PLANADVISER - July/August 2022 - 13

Johnson, an assistant professor at the College for Financial Planning and a part-time
instructor at UCLA, Boston University and Kaplan University, advises clients to lower this
income before they turn 65. He suggests using tax-advantaged planning such as taking
earnings out of a brokerage account instead of an IRA to receive the lower tax rate.
" [That] money is taxed at capital gains rates, " Johnson explains. " A common strategy
is to liquidate stocks that have a higher cost basis, [to minimize] capital gains tax. "
He says this kind of tax planning should also be considered as retirees approach 65-
when they become eligible for Medicare-to keep the cost of their premiums down. He
notes that the government looks at a retiree's modified adjusted gross income from two
years before the person turns 65, to determine Medicare Part B premiums.
For those who qualify for cost-sharing reductions, the amount saved on out-of-pocket
costs ultimately depends on their specific income estimate. Generally, the lower the
income within the range, the more they will save.
Short-Term Solutions
Short-term medical plans can also be a more affordable option for those who retire before
becoming eligible for Medicare, or who have enrolled in insurance yet to take effect, says
Jeff Smedsrud, co-founder of Healthcare.com.
Because short-term medical plans fall outside of the Affordable Care Act, they are
not restricted by an open enrollment period and may be signed up for any time of the
year. However, this also means they are not required to cover preexisting conditions or
to include the 10 essential benefits that the ACA stipulates. Therefore, this is likely a
better option for those who are healthy. Wherever the retiree's insurance comes from,
Smedsrud says, what is important is being insured. -Ed McCarthy
talking points
Do You Want to Live to 100?
Gen Z
72%
Millennials
74%
Gen X
67%
Boomers
62%
Silent Gen
74%
The main reason people gave for wanting to join the
centenarian club was to spend more time with family and
friends. Some said they'd turn down living that long if
they had to suffer terrible health.
Source: Edward Jones/Age Wave/The Harris Poll, " Longevity and the New Journey of Retirement "
Back to Work
In May, after rising steadily since January, the rate of
unretirement-a return to the workforce among those
who had reported being retired-reached its highest
level in more than a decade.
Source: The New School Schwartz Center for Economic Policy Analysis, " Older Workers Report "
ON THE MOVE
➜ Julija Kod joined
Wilshire as senior vice
president of the institutional
client solutions
team.
➜ Daniel Yem joined
J.P. Morgan Asset
Management as a
senior investment
specialist to support
the firm's retirement
solutions team.
➜ OneAmerica
hired Barbara Lewis
as head of business
development, a new
retirement services
leadership position.
➜ Lockton appointed
M. Machua Millett as
chief innovation officer
and alternative investment
practice leader
within its Lockton
Financial Services unit.
➜ Morgan Stanley
at Work acquired
American Financial
Systems, a provider of
nonqualified executive
benefit plan solutions
and services.
➜ Lincoln Financial
Group appointed
Amber Williams, senior
vice president and
head of client investment
strategies, as
the firm's chief sustainability
officer.
planadviser.com July-August 2022 | 13
➜

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PLANADVISER - July/August 2022

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