Preparing for Health Care Costs when Young???

[Good_Life]

OK I'm a long ways off from retiring, (only 29). I'm maxing out my 403b and Roth IRA, and putting a little into a 529 every month. Of course one of the biggest uncertainties and especially at my age is health care costs after retirement.

My question is what can I really do when I'm 29 to prepare for it?

I would love to contribute to an HSA but (from what I understand) I can't because my employer gives me 100% coverage on a very low deductible health care plan and does not offer an HSA. This is great, but I'm essentially just using my very expensive premiums that are shown as a benefit on my pay stub to support all the more at risk demographics within the health plan. This should work fine if my employer continues to offer 100% coverage and I stay with them until I retire (two very big ifs).

It seems this just leaves me with a few options:

1. Eat right
2. Stay active an exercise
3. Get checkups
4. Continue to try to save into my taxable accounts to eventually save for this significant cost in retirement.

Am I missing something? Is there anything else I can do to prepare?

 

[MichaelB]

Sounds like a good plan to me.

 

[marko]

After you've done all the things on that list, don't forget to have some fun.

You're 29 years old for cry-eye! Seems like you're working for a good company.

Don't end up being 55 years old, retired with another list: "wish I had done....X" (gone to Paris, skied the Rockies, swam in Hawaii, etc etc)

 

[seabourne]

I think that what you have listed is about the best you can do at this point. Taxable savings is probably the best means you have at the moment to prepare for future medical costs. Without getting into the politics of it, the next 6 months or so should provide a bit more clarity of what is going to change in healthcare for the next few years, which may have a major impact for those of us intending to retire young.

Unrestricted money is always going to be a strong choice, and until the system stabilizes, trying to do anything else more tailored to prospective law probably is more risk than benefit.

 

[Good_Life]

Thanks Marko, I have to keep remembering that. I kind of get on these kicks where I get obsessed by something and dive into it really deeply. Right now thats retirement planning, last year it was fruit trees... For what its worth and somewhat coincidentally I did swim in Kauai in June!

Thanks for the advice everyone

 

[marko]

Thanks Marko, I have to keep remembering that. I kind of get on these kicks where I get obsessed by something and dive into it really deeply. Right now thats retirement planning, last year it was fruit trees... For what its worth and somewhat coincidentally I did swim in Kauai in June!

Thanks for the advice everyone

I'd give a million bucks (really!) to be 29 again.

 

[NYEXPAT]

I'd give a million bucks (really!) to be 29 again.

"Your only as old as the girl your feeling", which at current rates in your neck of the woods, means you could theoretically be 29 for the next 20 years!

 

[YoungSaver]

I just try to eat somewhat healthy and exercise often. That doesn't mean grilled chicken and steamed veggies everyday, but I try to pick the healthier options when available.

 

[photoguy]

Research your family's medical history so you have an idea of what you might be susceptible later in life.

 

[Stress-Free Retirement]

It sounds like you are an employee and not a business owner. DO you have a spouse that is a business owner? I'm not suggesting this but does your employer offer LTC group coverage?

If I was 29 again, I'd be more worried about long term disability coverage (to replace your income) than future medical costs.

How much spare cash (above the 401K) do you have to work with to meet your financial goals each month?

But it sounds like you got you ducks in a row more than most people in their 30's!
mark