Learn Asset Protection Planning
Webinar – On Recording

                If you want to learn the A, B, Cs of asset protection planning, you can sign up for the webinar I’ll be doing by clicking on the following link:


                Who should attend? Advisors who have or want to have clients with money, and advisors who have money and want to learn how to protect their own assets.

Health Care Costs–The Elephant in the Room in Financial Planning?

As we are building out the robust run out of money application to the OnPointe Risk Software, it struck me that factoring in “all” healthcare costs is something that doesn’t get the proper attention in other software I’ve seen. Most software will allow for an input where advisors can manually enter an amount that a client will spend on health care expenses in retirement (a total guess). The OnPointe Risk Software will calculate a real world estimate for what it will be for the average consumer in retirement.

2016 Retirement Health Care Cost Data Report©

HealthView Insights recently rolled out their health care cost report and it’s not pretty.

To download the 16-page report in PDF (no signup form required), click on the following link: www.strategicmp.net/retirement-health-care-cost-report

Total projected health care premiums (Parts B, D, and supplemental insurance) for a healthy 65-year-old couple retiring this year are expected to be $288,400 in today’s dollars ($435,472 in future dollars). If out-of-pockets such as deductibles, copays, hearing, vision, and dental are included in the calculation, expenses in today’s dollars are expected to be $377,412 ($567,903 in future dollars).

The above numbers should alarm both advisors and their clients. But what’s worse is if you look at the EBRI Retirement Study, it’s really alarming. Over 80% of American retirees have less than $250,000 in savings. Over 85% of current American workers have less than $250,000 saved for retirement.

Healthcare Inflation

HealthView projects health care inflation to average slightly over 5.1% annually for the next 20 years.

What about Today’s Average 45-Year-Old Couple?

The Report indicated that their total out-of-pocket health care costs in retirement will be $1,614,712!

There are too few advisors sitting down to have the difficult discussion with clients about health care costs in retirement.

How are clients going to pay for their health insurance costs in retirement?

How much of their retirement income will have to go towards just paying medical bills?

How will health care costs affect their retirement lifestyle?

What are financial planners and insurance agents doing today to send a wake-up call to clients so they will start saving more money for retirement?

I highly recommend every reader download the report so it can be used when having the sobering discussion with clients about how much they need to save for retirement and how health care costs will affect their ability to retire in the manner they’d like. Most will have to adjust or significantly adjust their plans once the true costs of healthcare are factored into the retirement puzzle.

Roccy DeFrancesco, JD
144 Grand Blvd
Benton Harbor, MI 49022