Arka Financial Services

Medicare driven Retirement?

Employer provided medical insurance is the most attractive incentive for people to work till they reach the age of 65, when they become eligible to claim Medicare.

If the younger spouse is already retired or has never worked, the employed spouse may continue to work even after crossing 65yrs, till the non-working spouse becomes eligible for Medicare.

But should the eligibility for Medicare decide when one would like to retire? Are there no other options if one wants to retire sooner?

There's medical insurance available in the market, as per the Affordable Care Act (also known as Obamacare), which can be purchased in the marketplace. There are four different levels of this insurance, Bronze, Silver, Gold, and Platinum, depending on the premium paid, out of pocket maximum, and few other variables. The premium is discounted depending on the income (MAGI) during a year. It could be as low as zero if the income is substantially low.

Because we are used to the medical insurance provided by the employer, purchasing the medical insurance is considered as an additional burden and unnecessary expense.

Additionally, only Plan A of Medicare is free, and one must purchase Plan B, plus Plan D or Plan C and Medigap.

If we consider expense towards medical insurance as any other living expense we incur, that mental block gets removed.

All that one should consider is how much taxable income they may have from sources other than the wages and bonus if they retire and whether they can afford to pay for the medical insurance. This makes the decision on retirement age much easier.

A financial planner like me can assess the financial situation and provide guidance on whether one can financially afford to retire early and enjoy the life undertaking activities those give more pleasure.

Free Informational Webinar on "Estate Planning Explained".

Date: July 12, 2025.
Time: 9:00am CST.

Will, Trust and What Else?

Estate Planning is essential for everyone, as it not only facilitates the transfer of wealth after death but also provides protection during unexpected events in life.

(Please note that this free webinar aims to raise general awareness and does not involve the sale of any services or products.)

Join meeting on Teams

Challenges of Uncertain Times

Of late, the stock markets have been very volatile. The employment remains strong, and the unemployment is dropping. The economy is doing great, but the inflation is sticky.

In addition to these, the uncertainty of potential tarrifs, deportation of the illegal immigrants, and reduction of Federal work force by the 2nd Trump term due to kick-off in less than 10 days, can exasperate the volatility.

The Fed itself is non-committal on the number of rate cuts and is playing a wait and watch game. Some people comment that the situation is getting out of control for the Fed.

All these macroeconomic conditions can and will impact the individual financial situation. That's when having a financial plan can provide solace and mental peace.

The financial plan can not only be built for normal conditions, but projections can also be made for several hypothetical situations beyond our control, such as
- What if there's a bear market for the next few years
- What if there's a bear market when one plans to retire
- What if the inflation remains high
- What if the markets grow at a smaller rate
- What if the social security benefits are lower

And many such others.

A financial planner like me can help to build financial plans considering all such hypothetical but possible scenarios and project how a family's financial situation will change and what mitigation actions may need to be taken if any of such conditions adversely impact.