How I Use My “HSA” as a Secret Retirement Account to Pay for My Medicare Premiums Tax-Free

The Triple-Tax-Advantaged Gem of My Retirement

Throughout my 50s, I diligently maxed out my Health Savings Account (HSA). I knew it was a great way to pay for current medical bills with pre-tax money. But its real power came in retirement. Now that I’m on Medicare, I can no longer contribute, but I can withdraw the money completely tax-free to pay for all my Medicare premiums—Part B, Part D, and my Medigap plan. My HSA has become a secret, dedicated retirement account specifically for my healthcare costs. It’s a triple-tax-advantaged powerhouse: the money went in tax-free, it grew tax-free, and it’s coming out tax-free.

The “IRMAA Cliff”: How to Structure Your RMDs and Roth Conversions to Avoid Higher Premiums

The One Dollar That Could Cost Me Thousands

I learned about the “IRMAA Cliff” from my financial advisor. It’s the income threshold where your Medicare premiums can suddenly double. My Required Minimum Distributions (RMDs) from my IRA were putting me dangerously close to that cliff. We made a plan. Instead of taking out one large RMD at the end of the year, we spread it out. We also carefully timed my Roth conversions to be in years where my other income was lower. By actively managing my retirement income, we’ve been able to stay just below that cliff, saving me thousands in unnecessary Medicare surcharges.

My Guide to Using a “Qualified Charitable Distribution” (QCD) to Lower Your AGI and Medicare Costs

The Charitable Gift That Gave Back to Me

I am over 70 and have to take Required Minimum Distributions (RMDs) from my IRA, which increases my income and my Medicare premiums. I also love to support my local church. My financial advisor taught me about the Qualified Charitable Distribution (QCD). I can now donate directly from my IRA to my church. The donated amount counts toward my RMD, but it is not included in my Adjusted Gross Income (AGI). By using a QCD, I can support the causes I care about while also lowering my AGI, which in turn lowers my Medicare premiums.

The Financial Planner’s “Bucket Strategy” for a Tax-Efficient Retirement on Medicare

My Three Buckets for a Worry-Free Retirement

My financial planner set me up with a “bucket strategy” for retirement, designed to manage my taxes and my Medicare premiums. Bucket 1 is my “cash” bucket, with one to two years of living expenses. Bucket 2 is my “taxable” brokerage account. Bucket 3 is my “tax-deferred” IRA. In a year when the market is up, I can sell some stock from Bucket 2. In a year when the market is down, I can pull from my cash in Bucket 1. This flexibility helps me control my annual income, which helps me control my Medicare premiums.

How a “Medigap Plan G” Acts as the Ultimate “Long-Term Care” Insurance for Acute Events

The Insurance for My “What If” Scenarios

I don’t have traditional long-term care insurance. It was too expensive. But my Medigap Plan G acts as a powerful form of insurance for my biggest financial fear: a catastrophic health event. I know that if I have a major stroke, a bad car accident, or a long battle with cancer, my Medigap plan will cover the unlimited 20% co-insurance from Medicare. It won’t cover a nursing home stay, but it protects my entire retirement portfolio from being wiped out by a single, massive, acute medical crisis. It’s my financial shield.

My Story: How We Budgeted for Healthcare Costs in Retirement (And How Wrong We Were)

The Number We Thought Was Huge, But Was Actually Too Small

My husband and I carefully budgeted for our retirement. We used an online calculator and estimated we would need about $300,000 for our healthcare costs throughout our retirement. We thought that was a huge, conservative number. We were wrong. We didn’t account for the high cost of dental work, the need for hearing aids, or the possibility of needing a few years of in-home care. Our initial budget was a good start, but the real-world costs of aging were much higher than we ever anticipated.

