Preparing for Health Challenges Now
Life is unpredictable, and sometimes unexpected health issues can throw a wrench into our financial plans. Whether it's back pain impacting your mobility, post-stroke rehabilitation leading to specialized care, or chronic conditions like Parkinson's Disease or Multiple Sclerosis, the associated costs can quickly become overwhelming. Not only are you left to face the need for care, you're tasked with the responsibility of finding a way to pay for it.
While many rely on insurance, it's important to realize limitations. As one of the major aspects of the planning and services we provide to our clients, reviewing insurance coverage is one of the most complex. Co-pays, deductibles, and out-of-pocket expenses can add up quickly, especially for specialized or long-term care. Helping guide my clients on all of their life's happenings, I've witnessed firsthand how the costs of even seemingly manageable diagnoses can derail financial security.
However, taking proactive steps today can significantly ease the burden in the future. Here are some key tips:
1. Explore alternative care options: Consider facilities that provide rehabilitation as a focus; not as a secondary method of care. Often, their personalized and holistic approach yields better results at a lower cost compared to traditional healthcare systems with high insurance overhead.
2. Utilize Health Savings Accounts (HSAs): HSAs offer a triple tax advantage: contributions are tax-deductible, grow tax-free in various investment vehicles, and are distributed tax-free when used for qualified medical expenses. I am a huge proponent of funding accounts that reward you today, tomorrow, and into retirement. This makes them ideal for building a dedicated healthcare fund. You probably won't hear other advisory firms touting these types of accounts because they don't understand the mechanics of how they work. It's a shame that more education and resources aren't devoted to spreading the word on how impactful an HSA can be when it's a part of your overall planning.
3. Budget realistically: Factor in potential medical expenses when planning your budget. Consider setting aside an emergency fund specifically for healthcare needs. I see a ton of mistakes made here. The biggest question is, how much do I need? The answer to this is, it depends. I'm not a fan of cookie-cutter planning so I take a customized approach to helping each person formulate a plan that fits into their budget, needs, and specific goals.
4. Invest in your health: Preventive care and a healthy lifestyle can significantly reduce future healthcare costs. Prioritize good nutrition, exercise, and regular checkups. It may be a challenge based on how busy life has become for us all. Sometimes an accountability partner can be just the trick to making sure we're doing all the things we outline. That could be a friend, family member, doctor, trusted advisor, or someone else you can count on to hold you to it.
5. Seek professional guidance: A financial advisor can help you assess your risks, create a personalized plan, and navigate the intricacies of HSAs and other financial tools. You'll want to be sure you're working with someone you can trust and that you relate to. The last thing you want is to work with a planner who provides you with a plan that feels forced. You'll regret it and so will your consultant. I suggest doing some research, following some of their content then interviewing that person to be sure it's the right fit.
Remember, even small steps taken today can significantly impact your financial preparedness for future health challenges. At Monarch Wealth Management, we're passionate about empowering individuals to achieve financial well-being and navigate through unforeseen circumstances. The one thing I can say about a plan is that it will change. Many times life will head off in a direction you couldn't ever have imagined. When that happens, your plan should adapt to those changes. We offer comprehensive financial planning, investment strategies, and personalized guidance tailored to your unique needs.
Ready to feel more confident about your financial future? Contact me, Constantine, from Monarch Wealth Management. Reach out today for a consultation. Let's work together to ensure your health and financial wellness remain a top priority.
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Constantine J Kitrinos, CPFA
Managing Partner | Financial Advisor
Monarch Wealth Management, LLC |
1688 Monroe Avenue, Rochester, NY 14618
Office: 585.484.1400 | Fax: 585.484.1414 | Toll-Free: 800.480.1580