• Many of these industries are still highly fragmented, making them attractive acquisition targets.

Even if selling isn't on your radar today, it's worth understanding what private equity buyers value.

Those same drivers can help build a stronger, more valuable business whether you decide to sell or not.

What are you going to do with your time after you retire?

Not just "travel" or "spend time with family."

Specifically.

What does a random Tuesday at 10:00 AM look like?

It’s really common to spend years figuring out the money side of retirement and almost no time thinking about that question. And that's okay. But it's worth answering before the day comes. And really fun to talk about.

Because that answer drives almost everything in a retirement plan.

Including how much you actually need and how you will actually spend it.

A retirement built around international travel, country club memberships, dining out every night and season tickets looks very different from one built around gardening, volunteering, and weekly mac and cheese dinner with the grandkids.

Both are amazing.

But they cost very different amounts.

And if you don't know which one you're building, it's hard to know when you're ready.

A few questions worth sitting with:

• What's the one thing you keep saying you'll do "when you have more time?"
•How do you see your “identity” once the job ends?
• What would a really good week look like if work wasn't part of it?
• Five years into retirement, what does a normal Tuesday look like?

I've seen plenty of people retire with enough money and no real plan for their days.

And that can create more problems than you might expect.

The retirees who thrive usually know exactly what they're retiring TO, not just what they're retiring FROM.

If you want help building both the life plan and the financial plan, link in bio.