Goditi il podcast di questa settimana!—that’s “Enjoy this week’s podcast” in Italian, as I’m heading to Florence, Italy, for a family vacation! Hey everyone, it’s Tony Leonardi, CFP® and author of A Smarter Way to Retire - 10 Steps Towards a Confident Financial Future. In this week’s A Smarter Way to Retire podcast, we’re diving into healthcare planning for a long, healthy retirement—think 80, 90, or even 100+ years. As I share these tips, I’m packing for a trip with my parents, wife Lori, sister, nephew Michael, and cousin Janet to explore Tuscany’s winding roads and amazing food. Follow me on Instagram (@TonyLeonardiCFP) for pics and videos from Florence!
Healthcare costs are a top concern for retirees. Fidelity estimates a 65-year-old couple retiring in 2025 needs $315,000 for healthcare, covering Medicare premiums, copays, and out-of-pocket costs like dental, vision, and hearing aids, but not long-term care (web:5). With lifespans extending, those costs could double. My book, A Smarter Way to Retire, emphasizes our planning process to model these expenses and secure your future. Ready to see how healthcare fits into your retirement plan? Book a complimentary consultation at LeonardiFamilyWealthcare.com/assessment or grab my no cost e-book at LeonardiFamilyWealthcare.com/ebook. Let’s explore five strategies to stay ahead, inspired by real client examples.
Why Healthcare Planning Matters
Healthcare costs can derail even a solid retirement plan. A client with a $4 million portfolio faced a 69% success rate for a 35-year retirement due to unplanned healthcare expenses. Through our planning process, we added a Health Savings Account (HSA) and long-term care insurance, boosting their success rate to 88%. Healthcare planning isn’t just about dollars—it’s about peace of mind for travel, family, or legacy. Without a plan, you risk out-of-pocket expenses or Medicaid reliance. Our planning process, which includes our AI-powered smart planning software, evaluates scenarios to align healthcare with your goals, ensuring flexibility for life’s surprises.
5 Strategies for Healthcare Planning
Planning for healthcare is like navigating a winding Tuscan road—you need a clear map to avoid detours. (I might not mind getting lost on my Tuscan wine tour this week, though!) Our planning process, combining my CFP® expertise, advisor collaboration, and smart planning software, helps to ensure your plan fits your unique needs. Always work with a CFP® professional and insurance advisor for tailored solutions. Here are five strategies:
- Health Savings Accounts (HSAs)
HSAs offer triple tax benefits: contributions are tax-deductible, growth is tax-free, and withdrawals for medical expenses are tax-free. In 2025, contribution limits are $4,300 (individual) or $8,550 (family) (web:5). Start early, as these limits aren’t huge. A client maxed their family HSA at $8,550 annually, building $150,000 over 10 years. Our planning process showed this covered 40% of their healthcare costs, boosting their success rate to 85%. HSAs are ideal if you have cash flow and time to save.
- Long-Term Care Insurance
Nursing home costs can hit $100,000–$250,000 annually (web:8). A client with a $3 million portfolio added a $200,000 long-term care policy, preserving their nest egg. Our planning process balanced premiums and coverage, maintaining an 87% success rate. Options vary, and you don’t need to cover the full risk—insuring half can save your family significantly. Some policies even pay out like life insurance if unused, addressing concerns about “wasted” premiums.
- Medicare Optimization
Medicare starts at 65, covering hospital stays (Part A), doctor visits (Part B), and prescriptions (Part D), but gaps like dental, vision, and hearing aids ($1,000–$5,000/year per person, web:8) add up. Part B premiums $150/month for Medigap, web:5), maintaining their 90% success rate. Compare Medigap plans (A–N) or Medicare Advantage, but watch for network limits. Our process helps weigh trade-offs.
- Tax-Efficient Withdrawals
Diversifying your account types (taxable, tax-deferred, tax-free) lets you withdraw from Roth IRAs or HSAs for medical expenses tax-free. A client with a $5 million portfolio used Roth withdrawals for healthcare, avoiding tax hits. Our planning process projected an 18% tax reduction over 30 years, reinforcing last week’s tax diversification tips.
- Emergency Fund for Healthcare
Keep 1–2 years of medical expenses in a liquid account (savings, checking, or short-term CDs). A client set aside $50,000, ensuring flexibility for unexpected costs. Our planning process confirmed their 89% success rate. Combining strategies—like HSAs and long-term care insurance—can boost success rates, as seen with a couple who went from 75% to 92%.
Take the Next Step
Ready to plan for healthcare costs? Our planning process starts with a complimentary one-hour consultation. I’ll review your portfolio, healthcare needs, and goals like travel or legacy. Using our smart planning software as part of our process, I model numerous scenarios to optimize your retirement’s success rate. A client with a $3 million portfolio added an HSA to hit 90% success. Book your complimentary consultation at LeonardiFamilyWealthcare.com/assessment or grab my no cost e-book at LeonardiFamilyWealthcare.com/ebook. Sharing details can feel daunting, but as a CFP® professional, I’m here to earn your trust.
Grazie per aver ascoltato e ci vediamo la prossima settimana!—that’s “Thanks for listening and we’ll see you next week” in Italian. Join me next Friday, October 17, for legacy planning and estate strategies on the A Smarter Way to Retire podcast. Follow me on Instagram (@TonyLeonardiCFP) and Facebook (@LeonardiFamilyWealthcare) for updates from Florence, and subscribe on Spotify, Apple Podcasts, or YouTube (YouTube.com/@LeonardiFamilyWealthcare). Leave a review—it helps others find us! Plan smart, retire happy!