Healthcare in Retirement - Mutual Funds can be very effective

The High Cost of Healthcare

It is no secret that healthcare expenses have grown astronomically over the past two decades, and there is is no end in sight to this trend. This means that the average 55 year old male living to 88 can expect to incur roughly $370,000 in healthcare expenses throughout his retirement (HVS Financial). Unfortunately, few people, because they have spent their working lives enrolled in employee-sponsored plans, are prepared to meet the financial obligations of what will likely be the single largest expense in retirement.

In fact, it is estimated that most individuals will end up paying for approxiamtely half of their overall healthcare costs out of their own pockets.

What about Insurance?

Most Investors fail to realize that Medicare only covers roughly half of all health-related expenses while private insurance is costly and does not address every need.

The First Step to Taking Control

Your personalized HealthView Report is the first step toward meeting this challenge. It provides the personalized healthcare cost information needed for you to manage your financial future.

Paying For Healthcare in Retirement Out-of-Pocket

The following table shows how much it will cost an individual to pay for healthcare costs in retirement based on an annual 2% rate of return. The healthcare expenses are expressed in future dollars and based on a 55 year old male, retiring at 65, and living to 88. The male is in good health and has Medicare A, B, D, and Gap coverage. He makes less than $85,000 per year and lives in Ohio (close to national average).

Paying For Healthcare in Retirement Using a Mutual Fund

The below table details historic year-by-year performance of INSERT MUTUAL FUND NAME HERE (ABCDX).The use of a mutual fund can be extremely beneficial when planning for retirement due to the rate of return but also the lack of withdrawal limits. The historic returns below average out to a return of 11.68%, which is more than 9% higher than a CD rate.

Investing on Your Own versus Investing in a Mutual Fund

Funding your retirement at 55 years old is substantially less difficult when investing in a proven mutual fund. Opting to invest in INSERT MUTUAL FUND NAME HERE (ABCDX) may save an investor up to $202,750.

The Cost of Waiting

Start saving early and the power of compounding makes it simpler to accumulate assets.

The longer you wait to get started, the more you must contribute. The table below reflects the investment required for a mutual fund depending on the age at which you chooses to invest.

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