Ep 58: Mailbag – Gifts to Kids, Long-Term Care, Retirement Age

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Today we’re diving into the mailbag to answer questions from listeners just like you. We’re taking questions about retiring prior to the age of qualifying for Medicare, gifting to your kids and grandkids, having multiple IRAs and long-term care.

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Show Notes

Today we’re opening up the mailbag to answer your questions. Let’s jump into it.

Buddy is ready to retire but won’t be old enough for Medicare for another six months. Should he just stick it out until then?

It’s OK that you’re ready to retire. You can’t get Medicare until age 65, and paying for private health insurance can be very expensive. The answer to your question is it depends.

Have you saved enough? We work with a lot of clients who retired early based on what they had in their retirement savings and other savings. If you’ve saved enough, then you can bridge the gap.

Ruth is not going to spend through her savings during her lifetime, so she’ll probably leave a lot to her kids. They’ll probably be in their 40s or 50s when that happens. She thinks they could use the money now in their 20s and 30s to help with student loans and mortgages. Should she start giving them money now?

This is a really good question, and we’re starting to see this more and more. Ruth is a good saver and has been careful with her money. You need to verify your plan. If your plan is solid, then yes, you are OK to help them now.

AJ has seven different IRAs at different investment companies. It’s been a lot to keep up with, but he likes being diversified. That’s a good idea, right?

Here’s a straightforward answer. No, it doesn’t mean you’re diversified. You could have money in seven different locations, but they could be in the same stocks.

You should consider consolidating all those IRAs into one IRA. It’s called a rollover. We help clients do this every day, and it’s a non-taxable event.

We also discuss nursing home care options during today’s show. Listen to more of our conversation in the podcast or use the timestamps below to jump to a specific section.

Use the timestamps below to jump to a specific section. 

[2:08] – Article: Planning to retire early

[5:42] – Not old enough for Medicare

[10:55] – Helping kids early

[19:14] – Different IRAs

[25:59] – Nursing home care

Thanks for checking out this episode. We’ll talk to you again soon.

 

While you might have different funds, if they’re all growth funds, then you could potentially still be owning all of the same stocks in those different IRAs.

-Scott Sierens