The Unspoken Impact of Medicare Costs on Your “Safe Withdrawal Rate”

The 4% Rule Became the 3.5% Rule

For years, the “4% rule” was the gold standard for retirement. You could safely withdraw 4% of your portfolio each year. But the rising cost of Medicare premiums and out-of-pocket health expenses has changed that math. My financial advisor showed me that after accounting for our projected healthcare costs, a truly “safe” withdrawal rate for us was closer to 3.5%. That half a percent makes a huge difference over a 30-year retirement. Healthcare costs are the single biggest factor that can derail a traditional retirement withdrawal strategy.

A Guide to “Tax-Loss Harvesting” to Offset Gains That Could Trigger IRMAA

The Losing Stock That Saved Me Money on Medicare

Last year, I had to sell some stock that had a large capital gain, and I was worried it would push my income into a higher IRMAA bracket for my Medicare premiums. My financial advisor had a smart strategy. He identified another stock in my portfolio that was at a loss. He sold that losing stock. We were then able to use that “tax loss” to offset my capital gain. This “tax-loss harvesting” technique reduced my net capital gain to almost zero, keeping my income below the IRMAA threshold.

How to Factor in “Dental and Vision” Costs into Your 30-Year Retirement Plan

The Costs We Knew Were Coming

We knew that Original Medicare didn’t cover our teeth or our eyes. In our retirement budget, we created a specific “sinking fund” just for dental and vision care. Every year, we automatically transfer a set amount into this dedicated savings account. This year, we used it to pay for my new glasses and my husband’s dental crown. By planning for these predictable, non-covered expenses as a separate line item in our budget, we are never caught by surprise. It’s our personal, self-funded dental and vision plan.

My Guide to Appealing an “IRMAA” Decision Using a “Life-Changing Event” Form

The Day My Income Changed, and So Did My Premium

I was hit with a high-income “IRMAA” surcharge on my Medicare premium. It was based on my tax return from two years ago, when I was still working. But I had just retired, and my income had dropped dramatically. I downloaded Form SSA-44, the “Life-Changing Event” form. I checked the box for “Work Stoppage.” I attached a letter from my old HR department confirming my retirement date. I submitted it to Social Security. They re-calculated my premium based on my new, lower income. The surcharge was completely removed.

The Unspoken Power of Choosing the “Right” State to Retire In for Healthcare Costs

The Border That Could Save You a Fortune

When my wife and I were deciding where to retire, we looked at more than just the weather. We looked at the cost of Medigap plans. We discovered that because of state regulations, the average premium for a Medigap Plan G in Florida was significantly lower than the exact same plan in New York. We also looked at the generosity of each state’s Medicare Savings Programs. Choosing a state with lower supplemental insurance costs and better programs for low-income seniors can save you tens of thousands of dollars over your retirement.

How to Use a “Deferred Compensation” Plan to Your Advantage with Medicare

The Paycheck I Delayed for a Lower Premium

I had a “deferred compensation” plan at my old job, which meant a large bonus was scheduled to be paid out to me the year after I retired. I knew this one-time income spike would trigger a huge IRMAA surcharge on my Medicare premiums two years later. I worked with my HR department to restructure the payout. Instead of taking it as a single lump sum, they agreed to pay it out in smaller, equal installments over three years. This kept my income below the IRMAA threshold each year, saving me a fortune.

My Guide to Understanding How Your “Provisional Income” Affects Your Social Security Taxes

The Complicated Math That Decides My Tax Bill

I was surprised to learn that a portion of my Social Security benefits could be taxable. It all depends on my “provisional income.” This is a special calculation that includes my adjusted gross income, plus my non-taxable interest, plus one-half of my Social Security benefits. If that total number is above a certain threshold, a portion of my benefits becomes taxable. Managing my provisional income, often by controlling my IRA withdrawals, is a key strategy for minimizing the taxes I pay in retirement.

The Unspoken Financial Risk of a “Medicare Advantage” MOOP in a Bad Health Year

The $8,000 Bill I Hadn’t Planned For

I chose a Medicare Advantage plan because it had a $0 monthly premium. I felt so smart. Then, I had a bad year. I needed a major surgery. I quickly started hitting my co-pays for the hospital, the surgeon, and the physical therapy. By the end of the year, I had paid over $8,000 out-of-pocket before I finally hit my plan’s “Maximum Out-of-Pocket” (MOOP). I learned that the financial risk of a low-premium plan is that one bad year can suddenly cost you a huge, and often un-budgeted, amount of money.

