Good Health is the Best Wealth

Good Health is the Best Wealth

Print Friendly, PDF & Email


This month’s employee memo encourages employees to make small lifestyle changes to reduce their out-of-pocket health costs. The memo shows the difference in savings between an average-managed patient and a well-managed patient. Download the memo from your Fiduciary Briefcase at fiduciarybriefcase.com. Please see an excerpt below.

Believe it or not, staying healthy just might make you wealthy. With small lifestyle changes and healthy choices, you may reduce your annual healthcare costs and increase your income. These lifestyle changes can be as simple as limiting your salt intake or taking your prescribed medication regularly.

For example:

Alisha
The average managed patient
-Blood pressure of 150/95
-Sometimes forgets medications
-Sometimes doesn’t follow
her suggested diet
-Occasional smoker and drinker
Jasmine
The well managed patient
-Takes prescribed medication
-Exercises 30 minutes/day, 5 days/week
-Moderate alcohol intake
-Chooses healthy fats
-Limits dietary salt
-Quit smoking


For purpose of the case study, Alisha and Jasmine are compared in two levels of care: average managed (loosely follows physician recommendations) and well managed (fully complies with physician recommendations).

Alisha and Jasmine are both 45 years old and both sought medical treatment for high blood pressure. Alisha doesn’t follow the lifestyle changes her doctor suggested, whereas Jasmine diligently follows her doctor’s recommendations. With Jasmine’s small changes she saves more than $1,000 in out-of-pocket healthcare costs. Additionally, Jasmine’s combined pre-retirement and in-retirement savings will be $89,456 more than Alisha, as shown in the table below.

Annual Out-of-Pocket Healthcare Costs:

 AlishaJasmineJasmine’s Savings in Health Expenditures
Age 45$2,477$1,286$1,192
Age 64$13,936$7,343$6,592
Total Pre-Retirement$138,288$72,591$65,697
Total In Retirement$51,790$28,031$23,759
Grand Total$190,078$100,622$89,456
For illustrative purposes only.

For illustrative purposes only.

The hypothetical case study results are for illustrative purposes only and should not be deemed a representation of past or future results. This example does not represent any specific product, nor does it reflect sales charges or other expenses that may be required for some investments. No representation is made as to the accurateness of the analysis.

For more tips on preparing for healthcare costs, contact your plan’s financial professional.

Print Friendly, PDF & Email


Related Posts

Online Security Tips From The Department Of Labor

Online Security Tips From The Department Of Labor

You can reduce the risk of fraud and loss to your retirement account by following these basic rules: REGISTER, SET UP AND ROUTINELY MONITOR YOUR ONLINE ACCOUNTMaintaining online access to your retirement account allows you to protect and manage your...

Need a Tax Break?

Need a Tax Break?

You may be eligible for a valuable incentive, which could reduce your federal income tax liability, for contributing to your company’s 401(k) or 403(b) plan. If you qualify, you may receive a Tax Saver’s Credit of up to $1,000 ($2,000 for married couples filing...

PLANNING FINANCIAL FUTURES

PLANNING FINANCIAL FUTURES

Do you spend more time planning your annual vacation than you do thinking about your personal finances? If so, you’re not alone. A lot of people put off financial planning or avoid it altogether. Personal financial planning is an ongoing, lifelong process. If we break...

Share

Share this post.