I still remember the first bad financial decision I ever made. My seven-year-old buddy told me that if I lent him a few dollars, he would pay me back ten a few weeks later. Unfortunately, he forgot all about his debt, and I was left without my allowance. Although it might seem like a silly example, bad financial decisions like that one plague adults everyday. I have had my fair share, and so I decided to create a blog dedicated to helping you to invest your money properly. Before you take your hard-earned money and throw it at a cause, think about the advice on my website to make a great decision.
For most people who want to retire long before the traditional age, healthcare coverage is a big concern. In fact, healthcare costs in the United States often make this one of the biggest concerns for people of all ages. But you can still retire early and manage your healthcare costs. Want to know how? Here are five workable strategies anyone can try.
1. Use a Partner's Insurance. If only one of you plans to retire early — of if you stagger your work obligations — you may be able to remain on your partner's insurance policy through their employer.
2. Get Part-Time Work. Many early retirees plan to continue to work part-time in some capacity. This is excellent news if you're looking for health insurance because you can find many employers who provide coverage for those working about 20 hours per week. Look for this in many large U.S. retail chains as well as local banks and government agencies.
3. Use an HSA. Health Savings Accounts are a good way to prepay medical care expenses throughout your lifetime. You can generally open and contribute to an HSA any time you have insurance with a high deductible (and a few other requirements). Money put aside in this account is not taxable and can usually be kept on ice for as long as you like. When you retire, combine this account with a high-deductible or minimal-coverage plan.
4. Use Tax Subsidies. Under the current healthcare laws, low-income earners can purchase insurance from their state's marketplace and receive a subsidy from the government to pay for part of the premium. You will need to learn your state's subsidy thresholds and keep your family income under them in order to qualify. But many retirees can do so without too much fuss.
5. Look for COBRA and Retiree Coverage. Many employers are required to offer you up to 18 months of health insurance coverage when you leave. Although you don't get the subsidized rate, it is a good place to start. In addition, look for a large employer — such as public agencies or large international companies — that offers retiree health insurance options.
Figuring out how to handle healthcare costs in a way that makes early retirement possible is a challenge. But you can meet this challenge with a little "out of the box" thinking. To learn more, consult with a financial planner who works with early retirement strategies.
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