How to Use a “Health Reimbursement Arrangement” (HRA) to Pay for Medicare Costs

The Retirement Perk My Company Gave Me

My company offered a great retirement benefit: a “Health Reimbursement Arrangement” (HRA). When I retired, they set aside a pot of money for me in a special account. I can now submit my receipts for my Medicare Part B premiums and my dental co-pays to the HRA, and they will reimburse me with tax-free money. It’s a powerful tool that helps me bridge the gap and pay for the healthcare costs that Medicare doesn’t cover. It’s a benefit I’m incredibly grateful for.

My Guide to Coordinating Your “Long-Term Care Insurance” Policy with Medicare

The Two Plans That Tag-Teamed My Recovery

I had a stroke and was in the hospital for a week, which was covered by my Medicare. Then, I needed to go to a nursing facility for long-term rehabilitation. I knew Medicare wouldn’t cover this for long. This is when my private “Long-Term Care Insurance” policy kicked in. It started paying the daily rate for my nursing facility stay after a 90-day “elimination period.” The two policies worked in tandem. Medicare covered the initial, acute phase, and my LTC insurance covered the long, custodial phase.

The Unspoken Math of “Self-Insuring” vs. Buying a Medigap Policy

The Bet I Made on My Own Health

I did the math. A Medigap Plan G would cost me about $2,400 a year in premiums. I decided to “self-insure” instead. I took that $2,400 and put it into a dedicated “healthcare savings” account. My bet is that my 20% co-insurance costs in an average year will be less than the premium I would have paid. It’s a strategy for people with a high tolerance for risk. I am saving money now, but I know that one catastrophic health year could make me regret my decision.

How to Handle a “Lump Sum Pension Payout” to Minimize Your IRMAA Exposure

The Payout That Could Have Cost Me Dearly

I was retiring and had the option of taking my pension as a monthly payment or a single lump sum. The lump sum was tempting. But my financial advisor showed me that taking a huge lump sum would create a massive spike in my income for one year. This would trigger the highest possible “IRMAA” surcharge on my Medicare premiums two years down the road. I decided to take the monthly pension instead. It kept my annual income lower and more stable, saving me from a huge, self-inflicted Medicare penalty.

My Guide to Using a “Donor-Advised Fund” for Charitable Giving to Reduce AGI

My Charitable Giving That Also Helps My Bottom Line

I am charitably inclined and also have to take Required Minimum Distributions (RMDs) from my IRA. To manage my income and my Medicare premiums, I use a “Donor-Advised Fund” (DAF). I can make a single, large contribution to my DAF and get the tax deduction in that year. Then, in future years, I can direct the DAF to make grants to my favorite charities. This strategy helps me “bundle” my charitable deductions and control my Adjusted Gross Income (AGI) from year to year, which is the key to avoiding IRMAA surcharges.

The Unspoken Importance of “Tax Diversification” (Roth, Traditional, Taxable) in Retirement

The Three Pockets That Give Me Control

My retirement savings are spread across three different “tax pockets.” I have my traditional IRA (tax-deferred), my Roth IRA (tax-free), and a regular taxable brokerage account. This diversification gives me incredible flexibility in managing my income each year. If I need extra money but want to keep my income low to avoid a Medicare surcharge, I can pull from my Roth IRA tax-free. If I’m in a low-income year, I can pull from my traditional IRA. This tax diversification is the key to controlling my income and my healthcare costs.

How to Handle the Sale of a “Rental Property” or Small Business in Retirement

The Sale That Spiked My Income, and My Premiums

My wife and I sold a small rental property we had owned for years. The profit from the sale created a huge capital gain on our tax return for that year. We were prepared for the capital gains tax. What we weren’t prepared for was the impact on our Medicare premiums two years later. That one-time spike in our income triggered the highest “IRMAA” surcharge. We had to appeal, showing that the income was from a one-time event and was not representative of our normal retirement income.

