South Florida Hospital News
Wednesday August 15, 2018

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February 2018 - Volume 14 - Issue 8




Vital Financial Can Help with Retirement Planning

Hurricane Irma caused widespread destruction across Florida and other parts of the country last fall. IRMAA, on the other hand, is not a hurricane, but can also result in catastrophic damage, according to Jorge González.

González is managing director of the Boca Raton office of Vital Financial, a company that specializes in financial planning, life insurance, and retirement plans. He said IRMAA stands for Income Related to the Monthly Adjusted Amount, and it is mainly relevant to people who have higher annual earnings; it is an additional amount that people pay for their monthly Medicare Part D prescription drug plan premiums and monthly Medicare Part B (out-patient or doctor visit coverage) premiums, and is related to their earnings.
He explained that Level 1 of IRMAA is based on up to $85,000 retirement income a year for individuals, or $170,000 per family. But if that income in any given month goes above that figure by even $1, the IRMAA bracket will jump to Level 2, which is $85,001 to $107,000 for individuals, or $170,001 to $214,000 for families.
Therefore, that $1 could cause you to pay as much as 60 percent more than when you were only earning the minimum amount. And if your income would increase to Levels 3 or 4 or 5 (the range for Level 5 is greater than $214,000 for individuals, or greater than $428,000 for families), your costs could increase as much as 360 percent. González, and Vital Financial, can help you avoid having that happen.
González said the firm specializes in Medicare Means Testing, or the idea that requires higher-income beneficiaries to pay more of Medicare's costs. "We are not selling Medicare," he emphasized, "we just bring an awareness to the public about the mandatory expense that every American needs to pay when they retire – when they reach age 65 – which is not only the cost of Medicare, but the rising cost of health care as well."
He went on to say that while people may have a CPA or an attorney or a financial advisor with whom they can discuss the subject, "nobody really knows how to address the issue. Without proper planning, it will eat up roughly 60 percent to 70 percent of your retirement savings."
González used as an example a healthy couple that is 60 years of age, and who wants to retire in five or six years when they will be eligible for Medicare. Together they can expect to pay close to half a million dollars, but only if they remain at the basic income level. Without any planning, they could pay up to 360 percent.
He then pointed to himself and his wife, saying, "I am 52 years of age, and my wife and I want to retire at 65. My number, without doing any planning, is actually $941,000." But González' group has done the research on how to address the problem, and he went on, "If we do the proper planning and go through the program, putting the money in places that would remain earmarked for the Social Security tax benefit calculation, I can reduce my liability by about $500,000."
González said the firm has always specialized in working within the health care industry, "because we are in the industry and we know the information." However, the company is expanding its service to include many additional industries, because otherwise, everybody who is currently earning an income and looking forward to getting Social Security income, could be facing a very expensive retirement without the proper planning.
"Our target is to talk to high-income earners, business owners, when they're in their 40s or 50s. We can help them to plan by doing an asset allocation, so that they would be able to enjoy the same level of income without having to incur the ravaging effects of paying too much for Medicare."
According to González, approximately 10,000 people retire in this country every day. No matter how good their financial advisor or CPA is, they would not be able to handle the situation because the solutions are very, very few, and there are very few financial institutions, insurance companies, and investment companies that know how to address the problem. That's why Vital Financial is trying to spread the word about its services.
"The more people we can educate that they have a problem, we'll be in a situation to help them. What people don't know about retirement can really hurt them, and unfortunately, people rarely talk about it or try to address it until it's too late."

For more information, contact Jorge González at or call (954) 736-9098.

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