How-To: Individual Health Insurance Errors Can Be VERY Costly

In this video:

a. See how expensive errors can be when selecting individual health insurance
b. GH2 Unfiltered free segment: Bitcoin at $57,000, now what?
c. Medicare ABCs presentations are in full swing

In this video: Real-life examples, these come across to me very frequently.

Client intends to open a Roth IRA account. Her income is 30,000 but has savings, enough to contribute the maximum towards a Roth or a traditional IRA. If she had chosen a traditional IRA, she would’ve saved over $1000 on her health insurance premium in 2021. If she chooses a Roth IRA, she can get future tax benefits (since capital gains, dividends and interest are not taxable later, however, the clients needs to be at least 59 1/2 and the account needs to be 5 years old). Given that she has an income of 30,000, the extra $1000 due to lower health insurance premiums? That is very much worth considering.

That is an individual’s choice. Not knowing the interaction exists? There is a reason for that, i.e. advisor don’t know, and some even take pride, in knowing anything about health insurance. Except now, it involves taxes, because the health insurance subsidy is actually a tax credit.

This is going to be complicated, especially in light of possible income tax and capital gains hikes.