My Guide to Choosing a “Survivor” Benefit on a Pension and Its Impact on IRMAA

The Choice That Protected My Wife

When I retired, I had to choose a pension option. I could take a higher monthly payment that would stop when I died, or a slightly lower payment that included a “survivor benefit,” which would continue to pay my wife after I was gone. We chose the survivor benefit. It meant our monthly income was a little lower. This not only provided my wife with long-term security, but the slightly lower income also helped to keep us in a lower bracket for our Medicare premiums. It was a choice for her security and our shared financial health.

The Unspoken Power of Delaying Social Security to Maximize Your Benefits

The Waiting Game That Paid Off Big

My financial advisor gave me a powerful piece of advice: delay taking my Social Security until I turn 70. For every year I wait past my full retirement age, my monthly benefit increases by about 8%. This means a much larger, inflation-adjusted, guaranteed income stream for the rest of my life. That larger Social Security check is now the stable foundation of my retirement income. It helps me easily afford my Medicare premiums and any out-of-pocket costs, without having to worry so much about the stock market.

How to Factor in “Inflation” for Both Your Premiums and Out-of-Pocket Costs

The Rising Tide of Healthcare Costs

When I first retired, my Medicare Part B premium was about $100. Today, it’s over $170. My Medigap premium has also gone up every single year. In my retirement budget, I have to plan for healthcare inflation. I assume that my total healthcare costs—premiums and co-pays—will increase by about 5-6% every single year. This is much higher than regular inflation. Factoring in this high rate of medical inflation is a sobering, but essential, part of a realistic retirement plan.

My Guide to Understanding How “Capital Gains” are Treated for Your IRMAA Calculation

The Stock Sale That Counted as “Income”

I sold some stock from my brokerage account to pay for a new roof. I was surprised to learn how this affected my Medicare premiums. The “capital gain”—the profit I made on the stock—was added to my regular income to calculate my “Modified Adjusted Gross Income” (MAGI). That extra income pushed me into a higher IRMAA bracket for the next year. It’s a crucial thing to remember: the income that determines your premiums isn’t just your pension or your IRA withdrawals; it’s your capital gains, too.

The Unspoken Financial “Sequence of Returns” Risk for Your Healthcare Costs

The Bad Luck of a Bear Market at the Wrong Time

The “sequence of returns” risk is a retiree’s biggest nightmare. It means having to sell your stocks during a bear market early in your retirement. This can cripple your portfolio. A major, unexpected health event can trigger this risk. If I had to pay a huge Medicare Advantage out-of-pocket maximum in a year when the market was down 20%, I would be forced to sell my stocks at the worst possible time. This is why having a predictable cost structure, like a Medigap plan, can be a powerful defense against this risk.

How to Use a “Reverse Mortgage” (Carefully) to Pay for Healthcare Costs

Tapping My Home’s Equity for My Health

I was “house rich and cash poor.” Most of my net worth was tied up in my home. I needed a way to pay for my long-term care insurance premiums. After a lot of research and counseling, I decided to take out a “reverse mortgage.” It provides me with a monthly, tax-free payment from my home’s equity. I use this payment to cover my healthcare costs. It’s a complex product and not right for everyone, but for me, it was a way to unlock the value of my home to pay for my health.

My Guide to the “Taxability” of Your Social Security Benefits

The “Tax Torpedo” I Learned to Avoid

I was shocked to learn that up to 85% of my Social Security benefits could be considered taxable income. It all depends on my “combined income” (my AGI plus half of my Social Security). If I take too much money out of my traditional IRA in a single year, it can create a “tax torpedo.” Not only does the IRA withdrawal get taxed, but it also causes more of my Social Security to be taxed. Carefully managing my withdrawals to keep my combined income below the thresholds is a key part of my tax strategy.

