• Question
  • Should Expenses include Medicare Supplemental Insurance cost?

    Asked by a 68 year old man from Phoenix, AZ on 6/27/2016

    When estimating the Expenses in the Retirement Calculator should monthly cost of Medicare Supplemental insurance be included in the number?

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  • Categories: Retirement Planning, Retirement Calculators

Answers

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  • Good Afternoon,

    Great question! The NewRetirement calculations are based primarily on cash flow. You will get the most accurate results from the "Calculator" if the input is as close to actual as possible. If you are using the gross benefits (the amount before any reductions) from Social Security as the "Social Security Benefit Amount,' then you should include any reductions from that amount as expenses. If you are including only the amount of the checks you receive, then the Supplemental Insurance Cost has already been taken into account and you should not include it as an expense.

    I hope that is helpful.

    Lynn Henley

  • Login to rate this answer:   Answered on 6/27/2016
  • Steve 

    Steve 
    NewRetirement

    San Francisco, CA

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  • Yes you should include your monthly cost of Medicare Supplemental Insurance in the expense estimate (assuming that you have not deducted this cost anywhere else).

  • Login to rate this answer:   Answered on 6/29/2016
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.