The Missing Piece to Advisors’ End-Of-Year Planning Strategies

Christine Simone

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End-of-year planning is all about reviewing the past year’s performance and planning for next year. As you prepare for that planning and gather information to review 2023 and plan for 2024, don’t forget to include healthcare costs, the third-highest expense in retirement, and one of the top five highest expenses for the average American adult. Healthcare costs also impact taxes, and with tax season quickly approaching, now is the time to prepare.

In this article, I'll share the impact healthcare costs have on financial plans, the critical healthcare information to include (such as medical tax deductions and IRMAA), how to budget for costs in a world of variables (there’s no such thing as a planned healthcare crisis), and tangible strategies to implement during open enrollment and beyond to ensure clients are on the optimal coverage.

Why should you care about healthcare costs?

As a financial advisor, it is imperative to include the high expense of health care in financial plans. But aside from cost savings, helping clients plan for healthcare costs differentiates you as an advisor in a competitive and crowded industry, and ensures clients come to you first as a trusted expert in all areas of their lives. Consider that 65% of clients surveyed expected health insurance guidance from their advisor, but only 4% received it. Offering healthcare planning makes you stand out as part of that 4%.

Helping clients plan for healthcare costs creates a more accurate financial plan, helps you attract new clients, and improves satisfaction among current clients.

How can you include healthcare planning in your end-of-year planning strategies?