The Unspoken “Peace of Mind” Asset: A Well-Chosen Medigap Plan

The Best Insurance Is a Good Night’s Sleep

As a financial planner, I can talk all day about premiums and deductibles. But the most valuable asset my Medigap plan provides me doesn’t show up on a spreadsheet. It’s peace of mind. I sleep well at night knowing that if I get a scary diagnosis tomorrow, my financial life will not be derailed. I know that I will have the freedom to see any doctor I choose and that my out-of-pocket costs will be minimal and predictable. You cannot put a price tag on that feeling of security.

How to Create a “Healthcare” Sinking Fund in Your Retirement Budget

The Savings Account for My Future Self

In our retirement budget, we have a separate, dedicated savings account that we call our “Healthcare Sinking Fund.” Every month, we have an automatic transfer into this account. This is our fund for all the costs that Medicare doesn’t cover. We use it for our dental appointments, our new glasses, and our hearing aid batteries. By building this fund slowly and consistently over time, we are never hit with a large, unexpected healthcare cost that we have to put on a credit card. It’s our planned fund for our unplanned expenses.

My Guide to Understanding How “Municipal Bond” Interest Can Affect You

The “Tax-Free” Income That Wasn’t Totally Free

I invested in tax-free municipal bonds to generate income in retirement. I thought this income was completely invisible to the government. I was wrong. For the purpose of calculating whether my Social Security benefits are taxable, my “tax-free” municipal bond interest is added back in to my “combined income.” This means my “tax-free” income could actually cause more of my Social Security to become taxable. It’s a sneaky interaction that is important to understand when structuring your retirement portfolio.

The Unspoken Financial Strain on a “Caregiving” Spouse

The Unpaid, Full-Time Job of a Caregiver

My wife was diagnosed with early-onset Alzheimer’s. I became her full-time caregiver. This had a huge financial impact that no one talks about. My own ability to work part-time was gone. I had to pay out of pocket for respite care just to get a break. Our food costs went up because I had less time to cook. The financial strain of caregiving is immense and often invisible. It’s a crucial factor to consider when planning for the future. The cost isn’t just the medical bills; it’s the cost to the healthy spouse’s life.

How to Use “Tax-Gain Harvesting” in a Low-Income Year

The Year I Paid 0% Tax on My Profits

Last year, my total income was very low. My financial advisor told me it was a perfect opportunity for “tax-gain harvesting.” We looked at my taxable brokerage account and found a stock that had a large capital gain. We sold just enough of it so that the gain would be taxed at the 0% long-term capital gains rate. We then immediately bought the stock back. This move “harvested” the gain at a zero tax rate and reset my cost basis at a higher level, which will reduce my taxes when I sell it in the future.

My Guide to the “Net Investment Income Tax” (NIIT) and Its Connection to IRMAA

The Surtax That Surprised Me

I have a significant amount of investment income from my brokerage account. I learned that if your Modified Adjusted Gross Income (MAGI) is over a certain high threshold, you are subject to an additional 3.8% “Net Investment Income Tax” (NIIT) on top of your regular capital gains tax. The MAGI calculation that is used for the NIIT is the same one that is used to calculate your Medicare IRMAA surcharges. So, if you are paying the investment surtax, you will almost certainly be paying higher premiums for your Medicare, too.

The Unspoken Power of Working with a “Fee-Only” Financial Advisor Who Knows Medicare

The Advisor Who Worked for Me, Not for a Commission

I knew I needed help navigating my retirement finances. I specifically sought out a “fee-only” financial advisor. This means that I pay them directly for their advice, and they do not earn any commissions for selling me specific products. Because of this, I knew their advice was completely unbiased. They helped me understand how my investment decisions would impact my Medicare premiums. Finding an advisor who is a fiduciary and understands the complexities of Medicare was the best investment I made in my own financial future.

