We have many choices on how to pay our bills today. These include paying by check, electronic transfer, online bill pay and auto drafts. Many of us use a combination of methods to make sure that our bills get paid on time.
Let’s review the methods to pay bills and the pros and cons for each method.
1. Pay by Check
This method is simple and easy to understand. You can control the process and timing of payment. On the other hand, writing checks is time-consuming and the cost of postage is always increasing. Also, money does not come out of your bank account right away, sometimes leading you to believe you have more money in the account than you do.
A common misconception is that once you retire and go on Medicare, your health care will be free. Unfortunately, this is not true!
Health care expenses are one of the largest expenses for retirees and tend to increase as we age. According to Fidelity Retiree Health Care Cost Estimate, an average 65-year-old couple retiring in 2018 will need approximately $280,000 to cover health care and medical expenses during retirement. Please note that this depends on when and where you retire, how healthy you are, and how long you live.
What is the best way to reduce health care expenses in retirement? First, eat healthy and exercise regularly. Second, save during your working years. Third, plan for it! A good way to plan for your health care expenses is to review your current health insurance during open enrollment. Open enrollment is the period from 10/15/2018-12/7/2018. During open enrollment, you can make changes to your Medicare coverage.