Erin: Jordan, hello. So good to see you. Let’s talk through five retirement costs that keep climbing. Check out this article from AARP. Rising costs can throw a monkey wrench in anyone’s well-laid plans. Preparing now can help you build and protect your nest egg. So, the first expense we have, of course, is health care. This can be one of the most expensive and variable rates that you have in retirement. And we have to keep in mind that Medicare doesn’t cover everything.
Jordan: Yeah. Health care costs we’re going to need at some point in our life. Whether that’s going to the chiropractor or needing some medical assistance. The best thing we can do to kind of prepare for that is create an HSA: health savings account. You get tax deduction when you put money in. It’s growing tax deferred. If you take it out for qualified medical expenses, it’s tax-free.
It’s a great tool that I recommend everyone start early to kind of grow that nest egg because you can use that now and or you can use it for Medicare premiums in the future. A great way to coverage two things with one, but also if you have some questions about Medicare or kind of what they don’t cover and do cover.
We have an entire Medicare team that can help you answer those questions, reach out to us. We’re happy to be of assistance.
Erin: Yeah, Ethan is the best. He’s such a great resource to have on hand there.
All right, next we have home modifications for aging in place. According to AARP, three quarters of adults age 50 plus want to stay in their current home as they age.
Jordan: Yeah, I actually just visited a client last week and she made some modifications to her home and making it everything on one level, move kind of bedroom closer to the front door. People don’t want to move after 30, 40 years potentially in that house. So they want to spend money to make it kind of maybe uh accessible on one level or make sure things are easily to get different things. So we want to make sure that we prepare for those costs to modify the house to make sure they can sustain living there. Because no one wants to be forced to move or go into some uh kind of facility in the future if they could stay at home. So we got to plan for those extra costs.
Erin: Next is one that I’ve certainly seen on the rise. Car expenses.
Jordan: It’s expensive. I mean to maintain a car these days, oil changes, repairs, even if you want to buy a new car, it’s like, oh my goodness, inflation really is hit. And then we got gas prices right now, you know, rising. A lot of people are hit from many different angles. So we have to put that as part of your plan. How do we kind of plan for the inflation on car expenses or buying that new car in the next 5, 10, 15 years, but things that need to be part of that plan so you’re not blindsided when those expenses rise.
Erin: Also, you know, a lot of retirees try and pay off their mortgage. Something though that we can’t control, rising home insurance premiums, right? If they’re also rising almost exponentially year after year. How do you prepare for that?
Jordan: Yeah. Well, what I think what a lot of people get complacent. They just pay the same company year after year after year, really for decades. So, we want to make sure that you kind of compare and contrast prices. I believe every year you should get two or three quotes and say, “Hey, if I’m paying this and this company’s going to charge me this, maybe that’s that time to switch. Make sure you have the same coverage or very close to coverage, but always reviewing that because sometimes they keep on raising costs and people don’t catch it and they can be paying this for the same amount of coverage over here. So, you need to get that reviewed because that could literally save you tens of thousands of dollars over time.
Erin: And then last, we have relocation costs. A lot of retirees want to retire either, you know, to family or to a specific location and moving costs can vary widely. Jordan, I’ve moved a lot and I can’t think of a move I’ve had that was less than $7,000.
Jordan: Unless you have a lot of grandchildren that want to carry everything and drive across the country across the town. We got to plan for this because it can cost thousands of dollars. You want to make sure also you protect your items on that move so they don’t break. But these are things that we got to plan for. Not just the comparing the cost of the house, we also compare the tax impact if you do move to a different state, but also got to look at those relocation costs because all these things add in and people don’t usually look at this on the surface. So, we want to dig deep and have a plan. No matter what happens, you know, you have the assets to take care of it and you’re not going to be blindsided.
Erin: Right. Exactly. And that is the real benefit I feel Jordan to having a plan and working with somebody like you who has lived in these waters and this is where your expertise comes into play. If somebody would like to talk through having a plan that accounts for all of these rising costs, what’s the best way to reach you?
Jordan: Yeah, we’re going to plan for these costs but also for other costs because we believe in making memories and want you to make every second count. So these are kind of the not the funnest costs but we want you to also have a buffer so you can enjoy life. So to start that conversation, start to enjoy life, start to have a plan, call our main number, 847-499-3454.
We’ll look forward to putting a plan together and giving you peace of mind that you deserve.
Erin: Great, Jordan. Thank you. And for everyone who’s watching us on YouTube, please take the time to like and subscribe. For everybody who’s watching, stand by for the QR code. Jordan, thank you so much.
Jordan: Thanks, Erin.