How to Manage Your “Required Minimum Distributions” (RMDs) to Avoid Higher Premiums

The Withdrawals I Have to Take, and How I Take Them Smartly

At age 73, I have to start taking “Required Minimum Distributions” (RMDs) from my traditional IRA. These withdrawals count as taxable income and can easily push me into a higher IRMAA bracket for my Medicare premiums. My strategy is to only take out the absolute minimum required by law each year. I also have the RMD sent directly to my checking account, with federal and state taxes withheld upfront. This careful management of my RMDs helps me keep my taxable income as low and predictable as possible.

My Guide to the “Spousal” Loophole for IRMAA Appeals

The Divorce That Lowered My Premiums

My ex-husband and I divorced last year. The IRMAA surcharge on my Medicare premium was based on our high, joint income from two years ago when we were still married. I was now living on a much smaller, single income. I was able to appeal my IRMAA determination. Divorce is considered a “life-changing event.” I submitted a copy of my divorce decree and my most recent tax return showing my new, lower single filing status. They recalculated my premium based only on my own income, saving me hundreds of dollars a month.

The Unspoken Financial Impact of a “Gray Divorce” on Medicare Costs

Suddenly Single at 70, With a Whole New Set of Bills

My parents divorced after 40 years of marriage. It had a huge, unexpected financial impact on their retirement. My mom, who had been on my dad’s retiree health plan, suddenly had to enroll in Medicare on her own. Because she didn’t have enough work credits, she had to pay a high premium for Part A. My dad’s IRMAA calculation changed now that he was filing as “single.” A “gray divorce” can completely upend a carefully planned retirement, and it requires a whole new look at each person’s individual Medicare costs.

How to Create a “Tiered” Retirement Plan Based on Different Health Scenarios

My “Go-Go,” “Slow-Go,” and “No-Go” Years

My financial planner helped me create a “tiered” retirement plan. We have a budget for the “Go-Go” years (my 60s and 70s), with more money for travel and hobbies. We have a different budget for the “Slow-Go” years (my 80s), where travel costs decrease but my out-of-pocket health and dental costs are projected to increase. And finally, we have a plan for the “No-Go” years, which anticipates the potential high cost of long-term care. This tiered approach helps us create a realistic financial roadmap for the different phases of our retirement.

My Guide to Understanding Your “MAGI” (Modified Adjusted Gross Income) – The Most Important Number

The Number That Controls My Costs

I learned that in retirement, the most important number in my financial life is my “MAGI,” or Modified Adjusted Gross Income. This one number controls so many things. It determines if my Social Security benefits are taxable. It determines if I have to pay the Net Investment Income Tax. And most importantly, it determines if I have to pay a high-income “IRMAA” surcharge on my Medicare premiums. My entire financial strategy in retirement is now built around one goal: keeping my MAGI as low as legally possible.

The Unspoken Financial Wisdom of “Buying Up” to a Better Medigap Plan Early

The Small Extra Cost for a Lifetime of Security

When I turned 65, I was in perfect health. I could have chosen a “high-deductible” Medigap plan with a very low premium. Instead, I chose to “buy up” to a comprehensive Plan G. The premium was higher, but I knew that this was my one and only chance to get that plan with no health questions asked. I was buying insurance for my future, sicker self. That decision to pay a little more when I was healthy has given me incredible peace of mind now that I am older and have more health issues.

How to Handle the Sale of Your “Primary Residence” in Retirement

The Sale That Didn’t Cost Me (in Premiums)

My husband and I decided to downsize and sell our family home. We made a large profit from the sale. We were worried that this huge capital gain would be counted as “income” and trigger a massive IRMAA surcharge on our Medicare premiums. We were so relieved to learn about the “primary residence exclusion.” Because we had lived in the home for at least two of the last five years, a huge portion of the capital gain ($500,000 for a married couple) was completely excluded from our taxable income.

