June, 20th 2016 | By: Ellie Harriett
Here’s the scenario: your client, turning 65 this year, is going to retire on his birthday. He’s been making a comfortable living; he and his wife together have an annual income of a little more than $400,000. But now that they are retiring, it is time to put the financial plan you’ve been preparing with them for the last 10 years into effect.
They prepare to shift their income stream away from work income to investment income. Their earned income is expected to drop down to $50,000 or less. But as your client and his wife enroll in Medicare, they get a letter from Social Security stating that they made over $400,000 two years ago, and as a result their Medicare part B premium will be increased from the planned-on $121.80 to a whopping $389.80! This is neither a joke nor a mistake: Your client’s Medicare Part B premium just increased threefold because, two years ago, he and his wife earned more than the average American. For the rest of the article click here.