PANEL ONE: EMERGENCY FUNDS AND RISK
01.Core Concepts
MANAGEMENT (2 OF 2) • Risk Management • One method is to review risks by category. • Health-related risks • Portfolio-related risks • Other risks PANEL ONE: EMERGENCY FUNDS AND RISK MANAGEMENT HEALTH-RELATED RISKS (1 of 2) • Potentially high costs of health care and long-term care can be major wildcards in the retirement. • Medical expenses • Medicare is the main health care coverage for those age 65 and older. • Traditional Medicare leaves gaps in coverage. • Careful exam of all Medicare options is needed (Advantage vs Supplements). • Long-term care services • Those needing care will need it on average for three years. • Services can run $25,000 to over $100,000 per year. • Medicaid is by far the largest source of long-term care funding. • Long-term care insurance or policy riders can be purchased. • Self-insuring (paying out of pocket) doesn’t always fit a retirement budget.