My Guide to the “60-Day Rollover” Rule and How Not to Mess It Up

The Clock That Almost Cost Me My Retirement Savings

I decided to move my 401(k) from my old employer into my personal IRA. They sent me a check for the full amount. I learned I had only 60 days to deposit that check into my new IRA account. If I missed that deadline by even one day, the entire amount would be considered a taxable distribution, which would have been a financial catastrophe. It was a stressful two months. I hand-delivered the check to my financial advisor to ensure it was deposited correctly and on time. It’s a deadline you absolutely cannot miss.

The Unspoken Financial Case for “Preventive” Care

The Check-Up That’s an Investment

I use every single free preventive care service my Medicare offers. I get my annual wellness visit, my flu shot, and all my recommended cancer screenings. I do this not just for my health, but for my financial future. A screening that catches a polyp before it turns into colon cancer is the best financial investment I can possibly make. It’s the difference between a simple, low-cost procedure today and a six-figure battle with cancer tomorrow. Preventive care isn’t a cost; it’s the highest-return investment in my retirement portfolio.

The #1 Financial Blind Spot for New Retirees

The Cost We All Underestimate

The number one financial blind spot for new retirees is the true, long-term cost of healthcare. We meticulously plan for our mortgage, our travel, and our groceries. We often fail to realistically plan for the relentless, year-over-year inflation of healthcare costs. We underestimate the cost of dental work, hearing aids, and, most importantly, the catastrophic potential cost of long-term care. Underestimating healthcare costs is the single biggest threat to an otherwise well-planned retirement.

How to Align Your “Investment” Strategy with Your “Healthcare” Strategy

The Two Plans Must Talk to Each Other

My investment strategy and my healthcare strategy are not two separate things; they are two sides of the same coin. Because I chose a Medigap plan with a higher, predictable premium, I know I need my investment portfolio to generate a certain level of steady income to cover that fixed cost. If I had chosen a Medicare Advantage plan, my portfolio would need to have more cash on hand to cover a potential, large out-of-pocket expense in a bad year. Your healthcare choice must inform your investment choice.

My Story: The Year a Roth Conversion Saved Me from an IRMAA Nightmare

The Smart Move That Lowered My Future Taxes and Premiums

I was 68 and had a year where my consulting income was very low. My financial advisor said it was the perfect time for a “Roth conversion.” We converted a portion of my traditional IRA into a Roth IRA. I had to pay income tax on the converted amount that year, but now that money will grow and can be withdrawn completely tax-free for the rest of my life. This means that in my 70s and 80s, I can pull from my Roth account for extra money without it counting as income and without it affecting my Medicare premiums.

The Unspoken Power of a “Joint” Financial Plan with Your Spouse

Our His-and-Hers Retirement, Our One Shared Plan

My husband and I have always had our own separate retirement accounts. But when it came to planning for retirement, we knew we had to have one, single, joint financial plan. We looked at our combined Social Security benefits. We looked at our combined healthcare costs. We made decisions about our Medicare plans together. A health crisis for one of us is a financial crisis for both of us. A successful retirement requires a shared vision and a joint strategy that accounts for both of our needs.

The Ultimate “Financial Prepper’s” Guide to Retiring on Medicare

The Financial Go-Bag for My Retirement

I’m a “financial prepper.” I like to be ready for anything. My guide to retiring on Medicare is built on preparation. Step 1: Have a robust emergency fund with at least one year of living expenses in cash. Step 2: Choose a healthcare path (Medigap or Advantage) that matches my risk tolerance. Step 3: Have a separate “sinking fund” specifically for the dental and vision costs Medicare doesn’t cover. Step 4: Have a long-term care plan, whether it’s insurance or a dedicated investment account. This preparation gives me the ultimate financial peace of mind.

Why Your “Health” is Your Most Important Financial Asset in Retirement

The Asset I Can’t Put on a Spreadsheet

I can track my stock portfolio and my home’s value to the penny. But I’ve learned that my most important financial asset in retirement is my health. Every day that I am healthy is a day I am not incurring huge medical bills. Every dollar I spend on healthy food or a gym membership is a better investment than any stock I can buy. In retirement, your health and your wealth are completely intertwined. Protecting your health is the single best way to protect your nest egg.