Get smart with your money
Today’s top story: How to save money on health care. Also in the news: How to work from anywhere like a boss, one person’s homebuying journey in Seattle, and why employers check your credit report.
How to Save Money on Health Care
The three questions you need to ask.
How to Work From Anywhere Like a Boss
Reliable wifi is key.
How I Bought a Home in Seattle
One person’s homebuying journey.
Why Employers Check Your Credit Report
Lookimg for financial distress markers.
Americans on average spend more on health care than they do on groceries, according to the Bureau of Labor Statistics’ latest Consumer Expenditure Survey. Saving money on medical care is a lot tougher than saving money on food, however. Two big culprits: opaque pricing and ever-changing insurance company rules about what’s covered and what’s not.
For help in cutting costs, I turned to a uniquely qualified individual: Carolyn McClanahan, an emergency room doctor turned certified financial planner. McClanahan, director of financial planning at Life Planning Partners in Jacksonville, Florida, frequently speaks at industry conferences, teaching other advisors how to help their clients best navigate the health care system.
In my latest for the Associated Press, the three questions everyone should ask to save money on health care.
Dear Liz: You’ve been writing about how much to save for retirement, including how much of our incomes we should aim to replace with our savings. Two additional reasons to shoot for a higher replacement rate is the possibility that medical needs will be higher the older one becomes (even with Medicare and a supplemental plan) and the possibility that long-term care will take a huge bite out of savings if one self-insures for this. My wife and I took these into account when we saved as much as we could afford during our working years.
Answer: Many people erroneously believe that Medicare will take care of their healthcare costs in retirement. In reality, Medicare generally pays for about 60% of typical healthcare services, according to the Employee Benefit Research Institute. Fidelity Investments estimates the typical couple at age 65 can expect to spend $245,000 on healthcare throughout retirement. That figure doesn’t include the costs of nursing homes or long-term care, which also aren’t typically covered by Medicare. Anticipating and saving for these expenses was a smart move on your part.
Today’s top story: How to make your retirement savings last. Also in the news: Why it pays to file your FAFSA early, how to survive rising health care costs, and how the Rule of 72 can help you build your retirement savings.
The Easy Way to Make Your Retirement Savings Last
Stretching your savings.
It Pays to File Your FAFSA Early
You could receive twice as much financial aid.
10 Ways to Survive Rising Health Care Costs
Keeping costs in check.
How the Rule of 72 Can Help You Build Up Your Retirement Nest Egg
Building your savings.
Is a FICO Score the Best Credit Score?
Does your FICO score tell the whole story?
Today’s top story: How student loans can hurt your mortgage approval chances. Also in the news: How to keep your health care costs in check, why identity thieves love millennials, and easy retirement plans for the self-employed.
Can Student Loans Hurt Your Mortgage Approval?
Pay attention to your debt-to-income ratio.
7 Ways to Keep Your Health Care Costs in Check
How to rein in your medical spending.
ID thieves love millennials.
A social media created monster.
4 easy retirement plans for the self-employed
Don’t miss out on the tax benefits.
MasterCard tries out ‘selfie pay’ for online purchases
Civilization was fun while it lasted.
Today’s top story: How to build credit faster. Also in the news: Debunking financial planning misconceptions, the dangers of overdraft fees, and why too many people are underestimating post-retirement health care costs.
Will More Credit Cards Help Me Build Credit Faster?
Proceed with caution.
6 Financial Planning Misconceptions — Debunked
Everyone can use a little help.
How to Avoid Paying Your Bank $70 to Borrow $6 for 6 Days
The perils of overdrafts.
Too Many Underestimate Healthcare Costs In Retirement
Planning ahead realistically is crucial.
When To Declare Bankruptcy
When to make one of life’s most difficult decisions.