Boosting Sales in Medicare Through Consultant Advice
In the ever-evolving world of financial planning, a promising opportunity has emerged for financial professionals to create a sustainable and renewable income stream: integrating Medicare services into comprehensive retirement strategies.
This approach, championed by financial advisers and business owners featured in the Kiplinger Building Wealth program, offers a wealth of opportunities for both clients and professionals alike. The programme, which does not charge for inclusion, showcases experts from around the globe who share insights on retirement, estate planning, and tax strategies to preserve and grow wealth.
One such company leading the charge is AE Medicare Solutions, who launched its Medicare Solutions division in 2019. Since then, producers have earned over $15 million in commissions and renewals solely from Medicare in 2024. AE Medicare Solutions provides valuable tools to help financial professionals host "Medicare 101" seminars, offering presentation decks, speaker notes, and guidance on trusted vendors for invites.
By advising clients on managing Medicare-related costs, financial professionals can protect retirement savings. This involves evaluating Medicare plan options, such as Original Medicare plus Part D and Medigap versus Medicare Advantage, to ensure clients maintain access to needed care while avoiding costly gaps.
Tax efficiency is another crucial aspect. Since Medicare Part B and D premiums can be affected by modified adjusted gross income (MAGI), professionals can structure clients’ withdrawals and investments to keep MAGI low, reducing income-related monthly adjustment amounts (IRMAA). Techniques include Roth IRA conversions for tax-free withdrawals and favouring income sources exempt from MAGI increases like municipal bonds or qualified dividends from utilities.
Portfolio diversification is also key. Incorporating dividend-paying utilities with predictable yields and exposure to healthcare sector ETFs can provide steady income, hedge against rising medical costs, and support growth potential. Treasury Inflation-Protected Securities (TIPS) also help maintain purchasing power in retirement.
Staying current on Medicare policy changes and legislative updates is essential to maximise client benefits and minimise costs or penalties. Regular reviews during the Annual Enrollment Period ensure clients maintain optimal coverage aligned with their long-term financial and health goals.
The opportunity to help clients and prospects with Medicare decisions is particularly attractive for financial professionals due to the nature of renewal commissions. Offering Medicare services to an existing client base can be a natural extension of financial services. While it is not possible to get rich overnight offering Medicare to clients, with the right strategy and patience, wealth can be built over time.
A "Medicare Checkup" or "Medicare Review" service can help ensure clients are in the right plan based on changes in their health or financial situation. By combining Medicare expertise with strategic tax and investment planning, financial professionals can develop personalised, renewable income streams that protect retirees from healthcare-driven financial shocks and support sustainable retirement income. Engaging licensed Medicare agents or specialized planners enhances this expertise and client value.
- By integrating health-and-wellness aspects like Medicare services into their comprehensive retirement strategies, financial professionals can provide a valuable service to their clients, ensuring they maintain access to needed care and protect retirement savings from costly gaps, all while building a renewable income stream.
- In the realm of finance and business, offering Medicare services can be a natural extension for financial professionals, especially considering the potential for long-term wealth-building through renewal commissions and the ability to develop personalized, sustainable retirement income streams that are supported by Medicare expertise, strategic tax planning, and investment strategies.
